CHHATTISGARH November 2010
CHHATTISGARHNovember 2010
2
Investment climate of a state is determined by a mix of factors
Investment climate of a state
• Skilled and cost-effective labour
• Labour market flexibility
• Labour relations
• Availability of raw materials and natural
resources
• Tax incentives and exemptions
• Investment subsidies and other incentives
• Availability of finance at cost-effective terms
• Incentives for foreign direct investment (FDI)
• Profitability of the industry
• Procedures for entry and exit of firms
• Industrial regulation, labour regulation, other
government regulations
• Certainty about rules and regulations
• Security, law and order situation
• Condition of physical infrastructure such as
power, water, roads, etc.
• Information infrastructure such as telecom, IT,
etc.
• Social infrastructure such as educational and
medical facilities
Resources/inputs
Incentives to industryPhysical and social
infrastructure
Regulatory framework
CHHATTISGARH November 2010
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Contents
Advantage Chhattisgarh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Chhattisgarh
CHHATTISGARH November 2010
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Chhattisgarh – State profile
• Located in central India, Chhattisgarh covers 135,191 sq km and accounts for 4.1 per cent of the total land area of India.
• Chhattisgarh is one among the few landlocked states in the country. It shares borders with the states of Madhya Pradesh and Maharashtra in the West, Uttar Pradesh and Bihar in the North, Orissa in the East and Andhra Pradesh in the South.
• The state is divided into 18 districts. Chhattisgarh‟s administrative capital is Raipur, which is also its largest city. Bhilai, Durg, Bilaspur, Korba and Rajnandgaon are the other large cities.
• Chhattisgarh has a tropical climate with three major seasons: summer (April to May), monsoon (June to October) and mild winter (November to January).
• The languages spoken are Chhattisgarhi and its local dialects, Hindi and English.
Source: Maps of India
Chhattisgarh November 2010
ADVANTAGE CHHATTISGARH
5
Mineral resources
Policy and fiscal incentives
Mineral resources are Chhattisgarh‟s biggest strength. It has
deposits of limestone, iron-ore, copper, rock phosphate,
manganese, bauxite, coal, asbestos and mica. Chhattisgarh
accounts for about 17 per cent of the nation‟s coal reserves.
The state also has proven diamond reserves along with potential
gold reserves.
The state offers a wide range of fiscal and policy incentives for
businesses under its Industrial Policy, 2009. Additionally, the state
has well-drafted policies for the IT/ITeS, minerals and energy
sectors.
Advantage Chhattisgarh … (1/2)
Source: Maps of India
ADVANTAGE CHHATTISGARH
Chhattisgarh November 2010
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Rich labour pool
The state has a high worker-participation rate (male and female)
and most of the labour force is in the 15 to 39 age group. It also
has one of the lowest losses in terms of man-days attributed to
labour problems in the country.
Advantage Chhattisgarh … (2/2)
Surplus power
Chhattisgarh is presently one of the few states that has surplus
power. It is also among the few profitable states in terms of utility-
based electricity. Presence of coal makes Chhattisgarh an ideal
location for setting up pit head-based thermal power plants for
both, merchant sales and state consumption.
Source: Maps of India
ADVANTAGE CHHATTISGARH
Chhattisgarh November 2010
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Parameter Chhattisgarh All-states Source
Economy
GSDP as a percentage of all
states‟ GSDP2.0 100.0 CMIE, as of 2007-08, current prices
Average GSDP growth rate (%)* 17.4 11.8CMIE, 2000-01 to 2007-08, current
prices
Per capita GSDP (US$) 837.1 992.5 CMIE, as of 2007-08, current prices
Physical infrastructure
Installed power capacity (MW) 4,769.5 159,398.5Central Electricity Authority, as of
March 2010
National highway length (km) 2,184 70,548Ministry of Road Transport & Highways,
Annual Report 2008-09
Airports (No) 2 133 Airport Authority of India
Chhattisgarh in figures … (1/2)
ADVANTAGE CHHATTISGARH
*Calculated in Indian rupee terms
Chhattisgarh November 2010
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Parameter Chhattisgarh All-states Source
Social indicators
Literacy rate (%) 64.7 64.8 Census of India, 2001
Birth rate (per 1,000 population) 26.1 22.8Ministry of Health and Family Welfare,
RHS Bulletin, March 2008
Ease of doing business
FDI inflows (US$ billion) 0.2* 120.2Department of Industrial Policy and
Promotion, April 2000 to May 2010
Outstanding investments (US$
billion)85.8 1,972.6 CMIE, as of March 2010
Industrial infrastructure
PPP projects (No) 4 515 www.pppindiadatabase.com
SEZ (No) 2 155In-principle approval as of June 2010,
www.sezindia.nic.in
Chhattisgarh in figures … (2/2)
PPP: public private partnership, SEZ: special economic zone
*Figure includes Madhya Pradesh
ADVANTAGE CHHATTISGARH
Chhattisgarh November 2010
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Medium HighLow
Medium
High
Gems
and jewellery
Food
processing
Mining
BiotechnologyCement
Industry attractiveness matrix
Iron and steel
*Factor advantage
Polic
y th
rust
*Factor advantages include benefits due to geographical location and availability of factors like talent pool, natural resources and capital
Key industries with policy thrust and factor advantages
Power
IT and ITES
ADVANTAGE CHHATTISGARH
Chhattisgarh November 2010
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Contents
Advantage Chhattisgarh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Chhattisgarh
CHHATTISGARH November 2010
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Socio-economic snapshot of Chhattisgarh
Parameters Chhattisgarh
Capital Raipur
Geographical area (sq km) 135,191
Administrative districts (No) 18
Population density (persons per sq km) 154
Total population (million) 20.83
Male population (million) 10.47
Female population (million) 10.36
Sex ratio (females per 1,000 males) 989
Literacy rate (%) 64.7
Male (%) 77.4
Female (%) 51.9
Average life expectancy (years)
Male 59.2
Female 58.0
Sources: Chhattisgarh at a glance 2007, Census 2001
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Chhattisgarh November 2010
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5.85.4
6.27.1
8.99.6
11.315.4
19.820.7
22.8
0.0 5.0 10.0 15.0 20.0 25.0
1999-002000-012001-022002-032003-042004-052005-062006-072007-082008-092009-10
Chhattisgarh‟s GSDP
• At current prices, the Gross State Domestic Product (GSDP) of Chhattisgarh was about US$ 22.8 billion in 2009-2010.
• The average GSDP growth rate between 1999-2000 and 2009-2010, was about 14.6 per cent.
• The state‟s abundant resources, such as coal and minerals has led its economic growth with industries in the cement, iron and steel and power sectors.
Chhattisgarh‟s GSDP (US$ billion)
Source: CMIE
CAGR
14.6%
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Chhattisgarh November 2010
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Chhattisgarh‟s NSDP
• In 2009-2010, the Net State Domestic Product (NSDP) of Chhattisgarh was about US$ 19.9 billion.
• The average NSDP growth rate over 10 years to 2009-2010, was about 14.6 per cent.
Chhattisgarh‟s NSDP (US$ billion)
Source: CMIE
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
5.14.6
5.36.1
7.78.4
9.813.6
17.518.1
19.9
0.0 5.0 10.0 15.0 20.0 25.0
1999-002000-012001-022002-032003-042004-052005-062006-072007-082008-092009-10
CAGR
14.6%
Chhattisgarh November 2010
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The secondary sector has an increasing share in Chhattisgarh‟s
economy
• In 2009-2010, the secondary sector contributed the highest to Chhattisgarh‟s GSDP at 40.0 per cent (US$ 9.1 billion). It was followed by the tertiary sector, contributing 32.8 per cent (US$ 7.5 billion) and the primary sector at 27.2 per cent (US$ 6.2 billion).
• The secondary sector had the highest growth rate of all three sectors in the period between 1999-2000 and 2009-2010 (21.1per cent) .
• The secondary sector‟s growth was driven by the cement, iron and steel, and power sectors.
Percentage distribution of GSDP
Source: CMIE
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
CAGR
27.237.1
40.0 23.3
32.8 39.6
0%
20%
40%
60%
80%
100%
2009-10 1999-00
Primary sector Secondary sector Tertiary sector
11.2%
21.1%
12.6%
Chhattisgarh November 2010
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Per capita GSDP
• In 2009-2010, the state‟s per capita GSDP was US$ 928.7.
• The per capita GSDP increased at a CAGR of 12.5 per cent between 1999-2000 and 2009-2010. It was 3.3 times higher in 2009-2010 as compared to that in 1999-2000.
Source: CMIE
Per capita GSDP
US$
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
285.2 258.5 294.5 333.0407.3 432.5
499.2
664.1
837.1858.8 928.7
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
1000.0
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Chhattisgarh November 2010
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Chhattisgarh‟s socio-economic profile
• Chhattisgarh is a relatively new state, having been formed in 2000 after the state of Madhya Pradesh was divided into two.
• Its socio-economic profile is largely rural; 80 per cent of the total population live in the rural areas and the remaining 20 per cent live in the urban areas.
• The population density is 154 persons per sq km. The state‟s Human Development Index is 0.5 according to the United Nations Development Program (UNDP)‟s .
Demographic
profile
Percentage of population
Chhattisgarh India
Rural 80 72.2
Urban 20 27.8
Source: Census 2001
• Chhattisgarh's social performance (as measured by the Human Development Index in 2001) shows that certain parts of the state (Durg-0.6, Raipur-0.6 and Korba-0.6) have a better developed social infrastructure as compared to the other districts in the state. This may be attributed to industrialisationand better infrastructure in these regions.
• On the Social Development Index, the state scores 36.4 for urban areas and 28.9 for rural areas.
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Chhattisgarh November 2010
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39.6%
7.1%5.2% 4.2%
35.9%
4.7%8.1% 10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Food Education Medical Durable goods
All-India Chhattisgarh
Consumer expenditure on household goods and services
Source: Household Consumer Expenditure in India, 2007-08 NSS 64th Round
Share of average monthly per capita expenditure on
household goods and other services
• Chhattisgarh is ahead compared to all-India in share of per capita expenditure on durable goods.
• With regards to share of expenditure on food and medical services, the state is comparable to the all-India level.
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
52.3%
3.7% 6.3%3.6%
51.1%
1.4%5.2% 4.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Food Education Medical Durable goods
All-India Chhattisgarh
Urban Rural
Chhattisgarh November 2010
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Key industries in Chhattisgarh
Key industries in Chhattisgarh
• Mining
• Iron and steel
• Cement
• Power
• IT and ITeS
• Biotechnology
• Food processing
• Gems and jewellery
• The natural resources, policy incentives and infrastructure in the state support investments in the iron and steel, cement and power sectors.
• Chhattisgarh is among the richest Indian states in terms of mineral wealth, with 28 varieties of major minerals, including diamonds.
• Almost 80 per cent of the population is dependent on agriculture or agriculture-related occupations.
• Until 2007, 106 large/medium industries were established in the state, with a fixed investment of around US$ 1.2 billion.
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
• From April to October 2007, 332 micro and small industries were established with an investment of around US$ 21 million.
• Chhattisgarh is making significant investments in industrial infrastructure. The Chhattisgarh Industrial Development Corporation has set up four industrial growth centres, five industrial parks and four integrated infrastructure development centres (IIDC). The state is also in the process of setting up two special economic zones (SEZ).
Chhattisgarh November 2010
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Rice, wheat and soybean are the key agricultural products
CropAnnual production
(„ooo tonnes)
Rice 5,195
Wheat 157
Soybean 110
Arhar 101
Rapeseed 57
• Rice is the major crop of the state. It is followed by wheat, soybean, arhar and rapeseed.
• The top five crops account for over 90 per cent of the total food grain production.
• In 2007-08, the total production of the top-five crops was 5.62 million tonnes.
Source: CMIE, as of 2007-08
Source: Maps of India
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Chhattisgarh November 2010
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Chhattisgarh‟s exports trends
• Chhattisgarh‟s total exports were US$ 643.6 million in 2008-09. Exports increased at a CAGR of almost 38 per cent between 2002-03 and 2008-09.
• Nearly 75 per cent of exports comes from Bhilai and the remaining from Urla, Bhanpuriand Sirgitti.
• The major exports products include steel, handicrafts, handlooms, blended yarn, food and agri-products, iron, aluminium, cement, minerals and engineering products.
Exports trends (US$ million)
Source: Chhattisgarh Industrial Development Corporation
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
93.2
242.1310.7
362.2 378.6
553.9
643.6
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
Chhattisgarh November 2010
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• According to the Reserve Bank of India, FDI inflows from April 2000 to May 2010 amounted to US$ 206 million*.
• As of March 2010, the outstanding investments in the state were US$ 85.8 billion.
• The bulk of the investments were in the electricity (68.9 per cent) and manufacturing (26.0 per cent) sectors.
Investments and FDI inflows
Break up of investments by sector
Source: CMIE, as of March 2010*Figure includes FDI into Madhya Pradesh
Source: Department of Industrial Policy & Promotion
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
68.9%
26.0%
2.1%
2.7%
0.3%
Electricity
Manufacturing
Services
Mining
Construction
Chhattisgarh November 2010
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Contents
Advantage Chhattisgarh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Chhattisgarh
CHHATTISGARH November 2010
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Road network
• The three National Highways of Chhattisgarh together constitute 2,184 km of roads in the state. The State Highways and district roads account for another 8,031 km. The state has a road density of 46 km per 100 sq km.
• The Central Government has allocated US$ 14.6 million for the development of National Highways in Chhattisgarh. Nearly US$ 6 million was allocated for their maintenance in 2008-09.
• In 2008-09, 2,811 km of roads and 68 bridges were constructed.
Road type Road length (km)
National Highways 2,184
State Highways* 3,213 (P)
District roads* 4,818 (P)
Sources: Chhattisgarh Economic Survey, 2008-09, Ministry of
Roads, Transport and Highways, Annual Report, 2008-09
*2008-09
Source: Maps of India
INFRASTRUCTURE STATUS
Source: Chhattisgarh Economic Survey, 2008-09
Chhattisgarh November 2010
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Railways
• Chhattisgarh‟s railways sector falls under the jurisdiction of the South East Central Railways. The state is well connected to the rest of the country via the railways. Raipur and Bilaspur are the two major railway stations.
• The significant mining and industrial activity in the state was a major reason behind the setting up of the South East Central Railways in1998. It is headquartered in Bilaspur.
Source: Maps of India
INFRASTRUCTURE STATUS
Chhattisgarh November 2010
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• The state has two domestic airports; the airport at Raipur is in operation, while the Bilaspurairport is not in operation.
• Chhattisgarh also has seven air strips located at Bhilai, Korba, Raigarh, Jagdalpur, Ambikapur, Jashpur Nagar and Sarangarh.
• The Raipur airport is to be expanded with an investment of up to US$ 30 million. Construction is expected to be completed by December 2010.
Airports
Domestic airport
INFRASTRUCTURE STATUS
Chhattisgarh November 2010
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Power … (1/2)
Installed power capacity (MW)
Source: Central Electricity Authority
• In 2009-2010, the state had an installed power generation capacity of 4,769.5 MW, which comprised 2,508.1 MW under state utilities and 1,156.1 MW under the private sector.
• Over 85 per cent of private sector power capacity and over 93 per cent of state-owned power capacity are coal-based power plants.
• Korba in Chhattisgarh is termed as the “Power Capital” of India with National Thermal Power Corporation‟s (NTPC) super thermal power plant working at 90 per cent plant load factor (PLF).
• The state has huge coal deposits, which along with Jharkhand‟s and Orissa‟s supply, account for approximately 84 per cent of India‟s coal reserves.
• In the hydro power sector, the Hasdeo Bangoreservoir offers a relatively cheaper source of power generation.
INFRASTRUCTURE STATUS
1,632.5 1,897.6
3,103.33,607.1
4,769.5
0.0
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
2005-06 2006-07 2007-08 2008-09 2009-10
Chhattisgarh November 2010
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• Chhattisgarh‟s power is generated by the Chhattisgarh State Power Generation Company Limited (CSPGCL), and by independent power producers (IPP) such as LANCO and Jindal Power.
• Under the Eleventh Five-Year Plan, capacity additions – 4,480 MW by the central sector, 3,250 MW by the Chhattisgarh State Electricity Board (CSEB) and 2,950 MW by the private sector –have been planned for the state.
• Foreign private players such as UK-based KSK Power Venture Plc are investing over US$ 3.4 billion to set up a 3,600 MW thermal plant in the state.
Projects Agency Ownership Thermal
(MW)
Sipat Phase-I and II NTPC Central 3,480
Raigarh Phase-I Jindal
Power
Private 750
Pathadi (Lanco) U
(I,II)
LANCO Private 600
Korba East
Extension
CSEB State 250
Korba West
Extension
CSEB State 500
Marwa CSEB State 1,500
Korba South CSEB State 1,000
Bhaiyathan CSEB Private 1,600
Select projects for the Eleventh Five-Year Plan
Sources: Chhattisgarh at a glance, 2007, Directorate of Economics
and Statistics; Ministry of Power, Government of India;
Chhattisgarh State Electricity Regulatory Commission
Power generation
company
Chhattisgarh State Power Generation
Company Limited (CSPGCL)
Power
transmission
company
Chhattisgarh State Power
Transmission Corporation Limited
(CSPTCL)
Power supply
companies
Chhattisgarh State Power Distribution Company Limited (CSPDCL)
Power … (2/2)
State power utilities
INFRASTRUCTURE STATUS
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Telecom
• The state is in the process of implementing the State Wireless Area Network (SWAN), which will be a hybrid of wireless and wire-line access –supporting voice, data and video traffic.
• The wire-line telecom providers are Bharat Sanchar Nigam Limited (BSNL) and Touchtel, while the wireless providers are Bharti Airtel, Vodafone, Idea Cellular, Reliance Communications and TATA Docomo.
Telecom infrastructure
Number of telephone connections^: 1,210,503
Broadband subscribers: 168,951*
Post offices: 3,124
Telephone exchanges^: 608
Sources: Cellular Operators Association of India,
Chhattisgarh at a glance, 2007, Department of
Telecommunications, 2009-2010
*Includes Madhya Pradesh
^As of December 2009
INFRASTRUCTURE STATUS
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Urban infrastructure … (1/2)
• As of 2007, the state has an urbanisation rate of 17.4 per cent as against the national average of 29 per cent.
• It has 10 municipal corporations and 28 municipalities.
• Maharashtra‟s City and Industrial Development Corporation (CIDCO) has been appointed as the advisor to upgrade the capital city of Raipur and create a new planned city, called „Naya Raipur‟. The project is estimated to cost US$ 450 million and includes the following:
• A water supply project for meeting the requirements of an estimated 2.5 million population by 2031.
• A transport hub in the city.
• Naya Raipur Development Authority (NRDA) has been set up as the nodal agency for comprehensive development of the greenfield city.
Sources: Releases from Government of India: Sector-wise, 2000-08, Finance Department, Government of Chhattisgarh
INFRASTRUCTURE STATUS
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• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Raipur is one of the 65 identified cities for comprehensive development.
• “Naya Raipur” has been pegged as the fourth planned city in the country after Chandigarh, Gandhinagarand Bhubaneswar.
• The city has been planned over 8,000 hectares, of which 30 per cent is to be used for residential and economic purposes; Naya Raipur is likely to have a population of 450,000 within a decade.
• Under JNNURM, two projects, costing US$ 99.9 million, have been sanctioned for Raipur for augmenting the water supply schemes in Raipur and Naya Raipur.
• Under the Global Environment Facility and the World Bank-assisted Sustainable Urban Transport Project (SUTP), Naya Raipur has been selected as a demonstration city. A bus rapid transport system (BRTS) has been planned for the city at a cost of approximately US$ 375 million.
Sources: Government of Chhattisgarh, Finance Department; JNNURM, Ministry of Urban Development, Government of India
Urban infrastructure … (2/2)
INFRASTRUCTURE STATUS
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Key public private partnership projects
Contract authority ProjectInvestment
(US$ million)Project type Status
Roads
National Highways
Authority of India (NHAI)
Karnataka Road
Development Corporation
(KRDCL)
Aurang-Raipur 41.3 Road, BOT-TollUnder
construction
Durg bypass 15.2 Road, BOT-Toll In operation
End of Durg bypass on
Chhattisgarh-Maharashtra border100.9 Road, BOT-Toll
Under
construction
Raipur-Durg expressway 24.8 Road, BOT-Toll In operation
Source: pppindiadatabase.com
BOT: Build-own-transfer
INFRASTRUCTURE STATUS
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Education sector
• According to the Census 2001, Chhattisgarh has a literacy rate of 64.7 per cent; the male literacy rate is 77.4 per cent and female literacy rate is 51.9 per cent.
• The state also has eight universities, three medical colleges, 16 engineering colleges, 139 government general colleges, 12 polytechnics and 88 industrial training institutes (ITIs).
• Reputed educational institutions in the state are the National Institute of Technology in Raipur, and the Bhilai Institute of Technology in Durg.
• In August 2009, the Government of India approved a proposal to set up an Indian Institute of Management (IIM) at Raipur.
Educational infrastructure
Universities 8Government
colleges139
Medical colleges 3 Polytechnics 12
Engineering colleges 16 ITIs 88
Chhattisgarh primary education statistics
Number of schools
(2007-08)
Lower primary: 34,034
Higher primary:14,066
High schools: 4,226
School-dropout rate
(2007-08)
Classes I-V: 31.7
Pupil-teacher ratio Lower primary: 51.1
Upper primary: 42.6
High schools: 26.7
Net-enrolment ratio in primary
schools
98.7
Retention rate (classes I-V) 69.4
Sources: Chhattisgarh at a glance, 2007; Elementary Education in India,
National University of Education, Planning and Administration, as of
2006-07, Department of School Education and Literacy and
Department of Higher Education, Annual Report, 2009-2010
INFRASTRUCTURE STATUS
As of 2006-07
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Health infrastructure
• Chhattisgarh‟s health infrastructure comprises 16 district hospitals, 136 community health centres, 721 primary health centres and 4,741 sub-centres.
• There are about three institutions per 100,000 persons, offering Indian systems of medicine.
• Twelve districts in the state have blood bank facilities.
Health infrastructure (2008)
District hospitals 16
Community health centres 136
Primary health centres 721
Sub-centres 4,741
Health indicators (2008)
Population served per government hospital
159,500
Population served per government hospital bed
3,955
Birth rate* 26.1
Death rate* 8.1
Infant mortality rate** 57.0
Life expectancy at birth (years)
Male 59.2
Female 58.0
Sources: Ministry of Health and Family Welfare, 2008;
Chhattisgarh at a Glance, 2007
*Per thousand persons
**Per thousand live births
INFRASTRUCTURE STATUS
Source: Ministry of Health and Family Welfare, 2008
Chhattisgarh November 2010
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Cultural infrastructure
• There are several sports complexes in Chhattisgarh. Football, cricket, hockey, basketball and kabaddiare the major sports of the state.
• The main sports arenas are the Ravishankar Shukla Stadium in Durg, the Priyadarshini Indira Stadium in Korba, and the Digvijaya Stadium in Rajnandgaon.
• Hockey is a popular sport in the state and the Digvijaya Stadium is known as the „nursery of hockey‟.
• The key hotels in the state are the Royal Palace in Kanker, Kawardha Palace in Kawardha, Hotel Piccadilly in Raipur and Rainbow Hotel in Jagdalpur.
• Chhattisgarh is renowned for its heritage tourism; Bhoramdeo, Dantewada, Deepadih, Dongargarh, Jogibhatta, Rajim, Sirpur, Malhar, Sita Bhengra, and Sheorinarayan are some of the popular heritage sites.
• A five-star hotel with a large convention centre has been planned to come up at Naya Raipur, the Chhattisgarh Government‟s new administrative capital.
INFRASTRUCTURE STATUS
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Industrial infrastructure … (1/2)
• The Chhattisgarh State Industrial Development Corporation Limited (CSIDC) is the industrial development department of the State Government.
Industrial infrastructure Type and location District SizeInvestment requirement
(US$ million)
Industrial parks (ongoing
projects)
Aluminium/metal park Raipur 191.4 Ha Not available
Integrated textile park Bhanpuri,
Raipur
8.0 acres 5.0*
Medicinal park Dhamtari 250.0 acres 13.5
Food processing park Rajnandgaon 300.0 acres 6.7*
Engineering park Bhilai 120.0 acres 4.3
Integrated infrastructure
development centres (IIDCs)
Tifra (Bilaspur), Shyamtarai (Dhamtari), Teknar
(Dantewada), Kapan (Janjgir-Champa)
All between
20-80 Ha
-
Sources: Economic Survey, 2008-09, CSIDC website
*PPP mode
INFRASTRUCTURE STATUS
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Industrial infrastructure … (2/2)
Industrial infrastructure Type and location District SizeInvestment requirement
(US$ million)
Growth centres (established) Siltara Raipur 1.3 Ha 155.9
Borai Durg 436.8 Ha 37.4
Urla Raipur 232.3 Ha 108.6
Sirgitti Bilaspur 371.6 Ha 21.7
Large industrial areas (new
projects)
Bilaspur 791 Ha 12.5
Raipur 2,483 Ha 37.3
Raigarh 1,466 Ha 19.3
Sources: Economic Survey, 2008-09, CSIDC website
INFRASTRUCTURE STATUS
Chhattisgarh November 2010
37
Source: sezindia.nic.in, as of June 2010
Industry Location SEZ (No)
SEZs with formal approval
IT/ITeS Naya Raipur 1
Solar Rajnandgaon 1
SEZs with in-principle approval
Gems and jewellery Raipur 1
Multi-product Raipur 1
• As of June 2010, the state had two formally-approved SEZs.
• The state has important industrial areas in Bhilai, which is home to iron and steel ancillary units, and Korba, which is home to well known companies in the power and aluminium sectors.
Industrial area
Growth centre
Industrial park
SEZs
SEZs and industrial clusters
INFRASTRUCTURE STATUS
Chhattisgarh November 2010
38
Infrastructure type Investments (US$ million)
Power generation 19,593.4
Coal and lignite 658.0
Crude oil and natural gas 582.8
Minerals 464.1
Railways 349.7
Total 21,648.1
• As of March 2010, more than US$ 21.6 billion of investments have been made in strengthening Chhattisgarh‟s infrastructure.
• Over 90 percent of the investments in infrastructure have been made in the area of power generation.
• Railways are expected to receive significant investments over the coming years.
Source: CMIE
As of March 2010
Major investments in the infrastructure sector
INFRASTRUCTURE STATUS
Chhattisgarh November 2010
39
Contents
Advantage Chhattisgarh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Chhattisgarh
CHHATTISGARH November 2010
40
Industrial Policy, 2009-14
Aim: The state‟s industrial policy and initiatives are directed towards achieving rapid economic growth.
Key objectives and initiatives:
• To create conducive environment and infrastructure to boost the exports of the state.
• To create self-employment as well as additional employment opportunities in the industry for the local residents of the state.
• To ensure balanced regional development by attracting industries in the economically backward areas of the state.
• To provide special facilities to the weaker sections of the society i.e. schedule caste/schedule tribe, women entrepreneurs,
physically challenged, ex-service men and naxalite-affected families to bring them in the main stream of economic development.
• To make industrial investments in the state competitive vis-a-vis other states of the country and provide economic benefits to
the national and international investors.
• To promote private sector participation for creation of industrial infrastructure in the state.
Sector-specific policies … (1/8)
STATE POLICIES AND INCENTIVES
Chhattisgarh November 2010
41
IT and ITeS Policy
Aim: To create an enabling environment for promoting the growth of the IT industry in the state.
Key initiatives and objectives:
• To foster the growth and development of a competitive IT industry in the state by ensuring anytime and anywhere connectivity.
• To provide all citizens with widespread and easy access to government services at an affordable cost and in the local language, by
setting up integrated service delivery centres (ISDC) across the state.
• To ensure 100 per cent IT literacy in all schools and colleges in a phased manner.
• To promote local entrepreneurs who are willing to invest in improving IT infrastructure in the state.
• To increase investments to support the IT industry and create employment opportunities.
• To be a significant contributor to India‟s IT output by 2020.
• The Chhattisgarh Infotech and Biotech Promotion Society (CHIPS) has been set up to give an impetus to IT growth in the state
and implement initiatives for overall socio-economic development.
• IT, biotechnology and advanced technology industries have been declared as the special-thrust industries in the state‟s industrial
policy and are entitled to receive additional direct and indirect incentives.
Sector-specific policies … (2/8)
STATE POLICIES AND INCENTIVES
Chhattisgarh November 2010
42
IT and ITES Policy (continued)
Incentives and concessions:
• Interest subsidy on term loans and working capital for the small scale industries (SSI) and large and medium industries (LMI).
• Infrastructure development or capital investment subsidy to SSI, LMI and mega units on commercial tax or central sales tax paid
within the state.
• Exemption from electricity duty for new units.
• Exemption from stamp duty on acquisition of property.
• Exemption from entry tax.
• Allotment of plots at concession rates in industrial areas.
• Exemption from land-diversion fee to SSI units on diverted land, up to a maximum of 5 acres.
• Reimbursement of project report expenses.
• Non-resident Indians (NRI) and FDI investors to be eligible for receiving additional 5 per cent directed incentives over the
general-category investors.
• Reimbursement of up to 50 per cent of the fee paid (up to a maximum of US$ 1,630) for International Organisation for
Standardisation (ISO) or any equivalent national or international certification.
• Reimbursement of up to 50 per cent of the expenses incurred up to US$ 10,869 for obtaining a patent.
• Interest subsidy for technology up-gradation on the term loan and working capital borrowed from financial institutions.
Sector-specific policies … (3/8)
STATE POLICIES AND INCENTIVES
Chhattisgarh November 2010
43
Biotechnology Policy
Key objectives:
• To enable the local communities get optimal advantages of their natural, bio-cultural and bio-knowledge heritage in a sustainable
manner.
• To create an environment where benefits of bio-resources are not rapidly dissipated, but are available to their natural
custodians.
• To contribute 5 per cent to the biotechnology output of India by 2012.
• To achieve substantial productivity gains and reduce risks to livelihood and environment in sectors relating to agriculture,
forestry, animal husbandry and health – with the ultimate objective of ensuring food security and environment protection.
• To institutionalise major capabilities in biotechnology research and development in general, with particular focus on the
indigenous knowledge systems and their applications in furthering socio-economic growth.
• To facilitate an environment for research through development of infrastructure and appropriate incentives.
• To leverage convergence between various fields of related disciplines and provide benefits to society at large.
• To facilitate growth of an industry by providing high-quality infrastructure with the required support services for production
including facilitation of venture capital and bank credit-flows.
• To address issues such as intellectual property rights, bio-safety, bio-surveillance and bio-ethics.
• Key thrust areas identified in the policy include agri-biotechnology, healthcare including diagnostics, therapeutics, pharmaco-
genomics, bioinformatics, industrial and environmental biotechnology.
Sector-specific policies … (4/8)
STATE POLICIES AND INCENTIVES
Chhattisgarh November 2010
44
Biotechnology Policy (continued)
Key initiatives:
• Encouraging and facilitating research and development.
• Setting up of Chhattisgarh Centre of Excellence in Biotechnology, which would include an advanced facility for genomics,
transgenic research, animal biotechnology, and healthcare-related biotechnology and bioinformatics.
• Providing excellent infrastructure for biotechnology industry such as biotechnology parks, bio-villages and commercial plant-
tissue culture units.
• Human resource development by introducing graduate and post-graduate courses in biotechnology, and industry-partnered
education programmes.
• Smoother and easier clearance procedures for the commercialisation of biotechnology products and for investment in the
biotechnology industry.
Sector-specific policies … (5/8)
STATE POLICIES AND INCENTIVES
Chhattisgarh November 2010
45
Biotechnology Policy (continued)
Incentives and concessions:
• Incentives for ISO certification and other global standards as mentioned under the Industrial Policy, 2004.
• Several industries from the biotechnology sector identified as thrust areas in the Industrial Policy to receive benefits, subject to a
minimum investment of US$ 108,695 in plant and machinery. These industries include bio-fertiliser, tissue-culture, cocoon-
rearing, rhizobium-culture and blue-green algae culture.
• Exemption from pollution-control regulations for all bioinformatics units; these units can be established anywhere in the state,
regardless of residential, industrial or commercial zoning.
• Exemption from payment of stamp duty on acquisition of land.
• Assistance to small scale biotechnology units located in areas other than industrial estates, to the extent of 25 per cent of the
infrastructure cost, subject to a maximum of US$ 217,291.
• Interest subsidy of 5 per cent per annum, subject to a maximum of US$ 10,870.
• The state will provide land on lease, or as share of equity in joint-ventures for setting up of biotechnology parks.
• Biotechnology units to be provided uninterrupted power supply; the units will pay industrial tariff for power at US 6.4 cents per
unit.
• All new biotechnology industrial units will be exempted from paying electricity cess for a period of 10 years after the start of
commercial production.
Sector-specific policies … (6/8)
STATE POLICIES AND INCENTIVES
Chhattisgarh November 2010
46
Mineral Policy, 2001
Aim: To establish an investor-friendly business environment in the mining sector in order to attract both domestic and
international private sector investors.
Key objectives and initiatives:
• To provide facilities for maximum participation of the state‟s population in minerals-based industries by maintaining transparency
• To increase revenue from minerals.
• To develop mineral resources with a priority for export-oriented minerals, strategic-minerals and base-metals.
• To attract private and foreign investment for high-value minerals (gold, base metals and diamonds) and energy fuels.
• To introduce new technologies, equipment and research and development (R&D) facilities in order to increase the extraction
yield, improve the quality of minerals and expand their use.
• To implement the Granite Conservation and Development Rules, 1999.
• To formulate measures to check illegal-mining and pilferage of mineral revenue.
• To develop a knowledge-base and ensure sustainable supply of raw materials for mineral-based industries established within the
state through the state mining corporation – the Chhattisgarh Mineral Development Corporation (CMDC).
Sector-specific policies … (7/8)
STATE POLICIES AND INCENTIVES
Chhattisgarh November 2010
47
Energy Policy, 2001
Aim: Chhattisgarh has immense potential for coal-based thermal power generation. The policy aims to accelerate the pace of
development of the state, bring it at par with other developed states, and ensure the availability of reliable and cheap electricity to
every section of society, both, in the rural and urban areas.
Key objectives and initiatives:
• To provide electricity to the farmers for agricultural purposes.
• To provide quality power at reasonable rates to industries on demand.
• To allow power generation through captive power plants for industries.
• To increase power generation capacity by means of renovation and modernisation, and innovation in renewable energy sources
such as solar, biomass and bio-gas.
• To pursue power sector reforms, energy conservation and management.
• To enable and ensure consumer satisfaction.
Sector-specific policies … (8/8)
STATE POLICIES AND INCENTIVES
Chhattisgarh November 2010
48
Company logos cited in this section are registered trademarks of the respective companies.
Contents
Advantage Chhattisgarh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Chhattisgarh
CHHATTISGARH November 2010
49
Mining
• Chhattisgarh is among the richest Indian states in terms of mineral wealth, with 28 varieties of major minerals including diamonds.
• The state holds a major share of coal deposits in India, which has led to its 'power hub' aspirations.
• It is the only state in India to have tin ore reserves.
• About one-sixth of the iron-ore in the country is mined in the state and one of the best-quality, iron-ore deposits in the world is found at the Bailadila mines in the South of Chhattisgarh from where it is exported to Japan and other countries.
• Rich deposits of bauxite, limestone, dolomite and corundum are also found in the state, making it the ideal location for the low-cost of production of end-products such as cement and aluminium.
Important mineral reserves in Chhattisgarh (million tonnes)
Mineral India ChhattisgarhShare in India‟s reserves (%)
Iron-ore 14,630 2,731 18.7
Coal 253,302 41,442 16.4
Bauxite 3,290 148 4.5
Limestone 175,345 9,038 5.2
Dolomite 7,533 847 11.2
Tin ore 87 32 37.7
Quartzite 1,145 26 2.3
Source: Federation of Indian Mineral Industries, 2007-08
BUSINESS OPPORTUNITIES
Source: Mineral Resources Department, Government of Chhattisgarh
As of 2007-08
Chhattisgarh November 2010
50
Mining – company profiles
National Mineral
Development Corporation
(NMDC)
• NMDC is the country‟s single-largest iron-ore producer and exporter. It produces more than 28.5
million tonnes of iron-ore from its fully-mechanised mines. The company operates two mines at
Bailadila in Chhattisgarh.
• Iron-ore from this region is considered the best for manufacturing steel as it has almost 66 per
cent super high-grade iron content that is free from sulphur and other deleterious materials. In
2008-09, the company had a revenue of US$ 1.64 billion and an employee base of 5,652.
• NMDC plans to increase its total iron-ore production capacity to 50 million metric tonnes per
annum by 2014-15. It has started expansion of its Bailadila 11-B mine by 7 million metric tonnes
and at a cost of US$ 132 million. The plant is expected to be commissioned by the end of 2010-11.
In 2009, the company also announced plans to set up a 3 million tonnes per annum (MTPA)
integrated steel plant in Jagdalpur, Bastar district. In early 2010, land was acquired for the proposed
plant. Construction is expected to be completed by 2012.
BUSINESS OPPORTUNITIES
Chhattisgarh November 2010
51
Iron and steel
• The state is the iron and steel hub of the country. The Bhilai Steel Plant of Steel Authority of India Limited (SAIL) produces more than 4 million tonnes of iron and steel per annum. In addition, substantial capacities have been set up by the private sector.
• Chhattisgarh contributes 28 per cent of India's sponge iron production.
• The state ranks third among all the iron-ore producing states in India.
• In 2007-08, the state produced around 31.6 million tonnes of iron-ore, amounting to approximately US$ 765 million.
Source: Chhattisgarh State Industrial Development Corporation
Key players
• Steel Authority of India Limited
• Monnet Ispat and Energy Limited
• Jindal Steel and Power Limited
• Tata Steel
• Essar Steel
• MSP Steel and Power
• Ind Synergy Limited
• Prakash Industries Limited
• Godawari Power & Ispat Limited
• Nalwa Steel and Power Limited
BUSINESS OPPORTUNITIES
Chhattisgarh November 2010
52
Steel Authority of India Limited
(SAIL)
SAIL is the country‟s largest steel producer and the Bhilai steel plant is one of its largest
integrated steel plants. It is a large producer of rails and heavy steel plates and is the
country‟s sole supplier for 260-m long railway tracks. With an annual production capacity of
3.15 MT of saleable steel, it also specialises in other products such as wire rods and
merchant products.
It is accredited with ISO 9001:2000, Quality Management System Standard and ISO-14001
certification for its environment management systems. The company plans to invest US$ 5.5
billion up to 2012 in its integrated steel plants. In 2009-2010, SAIL recorded revenues of US$
9.3 billion.
Monnet Ispat and Energy Limited The company is a prominent player in the coal-based sponge iron space. It has production
facilities in both Raipur and Raigarh, with an annual combined capacity of 860,000 tonnes of
sponge iron, 300,000 tonnes of steel and 60,000 tonnes of ferroalloys. A green field steel
plant is being set up in Raigarh for the production of flat and long steel products. The plant
will have an annual production capacity of 1.5 million tonnes at an investment of US$ 870
million. In 2008-09, the company recorded revenues of US$ 360.9 million.
Prakash Industries Limited Established in 1980, the company is a part of the Surya Roshni Group. The company has
iron-ore and coal mines in Chhattisgarh. It has an integrated steel plant in the Janjgir district
and a rolling mill in Raigarh. The company‟s products are iron-ore, coal, sponge iron, steel
bloom, billets, ingots, wires, wire rods and ferroalloys. In 2009-2010, the company recorded
revenues of US$ 356.7 million.
Iron and steel – company profiles … (1/3)
BUSINESS OPPORTUNITIES
Chhattisgarh November 2010
53
Tata Steel Established in 1907, Tata Steel is Asia's first and one of India's largest private sector steel
companies. It is among the lowest-cost producers of steel in the world and in the select list
of global steel companies. In 2009-2010, the company recorded revenues of US$ 5.6 billion.
It has an annual crude steel production capacity of 30 million tonnes. The company is in the
process of setting up a US$ 4.23 billion green field, integrated steel plant at Jagdalpur, in the
Bastar district. The plant will have a total production capacity of 5 million tonnes per annum
and is expected to provide direct employment to 4,000 persons.
Essar Steel Essar Steel is a large steel producer with offices in India, Canada, the US and South East Asia.
In 2009-2010, it had revenues of US$ 2.4 billion and produced 9 million tonnes of steel. It is
in the process of making significant investments in setting up steel plants across the world.
The company has a steel-beneficiation plant at Bailadilla, with an annual production capacity
of 8 million tonnes. Essar aims to reach a capacity of 14 MTPA by 2011-12.
Godawari Power & Ispat Limited A flagship company of the Hira Group of Industries, Godawari Power is an integrated steel
producer of mild steel wires. It also produces sponge iron, billets, ferroalloys, wire rods,
steel wires and fly-ash bricks. The company had revenues of US$ 175.6 million in 2009-2010.
It plans to set up an iron-pellet plant in the state and has also been granted two mining leases
by the state at Ari Dongri and Boria Tibu.
Nalwa Steel and Power Limited Formed in 1989, Nalwa Steel is primarily involved in the production of sponge iron, billets,
and wire rods. In 2007-08, it produced 198,000 tonnes of sponge iron, 172,800 tonnes of
billets and 250,000 tonnes of wire rods. The company has its manufacturing facility in Raigarh
and sources its dolomite from Bilaspur and Raipur.
Iron and steel – company profiles … (2/3)
BUSINESS OPPORTUNITIES
Chhattisgarh November 2010
54
Jindal Steel and Power Limited
(JSPL)
JSPL is one of the largest coal-based sponge iron manufacturers in India. It has an employee
strength of over 15,000. The company has a production facility at Raigarh, which has a
capacity of 1.3 million tonnes of sponge iron and 3 million tonnes of steel. The company
witnessed revenues of US$ 1.7 billion in 2009-2010.
The company has set up an industrial park in Raigarh that houses 32 industrial units. JSPL is
among the largest private sector investors in the state, with a total investment commitment
of US$ 6.25 billion. JSPL has plans to set up a steel plant of 7 million tonnes and a 1,600 MW
power plant, with an investment of US$ 5.2 billion.
MSP Steel and Power Limited MSP Steel and Power is a part of the MSP Group, which began operations in 1996. The
company has manufacturing plants across the Eastern part of India, with sponge iron,
thermo-mechanically treated (TMT) bars, ingot and billet producing units in Jamgaon. The
company had revenues of US$ 87.2 million in 2009-2010.
Ind Synergy Limited Established in 1986, the company has large mining assets of iron-ore, coal, zinc, manganese,
etc. It has an iron and steel manufacturing unit in Raigarh, where it produces sponge iron and
steel billets – branded as Paramount Steel. It has a production capacity of 300,000 tonnes
per annum of sponge iron and 130,000 tonnes of steel.
Iron and steel – company profiles … (3/3)
BUSINESS OPPORTUNITIES
Chhattisgarh November 2010
55
Cement
• The state has a strong cement sector, owing to its large limestone reserves.
• The state has widely occurring limestone reserves that support a strong cement sector.
• Chhattisgarh accounts for around 5 per cent of the total limestone reserves in India.
• In 2008-09, the state produced 15.6 million tonnes of limestone, accounting for about 8.3 per cent of India‟s production.
• The state has nine major and 12 minor cement units; a majority of the cement production units are concentrated in the Raipur area.
Key players
• Associated Cement Companies Limited
• Lafarge Group
• Grasim
• UltraTech Cement Limited
• Gujarat Ambuja Cement
• JK Lakshmi Cement Limited
• Century Cement
Sources: Federation of Indian Mineral Industries, 2007-08,
Chhattisgarh‟s Directorate of Geology and Mines
BUSINESS OPPORTUNITIES
Chhattisgarh November 2010
56
Associated Cement
Companies Limited
(ACC)
ACC is one of the large cement manufacturing companies in India with a production capacity of 21
million tonnes per annum (MTPA). It is also among the largest research and consultancy organisations
in the Indian cement sector and a pioneer in the area of advanced materials. ACC has a cement plant at
Jamul in the Durg district, with a production capacity of 1.58 million tonnes. For the year ending
December 2009, ACC‟s revenue was US$ 1.8 billion.
Lafarge Group Lafarge India is a unit of the Lafarge Group – the world's leading cement and construction material
company. The total cement manufacturing capacity of Lafarge India is 6.5 million tonnes per annum. It
has two cement plants, located at Sonadih and Arasmeta with a cumulative capacity of 2.1 MTPA. The
company is in the process of expanding its existing units in Himachal Pradesh and Chhattisgarh, which
will increase the production capacity to 12 MTPA.
Grasim A company of the Aditya Birla Group, Grasim is a leading cement manufacturer in the country, and
among the largest producers of white cement. It ventured into cement production in the 1980s; as of
June 2009, it had 11 composite plants, 11 split-grinding units, four bulk-terminals and 64 ready-mix
concrete plants. The 2009-2010 revenues from cement sales were US$ 972.6 million. It has a
composite plant, located at Rawan in the Raipur district and produces grey cement.
UltraTech Cement
Limited
UltraTech Cement is also a part of the Aditya Birla Group and has an annual capacity of 18.2 million
tonnes. It manufactures ordinary portland cement, portland blast-furnace slag cement and portland
pozzolana cement. It also manufactures ready-mix concrete. The company has five integrated plants
and six grinding units. Its Chhattisgarh plant is located at Hirmi.
Cement – company profiles … (1/2)
BUSINESS OPPORTUNITIES
Chhattisgarh November 2010
57
Gujarat Ambuja Cement Established in 1986, Gujarat Ambuja has a production capacity of 18.5 million tonnes. For the year
ending December 2009, the company had revenues of US$ 1.6 billion. In April 2009, the company
announced plans of setting up a manufacturing plant in Chhattisgarh, at an investment of US$ 650
million. The new plant is expected to have an employee strength of 500 and a production capacity
of 2.5 MTPA.
Emami Cement Emami Cement is a company of the Kolkata-based Emami Group, which has entered into the
cement business with an investment of US$ 380 million to set up cement plants in Orissa, West
Bengal and Chhattisgarh. The Chhattisgarh plant is a 400-acre, fully integrated cement plant with a
capacity of 3.1 MTPA. The plant is expected to commence operations in 2012.
JK Lakshmi Cement Limited JK Lakshmi Cement was established in Rajasthan in 1938. It has a production capacity of 47.5
MTPA. The company is in the process of setting up a 2.7 MTPA, green field cement plant in Durg.
The company recorded revenues of US$ 346.8 million in 2009-2010.
Century Cement Century Cement is a part of the B. K. Birla Group and is located at Baikunth in the Raipur district.
It has a production capacity of 2.1 MTPA. The company sells portland pozzolana cement (PPC),
and portland slag cement (PSC), under the brand name – Birla Gold.
Cement – company profiles … (2/2)
BUSINESS OPPORTUNITIES
Chhattisgarh November 2010
58
Food processing industry
• The state‟s position as the „rice bowl of central India‟ and its reliance on agriculture has led to the identification of the food processing industry as a special-thrust industry.
• The Government of Chhattisgarh is setting up a food processing park in the state. The park will be located in district Rajnandgaon (45 km from Raipur) on 120 hectares of land. The project development is in full swing and is being implemented in the PPP mode by Ramky Infrastructure Limited. The park is expected to be fully functional by October 2014.
BUSINESS OPPORTUNITIES
Chhattisgarh November 2010
59
Sources: Chhattisgarh State Industrial Development Corporation, Economic Survey 2008-09
• Biodiversity, a dedicated biotechnology policy, and abundance of medicinal plants of over 1,500 varieties are some of the factors that make the state a natural destination for the herbal-medicinal industry.
• It has been proposed to develop a herbal-medicinal park at the Banjari and Bagaudh villages of Kurudhtehsil (30 km from Raipur) in Dhamtari, on about 154 acres of land. The project development cost of the park is estimated to be between US$ 6.09 million and US$ 8.53 million. The park will have about 500 units with a potential to attract an investment of about US$ 60.97 million. The projects will be implemented through the PPP mode and is being developed by Ramky Infrastructure Limited. It is expected to be completed by 2014.
Herbal-medicinal industry
BUSINESS OPPORTUNITIES
Chhattisgarh November 2010
60
Gems and jewellery industry
• Chhattisgarh is one of the richest mineral sources in the country, including precious minerals such as gold and diamonds. The state is projected to emerge as one of the 22 economical diamond mines in the world, once production commences.
• The state has received in-principle approval to establish a gems and jewellery special economic zone (SEZ) to carry out value addition within the state and attract new investments in the sector. The gems and jewellery SEZ will be developed on about 70 acres in Naya Raipur. Work is in progress and is expected to be completed by 2014. The estimated project cost is US$ 386.9 million.
BUSINESS OPPORTUNITIES
Chhattisgarh November 2010
61
Sources: Chhattisgarh State Industrial Development Corporation, Economic Survey, 2008-09
• Chhattisgarh is one of the leading producers of tussar and kosa silks in the country and has the potential to be a strong player in the Indian apparel industry.
• The CSIDC is establishing an apparel park on about 20 hectares for the development of textile and textile-based industries and to attract new investment in the sector.
Apparel industry
BUSINESS OPPORTUNITIES
Chhattisgarh November 2010
62
Aluminium and metal industry
• Chhattisgarh‟s rich mineral profile and the presence of large iron and steel players have prompted the state to develop the metals sector as a whole.
• Besides other large domestic and international iron and steel manufacturers, Bharat Aluminium Company Limited (BALCO) has a large plant in the state.
• The state plans to develop an aluminium park for downstream products at Bhanpuri near Raipur. It will house more than 100 industrial units to manufacture various aluminium/metal products required in the civil aviation, automobile and construction sectors.
Source: Chhattisgarh State Industrial Development Corporation
BUSINESS OPPORTUNITIES
Chhattisgarh November 2010
63
Major industrial projects being implemented
Promoter Project Investment (US$ million) Location
Aluminium
Bharat Aluminium Company Limited Aluminium smelter project 1,760.9 Korba
Tourism/entertainment
Raipur Development Authority City centre-cum-multiplex 43.5 Raipur
Airports Authority of India Airport expansion project 29.6 Raipur
East Coast Railway Raipur-Tiltagarh railway line 129.5 Raipur-Tiltagarh
Cement
Emami Cements Limited Cement project 347.8 Raipur
Ambuja Cement Eastern Limited Cement project expansion 217.4 Raipur
Power
Wardha Power Company Private
LimitedCoal-based power project 3,473.4 Janjgir-Champa
Chhattisgarh State Power Generation
Company LimitedThermal power project 1,195.4 Janjgir-Champa
Iron and steel
Indus Steel and Power Limited Integrated steel project 43.7 Raipur
Steel Authority of India Limited Integrated steel project 1,087.0 Durg
Source: www.projectstoday.com
BUSINESS OPPORTUNITIES
Chhattisgarh November 2010
64
Key industrial projects being planned
Promoter ProjectInvestment
(US$ million)Location
Infrastructure
Merlin Projects Limited Integrated township 65.2 Raipur
Mining
Rashtriya Ispat Nigam Limited Iron ore mining project 108.7 Rowghat
Iron and steel
Tata Steel Limited Integrated steel plant 3,913 Bastar
NMDC Limited Integrated steel plant 3,043.5 Bastar
Cement
Kasturi Cement Limited Cement project 489.1 Raipur
Adhunik Corporation Limited Cement project 253.2 Raipur
Power
NTPC Limited Lara integrated thermal power project 4,347.8 Raigarh
Chambal Energy Limited Coal-based power project 1,587.0 Janjgir-Champa
Godawari Power & Ispat Limited Coal-based power project 1,265.8 Raigarh
Emami Cements Limited Coal-based power project 1,160.3 Raipur
Oil and gas
Essar Oil Limited Paradip-Raipur pipeline project 103.5 Raipur
Source: www.projectstoday.com
BUSINESS OPPORTUNITIES
Chhattisgarh November 2010
65
Contents
Advantage Chhattisgarh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Chhattisgarh
CHHATTISGARH November 2010
66
• Prior to setting up business in the state, certain approvals are required from different departments. The
approvals are to be taken from the State Government in the following order:
Step 1: Allotment of plots/built-up sheds
Step 2: Signing of the lease deed
Step 3: Water connection
Step 4: Electricity connection
Step 5: Pollution clearance
Key approvals required
DOING BUSINESS IN CHHATTISGARH
CSIDC allots the plot for setting up a project depending on the nature of industry and scale of investment.
The lease deed is signed between the CSIDC and land applicant.
The completed application form should be submitted to CSIDC, which is also responsible for providing
the water connection.
CSIDC is responsible for providing an electricity connection.
Application in prescribed format is submitted to the District Trade & Industries Centre (for investment
up to US$ 2.43 million)/State Investment Promotion Board (for investment above US$ 2.43 million) with
environment impact assessment report.
Chhattisgarh November 2010
67
Chhattisgarh Industrial Investment Promotion Rules, 2004
… (1/3)
Name of clearance/activity No of days
Preliminary meeting with the convener after expression of intent by investor 7
Arranging site visit for identification of land for investor's project after preliminary meeting 21
Provisional registration of small scale industry at District Trade & Industries Centre 3
Issuance of letter-of-intent for allotment of CSIDC industrial land 21
Forwarding of investor's proposal by CSIDC/Directorate of Industries to District Collector for transfer of
government land21
Forwarding investor's proposal by CSIDC/Directorate of Industries to the government for acquisition of private
land21
Approval by government on land acquisition proposal 30
Issuance of notification by the District Collector under Section 4 of the Land Acquisition Act, 1894 :
A) Intimation of anticipated compensation amount to the investor
B) Publication of Section 4 notification after deposit of anticipated compensation amount
a) 30
b) 7
Issuance of certificate for exemption from payment of stamp duty by:
A) District Trade & Industries Centre
B) Directorate of Industries
a) 7
b) 15
Issue of No-objection certificate from local bodies for establishment of industry 30
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Name of clearance/activity No of days
Grant of permission for building construction from Gram Panchayat 30
Grant of permission for development of land under the Chhattisgarh Nagar Tatha Gram Nivesh Adhiniyam, 1973 60
Grant of permission of land diversion 90
Grant of permission to develop, erect, re-erect or to make alteration in any place in a building under Chhattisgarh
Nagar Tatha Gram Nivesh Adhiniyam, 197330
Sanction of allotment of water from Water Resource Department:
a) At the applied site
b) At different site
a) 60
b) 90
Issuance of power availability certificate by CSEB 30
Sanction of power supply for low tension (LT) connection by CSEB 45
Sanction of power supply for high tension (HT) connection by CSEB 60
Approval of drawings by Electrical Inspector 15
Environment consent for small scale industry under simplified procedures by District Trade & Industries Centre 10
Consent for establishment of industry under Water (Prevention & Control of Pollution) Act, 1974 120
Consent for establishment of industry under the Air (Prevention & Control of Pollution) Act, 1981 120
Registration and grant of licence under The Factories Act, 1948 90
Chhattisgarh Industrial Investment Promotion Rules, 2004
… (2/3)
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Name of clearance/activity No of days
Approval of plans and permission to construct/extend or take into use any building as a factory under The
Factories Act, 194890
Approval of site for hazardous process factory under the Factories Act, 1948 90
Registration of establishment under the Contract Labour (Regulation & Abolition) Act, 1970 30
Registration of Boiler under Indian Boiler Act, 1953 30
Registration under Chhattisgarh Vanijyik Kar Adhiniyam, 1994 1
Registration under the Central Sales Tax Act, 1956 1
Permission for use of forest land for non-forest purposes under Forest (Conservation) Act, 1980
A) New application
B) Renewal of application
A)90
B) 30
Permanent registration of small scale industry at the District Trade & Industries Centre 21
Production certificate for medium and large scale industry from the District Trade & Industries Centre 21
Source: Chhattisgarh Industrial Investment Promotion Rules 2004, State Investment Promotion Board, Government of Chhattisgarh
Chhattisgarh Industrial Investment Promotion Rules, 2004
… (3/3)
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Cost of doing business in Chhattisgarh
Cost parameter Cost estimate
Industrial land (per sq ft) US$ 4.5 to US$ 10
Office space rent (per sq ft) US 85 cents to US$ 3 per month
PowerSmall and medium industries: 6.6 to 8.9 cents/kWh
Large industries: 9.2 cents/kWh
Labour
(minimum wage per month)US$ 53 to US$ 55
Sources: Industry sources, Directorate of Industries, Department of Labour
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Contact list
Key agency Contact information
Chhattisgarh State Industrial Development Corporation
(CSIDC)
LIC Campus, Pandri, Raipur
Phone: 91-77-2583 793/4070 534/2583 789
Fax: 91-77-2583794
E-mail: [email protected]
Website: www.csidc.com
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Annexure
Year INR equivalent of one US$
2000 46.6
2001 48.3
2002 48.0
2003 45.6
2004 43.7
2005 45.2
2006 45.0
2007 42.0
2008 40.2
2009 46.0
2010 47.4
Exchange rates
Average for the year
DOING BUSINESS IN CHHATTISGARH
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CHHATTISGARH November 2010