Chhattisgarh Mandi Tax Exemption Scheme
By Department of Industries, Government of Chhattisgarh
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Quick Answer
New units in agriculture, food processing, dairy, non-timber forest produce, CBG and green hydrogen get 100% mandi tax exemption for 5 years, up to ₹5 crore a year.
- Funding amount
- Up to ₹25Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Chhattisgarh
About this subsidy
New units in agriculture and food processing, dairy product processing, non-timber forest produce processing, compressed biogas (CBG) and green hydrogen plants get a 100% exemption from mandi tax on agricultural products. It is an incentive under the Chhattisgarh Industrial Development Policy 2024-30.
The exemption runs for 5 years from the unit's first purchase of raw materials from State mandis, direct producing farmers or other eligible units. It is capped at ₹5.00 Crore per year, and the total over the 5 years cannot exceed 50% of the unit's Fixed Capital Investment (FCI).
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Benefits & Funding
- Amount
- Up to ₹25Cr
What You Get
New enterprises are eligible for a 100% exemption from mandi tax imposed on agricultural products for a period of 5 years, starting from the date of their first purchase of raw materials from State mandis, direct producing farmers, or other eligible units. This exemption is subject to a maximum limit of ₹5.00 Crore per year. Furthermore, the total cumulative exemption limit over the 5-year period will not exceed 50% of the Fixed Capital Investment (FCI) made by the unit. This significant financial incentive reduces input costs, thereby improving the profitability and sustainability of eligible businesses.
- Disbursement
- Reimbursement
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The eligibility determination process for the Mandi Tax Exemption Scheme primarily involves a thorough review by the relevant state government department. Applications are assessed against specific criteria outlined in the Chhattisgarh Industrial Development Policy 2024-30. Key aspects considered include the applicant's status as a 'new enterprise,' its operational sector (must be one of the specified eligible industries), and verification of its Fixed Capital Investment (FCI). The process often involves a detailed documentation review, and in some cases, an on-site inspection may be conducted to confirm the nature of operations, raw material procurement practices, and overall compliance with the policy's guidelines. The goal is to ensure that only genuinely eligible units receive the benefit of the tax exemption.
Application Process
- 1
Submit Application
Applicant registers new enterprise and submits an application form with supporting documents to the designated state department.
You - 2
- 3
- 4
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the Chhattisgarh Mandi Tax Exemption Scheme?
It is a key incentive under the Chhattisgarh Industrial Development Policy 2024-30, designed to provide 100% exemption from mandi tax on agricultural products for eligible new enterprises in specific industrial sectors within Chhattisgarh.
Which sectors and types of enterprises are eligible for this exemption?
New enterprises in agriculture and food processing, dairy product processing, non-timber forest produce processing, the compressed biogas (CBG) sector, and green hydrogen plants are eligible. The benefit is for legally registered business entities.
What is the maximum financial benefit a company can receive?
Eligible enterprises can receive a 100% exemption from mandi tax, with an annual cap of ₹5.00 Crore. This benefit is available for 5 years, and the total cumulative exemption cannot exceed 50% of the unit's Fixed Capital Investment.
What kind of funding mechanism is this program?
This program is a subsidy provided through a tax exemption, meaning it directly reduces the tax burden on businesses rather than providing a direct cash grant or a repayable loan. It is an equity-free incentive.
How long is the period for which the exemption is applicable?
The exemption is granted for a duration of 5 years, starting from the date the new enterprise makes its first purchase of raw materials from State mandis, direct producing farmers, or other eligible units.
Are there any specific application deadlines for this scheme?
As an incentive under an ongoing industrial policy, this scheme operates on a rolling basis. There are no fixed application deadlines; eligible new enterprises can apply as they establish and commence operations, subject to the policy's effective period.
