INDIAN STATE : CHHATTISGARH

Chhattisgarh, a 21st century State, came into being on November 1, 2000. Chhattisgarh is a state in Central India. It borders Madhya Pradesh on the northwest, Maharashtra on the west, Andhra Pradesh on the south, Orissa on the east, Jharkhand on the northeast and Uttar Pradesh on the north.Chhattisgarh is truly a land of opportunities. With all major minerals including diamonds in abundance.There are mega industries in steel, aluminium and cement. The state also contributes substantially to India's human resources. Several hundred students from the state qualify for admissions in prestigious national academic institutions every year.

The state has low power generation cost due to pit head power generation. This is attracting many power-intensive industries. Its central location helps easy power transmission and evacuation to any part of country. There has been no labour unrest in either Bhilai or Korba, the power capital, for several decades. Twelve percent of India's forests are in Chhattisgarh, and 44 percents of the state's land is under forests. Identified as one of the richest bio-diversity habitats, the Green State of Chhattisgarh has the densest forests in India, rich wildlife and above all over 200 non-timber forest products, including medicinal, aromatic and dye plants, with tremendous potential for value addition.

Advantage Chhattisgarh

• One of the youngest and the fastest growing state of India.
  
• Richest state in mineral resources like Iron, limestone, coal, bauxite and tin.
• With unique bio diversity.Richest state in medicinal,aromatic and dye plants.
• Rank third in 2009 in attracting investment proposals(All India).
• Developing as "Power Hub" of the country.
• Highest freight loading zone in India,contributing one sixth of total revenue of Indian Railways.
• Conducive industrial relations environment, abundant power and water for industrial needs.
• Land available at reasonable rates.
• Large tribal population and rich cultural heritage.
• Good health and education facilities -
  
  • Apollo hospital, Bilaspur,
    
  • Escorts, Raipur
    
  • J.N. Medical Institute, Bhilai (SAIL)
    
• 44 engineering colleges and numerous polytechnics and ITIs
  
• New Capital 'Naya Raipur' being developed with state of the art infrastructure.
  
• Roads
• Excellent road network.
  
• All district headquarters, tehsils and development blocks are connected with good all weather roads.
• To facilitate smooth ride for inter-state and internal traffic, about 3,106 kms. road length has been specially taken up for upgradation.

Railways

• Recognising the potential for mining and metal industry related traffic in the state, the Indian railways have established a new Railway Zone named 'South East Central Railway' with its headquarters at Bilaspur in Chhattisgarh.
  
• Chhattisgarh is connected to Kolkata and the national capital New Delhi by super fast Rajdhani Express.
• The state has the highest freight loading in the country and one-sixth of Indian Railway's revenue comes from Chhattisgarh. The length of rail network in the state is 1,108 kms.
• Raipur lies on the main route between Mumbai and Kolkata and daily direct trains connecting Delhi, Kolkata, Chennai and Mumbai are available.
• Direct trains to many cities e.g. Ahmedabad, Aliahabad,Varanasi, Bangalore, Cochin, Pune and Hyderabad are also available.

Air Connectivity

Raipur is linked by regular flights with New Delhi, Mumbai, Kolkata, Bhubneshwar, Nagpur, Bhopal, Indore, Ahmedabad & Hyderabad.

Mineral resources

Chhattisgarh is a virgin territory that awaits major players to explore and unlock the potential of its abundant minerals. the state is the richest in mineral wealth. Along with two neighboring states of Orrissa and Jharkhand, it accounts for almost the entire coal deposits of India.

The state has the right geological set up to host a number of economic mineral deposits of the Archaean and Proterozoic periods. The area has observed multiple major thermo-tectonic events, covering principal metallogenic and mineralogenic episodes. Such a geological environment is indicative of untapped potential for search of high value metal and mineral deposits of excellence. The State's Mineral Policy has created a conducive business environment to attract private investment in the State.

Fact File

• State accounts for 20% of India's Iron ore.
• Bailadila mines in Dantewada have the best quality of iron ore deposits in the world.
• Entire tin ore produce of India comes from Chhattisgarh.
• State has substantial deposits of bauxite, limestone and dolomite.
• Occurrence of corundum is widespread in the state.
• Occurrence of proterozoic kimberlites in Chhattisgarh has attracted global attention.
• State is nestline atop the word's largest kimberlites resource.
• Prospecting for diamonds, gold and base metals is being undertaken under 12 reconnaissance permits (RP) covering an area of 18177 square kilometers, on the basis of RP work a total of 24 areas have been delineated for detail prospecting work for diamonds, gold and base metals.
• Companies engaged in reconnaissance operation / prospecting including De Beers and Rio Tinto, JSPL.
• More acreage for prospecting for precious minerals and base metals is on offer.

Human Resource

Human Resource would be the key to the State's prosperity.The people of Chhattisgarh are sincere,hard working and are eager to make a name for themselves in brick and mortar as well as knowledge-based industries.Several steps has been taken by the Governemnt to develop the state's human resource.

Sources of technical and skilled work force

• 44 Engineering Colleges
• 3 Medical Colleges
• 8 Management Institutes
• 15 Poly technique Institutes
• 1 National Law University
• 1 Indian Institute of Management (11M) is also coming up at Naya Raipur
• IIIT & AIMS are also coming up at Chhattisgarh

Forests

Slightly less than half of the geographical area Chhattisgarh is covered by forests, which is an extremely valuable asset. Nearly one-third of forest comprises Sal, which provides livelihood to a large number of people. Timber contributed almost 40 percent of the total forest revenue. Nearly 10,000 industrial units depend on forests for their material base.

The state has three national parks-including Guru Ghasidas National Park in Koriya and Surguja, Kanger Valley National Park and Indravati National park in Dantewada. There are sanctuaries including, Achnakmar, Barnawapara, Sitanadi, Udanti, Pamed, Gomarda, Bhairmagarh, Tamor Pingla, Badalkhol, Samarsot & Bhoramdeo.

Major produce from forests:Timber (Teak, Sal, Saja, Bija) and Bamboo.

Minor forest produce:Tendu leave, Harra and Palash Flower, Madua Seed, Sal Seed, Kusum Seed, Mango Kernel, Palash Seed, Babool gum, Neem Seed and Charota Seed.

Medical,aromatic and dye plants:with over 200 species found in abundance the State is a major source for alternative medicine.

Forest Initiatives

• Chhattisgarh was the first to formulate a States Forest Policy.
• First to introduce the novel experiment of Public-Private Partnership in forest management, in which the Government, local community and the user industry join hands to utilize degraded forest land, meet raw material needs and provide income to local people.
• First to set up an autonomous certification agency for medicinal, aromatic and dye plants.
  
• First to introduce the concept of People's Protected Areas - a people-friendly model for conservation that ensures sustainable supply of quality raw material of Medicinal Aromatic and Dye plants.
• First to have an extensive network of around 1,000 primary co-operatives and nearly 7,800 joint forest management committees for the collection and trade of minor forest produce.

Herbal State

With 44 percent of its area under forest cover, amounting to 5.9 million hectares Chhattisgarh is endowed with a rich and unique biodiversity, making the state a storehouse of large number of medicinal, aromatic and dye plants. Apart from 200 species found in abundance, 15 species are being cultivated. With a revival of interest in natural medicines and herbal products, the state is well on its way to becoming a major player in the global market valued at $60 billion and growing at 10 percent per annum.

Nearly 7,000 joint forest management committees and 913 primary cooperatives are involved in the collection and trade of medicinal, aromatic and dye plants.

Along with abundant power, qualified and cost effective human capital, the state's rich biodiversity makes it an ideally suited destination for investment in industries revolving around medicinal, aromatic and dye plants. Its central location, easy access to international and national markets, and a dry port at Raipur are added puIses.

Tourism

Situated in the heart of India, Chhattisgarh is endowed with a rich cultural heritage and attractive natural diversity. The state is full of ancient monuments, rare wildlife, and exquisitely carved temples. Buddhist sites, palaces, waterfalls, caves, rock painting and plateaus. Most of these sites are untouched and unexplored and offer a unique and alternate experience to tourists.

The state is taking up integrated development of special tourism areas and has constructive collaboration with the private sector, which will be the prime driver. Towards this end, the state has set up a Tourism Promotion Board as the nodal agency for translation of the policy into action for the sustained development of the sector.

Eco Tourism

With 12 percent share of India's forests Chhattisgarh three National Parks and 11 Sanctuaries area a major attraction. It has several virgin attractions in protected area such as Kanger Valley National Park, Barnawapara, Sitanadi, Udanti and Achanakmar Sanctuaries. The endangered Wild Buffalo (Bubalis bubalis) and the even more endangered Hill Myna (Graculis religiosa peninsularis) are the State and State Bird, respectively.

Culture, Heritage and Ethno Tourism

Chhattisgarh has identified and is developing ethnic villages, and the private sector is being encouraged for proper maintenance and professional site management of important heritage sites and monuments. Bhoramdeo, Rajim, Sirpur, Tala, Malhar and Sheorinarayan are prime sites for heritage tourism.

Festivals like Dussehra at Bastar, Madai at Dantewada and Narainpur, Dance festival at Bhoramdeo, Raut Nacha at Bilaspur, Chakradhar Samaroh at Raigarh and Shri Rajeev Lochan Mahotsav Rajim are being marketed for global exposure.

Pilgrim Tourism

The state encourages the development of pilgrim centres. Rajim, Champaranya, Dongargarh, Sheorinarayan, Girodhpuri, Dantewada, Ratanpur, Sirpur and others are prime destinations for pilgrim tourism. Sirpur and Dongargarh would be part of the wider Buddhist tourist circuit.

Adventure Tourism

There is great scope for the promotion of modern adventure sports such as water sports, trekking, rock climbing, parasailing and bungee jumping.

Industrial Scenario

Proposed Industrial Parks & Areas

• Metal Park (Raipur)
  
  
• Special Economic Zones (Naya Raipur)
  
  
  • IT Park
    
  • Gems & jewellery Park
    
    
• Apparel Park (Raipur)
  
  
• Engineering Park (Bhilai, Durg)
  
  
• Aluminium Park (Korba)
  
  
• Herbal & Medicinal Park (Dhamtari)
  
  
• Biotechnology Park (Raipur)
  
  
• Food Processing Park (Rajnandgaon / Durg)

Private participation in industrial infrastructure

• 30 MLD Water Supply Project implemented In Borai, Dist. Durg.
  
  
• 300 hect. Industrial park implemented by Jindal organization.
  
  
• Three industrial Parks viz. Gems & jewellery Park, Herbal & Medicinal Park and Food Processing Park under PPP scheme with private equity of 89%.
  
  
• US$ 11.90 million infrastructure Up-gradation implemented in Siltara by user Industries.

Existing Industrial Infrastructure

• Industrial Growth Centres 4 Nos.
  
  
• Urla (Raipur)- 815 hectares
  
  
• Si Itara (Raipur) -1290 hect.
  
  
• Borai (Durg)- 437 hectares
  
  
• Sigitti (Bilaspur)- 430 hect.

Large Industrial Area

• Dagori (Bilaspur)
  
  
• Tilda (Raipur)
  
  
• Lara (Raigarh)

Small Industrial Development Centres (complete)

• Nayanpur (Surguja)
  
  
• Harinchhapra (Kawardha)
  
  
• Birkoni (Mahasamund)

Small Industrial Development Centres (work in progress)

• Sigitti-Sect-D (Bilaspur)
  
  
• Teknar (Dantewara)
  
  
• Kapan (Champa-Janjgir)
  
  
• Mahrum-Khurd (Rajnandgaon)
  

Chhattisgarh's Share(%) in India's production

Source: Chhattisgarh State Industrial Development Corporation Limited (CSIDC)

Industrial Promotion Agencies

• State Investment Promotion Board (SIPB)
• Directorate of Industries
• Chhattisgarh State Industrial Development Corporation Ltd. (CSIDC)

Investment Opportunities

Chhattisgarh offers investment opportunities in the following areas-

Mineral based industries

• Iron and Steel
• Corundum cutting and polishing
• Cement
• Downstream value added products in steel and aluminium
• Prospecting for precious minerals and base metals.

Tassar Silk/Kosa

• One of the premier states in production of tassar cocoons, yarn and fabrics.
  

Agriculture products

• Rice (presently exported in huge quantities to neighboring countries).
• Value added products from rice.
• Organically grown cereals, vegetable and fruits.
• Bio-Diesel.

Medicinal Plants and Herbs

• Nutritional food supplements and Dietary supplements.
• Nutraceuticals.
• Cosmeceuticals.
• Aromatherapy Oil.
• Dye Plants: Natural dyes for use in textiles, food, drugs and cosmetic colorant industries.

Investment Incentives

Interest Subsidy:Upto 7 years - Maximum limit - US$ 0.11 million per annum.

Infrastructure Cost and Fixed capital Investment Subsidy:Upto 45% of the total capital cost, maximum limit - Commercial Tax/Central Sales tax paid in the state in 9 years period.

Electricity Duty Exemption:Maximum limit-15 years from the production date.

Exemption from Stamp Duty:

• Exemption on Lease / Purchase of land, shed and Building
  
• Exemption on execution of deeds relating to loans and advances upto 3 years.

Exemption from Entry Tax: Maximum limit- 9 years.

Exemption/ Concession in the Premium of Land allotted in Industrial Area:

• General Category- Upto 50% of land premium
• SC/ST Category -100 % of land premium

Project Report Subsidy:Maximum limit- US$ 0.004 million.

Interest Subsidy for Technology Upgradation :Period of 5 years, Maximum limit - US$ 0.05 million per annum.

Exemption from Land Diversion: 50% rebate to new Small Scale Industries upto 5 acres of land.

Reduced Service Charges for acquisition of land:

• 10% to CSIDC (earlier 25%).
  
• 5% to district Administration (earlier 1 0%).

Quality Certification Subsidy:50% of expenses incurred or US$ 1,624.61 whichever is less.

Technical Patent Subsidy: Upto 50% of expenses incurred or US$ 0.01 million whichever is less.

Extra incentives for scheduled tribal areas:Six districts are identified as tribal dominant areas-Bastar, Dantewada, Kanker, Jashpur, Surguja and Koria.Almost double rate of incentives are provided in these districts.

Exemptions and Concessions to women and NRIs:

• 5% extra subsidy to NRIs for attracting FDI.
• 10% additional capital subsidy to SC/ST Women.
  

Industrial Promotion

Assistance to SSI units

• 101 items have been reserved for purchase by government agencies from SSIs.
• CSIDC acting as the nodal agency for deciding rates of these items.
• Raw material like coal and steel are provided by CSIDC to SSIs through Raw Material Depot, Bhilai and Coal Cell, Bilaspur to help SSIs.
• Testing and Certification of industrial products through Testing Lab, Bhilai by CSIDC.

Export Promotion

• Exports on the rise after state formation.
• Major products exported - steel, handicrafts, blended yarn, food/agriculture products, iron ore, aluminium, cement, minerals and engineering products.
  
• CSIDC is the nodal agency for export promotion and Managing Director, CSIDC is the Export Commissioner of the state.
  
• Export Facilitation Centre and Trade Centre being established to encourage exports.
  
• DGFT, Passport offices established in Raipur.
  
• RBI and Inland Container Depot operational in Raipur.
  
• Export Potential Survey of the state done by the Indian Institute of Foreign Trade, Kolkata.
  
• Projects worth US$ 12.99 million sanctioned under ASIDE.
  

Major Industrial Players

• Bhilai Steel Plant, Bhilai, Distt. Durg. owned by Steel Authority of India
  
• National Thermal Power Corporation, Korba.
  
• National Mineral Development Corporation, Baildila
  
• Bharat Aluminium Company Limited, Korba
  
• Jindal Steel and Power Ltd., Raigarh
  
• Tata Steel
  
• Essar Steel
  
• Lanco
  
• IFFCO
  
• GMR Power
  
• Jayaswals NECO
  
• Heera Group
  
• Raipur Alloys
  
• Monnet
  
• Lafarge Cement
  
• ACC Cement

Chhattisgarh Vision 2010

Vision 2010 lays considerable stress on improving the rate of economic growth of the economy. Chhattisgarh has laid strong emphasis on improving the state of infrastructure in order to boost the investment levels.

In order to ensure that physical infrastructure is a source of competitive advantage for Chhattisgarh and capable of supporting the economic growth rates contained in Vision 2010, the State has set the following targets for itself:

Targets- Vision 2010

• Establish Chhattisgarh as the power hub of the country to create additional 10,000 MW capacity in the state.
  
• Reduce the T&D losses in the state to less than 12 per cent.
  
• Ensure all its National and State Highways are four-lane
  
• Ensure all villages in the State to be connected by all weather roads
  
• Develop Mana airport at Raipur as an International Airport
  
• Link all its tehsil headquarters in the State through a high speed data network

Government Policies

New Industrial Policy (2004-2009)

Objectives of the Policy

• Create additional employment opportunities by accelerating the process of industrialization in the state.
• Ensuring maximum value addition to the abundant, locally available mineral and forest based resources.
• Ensuring balanced regional development by attracting industries in the economically backward areas of the state.
• Make industrial investments in the state competitive vis-à-vis other states in the country.
• Promote private sector participation for creation of industrial infrastructure in the state.
• Create an enabling environment for increasing industrial production, productivity and quality upgradation to face the challenge of competition emerging from economic liberalization.

Strategy of the Policy

• Ensure availability of necessary basic industrial infrastructure like rail-road, power, water, etc.
• Encourage private sector for providing quality infrastructure in the least possible time.
• Establish new industrial areas, expand the existing industrial areas and to improve available services therein.
• Set up special industrial parks to provide common infrastructure and services by adopting cluster approach for the development of industries, which have not been developed in spite of availability of necessary resources.
• Identify and promote such non-traditional industries for which good potential exists in the state due to availability of necessary resources.
• Establish an effective system of "single point contract" and "time bound clearance" for providing requisite facilities, services and statutory clearances
• Provide special directed incentives to encourage establishment of industries by the weaker classes and in the economically backward areas of the state.
• Provide special incentives to small scale and cottage industries to create employment opportunities in the industrial sector in the least possible time throughout the state.
• Provide incentives to industrial units for technology upgradation and modernization to enable them to face the challenges of global competition.
• Make arrangements for skill improvement, training and guidance of younger sections to enable them to seek maximum possible employment.
• Provide special package necessary for rehabilitation of sick and closed industrial units.
• Establish an effective system of "single point contract" and "time bound clearance" for providing requisite facilities, services and statutory clearances for investment.

Directed Incentives under the Policy

• Directed incentives will be provided for industrial investment in the state in the form of interest subsidy, infrastructure development capital investment subsidy, exemption from stamp duty, exemption from entry tax, allotment of plots at concessional premium in industrial areas, exemption from land diversion fee, reimbursement of project report expenses, quality certification subsidy, technology patent subsidy, interest subsidy for technology upgradation, etc.
• Herbal medicine processing, auto components auto components-spare bicycle, aluminum based down stream products, food processing, pharmaceuticals, electronic products, white goods electricity generation from non-conventional sources are the "special thrust industries". These get higher rebate/concessions.
• Service charges on land allotment reduced from 35 per cent to 15 per cent.
• Infrastructure subsidy on capital investment up to 9 years equivalent to the commercial tax payment.

Full text of the policy

Industrial Incentives (2004-2009)

IT &ITES Policy

The state of Chhattisgarh recognizes the importance of Information and Communication Technology as a key enabler in its economic development and improving the quality of life. Information Technology has been identified as a special thrust industry and the IT policy of the state lays considerable stress on building a comprehensive IT infrastructure to facilitate the growth of the sector.

Objectives of the Policy

• Establish Chhattisgarh as a leading destination of choice for IT investments.
• Provide an enabling environment for a robust an enabling environment for a robust growth of local It industry in the state.
• Leveraging IT for improving Governance in the state.
• Planning and investing for the future of IT requirements.
• Use IT as an enabler for development of non-It industries
• Taking internet to masses for facilitating information access

Full text of the policy (.pdf)

Energy Policy

The state of Chhattisgarh is fortunate to have surplus electricity and has immense possibilities of coal based thermal power generation. Considering the abundant availability of coal in the state, Chhattisgarh can be developed as a "power hub" of the nation from where power could be exported to other to other states facing power deficit.

The state government has formulated the "energy policy" with the main objective of accelerating the pace of development of the state.

Full text of the policy

Useful Web Links

Government of Chhattisgarh

Chhattisgarh State Industrial Development Corporation Limited