Raipur: The Chhattisgarh Cabinet, chaired by Chief Minister Mr. Vishnu Deo Sai, convened today at the Mahanadi Bhavan and approved several important decisions aimed at strengthening agriculture, industrial growth, and public welfare in the state. The cabinet’s resolutions cover areas ranging from tendu leaf procurement and minor forest produce financing to industrial policy amendments, motor vehicle tax incentives, and police administration reforms.
Tendu Leaf and Minor Forest Produce Support
The cabinet approved the procurement of tendu leaves from collector families at a rate of ₹5,500 per standard bag for the year 2026. To facilitate this, the state government will provide loan guarantees for procurement operations.
Additionally, the Chhattisgarh State Minor Forest Produce Federation has been authorized to receive working capital for the purchase, processing, and sale of coarse grains such as kodo, kutki, and ragi. The cabinet also sanctioned a one-time, interest-free loan of ₹30 crore to the federation for the procurement, storage, processing, value addition, and marketing of unorganized minor forest produce, further strengthening support for forest-based livelihoods.
Debt Repayment and Financial Relief
The cabinet approved a major financial decision regarding loans taken by the Chhattisgarh State End-Consumer Cooperative Finance and Development Corporation under state government guarantees. A budget provision of ₹55.69 crore will be used to fully repay loans from five national corporations, including:
- National Scheduled Castes Finance and Development Corporation
- National Scheduled Tribes Finance and Development Corporation
- Backward Classes Finance and Development Corporation
- Minority Finance and Development Corporation
- Divyang Finance and Development Corporation
Currently, the state government pays around ₹2.40 crore annually as interest on these loans. Full repayment will eliminate this interest burden and, upon receiving No Objection Certificates (NOCs) from the corporations, ₹229.91 crore in pending guarantees will also be cleared, significantly reducing the state’s financial liabilities.
Incentives for Rice Milling
The cabinet decided to increase the incentive for Usna milling from ₹20 to ₹40 per quintal. Furthermore, minimum milling requirements for millers to be eligible for incentives have been reduced from three months to two months, facilitating broader participation and efficiency in rice milling operations.
Industrial Development Policy Amendments
The Industrial Development Policy 2024-30 has been amended to address inconsistencies in policy promotion, expert appointments, and issuance of service activity certificates. These revisions are expected to enhance investment quality, create sustainable employment, and accelerate industrial growth across the state.
Motor Vehicle Tax Relief During Auto Expo
The cabinet approved a 50 percent lifetime road tax waiver on vehicles sold during the 9th Auto Expo, scheduled from January 20 to February 5, 2026, at the Science College Ground, Raipur. This incentive will be applied at the time of vehicle registration, providing direct tax relief to buyers and boosting sales. All vehicle dealers across Chhattisgarh will benefit from this measure.
Reduction in Stamp Duty for Custom Milling
For custom rice milling, the cabinet reduced the stamp duty on bank guarantees submitted by rice millers from 0.25 percent to 0.05 percent, easing financial burdens and supporting operational efficiency in the milling sector.
Police Administration Reforms
A new permanent position of Special Duty Officer at Level-14 pay matrix has been created at the Chhattisgarh Police Headquarters, Naya Raipur, Atal Nagar, for a period of one year. In addition, the Police Commissioner system will be implemented in Raipur Metropolitan Police District starting January 23, 2026, aiming to improve urban policing and law enforcement efficiency.
These decisions collectively aim to strengthen rural livelihoods, support industrial and economic development, and enhance governance and public services in Chhattisgarh, reflecting the government’s commitment to inclusive growth and financial prudence.
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