Chhattisgarh Mandi Tax Exemption Scheme — ₹5 Cr Annual Tax Relief — Frequently Asked Questions

It is a subsidy offered by the Department of Industries, Government of Chhattisgarh under the state's Industrial Development Policy 2024-30. Rather than paying out a cheque, it waives the mandi tax a new industrial unit would otherwise owe on the agricultural produce it buys, which brings down raw material costs. Eligible new units can avail of it for five years.

The exemption covers 100% of the mandi tax, subject to a ceiling of ₹5 crore in any single year. Over the five-year term that comes to a headline maximum of ₹25 crore. A second cap matters just as much — total relief across five years cannot exceed 50% of the unit's Fixed Capital Investment, so a smaller plant gets a correspondingly smaller limit.

New units in agriculture and food processing, dairy product processing, non-timber forest produce processing, the compressed biogas (CBG) sector, and green hydrogen plants. Broadly, these are agro-linked processing activities and clean-fuel production.

The unit has to be a new enterprise — the incentive is aimed at fresh entrants rather than businesses that are already established — and it must be a legally registered business entity working in one of the notified sectors. Since the cumulative cap is tied to Fixed Capital Investment, the department also examines the unit's investment figures.

The scheme's published criteria do not list DPIIT recognition or MSME (Udyam) registration as a condition. What is required is that the applicant is a new, legally registered entity active in an eligible sector, with a verifiable Fixed Capital Investment.

No. It is a subsidy delivered as a tax exemption, so there is no equity dilution, nothing to repay and no interest. The benefit appears as a lower tax outgo rather than as money received.

From the date of the unit's first purchase of raw materials — whether from State mandis, directly from producing farmers, or from other eligible units. The clock does not start at incorporation or at the date of application.

There is no fixed deadline. The scheme runs on a rolling basis under the Industrial Development Policy 2024-30, so eligible new enterprises can apply as they establish and begin operations, subject to the policy's own effective period.

At the application stage: proof of company incorporation, details of Fixed Capital Investment, and records or projections of raw material purchases. For each subsequent claim you will need purchase invoices and other supporting documentation, which state authorities verify.

Registration and applications run through the state's single-window portal at https://swsportal.cgstate.gov.in/login/. After the department screens the application for eligibility and reviews the sector and FCI details — sometimes with an on-site inspection — the unit files periodic claims supported by invoices, which are verified before the exemption is granted.

Chhattisgarh Mandi Tax Exemption Scheme — ₹5 Cr Annual Tax Relief is offered by Department of Industries, Government of Chhattisgarh, a government body. It is provided as non-dilutive funding.