CG Land Diversion Fee Exemption — 50% Waiver for MSEs up to 15 Acres
A Chhattisgarh subsidy that waives half of the land diversion charge for micro and small enterprises converting up to 15 acres of land to industrial use, under the Industrial Development Policy 2024-30.
- Funding amount
- Varies by program
- Funding type
- Subsidy
- Provider
- Department of Industries, Government of Chhattisgarh (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Department of Industries, Government of Chhattisgarh runs this incentive as part of the Chhattisgarh Industrial Development Policy 2024-30. Its purpose is straightforward: when a micro or small industrial unit needs land converted for industrial use, the state absorbs half of the diversion charge that would otherwise become payable.
That charge is a real cost for a small manufacturer. It sits alongside the price of the plot, the site development work and the machinery, and it lands at the very start of a project when cash is tightest. Waiving half of it, for plots of up to 15 acres, lowers the entry cost for new units and makes capacity expansion easier for those already operating in the state.
The concession is delivered as a fee reduction rather than as a cash transfer or a credit facility. Nothing is repaid, no interest accrues, and the state takes no ownership stake in the business.
Support of this kind also has a regulatory dimension. Clearer, lower-cost land conversion helps a micro or small enterprise move from application to a working industrial site with fewer financial hurdles, which is exactly what the state policy sets out to achieve.
Highlights
- Half the land diversion fee waived on land diverted for industrial use
- Covers land up to a maximum of 15 acres
- Reserved for Micro and Small Enterprises that meet MSME classification criteria
- Offered under the Chhattisgarh Industrial Development Policy 2024-30
- A fee waiver, not a loan — nothing to repay and no equity given up
- Rolling applications, with no fixed closing date
Who can apply
Two things decide eligibility: the size of the enterprise and what the land is being used for.
- Enterprise size: only Micro and Small Enterprises (MSEs) are covered. To be treated as micro or small, a unit has to satisfy the official MSME classification criteria.
- Land use: the land must be diverted for industrial purposes — a factory, a manufacturing unit or a comparable industrial establishment.
- Area ceiling: the concession applies to a maximum of 15 acres. Land beyond that limit does not attract the benefit.
- Location: the unit and the land must be in Chhattisgarh, because the incentive flows from the state's own industrial policy.
Units that do not fall within the micro or small category, and land being diverted for non-industrial purposes, sit outside this particular incentive.
CG Land Diversion Fee Exemption — 50% Waiver for MSEs up to 15 Acres is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
CG Land Diversion Fee Exemption — 50% Waiver for MSEs up to 15 Acres accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
Eligible enterprises pay only half the land diversion fee on land diverted for industrial use. The remaining half is effectively borne by the state.
- Value: the rupee amount varies from case to case, because the exemption is calculated from the fee that would have applied. A larger eligible holding means a larger saving.
- Ceiling: the relief covers industrial land of up to 15 acres.
- No repayment: the support is a fee waiver, not a loan. There is nothing to return and no interest to service.
- No dilution: the state does not take a stake in the enterprise in return for the concession.
- Practical effect: removing half of an upfront statutory charge reduces the capital an MSE has to arrange before it can set up or expand an industrial unit, and it comes with the administrative support that goes with processing the concession through the state's industrial machinery.
About the provider
CG Land Diversion Fee Exemption — 50% Waiver for MSEs up to 15 Acres is offered by Department of Industries, Government of Chhattisgarh, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.
Documents you’ll need
Before you apply to CG Land Diversion Fee Exemption — 50% Waiver for MSEs up to 15 Acres, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Frequently asked questions
How much money does this exemption actually save?
It covers 50% of the land diversion fee on the land you are converting for industrial use. Because the fee itself depends on the plot involved, the rupee figure is not fixed — the benefit works out to half of whatever that charge would have been, for land of up to 15 acres.
Which businesses qualify for the concession?
Micro and Small Enterprises. A unit needs to satisfy the official MSME classification criteria for micro or small, and the land in question has to be in Chhattisgarh and earmarked for industrial use. Medium and large businesses do not fall within this incentive.
What is the upper limit on land covered?
15 acres. Within that ceiling, half of the diversion charge is waived. Land beyond it does not attract the exemption.
What counts as an industrial purpose?
Factories, manufacturing units and similar industrial establishments as defined in the state's industrial policy. Land diverted for other kinds of use does not attract the concession.
Is this a grant, a loan or something else?
Neither. It is a subsidy delivered in the form of a fee exemption — the state forgoes half of a charge that would otherwise be payable. Nothing is handed over as a grant, nothing is borrowed, and nothing has to be repaid afterwards.
Does the government take equity in my company?
No. The benefit is a waiver of a statutory land diversion charge, so the state receives no shares, no stake and no ownership in the enterprise in exchange.
Is there a last date to apply?
There is no fixed closing date. The incentive operates on a rolling basis while the Chhattisgarh Industrial Development Policy 2024-30 remains in force, so an enterprise can apply as and when its land conversion comes up.
How and where do I apply?
Applications are routed through the state's industrial channels, with the process set out in the Chhattisgarh Industrial Development Policy 2024-30 and submissions generally made to the designated state industrial department. The state's single window portal at https://swsportal.cgstate.gov.in/login/ is the online entry point.
What documents will I need to submit?
Typically proof of MSME status, details of the land proposed for industrial use, and evidence that the land will serve an industrial purpose. Approval then follows the guidelines laid down in the policy.
Can an existing unit use this, or is it only for new projects?
Both are covered. The policy is designed to encourage fresh investment in the state as well as capacity expansion by MSEs that are already running, so an existing micro or small unit adding industrial land can claim the same concession.
Is DPIIT recognition required for CG Land Diversion Fee Exemption — 50% Waiver for MSEs up to 15 Acres?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for CG Land Diversion Fee Exemption — 50% Waiver for MSEs up to 15 Acres, though having it can strengthen your application and unlock other benefits.
Who is eligible to apply for CG Land Diversion Fee Exemption — 50% Waiver for MSEs up to 15 Acres?
CG Land Diversion Fee Exemption — 50% Waiver for MSEs up to 15 Acres is open to startups at any stage. It is open to startups registered anywhere in India.
Who offers CG Land Diversion Fee Exemption — 50% Waiver for MSEs up to 15 Acres?
CG Land Diversion Fee Exemption — 50% Waiver for MSEs up to 15 Acres is offered by Department of Industries, Government of Chhattisgarh, a government body. It is provided as non-dilutive funding.
How do I apply for CG Land Diversion Fee Exemption — 50% Waiver for MSEs up to 15 Acres?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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