Chhattisgarh

CHATTISGARH

General Profile

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.

The State has successfully embarked on the path of multi sectoral growth plan and has taken the initiative of formulating a host of comprehensive policies for the development of important sectors. The policy announcements have been fine-tuned to meet the targets as envisaged in the Chhattisgarh Vision-2010. With the policy framework in place, a number of large projects have been initiated, particularly in the infrastructure and social sectors. The multi sectoral growth plan lays special attention to the revitalization of the sick segments of the dominant primary sector and of the languishing secondary and tertiary sectors. Along with this a multi tier strategy for the development of horticulture, floriculture, sericulture, pisciculture and agro industrial services has put in place. The telecom, road, IT and urban density is being improved along with development of blocks of contiguous land strips in land pools. Incentives for mega projects, thrust industries, small-scale industries and sunrise industries, particularly information technology have been announced to attract investment in the State. State initiatives have focused largely on critical areas of e-governance, fiscal reforms, social safety, health, environment, education and law & order. The State offers incentives for the revival of existing sick units. The State is heavily dependent on agriculture. With the new thrust of the State Government to push industrial development within the State, opportunities for investments are huge.

Advantage Chhattisgarh

• Good Governance is the highest priority of the state.
• There is both policy stability as well as political stability.
• Rich in mineral resources. There are mega industries in Steel, Aluminum and Cement.
• Chhattisgarh contributes substantially to the Human Resources of India. A unique Private Universities Act has been passed to attract investments in quality higher education.
• Sound fiscal position.
• Chhattisgarh is developing as power hub of the country. Its large power surplus is attracting power-intensive industries and the State is poised to become the power-hub of the nation. Its central location helps easy power transmission to any part of the country. The State is supplying power to Delhi, Gujarat and Karnataka, among others.
• Chhattisgarh ranks high in terms of good industrial relations and labour productivity.
• 12% of India’s forests are in Chhattisgarh and 44% 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, with tremendous potential for value addition.
• Good connectivity.
• The state has locational advantage in trading. The state has one existing dry port and another dry port by the container corporation is in the pipeline.
• The New Economic Policy (NEP) aims to promote private sector participation, especially in infrastructure sector.
• The NEP also aims to provide “single point contact” and “time bound clearance ” for providing requisite facilities, services and statutory clearances for investment.
• Product specific industrial parks i.e. aluminum and metal park, apparel park, food park and herbal park are being developed.

Major Industries

• Aluminum

Chhattisgarh can soon boast of having the largest aluminum plants in the country at Korea. The plant is quadrupling its capacity to 400,000 tones per annum. The state has proposed to develop an aluminum park for downstream products. It will house more than 100 units to manufacture various aluminum products for civil aviation, automobile and construction sectors.

• Cement

Chhattisgarh is famous for its cement industry. There are eight large units accounting for around 20 percent of India’s cement production.

• Coal

Chhattisgarh is an important player in coal sector. Presently, the sector is dominated by public sector undertakings, but the private sector is also coming up in this sector in terms of captive mines for industrial units.

• Iron and Steel

The state is the iron and steel hub of the country. The Bhilai steel plant of Steel Authority of India Ltd. (SAIL) produces over four million tones of iron and steel per annum. Substantial capacities have been set up in the private sector too. Twenty eight per cent of India’s sponge iron production comes from Chhattisgarh.

• Power

  Chhattisgarh has a robust power sector since its inception. The power situation of the state is very comfortable. NTPC has an installed thermal capacity of 2100 MW while CSEB’s units have a thermal capacity of 1280 MW and hydel capacity of 130.85 MW. Apart from NTPC and CSEB, there are a number of private generation units of large and small capacity operating in the state. The private players have been attracted to this sector mainly on behalf of the liberal policy pursued by the Government with regard to captive generation.

Investment Profile of the state

Investment opportunities do exist in the following sectors-

• Processing of medicinal, aromatic and dye plants
• Automobile, auto components, spares and cycle industries
• Manufacturing of plant, machinery & engineering spares
• Downstream products based on aluminum
• Mineral based industries
  • Cement
  • Prospecting/exploitation of tin ore
  • Corundum cutting and polishing
• Food processing industries (industries approved for subsidy / assistance from Government of India)
• Milk chilling plant and branded dairy products
• Pharmaceutical industry
• White goods and Electronic consumer products
• Power generation from non-conventional source
• Information technology, bio technology and advanced technology industry
• Development of private sector industrial areas/ parks and other infrastructure