Chhattisgarh Electricity Duty Exemption for New MSMEs
Department of Industries, Government of Chhattisgarh · Central government
New MSMEs receive a 100% electricity duty exemption for 5 to 10 years, varying by category and sector.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
Under the Chhattisgarh Industrial Development Policy 2024-30, new Micro, Small and Medium Enterprises (MSMEs) in the state can claim an exemption from electricity duty. The incentive waives the duty in full, which lowers running costs for units that qualify.
General and thrust sector industries are the focus, and the aim is to draw fresh manufacturing and service units to locations across Chhattisgarh. How long the exemption runs depends on the enterprise's category and the sector it belongs to, with the window lasting between 5 and 10 years.
By freeing up capital during the early years of commercial production, the measure allows new businesses to direct more funds towards their core operations, innovation and expansion.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Chhattisgarh
Eligibility conditions:
- The enterprise must be a new MSME. - The exemption applies from the date commercial production commences. - The exemption period is 5 to 10 years, determined by the enterprise category and sector (General or Thrust).
How to apply
1. Go through the official Chhattisgarh Industrial Development Policy 2024-30 to acquaint yourself with the full eligibility conditions that apply to new MSME enterprises. 2. Confirm that your enterprise is recognised as a 'new MSME' and that it belongs to one of the listed categories (Group 1, 2, or 3) as well as the applicable sectors (General or Thrust). 3. Assemble the complete set of documents required, which generally covers proof of incorporation, MSME registration, the certificate for commencement of commercial production, and any additional forms stipulated by the industrial department of the Chhattisgarh government. 4. File your application via the portal or office notified by the Chhattisgarh government, citing the pertinent section of the Industrial Development Policy. 5. Wait for the competent authority to process and approve the application; applicants who succeed will be issued confirmation of their electricity duty exemption.
How applications are assessed
Applications are examined by the Chhattisgarh government department that handles industrial incentives. Screening checks whether an applicant meets the conditions set out in the Chhattisgarh Industrial Development Policy 2024-30 for new MSME enterprises, with particular attention to confirming the start of commercial production and assigning the correct category and sector.
Assessment is administrative, not competitive. Applicants who satisfy the policy guidelines receive the benefit.
Frequently asked questions
Who is eligible for the Electricity Duty Exemption?
New MSMEs that begin commercial production in Chhattisgarh qualify for the scheme.
What is the duration of the exemption?
Exemption lasts 5 to 10 years, decided by the enterprise's category (Group 1, 2 or 3) and whether it falls in a General or Thrust sector — Group 1 in General Sector receives 5 years, Group 3 in Thrust Sector 10 years.
Is the exemption 100%?
Eligible enterprises are granted a full exemption from electricity duty, effective from the date commercial production begins.
How does this program benefit businesses?
By lowering what new MSMEs in Chhattisgarh must spend to operate, this exemption releases capital that can go into growth, innovation and job creation, which supports their viability and competitiveness over the long term.
Where can I find the official details of this policy?
Section 3 of the Chhattisgarh Industrial Development Policy 2024-30, which can be accessed through the Invest Chhattisgarh portal, contains the official details.
Sectors
- Msme
- Electricity
- Duty Exemption
- Chhattisgarh
- Industrial Development
Details last verified on 18 September 2026. Source: the issuer's published information.