Raipur: The Chhattisgarh Cabinet, chaired by Chief Minister Vishnu Deo Sai, held an important meeting at the Mahanadi Bhawan Secretariat and approved several major proposals aimed at improving electricity management, higher education, industrial investment, ease of doing business, taxation reforms, environmental regulation and urban development.
The decisions are expected to bring significant changes in the state’s business environment, attract investors, simplify government procedures and strengthen public infrastructure.
New Payment Security System Approved for Electricity Purchases
The Cabinet approved the implementation of a Direct Debit Mandate (DDM) system for payment security in electricity purchases made by the Chhattisgarh State Power Distribution Company from Central Public Sector Undertakings (CPSUs).
The new arrangement will replace the existing Tripartite Agreement system and will follow the guidelines issued by the Reserve Bank of India (RBI).
The decision will ensure uninterrupted electricity supply from power producers including NTPC and other CPSUs. The payment security mechanism will also become more aligned with current RBI regulations.
The state government clarified that the decision will not create any additional financial burden because the distribution company’s existing payment system will continue. Letter of Credit (LC) arrangements will remain available whenever required.
Chhattisgarh Private Universities Act Amendment Approved to Improve Higher Education Quality
The Cabinet approved the draft of the Chhattisgarh Private Universities (Establishment and Operations) Amendment Bill, 2026.
The amendment has been prepared according to recommendations of the Regulation Cell of the Cabinet Secretariat, Government of India, with the objective of making private university establishment rules more practical, transparent and quality-oriented.
Under the proposed changes:
- The existing provision of endowment fund will be replaced with a reserved fund system.
- Student interests will receive greater protection.
- Universities will need to maintain infrastructure, libraries and other facilities according to standards prescribed by the University Grants Commission (UGC) and regulatory bodies.
The reform is expected to encourage the establishment of quality higher education institutions in Chhattisgarh.
Chhattisgarh VAT Tribunal to be Abolished After GST Implementation
The Cabinet approved the draft Chhattisgarh Value Added Tax (Amendment) Bill, 2026.
The amendment proposes the abolition of the Chhattisgarh Commercial Tax Tribunal and related legal provisions.
After the implementation of GST, VAT-related second appeal cases have significantly reduced. Additionally, the GST Appellate Tribunal (GSTAT) has already been established in the state.
Following the amendment:
- Pending cases before the Commercial Tax Tribunal will be transferred to the Revenue Board.
- The appeal process will become more streamlined and efficient.
GST Law Amendment to Simplify Tax Compliance and Speed Up Refunds
The Cabinet approved the draft Chhattisgarh Goods and Services Tax (Amendment) Bill, 2026.
The proposed changes aim to:
- Simplify GST procedures.
- Reduce compliance difficulties for taxpayers.
- Make refund processing faster and more transparent.
- Provide relief to exporters and industries affected by inverted duty structures.
The government expects the reform to improve tax administration, benefit businesses and increase state revenue.
Industrial Investment Promotion Law to Attract More Investors
The Cabinet approved amendments to the Chhattisgarh Industrial Investment Promotion (Amendment) Bill, 2026.
The objective is to create a more investor-friendly environment and encourage industrial growth across the state.
The amendment has been prepared after studying industrial policies of leading states in India.
Expected benefits include:
- Faster investment approval processes.
- Improved facilities for investors.
- More transparent industrial policies.
- Increased employment opportunities.
The government believes the changes will give fresh momentum to industrial development in Chhattisgarh.
Chhattisgarh Approves First-of-Its-Kind Ease of Doing Business Bill
The Cabinet approved the draft Chhattisgarh Ease of Doing Business (Exemption and Facilitation) Bill, 2026.
The state government claims that Chhattisgarh will become the first state in India to introduce such legislation.
The bill focuses on making business and industrial processes:
- Simple
- Digital
- Transparent
- Time-bound
Major provisions include:
- Deemed Permission: Automatic approval after the prescribed period.
- Self-Certification: Reduction in unnecessary paperwork.
- Third-Party Verification: Faster compliance checks.
- Risk-Based Inspection: Inspections based on business risk levels.
- Removal of duplicate licensing requirements.
The reform is expected to reduce procedural hurdles, increase investment and generate employment.
One-Time Settlement Scheme Approved for Nava Raipur Development Authority
The Cabinet approved the Nava Raipur Atal Nagar Development Authority (NRDA) One Time Settlement (OTS) Scheme-2026.
The scheme will provide relief on pending interest and additional charges payable on allotted plots and constructed properties.
Benefits of the scheme include:
- Easier settlement of pending dues.
- Opportunity for developers to complete delayed projects.
- Regularisation of eligible allotments.
- Reduction in legal disputes.
- Better utilisation of land in Nava Raipur.
The move is expected to encourage investment and accelerate development activities in the new capital region.
Water Pollution Law Amendment to Simplify Environmental Compliance
The Cabinet approved a proposal to introduce the Water (Prevention and Control of Pollution) Amendment Act, 2024 in Chhattisgarh through a resolution in the state assembly.
The amendment aims to make environmental regulations more effective and business-friendly.
Key changes include:
- Minor violations will be removed from the category of criminal offences.
- Financial penalties will be introduced for smaller violations.
- Penalty determination and appeal procedures will be streamlined.
The government said the move will balance ease of doing business with environmental protection.
Major Changes Approved in Chhattisgarh Rent Control Law
The Cabinet approved the draft Chhattisgarh Rent Control Act, 2011 (Amendment) Bill, 2026.
The amendment aims to encourage owners to rent out vacant houses and ensure faster resolution of tenancy disputes.
The proposed changes will clarify:
- Rights and responsibilities of landlords.
- Rights and responsibilities of tenants.
- Role of property managers.
- Rent collection procedures.
- Tenure of tribunal chairpersons.
- Court fee-related provisions.
The amendment is aligned with the Model Tenancy Act, 2021 introduced by the Government of India.
Modern 2,000-Seat Auditorium to Be Built in Rajnandgaon
The Cabinet approved the allocation of government land for the construction of a modern auditorium in Rajnandgaon.
The proposed auditorium will have a seating capacity of around 2,000 people.
The facility will provide better infrastructure for:
- Cultural programmes.
- Public events.
- Government and community activities.
The project is expected to strengthen cultural and social infrastructure in the district.
Major Push for Investment, Digital Governance and Economic Growth
Overall, the Chhattisgarh Cabinet decisions focus on creating a stronger economic ecosystem through policy reforms.
The key areas covered include:
- Electricity supply security.
- Higher education improvements.
- GST and taxation reforms.
- Industrial investment promotion.
- Digital business approvals.
- Environmental compliance reforms.
- Urban development.
- Public infrastructure expansion.
The state government expects these reforms to improve investor confidence, accelerate industrialisation and create new employment opportunities in Chhattisgarh.
