₹300-crore grants, plug-and-play park: How Chhattisgarh is wooing pharma, biotech investors

The Chhattisgarh government is stepping up efforts to position the state as a leading pharmaceutical and biotechnology hub in central India, officials said in a statement on 20 January. This, they said, is backed by a high-incentive industrial policy, a dedicated pharma park at Nava Raipur and expanding healthcare and manufacturing infrastructure in the state.

“Our objective is to convert investment intent into time-bound execution. We have identified pharmaceuticals and biotechnology as priority sectors for industrial growth, and our incentive framework is designed to ensure investors recover a significant part of their capital while establishing globally competitive manufacturing operations,” said Rajat Kumar, Secretary, Industry, Government of Chhattisgarh.

As per policy provisions, pharmaceutical projects with investments of ₹50–200 crore are eligible for capital grants of up to ₹60 crore, while projects in the ₹200–500 crore range are eligible for grants of up to ₹150 crore. Investments exceeding ₹500 crore are eligible for capital grants of up to ₹300 crore, a statement from the Chhattisgarh government said

Additional incentives include 100% exemption from electricity duty for 12 years, exemption from stamp duty, relief on registration charges and 50% reimbursement of charges for new electricity connections. Projects with investments of ₹1,000 crore or more are eligible for customised incentive packages.

142-acre dedicated pharma park

A key anchor for the sector is the 142-acre dedicated pharma park at Nava Raipur, which is being developed as a plug-and-play manufacturing cluster for formulations, APIs, contract research and manufacturing services, medical devices and AYUSH products. The park will be supported by common infrastructure, including need-based water supply, effluent treatment plants and solid waste management facilities under a PPP framework.

Power surplus of over 26,000 MW

Chhattisgarh offers a significant cost advantage, with a power surplus of over 26,000 MW, industrial power tariffs starting at ₹6.65 per unit, and 100% electricity duty exemption for 12 years, ensuring reliable, low-cost power for continuous pharma manufacturing operations. The state also offers a strong talent base, with over 50,000 graduates entering the workforce annually from institutions such as IITs, IIMs, AIIMS, NITs, IIITs and NLU, supported by over 100 pharmacy colleges and 300 vocational training centres.

"Pharmaceuticals and biotechnology have been classified as thrust sectors under the Industrial Development Policy 2024–30. Eligible units can avail industrial investment incentives of up to 100% of eligible fixed capital investment, including reimbursement of net State GST paid for up to 12 years, subject to prescribed limits or alternatively opt for fixed capital investment grants,” Kumar said.

Government-backed training reimbursements further help companies reduce initial hiring and skilling costs. The pharmaceutical manufacturing ecosystem is being complemented by investments in healthcare and allied sectors. These include a 350-bed multispeciality hospital planned in Bastar and the upcoming Bombay Hospital.

The state has also recently received investment commitments from Shalby Hospitals for a multi-speciality hospital project and from Torrent Pharmaceuticals for pharmaceutical manufacturing. These developments will strengthen healthcare delivery while creating sustained downstream demand for pharmaceuticals and medical devices, the statement said.

With its central location, lower logistics costs, reliable power availability and a single-window clearance mechanism, Chhattisgarh is positioning itself as a competitive manufacturing destination across sectors. In a short span, the state has garnered investment commitments worth ₹7.83 lakh crore across sectors, including pharma, healthcare and allied sectors, according to the statement.