Chhattisgarh Launches ₹300-Crore Grant Scheme to Attract Pharma and Biotech Investments

Chhattisgarh government announced on January 20 a comprehensive strategy to establish the state as a premier pharmaceutical and biotechnology destination in central India. The initiative centers on high-incentive industrial policies, dedicated infrastructure development, and substantial financial support designed to attract global pharmaceutical manufacturers.

Capital Grant Structure and Investment Incentives

The state's Industrial Development Policy 2024-30 offers tiered capital grants based on investment scale, providing significant financial support to pharmaceutical projects across different investment categories.

Rajat Kumar, Secretary of Industry, Government of Chhattisgarh, emphasized the policy's focus on converting investment intent into time-bound execution. The framework ensures investors can recover a significant portion of their capital while establishing globally competitive manufacturing operations.

Additional incentives include 100 percent exemption from electricity duty for 12 years, complete exemption from stamp duty, relief on registration charges, and 50 percent reimbursement of charges for new electricity connections.

Dedicated Pharmaceutical Manufacturing Hub

The centerpiece of Chhattisgarh's pharmaceutical strategy is a 142-acre dedicated pharma park at Nava Raipur, developed as a comprehensive plug-and-play manufacturing cluster. The facility is designed to accommodate diverse pharmaceutical operations including formulations, APIs, contract research and manufacturing services, medical devices, and AYUSH products.

The park features integrated common infrastructure developed under a PPP framework, including:

• Need-based water supply systems
• Effluent treatment plants
• Solid waste management facilities
• Ready-to-use manufacturing spaces

Competitive Operational Advantages

Chhattisgarh offers substantial cost advantages for pharmaceutical manufacturing through its robust power infrastructure and competitive pricing structure.

The state's educational ecosystem supports pharmaceutical manufacturing with over 50,000 graduates entering the workforce annually from premier institutions including IIT, IIM, AIIMS, NIT, IIIT, and NLU. This talent pool is further strengthened by over 100 pharmacy colleges and 300 vocational training centres providing specialized pharmaceutical education and skills development.

Healthcare Infrastructure Development

The pharmaceutical manufacturing ecosystem is being complemented by significant investments in healthcare infrastructure. Current developments include a 350-bed multispeciality hospital planned in Bastar and the upcoming Bombay Hospital project. The state has secured investment commitments from Shalby Hospitals for a multi-speciality hospital project and from Torrent Pharmaceuticals for pharmaceutical manufacturing operations.

Under the Industrial Development Policy 2024-30, eligible pharmaceutical units can avail industrial investment incentives of up to 100 percent of eligible fixed capital investment, including reimbursement of net State GST paid for up to 12 years, subject to prescribed limits. Government-backed training reimbursements further reduce initial hiring and skilling costs for companies.

Investment Success and Strategic Positioning

Chhattisgarh's strategic advantages include its central location, lower logistics costs, reliable power availability, and single-window clearance mechanism, positioning it as a competitive manufacturing destination. The state has garnered investment commitments worth ₹7.83 lakh crore across sectors including pharmaceuticals, healthcare, and allied sectors, demonstrating strong investor confidence in the comprehensive policy framework.