Chhattisgarh cabinet clears sweeping reforms in power, industry, GST and higher education

Raipur, July 08: The Chhattisgarh cabinet, chaired by Chief Minister Vishnu Deo Sai, approved a series of significant policy decisions during its meeting on Wednesday to improve governance, attract investment, and simplify administrative procedures. The decisions span power sector reforms, industrial investment, taxation, higher education, housing, environmental regulation, and infrastructure development across the state.
To secure payments made by the Chhattisgarh State Power Distribution Company to Central Public Sector Power Undertakings (CPSUs), the cabinet approved the implementation of the Direct Debit Mandate (DDM) system in accordance with Reserve Bank of India (RBI) guidelines. The move replaces the existing Tripartite Agreement and is expected to ensure uninterrupted power supply from NTPC and other CPSUs. The government stated that the decision will not impose any additional financial burden on the state, as the existing payment system of the distribution company will continue, with the Letter of Credit (LC) mechanism remaining available whenever required.
The Council of Ministers also approved amendments to the Chhattisgarh Police Special Executive Force (Bastar Fighters) Fighter Constable Service (Recruitment and Conditions of Service) Rules, 2026. This decision introduces key changes in the recruitment and service conditions of the specialised force deployed in the Bastar region.
To improve the quality of higher education, the cabinet approved the draft Chhattisgarh Private University (Establishment and Operation) (Amendment) Bill, 2026. The amendment replaces the existing endowment fund requirement with a reserve fund and introduces stricter provisions to ensure compliance with standards prescribed by the University Grants Commission (UGC) and other regulatory bodies.
The cabinet approved the draft Chhattisgarh Value Added Tax (Amendment) Bill, 2026, paving the way for the abolition of the Chhattisgarh Commercial Tax Tribunal. With the implementation of the Goods and Services Tax (GST) regime and the establishment of the GST Appellate Tribunal (GSTAT), the number of VAT-related appeals has significantly declined. Pending cases before the Commercial Tax Tribunal will now be transferred to the Board of Revenue to ensure quicker disposal.
The cabinet also cleared the draft Chhattisgarh Goods and Services Tax (Amendment) Bill, 2026, aimed at simplifying GST provisions, easing compliance requirements, and making the refund process faster and more transparent. This measure is specifically intended to benefit exporters and industries affected by inverted duty structures.
In a bid to attract fresh investments, the cabinet approved the draft Chhattisgarh Industrial Investment Promotion (Amendment) Bill, 2026. The amendments, prepared after studying the industrial policies of leading states, are intended to create a more investor-friendly environment and make investment procedures more transparent and efficient.
One of the most significant decisions of the meeting was the approval of the draft Chhattisgarh Ease of Doing Business (Exchange-Freedom and Facilitation) Bill, 2026. The proposed legislation seeks to simplify and digitise business approvals and industrial clearances, making Chhattisgarh the first state in the country to introduce legislation of this kind. The provisions include deemed approvals, self-certification, third-party verification, risk-based inspections, and the removal of dual licensing requirements to reduce bureaucratic delays, encourage investment, and generate employment.
The cabinet also approved the One Time Settlement (OTS) Scheme-2026 for plots and built-up properties allotted by the Naya Raipur Atal Nagar Development Authority (NRDA). The scheme will provide relief on interest and surcharge for eligible allottees, facilitate the regularisation of outstanding dues, encourage timely completion of projects, and allow uninterested allottees to surrender land. The government expects the scheme to reduce litigation and improve land utilisation in Naya Raipur.
The Council of Ministers gave its nod to a proposal to introduce a resolution in the Legislative Assembly for adopting the Water (Prevention and Control of Pollution) Amendment Act, 2024 in Chhattisgarh. The amendment decriminalises minor violations, replaces criminal penalties with monetary fines in specified cases, and streamlines the penalty and appeals process to strike a balance between environmental protection and ease of doing business.
The cabinet also gave the green signal to the draft Chhattisgarh Rent Control Act, 2011 (Amendment) Bill, 2026, which seeks to promote rental housing and ensure faster resolution of landlord-tenant disputes. The amendments clearly define the rights and responsibilities of landlords and tenants while introducing provisions relating to property managers, rent collection, tribunal tenure, and court fees, aligning the changes with the Government of India’s Model Tenancy Act, 2021.
In another decision, the cabinet cleared the allotment of government land for the construction of a 2,000-seat modern auditorium in Rajnandgaon. This project is expected to strengthen the cultural and public event infrastructure of the city.
