Beyond Mining, Chhattisgarh Bets Big on AI, Semiconductors, Digital Infra

Chhattisgarh, long recognised as an industrial state built around steel, coal, and mining, is now focusing on AI, semiconductors, electronics manufacturing, and advanced digital infrastructure.

At the heart of this transition is the recently approved Chhattisgarh Innovation and Startup Promotion Policy 2025–30, with a focus on structured institutional support and long-term ecosystem development. A major target is to support more than 5,000 DPIIT-registered startups by 2030. To enable this, the state has announced a comprehensive support framework that includes a ₹100 crore Chhattisgarh Startup Capital Fund, alongside financial incentives for incubators, accelerators, and innovation programmes.

Under a hub-and-spoke model, the government plans to establish mega incubators equipped with advanced infrastructure, mentorship, technical support, and strategic guidance. 

The policy also provides 75% grant support for government incubators and 50% grant support—up to ₹3 crore—for private incubators. Additional incentives include 10% extra assistance for incubators in the Bastar and Surguja regions, financial backing for accelerator programmes and innovation events, and annual support of ₹5 lakh for college innovation and startup cells.

Employee training expenses, particularly for MSME thrust sectors and IT enterprises, will be reimbursed to encourage skill development. 

“Over the next six months, the state is expected to witness a series of technology-led developments that could significantly reshape its industrial identity and place it among India’s emerging deeptech and innovation hubs,” shares Prabhat Malik, Director Industries, Department of Commerce & Industries, Government of Chhattisgarh, in a conversation with AIM. 

One of the most significant milestones, Malik states, will be the operationalisation of an AI-focused data centre park by RackBank in Nava Raipur. The facility plans to expand its capacity from 80 MW to 150 MW, creating approximately 2,000 jobs.

What RackBank has in store for Chhattisgarh

Narendra Sen, CEO and Founder, RackBank and NeevCloud, says that its Raipur facility will go beyond targeting large enterprises. “It has been designed from the ground up to serve startups as a primary beneficiary.”

The data centre park aims to aid startups in AI, health tech, defence, and fintech, especially those struggling to find affordable, scalable AI workloads or data sovereignty for sensitive AI training. It also aims to support researchers and governments with compute-ready infrastructure. 

Sen reveals that RackBank's GigaCampus model allows businesses to start as small as 1 MW and scale up to 300 MW on the same campus, making it economically viable for early-stage startups to access world-class AI infrastructure without upfront hyperscale commitments. 

Nava Raipur as a Tech Hub

“The Chhattisgarh government has played an active enabling role, combining land allocation, policy reform, and SEZ designation to make the state attractive for deeptech investment,” Malik adds.

The data centre park will be spread across 14 acres and developed as an SEZ, with the project expected to generate around 500 direct and 1,500 indirect employment opportunities, with priority given to local youth.

On the policy and regulatory front, the recently implemented Industrial Policy 2024-30 features a Single Window System 2.0, over 350 reforms, fast-track land allotment, and auto-approval mechanisms. 

Chhattisgarh has also announced its first SEZ near Raipur, with a focus on IT, pharmaceuticals, and electronics manufacturing, offering plug-and-play infrastructure, subsidised land, and rapid administrative clearances to attract foreign direct investment. 

The government has also granted tax exemptions and other legal relaxations to accelerate the development of new technologies within the SEZ, aiming to create Nava Raipur as the digital and technological hub. 

Alouk Kumar, CEO and MD, Inductus Group, notes, “The AI-based Special Economic Zone in Nava Raipur creates an environment conducive to high-value business technology operations.”

Why Should GCCs Come to Chhattisgarh?

Chhattisgarh, particularly Raipur and Nava Raipur, is being promoted by the government as a promising destination for GCCs in India. Nava Raipur is being strategically developed as an IT hub, supported by MoUs with like NASSCOM, IESA, and TiE Bangalore.

Talent development is a key priority for the government, with notable partnerships such as the one with the India Electronics and Semiconductor Association (IESA). There are also initiatives like tech incubators and a planned startup village.

Simultaneously, data engineering company Vrize is set to operationalise its second facility in the state. Meanwhile, security solutions company Vision Plus Security Control is expected to launch operations focused on BPO and digital services.

Another landmark project is the state’s first semiconductor manufacturing plant by Polymatech Electronics. The facility will manufacture advanced Gallium Nitride (GaN) chips used in next-generation 5G and 6G technologies.

The state is particularly focusing on the scale and diversity of opportunities expected to emerge from these investments. 

“A key aspect of this environment is the strong presence of top national institutions, including IIT Bhilai, IIM Raipur, NIT Raipur, and IIIT Naya Raipur. This close-knit cluster of engineering and management schools provides a steady stream of graduates, who are focusing more on future-oriented fields like data science, AI, and cloud design,” Kumar states.

In contrast to the crowded job markets of major cities, where turnover is a constant issue, the work culture in Raipur and nearby areas can retain employees who hail from those cities. This will allow GCCs and related firms to build extensive institutional knowledge and ensure continuity in complex global projects, he notes.

Beyond Being Resource Rich

The policy hints at a shift in the government’s industrial vision. Chhattisgarh is no longer positioning itself solely as a mineral-rich manufacturing economy. Instead, it is attempting to build a future-ready ecosystem centred on AI, semiconductors, robotics, defence technology, electronics manufacturing, and space-linked industries.

The government is simultaneously building both infrastructure and policy frameworks to attract investments into these sunrise industries. 

Nearly 90 acres have already been earmarked in Nava Raipur exclusively for IT and technology industries. Dedicated electronics manufacturing clusters are also being developed in Nava Raipur and Rajnandgaon, while an upcoming Space Manufacturing Cluster in Rajnandgaon is expected to support aerospace-linked manufacturing and advanced industrial capabilities.

Chhattisgarh has also introduced aggressive incentive structures, including up to 150% incentives for industries operating in IT, ITeS, AI, and data centres. 

Special packages are also available for projects investing over ₹50 crore in plant and machinery, while the first five anchor units investing more than ₹200 crore are eligible for additional incentives. Mega projects involving investments above ₹500 crore or generating more than 1,000 jobs will be offered customised incentive structures.

“The larger objective is clear. Chhattisgarh wants to emerge not only as an industrial state, but as a leading hub for innovation, technology and high-value employment in India’s next phase of growth,” Malik adds.

Every major investment is evaluated not only on capital inflow but on the scale and quality of employment it can generate for local youth. Instead of following a uniform skilling model, the state is allowing industries to define workforce requirements based on their operational and technological needs. 

The state also believes it has the talent ecosystem needed to support this transition. It has an annual capacity of over 11,000 engineering seats alongside growing postgraduate intake across MBA, MTech, and MCA programmes.

Malik also points to Chhattisgarh’s geographic and lifestyle advantages. Raipur is within roughly 90 minutes of flight connectivity from most major Indian metros, making relocation easier for professionals from Bengaluru, Hyderabad, Pune, Mumbai, and Delhi.

The government believes the state’s relatively lower congestion, cleaner environment, lower living costs, and an improving urban infrastructure could become important differentiators in attracting both companies and skilled professionals.