CG Land Diversion Fee Exemption — 50% Waiver for MSEs up to 15 Acres — Frequently Asked Questions
Answers to the questions founders most often ask about CG Land Diversion Fee Exemption — 50% Waiver for MSEs up to 15 Acres — who qualifies, the funding amount, required documents and how the application works.
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?
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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