Chhattisgarh Aims for Pharma Leadership in Central India
Chhattisgarh officials announced on January 20 that the state is ramping up its push to become a top pharmaceutical and biotechnology hub in central India. They cite a high-incentive industrial policy, a dedicated pharma park at Nava Raipur, and expanding healthcare and manufacturing infrastructure as key drivers.
Incentives to Attract Major Investments
Rajat Kumar, Secretary of Industry for the Chhattisgarh government, stated their goal is to turn investment interest into timely action. "We have identified pharmaceuticals and biotechnology as priority sectors for industrial growth," Kumar explained. "Our incentive framework ensures investors recover a significant part of their capital while setting up globally competitive manufacturing operations."
The policy offers substantial capital grants based on investment size:
- Projects investing between ₹50 and ₹200 crore can receive grants up to ₹60 crore.
- Investments in the ₹200 to ₹500 crore range qualify for grants up to ₹150 crore.
- Projects exceeding ₹500 crore are eligible for grants up to ₹300 crore.
Additional benefits include a 100% exemption from electricity duty for 12 years, stamp duty exemption, registration charge relief, and 50% reimbursement for new electricity connections. Customized incentive packages are available for investments above ₹1,000 crore.
Key Infrastructure: The 142-Acre Pharma Park
A central element of this strategy is the 142-acre dedicated pharma park at Nava Raipur. Developers are creating it as a plug-and-play manufacturing cluster for formulations, APIs, contract research and manufacturing services, medical devices, and AYUSH products.
The park will feature common infrastructure like need-based water supply, effluent treatment plants, and solid waste management facilities under a public-private partnership framework.
Power and Talent Advantages
Chhattisgarh provides a significant cost edge with a power surplus exceeding 26,000 MW. Industrial power tariffs start at ₹6.65 per unit, and the 12-year electricity duty exemption ensures reliable, low-cost power for continuous pharma manufacturing.
The state also boasts a strong talent pool. Over 50,000 graduates enter the workforce yearly from institutions such as IIT, IIM, AIIMS, NIT, IIIT, and NLU. This is supported by more than 100 pharmacy colleges and 300 vocational training centers.
Policy Support and Recent Commitments
Pharmaceuticals and biotechnology are classified as thrust sectors under the Industrial Development Policy 2024–30. Eligible units can avail industrial investment incentives up to 100% of eligible fixed capital investment, including reimbursement of net State GST paid for up to 12 years, subject to limits. Alternatively, they can opt for fixed capital investment grants.
Government-backed training reimbursements help companies reduce initial hiring and skilling costs. The pharmaceutical manufacturing ecosystem is further strengthened by investments in healthcare and allied sectors. These include a planned 350-bed multispeciality hospital in Bastar and the upcoming Bombay Hospital.
Recent investment commitments from Shalby Hospitals for a multi-speciality hospital project and from Torrent Pharmaceuticals for pharmaceutical manufacturing will enhance healthcare delivery. They are expected to create sustained downstream demand for pharmaceuticals and medical devices.
Positioning as a Competitive Destination
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 time, the state has secured investment commitments worth ₹7.83 lakh crore across pharma, healthcare, and allied sectors.
