Entrepreneurship Ecosystem Overview

Chhattisgarh

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Levers of change – Entrepreneurship

Following are the key levers of change which determinewhether a state’s policy, education, legal framework, financialsystems, business markets, cultural and social ethos areaugmenting Entrepreneurship Growth:

1. The Entrepreneur

2. Govt. & Regulatory Support

3. Access to Finance

4. Educational & Cultural Preparedness

5. Mentoring & Networking

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The Entrepreneur

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Chhattisgarh ranks #4 in India on World Bank’s ‘Ease of Doing

Business’ 2016 index according to the Department of Industrial Policy andPromotion's (DIPP).

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Govt. & Regulatory Support

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Schemes & Policies:

• Chhattisgarh Industrial Policy 2014-2019• Agro & Food Processing Industries Policy -2012

Govt. Regulatory Bodies:

• MSME Development Institute-Raipur• Dept. of Industries, Chhattisgarh• Chhattisgarh State Industrial Development Corporation (CSIDC)• State Investment Promotion Board

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Chhattisgarh Industrial Policy 2014-2019

• The main aim of the policy is to bring the state at par with developedindustrial states of India and to promote manufacturing sector withinthe state. The policy is designed to promote entrepreneurship andlivelihood opportunities.

• Reducing and simplifying the number of application forms and otherrequired documents as much as possible, Simplification of the processof issuing permit, approval, acceptance etc through Ease of DoingBusiness.

• Effective marketing assistance is to be given to SMEs under the policy.

• Single Window Clearance System has been created both at the state aswell as at the central level.

• To simplify the procedures of Industrial Investment/Development,departmental officers are to be nominated as ‘Udyog Mitra’ who aregoing to provide full support and guidance in securing the benefits ofthe schemes.

https://industries.cg.gov.in/pdf/policy2014-19/Industrial%20Policy%202014-19%20Translated%2012Feb2016.pdf

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Agro & Food Processing Industries Policy -2012

• The policy will benefit agri-entrepreneurs in the generation of newopportunities of employment in the agro and food processing sector bythe following measures:

• Provision of the secured storage for Agriculture produce, Pulses &Oilseeds and Fruits & Vegetables etc. in the State.

• Ensure better price of agriculture produce to the farmers of the State.

• Reduction in cost of production of the agro and food processing productsand to make its marketing easy.

• Entrepreneurship Development and Skill Development programmes shallbe organized in the field of Food Processing.

• To ensure the establishment of Cold storage, Cold chain and warehouse atdistrict and tehsil level, so that farmers get the suitable price ofhorticulture crops.

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Chhattisgarh Innovation and Entrepreneurship Development Policy

• Under the action plan for this policy, govt. is establishing Incubators andAccelerators in the State to handhold at least 100 ventures.

• Start-ups incubated in the State to have funding raised from VentureCapitalists, Financial Institutes and Angel Investors.

• All Incubators-cum-Accelerators and start-ups will be entitled to incentivesavailable under “Industrial Policy 2014-19” and “Electronics, IT and ITeSInvestment Policy of Chhattisgarh 2014-19.

http://www.chips.gov.in/download?t=event&f=_1456906061433_InnovationPolicy2016-min.pdf

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MSME-DI Raipur• MSME-Development Institute, Raipur was set up in 1954. The institute

maintains a close liaison with the State Industries Department, FinancialInstitutions/Banks, State Promotional Agencies, Technical Departments,Universities and academic institutions, engineering colleges and IndustryAssociations.

• The institute is having potential of giving techno-economic and ManagerialConsultancy Services to MSME Sector. Management DevelopmentProgrammes are organized with the objective of improving managerialcompetence of MSME units.

• Trainings in Export Marketing, Export Procedure and Documentation andExport Management are provided to MSME Units.

• The Institute gives due publicity for the Scheme of National Awards andinvite applications.

• The institute provides details of the schemes/ programmes useful forMSMEs and has active role in their implementation in the State.

http://www.msmediraipur.gov.in/10

Dept. of Industries, Chhattisgarh

• The Directorate of Industries provides EMs in Part I & II to Micro, Small &Medium Enterprises for manufacturing & service industries and guideentrepreneurs through its network of 27 District Trade & Industry Centers(DTICs)

• It makes recommendations for import of raw materials and capital goods,provides No Objection Certificate for location of industries, recommendslicense for industry and grants exemptions of land for industrial use .

• The department also prepares and implement State Govt. Industrial Policies

https://industries.cg.gov.in/

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Chhattisgarh State Industrial Development Corporation (CSIDC)

• CSIDC has been established by transforming MP Industrial CentreDevelopment Corporation, Raipur in the year 2001 after formation of theState.

• Work of various industrial promotion activities in the State, viz. publicity,development of infrastructure facilities, setting up of industrial areas, roleof being instrumental in marketing of small industries, supply of rawmaterial, operation of Govt. industries, recovery of loans of erstwhile MPFinance Corporation, participation in organization of State festival everyyear in the capital of the State and participation in India-InternationalTrade Fair in New Delhi on behalf of the State is undertaken by CSIDC.

http://csidc.in/home2/index.php/en/

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State Investment Promotion Board

• It aims to promote industrial investments in the state. The Board act as afacilitator by making process and procedures transparent and mutuallybeneficial, in best interest of the investors and State of Chhattisgarh, ChiefMinister is the Chairman with Ministers of concern departments and ChiefSecretary as the Members of the Board.

• The Board office has been receiving, forwarding and reviewing applications ofinvestors for various clearances. Formats of various application forms forconvenience of the investors have been made available in the StateGovernment Website. The Board has also as helped Steel sector by providinglinkage for iron ore from NMDC.

http://industries.cg.gov.in/SIPB/SIPB_Index.aspx

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Access to Finance

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Schemes:

• MSME Schemes• Startup Chhattisgarh 2016• Chhattisgarh Logistics Park Policy 2018-2023

VC’s and Angels:

• Samridhi Fund

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MSME Schemes

• Interest Subsidy: Eligible MSME will be given subsidy on term loan.

• Fixed capital investment Subsidy – Eligible micro, small, medium, largeindustries & mega projects & ultra mega projects shall be given subsidyfor fixed capital investment

• Electricity Duty Exemption – eligible new industries shall be exemptedfrom the payment of electricity charges up to a period of 5-12 years

• Exemption from stamp duty shall be given to eligibleentrepreneurs. Exemption/concession in land premium on land allotmentin industrial areas of Industry Department/CSIDC up to 50%

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MSME Schemes

• Technical Patent Subsidy – The eligible micro, small & medium industries(general & priority industry) newly established in the state shall bereimbursed 50% of the amount spent in obtaining patent up to amaximum limit of Rs.5 lakhs. The amount for Industries established by thescheduled caste/tribe category will be 60% of the amount spent up to amaximum limit of Rs. 6 lakhs.

• Mandi Fee Reimbursement Subsidy – In the state, the market fee shall bereimbursed by 50% up to a maximum limit of Rs. 5 Lakhs per annum onpurchase of required raw material from krishi upaj mandi samiti forindustry by the micro, small & medium industries related with foodprocessing (only poha mill, oil mill and oil extraction plant). Thisexemption shall be for a period of 5 years from the date ofcommencement of commercial production.

http://www.msmediraipur.gov.in/

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Startup Chhattisgarh 2016

• Under the policy the MSMEs startups shall be eligible for 60% subsidy onland premium in government industrial parks, all startups will be givenfacilities to undergo self-certifications for various state laws as well.

• The first 36 startups established in the state would be reimbursed (with)all state government taxes paid by the startups, for the first three years.Apart from this, assistance will be given in preparing the project report,quality certifications, and technical patent costs.

• A 75% subsidy would also be provided to budding entrepreneurs on termloans amounting up to $104K (INR 70 lakhs) for six years. Fixed capitalsubsidy of 35%-40% on a maximum amount of $523K (INR 3.5 Cr) will alsobe provided.

• Electricity duty shall be exempted for 10 years, as well as stamp duty forthe purchase or lease of land for the startups.

http://industries.cg.gov.in/startupcg/Home/Index

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Chhattisgarh Logistics Park Policy 2018-2023

• Dept. of Commerce & Industries, Chhattisgarh launched Logistics Park Policy 2018 which aims to make the state a logistics hub by letting proprietary, partnership, cooperative societies, LLP’s, establish logistics park. The policy will commence from April 2018 and remain effective till March 2023.

• It is expected to create employment, promote investments, make the state multi-modal transport hub, etc.

Benefits:

• Fixed Capital Investment Subsidy

• Interest Subsidy

• Exemption in Electrical Duty

• Grant for Purchase of Technology

• Employees Provident Fund (EPF)

https://invest-india-revamp-static-files.s3.ap-south-1.amazonaws.com/s3fs-public/2018-08/LogisticsParkPolicy2018_12042018.pdf

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VCs And Angels

• Samridhi Fund: The Department for InternationalDevelopment (DFID), United Kingdom, in association with SmallIndustries Development Bank of India (SIDBI) , has envisaged thecreation of the Samridhi Fund to provide capital to social enterpriseswhich can deliver both financial and social returns in Chattisgarh.http://www.sidbiventure.co.in/samridhi_fund.html

• Venture Catalysts: is an incubator known for development of start-ups, supported by ecosystem catalysts, angel investors, managementconsultants and advisors. Besides it also, facilitates mentoring, seedinvestments, through angel investments and supports services forstart up community. http://venturecatalysts.in/raipur/

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Education & Cultural Preparedness

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Educational Institutions Promoting Entrepreneurship

• Consulting and Entrepreneurship club at IIM Raipur:http://www.iimraipur.ac.in/camp_club4.htm

• Entrepreneurship Development Cell at Raipur Institute of Technology(RITEE): Promotes Entrepreneurial culture to foster growth ofinnovation and Entrepreneurship amongst the faculty and students andprovide employment in innovative area.http://www.rit.edu.in/placement_edc.php

• CEDMAP: Centre for Entrepreneurship Development Madhya Pradeshwas set up in 1988, and promoted by Government of Madhya Pradeshand Central Financial Institutions. It functions in Madhya Pradesh andChhattisgarh states and involved in the activities related toEntrepreneurship Development. http://www.cedmapindia.org/index-main.php

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• CITCON: Chhattisgarh Industrial & Technical Consultancy Centre (CITCON)is a division of MPCON Ltd., a Govt. Company, having subsidiary status ofIndustrial Finance Corporation of India (IFCI), and jointly sponsored bySIDBI, ICICI ltd, Nationalised Banks and State Level Corporations. ThisOrganisation imparts training for the promotion of Self-employment /Entrepreneurship / Skill Development and provide Consultancy services ondifferent Socio-Techno-Economic fields.

• RSETI: Rural Self Employment Training Institute (RSETI), run by respectivelead bank in every district of Chhattisgarh, in which skill development andself employment trainings are being imparted to rural youths.

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Mentoring & Networking

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Startup Incubators, Co-Working Spaces

• Small Industries Service Institute, Raipur: http://laghu-udyog.gov.in/sido/sisi/29.htm

• Startups Association Of India: It aims to create and promoteEntrepreneurship in India with Special Focus on rural entrepreneurshipand Small business. http://www.startupsai.org/events/sai/

• 36Inc Incubator: It is a state-run business incubator and accelerator tohelp start-ups and already existing companies to develop by providingservices such as fund support, management, mentorship, co-workingspace, technological assistance etc. https://36inc.in/

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