CHHATTISGARH - IBEF · CHHATTISGARH FACT FILE Chhattisgarh is located in central India. The state...

June 2014 1 1 AUGUST 2015 For updated information, please visit www.ibef.org

CHHATTISGARH THE MINERAL BASKET

AUGUST 2015

June 2014 2 2 AUGUST 2015

Executive Summary……………………. 3

Advantage State………………………... 5

Chhattisgarh Vision…………………….. 6

Chhattisgarh – An Introduction……...… 7

Annual State Budget 2015-16……..… 18

Infrastructure Status………………..…. 19

Business Opportunities……………….. 39

Doing Business in Chhattisgarh……... 55

State Acts & Policies………………..… 62

For updated information, please visit www.ibef.org


AUGUST 2015


EXECUTIVE SUMMARY … (1/2)

Source: Economic Survey of Chhattisgarh, 2014-15, Ministry of Mines, Annual Report 2014-15, TechSci Research


Strong mineral production base

• Chhattisgarh is ranked fifth in terms of value of major mineral production in India, with a 9.8 per cent share in 2014-15. The coal production of the state in 2014-15 was recorded at 115.19 million tonnes.

Sole producer of tin in India

• Chhattisgarh is the only state in India that produced tin concentrates. The state accounts for 35.4 per cent of tin ore reserves of India. In 2013-14, tin production in the state was 34,851 kg.

Largest producer of coal, iron ore, and

dolomite

• Chhattisgarh is a leading producer of minerals such as coal, iron ore and dolomite, accounting for about 22.57 per cent, 22.80 per cent and 37.48 per cent of India’s production, respectively. Iron ore from the Bailadila mines in the state is considered to be among the best in the world in terms of quality.

Korba – Power capital of India

• Korba district in Chhattisgarh is known as the power capital of India. In the 12th Five-Year Plan, the government plans to increase power generation capacity by 30,000 MW. As of 2014-15, about 19,055 villages were electrified in the state.

Naya Raipur – India’s fourth planned city

• Naya Raipur is considered to be India’s fourth planned city, spread over 8,000 hectares with world-class amenities. The city has been selected as a demonstration city under the Global Environmental Facility (GEF) and World Bank-assisted Sustainable Urban Transport Project (SUTP).


EXECUTIVE SUMMARY … (2/2)

Source: Economic Survey of Chhattisgarh, 2014-15, Department of Commerce and Industries, TechSci Research


Strong base for herbal and medicinal sector

• The Government of Chhattisgarh has proposed to develop India's largest herbal and

medicinal park in Dhamtari on around 250 acres of land. For conservation, development and sustainable management of medicinal plants, the central government has invested around US$ 1 million by 2014-15.

Leading producer of other minerals

• The state accounts for 22.6 per cent of coal production and 19.8 per cent of steel/sponge iron production in India. Moreover, considerable reserves of bauxite, limestone and quartzite are available in the state.

Leading investment destination in India

• Chhattisgarh has emerged as one of the most preferred investment destinations in India. The state has been acclaimed as “one of the best fiscally managed states” by the Reserve Bank of India (RBI) and plans to organise its second Global Investors Meet this year.

Strong growth in agriculture sector

• Agriculture is one of the fastest growing sectors for the state. Between 2004-05 and 2014-15, the contribution of agriculture in the state’s GSDP grew at a CAGR of 13.6%.


Source: Economic Survey of Chhattisgarh 2014-15, News articles GSDP - Gross State Domestic Product on current prices


Growing demand Mineral resources

• Mineral resources are Chhattisgarh’s biggest strength

• It has deposits of limestone, iron ore, copper, bauxite, dolomite and coal.

• Chhattisgarh accounts for about 17.0 per cent of India’s coal reserves.

Policy and fiscal incentives

• A wide range of fiscal and policy incentives for businesses have been announced under the state’s Industrial Policy 2014-19.

• Additionally, the state has well-drafted policies for the IT/ITeS, minerals and energy sectors.

Rich labour pool

• Chhattisgarh has a high worker-participation rate (both male and female).

• The state has one of the lowest reported losses of man-days attributed to labour problems in the country.

• Recently, the government introduced online registration for its workers.

Energy rich

• Chhattisgarh is presently one of the few states with surplus power.

• It is among the few profitable states in terms of utility based electricity.

• Presence of coal makes Chhattisgarh an ideal location for pit-head-based thermal power plants for both merchant sales and state consumption.

2014-15

GSDP was US$ 34.7

billion

2017-18

GSDP projected to

reach

US$ 47.75 billion

Advantage Chhattisgarh

ADVANTAGE CHHATTISGARH



Agriculture

Skill development

Infrastructure

Transport

Environment Investment promotion

Tourism

• Encourage contract farming with the benefit of assured prices to farmers.

• Ensure efficient use of irrigation, rainwater harvesting for agro processing industries.

• Connect all villages with better roads.

• Increase reliance on renewable energy.

• Implemented the Skill Development Act 2013 to develop employment skills among youth.

• Impart training to 0.2 million people in 2014-15.

• Develop a world class rail and road network for better connectivity with metros.

• Implement the Bastar-Raoghat rail project for transporting minerals.

• Be a pollution free industrialised state.

• Put in place proper pollution control and environment management systems.

• Simplify procedures, and ensure speedy clearances and balanced regional development.

• Promote downstream industries to spread industrialisation.

• Make the state a world class tourist destination.

• Promote religious, adventure and heritage tourism, and attract private investment in the sector.

Education • Build a primary school within

every five kilometres. • Improve distance learning

programmes with the help of information and communication technology.

Vision 2022

CHHATTISGARH VISION 2022

Source: Confederation of Indian Industry


CHHATTISGARH FACT FILE

Chhattisgarh is located in central India. The state shares its border with Madhya Pradesh and Maharashtra in the west, Uttar Pradesh in the north, Odisha and Jharkhand in the east and Andhra Pradesh in the south.

The languages spoken are Chhattisgarhi and its local dialects, Hindi and English.

Raipur, Bhilai, Durg, Bilaspur, Korba and Rajnandgaon are some of the major cities of the state.

Chhattisgarh has a tropical climate with three major seasons: summer (April-June), monsoon (July-September) and winter (October-March).

Source: Government of Chhattisgarh Economic Survey 2014-15, Census 2011

Parameters Chhattisgarh

Capital Raipur

Geographical area (sq km) 137,898

Administrative districts (No) 27

Population density (persons per sq km)

189

Total population (million) 25.5

Male population (million) 12.8

Female population (million) 12.7

Sex ratio (females per 1,000 males) 991

Literacy rate (%) 70.28


Source: Maps of India


^Including Madhya Pradesh, *As of March 2014, **As of May 2015, ***As of June 2015



CHHATTISGARH IN FIGURES … (1/2)

Parameter Chhattisgarh All states Source

Economy

GSDP as a percentage of all states’ GSDP 1.7 100.0 Central Statistics Office, TechSci Research

GSDP growth rate (%) 13.02 7.3 Central Statistics Office, TechSci Research

Per capita GSDP (US$) 1,285 1,389.61 Central Statistics Office, TechSci Research

Physical Infrastructure

Installed power capacity (MW) 13,685.5*** 272,502.95 Central Electricity Authority, as of May 2015

Wireless subscribers (No) 61,280,196^** 973,347,094 Telecom Regulatory Authority of India, as of April

2015

Broadband subscribers (No) 2,660,000^* 100,760,000 Telecom Regulatory Authority of India, as of April

2015

National highway length (km) 3,073 92,851.07 National Highway Authority of India April-2015

Airports (No) 2 132 Airports Authority of India-April 2015


SRS: Sample Registration System, SEZ: Special Economic Zone, PPP: Public-Private Partnership, *Including Madhya Pradesh


CHHATTISGARH IN FIGURES … (2/2)


Parameter Chhattisgarh All states Source

Social Indicators

Literacy rate (%) 70.28 73.0 Census, 2011

Birth rate (per 1,000 population) 24.4 21.4 SRS Bulletin, September 2014

Investments

FDI equity inflows (US$ billion) 1.21* 248.5 Department of Industrial Policy & Promotion,

April 2000 to March 2015

Outstanding investments (US$ billion) 84.2 2,414.2 CMIE (2013-14)

Industrial Infrastructure

PPP projects (No) 9 1,409 DEA, Ministry of Finance, Government of India

SEZs (No) 1 347 Notified as of March 2015, Ministry of Commerce

& Industry

June 2014 10 10 AUGUST 2015

At current prices, the gross state domestic product (GSDP) of Chhattisgarh was US$ 34.7 billion in 2014-15.

The GSDP of the state grew at a CAGR of 12.5 per cent between 2004-05 and 2014-15.

Source: Directorate of Economics & Statistics of Chhattisgarh, Central Statistics Office

GSDP of Chhattisgarh at current prices (in US$ billion)


ECONOMIC SNAPSHOT – GSDP


10.7 12.1 14.8

19.9 21.0 21.0

26.2 30.8 30.1 30.7

34.7 CAGR 12.5%

June 2014 11 11 AUGUST 2015

9.2 10.3 12.7

17.2 17.9 17.8 22.6

26.3 25.4 25.6 28.7

20

04-0

5

20

05-0

6

20

06-0

7

20

07-0

8

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

In 2014-15, the net state domestic product (NSDP) of Chhattisgarh was about US$ 28.7 billion.

The NSDP of the state grew at a CAGR of 12.0 per cent between 2004-05 and 2014-15.

NSDP of Chhattisgarh at current prices (in US$ billion)

CAGR 12.0%


ECONOMIC SNAPSHOT – NSDP



June 2014 12 12 AUGUST 2015

479 533 639

844 872 855

1,047

1,208 1,158

1,158 1,285

20

04-0

5

20

05-0

6

20

06-0

7

20

07-0

8

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

In 2014-15, the state’s per capita GSDP was US$ 1,285.

The per capita GSDP increased at a compound annual growth rate (CAGR) of 10.4 per cent between 2004-05 and 2014-15.

GSDP per capita of Chhattisgarh at current prices (in US$)

CAGR 10.4%


ECONOMIC SNAPSHOT – PER CAPITA GSDP



June 2014 13 13 AUGUST 2015

414 456 549

730 745 725

902

1,032 976

967 1,063

20

04-0

5

20

05-0

6

20

06-0

7

20

07-0

8

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

The state’s per capita NSDP in 2014-15 was US$ 1,063 compared with US$ 414.1 in 2004-05.

The per capita NSDP increased at a CAGR of 9.9 per cent between 2004-05 and 2014-15.

NSDP per capita of Chhattisgarh at current prices (in US$)

CAGR 9.9%


ECONOMIC SNAPSHOT – PER CAPITA NSDP



June 2014 14 14 AUGUST 2015

32.4% 30.2%

33.1% 29.4%

34.5% 40.4%

2004-05 2014-15

Primary Sector Secondary Sector Tertiary Sector

In 2014-15, the tertiary sector contributed the highest to Chhattisgarh’s GSDP at current prices at 40.4 per cent (US$ 14.0 billion). It was followed by the primary sector contributing 30.3 per cent (US$ 10.5 billion) and the secondary sector contributing 29.4 per cent (US$ 10.2 billion).

At a CAGR of 14.3 per cent, the tertiary sector has been the fastest-growing among the three sectors from 2004-05 to 2014-15. The growth has been driven by trade, hotels, real estate, banking, insurance, transport, communications and other services.

The secondary sector grew at a CAGR of 11.2 per cent between 2004-05 and 2014-15, driven by manufacturing, construction, and electricity, gas & water supply.

The primary sector grew at a CAGR of 11.7 per cent between 2004-05 and 2014-15.

Source: Economic Survey 2014-15, Central Statistics Office, TechSci Research, Government of Chhattisgarh

GSDP composition by sector

CAGR


ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSDP


11.7%

14.3%

11.2%

June 2014 15 15 AUGUST 2015

Source: Economic Survey of Chhattisgarh 2013-14, Directorate of Economics & Statistics

Agriculture production (‘000 metric tonnes)

Crops 2012-13 2013-14 2014-15

Paddy 8,162.7 7,476.3 8,170.8

Maize 442.2 528.5 573

Tuar 86.7 90.1 95.2

Moong 8.3 9.9 10.3

Urad 70.6 71.3 73.6

Groundnut 65.1 57.6 77

Soyabeen 191.8 180.1 203.2

RamTil 25.2 19.7 22.3

Wheat 235.8 231.1 248.2

Rice is the major crop grown in the state. The state’s total paddy production was 8.17 million tonnes in 2014-15.

In 2013-14, the state accounted for 7.59 million tonnes of total food grain production.

Maize, wheat, pulses and oilseeds are some of the other major crops grown in the state.

In 2014-15, total wheat production in the state was 248.2 thousand metric tonnes.

In 2014-15, total maize production in the state was 573 thousand metric tonnes.

Between 2011-12 and 2014-15, production of potato increased from 222.2 thousand metric tonnes to 308.1 thousand metric tonnes. For the similar period production of potato increased from 579.2 thousand metric tonnes to 600.9 thousand metric tonnes and production of tomato increased from 718.5 thousand metric tonnes to 868.6 thousand metric tonnes.


ECONOMIC SNAPSHOT – AGRICULTURE PRODUCTION


June 2014 16 16 AUGUST 2015

According to the Department of Industrial Policy & Promotion (DIPP), cumulative FDI inflows from April 2000 to March 2015 amounted to US$ 1.216 billion*.

Till March 2015, around 17,615 small industries have been established in the state, which are generating 102,241 employment opportunities. For the same period of time, around 162 large industries has been established in the state with 21,693 employment opportunities.

Source: Department Of Industrial Policy & Promotion *Including Madhya Pradesh Directorate of Economics & Statistics of Chhattisgarh, Central Statistics Office

FDI equity inflows, 2008-09 to 2014-15 (US$ million)*


ECONOMIC SNAPSHOT – INVESTMENTS AND FDI INFLOWS


44 54

451

123

220

119 100

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15GSDP at current prices (US$ million)

Year Agriculture Manufacturing Railways

2004-05 1,575 2,339 123

2005-06 2,018 2,080 130

2006-07 2,144 3,301 169 2007-08 3,217 4,473 209 2008-09 2,848 4,381 202

2009-10 3,204 3,600 251

2010-11 4,426 3,792 228

2011-12 4,793 3,709 265

2012-13 5,092 3,851 265

2013-14 5,002 3,809 261

2014-15 5,622 4,187 281

June 2014 17 17 AUGUST 2015

Chhattisgarh’s total exports grew at a CAGR of 16.4 from 2006-07 to 2014-15 to reach US$ 1,190.8 million.

Nearly 74 per cent of the exports come from Bhilai and the remaining from Urla, Bhanpuri, Sirgitti, etc.

Major exports products include iron and steel; articles of iron and steel; cereals; ores, slag and ash; wool, food and agri-products; minerals and engineering products.

Chhattisgarh State Industrial Development Corporation Ltd (CSIDC) is the nodal agency of the Government of Chhattisgarh for export promotion in the state.

Source: Chhattisgarh State Industrial Development Corporation, TechSci Research

Exports from Chhattisgarh (in US$ million)


ECONOMIC SNAPSHOT – EXPORTS TRENDS


352.2

552.9 641.6

353.3

768.1

544.6

988.7

1,277.5 1,190.8

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15


ANNUAL BUDGET 2015-16

For the year 2015-16, Chhattisgarh’s government has planned an expenditure of US$ 10.83 billion which is 18 per cent more than the estimates of 2014-15. Budget Highlights:

Chhattisgarh is the first state to introduce a separate budget for the youth by allocating 16 per cent of the state budget accounting for about US$ 1.02 billion of the total budget. After 94 per cent increment in the budget allocated to skill development, an amount of US$ 122.5 million has been allocated for the same. With an allocation of US$ 1.83 billion, infrastructure has been highlighted in the budget, presenting an increment of 39 percent over previous year. The road sector has been allocated with an amount of US$ 863.8 million with 43 per cent rise in the share allocation for the sector when compared to last year. The state’s food security initiatives are allocated with investment of about US$ 833.3 million to cover almost 85 per cent of the population. Amounts of US$ 1.4 billion and US$ 35 million have been allocated towards agriculture and allied activities and irrigation projects respectively. To supply energy to the activities related to agriculture, the government has allocated an amount of about US$ 74.7 million.


Source: Annual Budget 2015-16, Government of Chhattisgarh


The 17 national highways of Chhattisgarh together constitute 3,073 km of roads in the state. The state highways, major district roads and rural roads account for another 29,159 km.

Chhattisgarh has an excellent road network. All district headquarters, tehsils and development blocks are connected with good all-weather roads.

As of December 2014, the total length of other district rural roads in the state was 13,674 km.

The state had a road density of 69.51 km per 100 sq km of area, as of March 2011.

As per Budget 2015-16, an investment of US$ 1.66 billion is estimated for upgradation of 2,000 km of existing roads under the PPP mode. Under Prime Minister’s Rural Roads Scheme, US$ 116.6 million has been allocated for the road connectivity in the rural areas.

Source: Economic Survey of Chhattisgarh, 2014-15, News articles, Budget 2015-16,Ministry of Road Transport & Highways

Road type Road length (km)

National highways 3,073

State highways 4,374

Major district roads 11,111

Rural roads 13,674

Total road length 32,232


PHYSICAL INFRASTRUCTURE – ROADS




PHYSICAL INFRASTRUCTURE – 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 in 1998. It is headquartered in Bilaspur.

The state has the highest freight loading capacity in the country and one-sixth of Indian Railway's revenues come from Chhattisgarh. The length of the rail network in the state is 1,108 km.

Direct trains to many cities such as Ahmadabad, Allahabad, Varanasi, Bengaluru, Cochin, Pune and Hyderabad are also available.

The state government has signed a Memorandum of Understanding (MoU) with South Eastern Coalfields Ltd (SECL) and IRCON International Ltd for the construction of about 300 km of rail network in the state. The project would have two rail corridors – East Corridor and East-West Corridor.


As per Budget 2015-16, the state has anticipated an investment of US$ 833.3 million for the development of a 300-kilometre Rail Corridor by joint-venturing SECL and IRCON.

Source: Economic Survey of Chhattisgarh, 2014-15, News articles



PHYSICAL INFRASTRUCTURE – AIRPORTS

The state has two domestic airports, one at Raipur and the other at Bilaspur.

Chhattisgarh has eight air strips located at Bhilai, Bilaspur, Korba, Raigarh, Jagdalpur, Ambikapur, Jashpur Nagar and Sarangarh.

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

Raipur airport received 925,504 passengers during 2014-15, as compared to 839,534 passengers in 2013-14. Aircraft movements declined from 9,279 in 2013-14 to 8,425 in 2014-15. For the same period, the cargo handled by the airport increased from 3,355 tonnes to 3,951 tonnes.

In July 2013, AAI granted approval to Raigarh Airport, with an estimated cost of US$ 48.8 million. The state government of Chhattisgarh and AAI have signed a MOU for the construction of the airport. It is expected to be operational by the end of 2017.

Domestic airport

ODISH

A

Source: Airports Authority of India

June 2014 22 22 AUGUST 2015

As of June 2015, Chhattisgarh had a total installed power generation capacity of 13,685.5 MW, which comprised 9,236.45 MW under the private sector, 2,911.05 MW under state utilities and 1,538.01 MW under the central utilities.

Chhattisgarh is one of the few power surplus states in the country.

Over 96.6 per cent of the private sector power capacity and over 95.4 per cent of the state-owned power capacity is provided by coal-based power plants.

Korba in Chhattisgarh is termed as the one of the “power capitals” of India, with National Thermal Power Corporation (NTPC)’s super thermal power plant working at around 79 per cent Plant Load Factor (PLF).

The state's huge coal reserves present a large opportunity for electricity generation in the state.

In the hydropower sector, the Hasdeo Bango reservoir offers a relatively cheaper source of power generation.

Source: Central Electricity Authority *As of June 2015, News articles

Installed power capacity (MW)


PHYSICAL INFRASTRUCTURE – POWER … (1/2)


3,607.1

4,769.5 4,882.4 5,347.3

6,531.9

9,824.9

13,685.5

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15*

As of July 2015, the government has instituted a long term plan for generation of 0.1 million MW of power which would add 25,000 MW of power in the next five years.

June 2014 23 23 AUGUST 2015

Segment Company name

Power generation Chhattisgarh State Power Generation Company Ltd

(CSPGCL)

Power transmission Chhattisgarh State Power

Transmission Company Ltd (CSPTCL)

Power supply Chhattisgarh State Power Distribution Company Ltd

(CSPDCL)

Power is generated in the state by the Chhattisgarh State Power Generation Company Ltd (CSPGCL) and independent power producers (IPPs) such as Lanco and Jindal Power. Chhattisgarh is an emerging power hub. It plans to add another 30,000 MW of capacity during the 12th Five-Year Plan (2012-17).

GMR Group is setting up a 1,370 MW coal-based supercritical thermal power project at Raikheda in Chhattisgarh. The first phase of the project with 685 MW has been installed in October 2014. As of May 2015, the second phase of the plant was still in progress.

As of 2014-15, the state had 4.04 million customers for power, out of which domestic customers stood at 3.36 million. During the same period 19,055 villages were electrified in the state. In 2014-15, four thermal power plants were installed in the state with cumulative capacity of 1,645 MW.


PHYSICAL INFRASTRUCTURE – POWER … (2/2)


Thermal projects projected to be commissioned in 2015-16:

500 MW plant of Marwa TPP

300 MW plant of Bandakhar TPP

135 MW plant of Salora TPP

25 MW plant of Swastic Korba TPP

The state has declared renewable energy power generation as a priority under the State Industrial Policy, and estimates solar PV grid potential based on identified sites at approximately 1,000 MW.

June 2014 24 24 AUGUST 2015

Telecom infrastructure (as of May 2015)

Wireless connections^ 61,280,196

Wireline connections^ 1,088,333

Broadband subscribers* 2,660,000^

Post offices 3,145

Telephone exchanges 545

Source: Telecom Regulatory Authority of India, May 2015 ^Including Madhya Pradesh, *As of March 2014

The state is in the process of implementing the State Wireless Area Network (SWAN), which would be a hybrid of wireless and wireline access that supports voice, data and video traffic.

According to the Telecom Regulatory Authority of India (TRAI), Chhattisgarh had 61.2 million^ wireless connections and 1.08 million^ wireline subscribers as of May 2015.

The total number of broadband users in the state, as of March 2014, was 2,660,000.

As of December 2014, the tele density of the state is recorded as 58.77^.


PHYSICAL INFRASTRUCTURE – TELECOM


Some of the major telecom operators in Chhattisgarh

Bharat Sanchar Nigam Ltd (BSNL) Bharti Airtel

Vodafone Essar Idea Cellular

Reliance Communications Tata Teleservices



DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE … (1/3)

Chhattisgarh aims to become a logistics hub with world-class rail, road and aviation networks.

Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Raipur is one of the 63 identified cities for comprehensive development.

The state has 10 municipal corporations and 44 municipal councils.

Source: JNNURM, Ministry of Urban Development, Government of India

Naya Raipur land use plan

Telecom infrastructure (as of May 2015)

2003 2012 2013 2015

Municipal corporations

10 10 10 10

Municipal councils 28 32 33 44

Nagar panchayats 72 126 126 115




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 includes the following:

A water supply project for meeting the requirements of an estimated 2.5 million population by 2031.

A transport hub.

Naya Raipur Development Authority (NRDA) has been set up as the nodal agency for the comprehensive development of the greenfield city.

Under the Global Environment Facility and the World Bank-assisted SUTP, Naya Raipur has been selected as a demonstration city.

New townships, such as Merlin Projects’ integrated township at Raipur, ‘Singapore City’, and ‘Vananchal City’ by Amrapali Group at Bhilai, are in the planning stage.

Source: Naya Raipur Development Authority, Government of Chhattisgarh

Naya Raipur city development models


Source: Naya Raipur Development Authority, Government of Chhattisgarh


4th planned city in India • Naya Raipur has been pegged as the fourth planned city in the country after Chandigarh,

Gandhinagar and Bhubaneswar. The city has been planned area of over 8,000 hectares.

Social infrastructure • Designated areas have been planned for hospitals, educational institutes and recreation.

The city would include large city parks, water bodies, jungle safari and botanical garden. The capital complex in it is to serve as the administrative capital of the state.

World-class amenities • Under the plans, the city will include an 18-hole golf course, theme township, luxury

hotels, convention centre, IT SEZ, shopping malls, multiplexes and cricket stadium.

Bus Rapid Transport System

• A Bus Rapid Transport System (BRTS) for the city has been has been scheduled by World Bank with an anticipated cost of about US$ 37.3 million and is anticipated to be operational by the end of 2015.


June 2014 28 28 AUGUST 2015

Source: Chhattisgarh Infrastructure Development Corporation Ltd


DEVELOPMENT PROJECTS: PUBLIC PRIVATE PARTNERSHIP PROJECTS


PPP projects - Chhattisgarh

Project name Sector Status Total cost

(US$ million)

Durg Bypass Road Transport Operation 11.61

End of Durg Bypass -

Chhattisgarh/Maharashtra Border Transport Completed 76.97

Power Plant Hetwane, Raigarh Energy Under construction 2.9

Raipur Durg Expressway Transport Operation 18.91

Raipur-Aurang NH-6 Road Project Transport Completed 31.52

Road Upgradation (Aurang-Saraipalli)

Project Transport Under construction 209.02

Road Upgradation (Orissa/Chhattisgarh

Boarder - Aurang NH-6) Project Transport

Under construction

204.38

Road Upgradation (Raipur - Bilaspur NH-

200) Project Transport Terminated 201.73

Surguja Ultra Mega Power Project Energy Terminated 0.0


As of July 2015, the state had two formally-approved SEZs.

The state has important industrial areas in Bhilai (home to iron and steel ancillary units) and Korba (home to well known companies in the power and aluminium sectors).

Source: Ministry of Commerce & Industry


DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL CLUSTERS

Chhattisgarh - Operational SEZ (March, 2015)

SEZ Name Location Type

Lanco Solar Pvt. Ltd Village- Mehrumkhurd & Chawardhal, Chhattisgarh Semiconductors

Formal approvals granted SEZ

Naya Raipur Development Authority (NRDA) Naya Raipur, Chhattisgarh IT/ITeS

Lanco Solar Private Limited Mahroomkala, Mahroomkurd and Chaveli villages,

Rajnandgaon District, Chhattisgarh Solar

Valid in-principle approvals

Chhattisgarh Infrastructure Ltd. Raipur, Chhattisgarh Gems & jewellery

June 2014 30 30 AUGUST 2015

As of 2014-15, there were 14 universities, 464 colleges, 16 MBA colleges, 50 polytechnics, 47 engineering colleges, 10 MCA colleges and five medical colleges in the state.

As of 2013-14, Chhattisgarh had a literacy rate of 70.28 per cent; male literacy rate is 80.27 per cent and female literacy rate is 59.58 per cent.

Some of the reputed educational institutions in the state are the National Institute of Technology in Raipur, and the Bhilai Institute of Technology in Durg.

Indian Institute of Management (IIM) at Raipur was established by the Government of India in 2010.

In August 2015, the state government constructed a new medical college in Raigarh at a cost of US$ 17.6 million. This college, named GMC Raigarh, is spread over 40 acres of land. The total number of seats in the college is 100 with 21 different departments.

In 2013-14, eight primary schools, 30 middle schools, 217 higher middle schools were introduced in the state whereas in 2014-15, 45 primary schools, 35 middle schools, 70 high schools and 150 higher middle schools were opened.

As of 2014-15, seven government universities, one central university and six private universities are operational in the state.


SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)



SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)


Source: Economic Survey of Chhattisgarh, 2014-15 MCA: Master of Computer Applications

Literacy rates (%)

Literacy rate 70.28

Male literacy 80.27

Female literacy 59.58

Educational infrastructure (as of 2014–15)

Universities 14

Colleges 464

MBA colleges 16

Polytechnics 50

Engineering colleges 47

MCA colleges 10

Chhattisgarh primary education statistics

Primary 38,767

Middle 16,607

High & higher secondary schools 6,080

June 2014 32 32 AUGUST 2015

Source: Central Bureau of Health Intelligence, Government of India, Central Drugs Standard Control Organisation

Sample Registration System (SRS) Bulletin September 2014 *Per thousand persons, **Per thousand live births

Health indicators (2013)

Population served per government hospital 108,917

Population served per government hospital bed

3,145

Birth rate* 24.4

Death rate* 7.9

Infant mortality rate** 46

Chhattisgarh’s health infrastructure comprises 24 district hospitals, 155 community health centres, 792 primary health centres and 5,180 sub-centres.

As of February 2015, the state had 49 licensed blood banks. As of March 2015, the state had nine ayurvedic hospitals, 694 ayurvedic, homeopathic, and unani dispensaries; and 460 specialty therapy and Ayush centres.


SOCIAL INFRASTRUCTURE – HEALTH


Health infrastructure (as of March 2015)

Civil dispensary 31

District hospitals 24

Community health centres 155

Primary health centres 792

Sub-centres 5,180

Ayurved, Unani and Homoeopathic dispensary

694

Ayush wing specialised therapy centre

460



CULTURAL INFRASTRUCTURE

There are several sports complexes in Chhattisgarh. Football, cricket, hockey, basketball and kabaddi are the major sports played in the state. Awarded.

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. Chhattisgarh plans to develop Sirpur as a place of cultural heritage and architecture by promoting it as a tourist destination.

As of 2014, a five-star hotel having a large convention centre is planned to be set up at Naya Raipur, the Chhattisgarh government’s new administrative capital.

June 2014 34 34 AUGUST 2015

Source: Economic Survey of Chhattisgarh, 2014-15, CSIDC website, *PPP (Public-Private Partnership) mode

Industrial infrastructure Type and location District Size Investment requirement

(US$ million)

Industrial parks

(ongoing projects)

Metal park Raipur 101.7 hectares 19.1

Apparel park Bhanpuri, Raipur 1.35 hectares 5.8

Herbal & medicinal park

Dhamtari 250 acres 5.4 to 7.6*

Food processing park Rajnandgaon 303 acres 17.4*

Engineering park Bhilai 120 hectares 2.0

Integrated Infrastructure Development Centres (IIDCs)

Harinchhapara (Kabirdham), Birkoni (Masamund), Girwarganj (Surguja)

All between 20-90 hectares

-



INDUSTRIAL INFRASTRUCTURE … (1/4)

The Chhattisgarh State Industrial Development Corporation Ltd (CSIDC) is a part of the industrial development department of the state government.


Source: CSIDC website, Korba district website


Raipur region • Rich reserves of minerals, limestone and coal. • 58 large- and middle-scale industries, with prominent players such as Monnet Ispat,

Century Cement, Lafarge and Ambuja Cement.

Durg-Bhilai region • Rich in mineral deposits, especially iron ore, limestone and quartzite. • Major players include Bhilai Steel, the Steel Authority of India (SAIL) and Associated

Cement Company (ACC).

Bilaspur region

• Railway zone and the headquarters of South Eastern Coalfields Ltd. • NTPC’s second largest power plant in India (operational capacity of 1,660 MW ) of located

at Sipat. • Host to many ancillary units, mainly in agro-based, garments, wood-based furniture and

mineral-based industries.

Korba region

• Known as the industrial hub of Chhattisgarh and the power capital of India. • Four thermal power plants (KSTPS, BCPP, CSEB East, and CSEB West) together

generate 3,650 MW of electricity; a hydro electric power station located at Bango. • Abundant reserves of coal and bauxite.

INDUSTRIAL INFRASTRUCTURE – KEY INDUSTRIAL GROWTH CENTRES ... (2/4)

June 2014 36 36 AUGUST 2015

Industrial infrastructure Type and location District Size

(hectares)

Investments by companies

(US$ million)

Growth centres (established)

Siltara Raipur 1,185 118.8

Borai Durg 451 22.6

Urla Raipur 375 70.5

Sirgitti Bilaspur 338 74.2

Bhanpuri-Rawabhata Raipur 200 NA

Large industrial areas (new projects)

Not available Bilaspur 795 9.8

Not available Raipur 1,730 29.4

Not available Raigarh 1,466 15.2

Source: CSIDC website





Note – Numbers refer to position on the map



Key industrial areas

9 Urla (Raipur)

8 Siltara (Raipur)

3 Sirgitti (Bilaspur)

11 Borai (Durg)

21 Bhanpuri-Rawabhata (Raipur)

29 Tifra (Bilaspur)

2 Rani Durgawati (Pendraroad)

14 Heavy & Light I/A, Bhilai

Large industrial areas

5 Dagori (Bilaspur)

7 Tilda (Raipur)

19 Lara (Raigarh)

31 Silpahari (Bilaspur)

Key industrial parks

13 Food Processing Park (Indawani)

26 Herbal & Medicinal Park (Raipur)

25 Gems & Jewellery SEZ (Raipur)

23 Metal Park (Rawabhata)

24 Apparel Park (Raipur)

10 Engineering Park (Bhilai)

28 Aluminium Park (Korba) Source: CSIDC website


As of July 2015, two cities of Chhattisgarh, namely, Naya Raipur and Bilaspur have been selected to be developed as smart cities of the state.

The state government has allocated US$ 33.3 million for each city in 2015 and US$ 83.33 million each in the coming three years in the form of installments.

In 2015, 10 cities of Chhattisgarh have been selected for the development of infrastructure as per the Atal Mission for Rejuvenation and Urban Transformation (AMRUT).

The central government have approved US$ 8.3 billion for Phase I of the AMRUT project.

SMART & AMRUT CITIES


Source: TechSci Research, News articles

June 2014 39 39 AUGUST 2015

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 80.0 per cent of the population is dependent on agriculture or agriculture-related occupations. Chhattisgarh is making significant investments in industrial infrastructure. The CSIDC has set up industrial growth centres, five industrial parks and three integrated Infrastructure Development Centres (IIDC). The state has a notified special economic zone (SEZ) in Rajnandgaon District. The Chief Minister of the state has asked for building a defence equipment industry and has guaranteed the centre with full co-operation regarding the availability of resources.


KEY INDUSTRIES … (1/2)


Key industries in Chhattisgarh

• Mining

• Iron and steel

• Cement

• Power

• IT and ITeS

• Biotechnology

• Food processing

• Gems and jewellery

• Apparel

NSDP share at current prices

Year Primary* Industry Services

2004-05 30.26% 36.58% 33.17%

2005-06 32.90% 33.19% 33.91%

2006-07 29.53% 39.11% 31.36%

2007-08 30.60% 38.16% 31.24%

2008-09 27.76% 40.06% 32.19%

2009-10 28.06% 34.87% 37.08%

2010-11 29.91% 32.78% 37.31%

2011-12 29.52% 33.77% 36.70%

2012-13 29.85% 31.11% 39.04%

2013-14 29.04% 29.88% 41.08%

2014-15 29.32% 28.75% 41.93%

Source: Directorate of Economics & Statistics of Chhattisgarh, Central Statistics Office, *Include agriculture & allied and mining & quarrying

June 2014 40 40 AUGUST 2015

Chhattisgarh is rich in mineral resources and one of the leading mineral producing states in the country.

CSIDC has proposed to set up six new industrial parks, including aluminium at Kirba, engineering at Durg, plastic, gramodyog (village industry), pharmaceutical, etc.

The state’s exports were valued at US$ 1,190.8 million in 2014-15.

As of 2014-15, state had 2,472 factories and 138,269 workers.

Source: Commerce and Industries Department, Government of Chhattisgarh, Export Chhattisgarh,

Economic Survey of Chhattisgarh, 2014-15, Chhattisgarh State Industrial Development Corporation Limited (CSIDC)

Chhattisgarh’s share in India’s mineral production


KEY INDUSTRIES … (2/2)


100%

36.50%

22.60% 19.80%

7.60% 6.10%

Tin Dolomite Coal Iron Ore LimeStone

Bauxite

June 2014 41 41 AUGUST 2015

Source: Chhattisgarh’s Directorate of Geology and Mining Economic Survey of Chhattisgarh, 2014-15, *In kilograms, ^As of October 2014

Chhattisgarh is among the richest Indian states in terms of mineral wealth, with 28 varieties of major minerals including diamonds. As of 2012-13, the state had 196 mines which increased to 205 mines in 2014-15.

Chhattisgarh is ranked fifth in terms of value of major mineral production in India, with a 9.8 per cent share in 2014-15. The coal production of the state in 2014-15 was recorded as 115.19 million tonnes. The state holds around 17 per cent of coal deposits in India, which has led to its 'power hub' aspirations.

Rich deposits of bauxite, limestone, dolomite and corundum are found in the state, making it the ideal location for low-cost production of end products such as cement and aluminium.

It is the only state in India to produce tin concentrates and accounts for 36 per cent of the country’s tin ore reserves.

The state accounts for 4 per cent and 36.5 per cent of the country’s diamond and dolomite reserves, respectively. It ranked first in India in the production of coal, tin and dolomite in 2014-15.


KEY INDUSTRIES – MINING … (1/3)


Chhattisgarh’s mineral production (in million tonnes)

Mineral Production (2013-14)

Production (2014-15)

Coal 127.09 115.19

Iron ore 30.15 15.60^

Limestone 21.06 13.47^

Dolomite 2.59 1.62^

Bauxite 1.31 0.64^

Tin (concentrate)

34,851* Not available

June 2014 42 42 AUGUST 2015

Source: Chhattisgarh’s Directorate of Geology and Mining




Value of mineral production (in US$ million)

Mineral 2009-10 2010-11 2011-12 2012-13 2013-14

Bauxite 3.247 5.705 6.996 4.268 3.360

Clay 0.506 0.569 0.539 0.369 0.346

Coal 227.185 253.782 273.500 324.920 312.911

Dolomite 1.830 2.488 2.606 2.529 3.157

Farshistone 0.037 0.043 0.055 0.068 0.336

Graphite 0.013 0.007 0.012 0.017 0.007

Iron ore 75.703 226.105 249.719 192.487 159.020

Limestone 27.122 36.323 39.579 36.997 37.718

Moulding sand 0.023 0.002 0.006 0.006 0.003

Murum 0.942 1.144 0.761 0.519 0.394

Quartz & Quartzite 0.037 0.088 0.044 0.101 0.116

Sand 0.010 0.006 0.000 0.008 0.005

Stone 4.760 5.191 4.024 4.898 5.836

Tin 0.025 0.065 0.043 0.058 0.037

June 2014 43 43 AUGUST 2015

NMDC Ltd

Jayaswal Neco Industries Ltd


• NMDC is the country’s single-largest iron ore producer and exporter. It produces about 30 million tonnes of iron ore from its fully-mechanised mines. The company operates two mines at Bailadila in Chhattisgarh. In 2014-15, the company produced 304.41 lakh tonnes of iron ore, 28,994 tonnes of sponge iron and 35,085 carats of diamonds. In 2014-15, the company had a revenue of US$ 2.04 billion and an employee base of 5,924.

• NMDC plans to increase its total iron ore production capacity to around 35 million tonnes per annum (MTPA) by 2015-16. It is gearing up to enhance the production capabilities of existing mines and open up new mine deposit – 11B in Bailadila sector and Kumaraswamy in Donimalai sector. The company is in the process of developing a 3 MTPA steel plant at Jagdalpur and two pellet plants at Donimalai (1.2 MTPA) and Bacheli (2 MTPA). The company plans to commission its 3 MTPA Nagarnar steel plant in Chhattisgarh involving a total project cost of US$ 1.9 billion by October 2016.

• Jayaswal Neco Industries Ltd, started in 1976, is a flagship company of Neco Group of Industries. It has three divisions: steel plant, foundry and mining. The company owns a coal mine with reserves of about 38.84 MT in Raigarh district and produces 0.48 MTPA of coal mineral. In 2014-15, company generated revenues of US$ 501.7 million.



Jindal Steel and Power Limited (JSPL)

• JSPL is one of the major steel producers in India, with presence in diversified sectors such as mining, power generation and infrastructure. The company operates the world’s largest coal-based sponge iron plant and is the largest producer of coal-based sponge iron in India.

• In 2014-15, the company generated US$ 2.23 billion in revenues wherein 80 per cent revenue is contributed by the sales of iron and steel. Jindal Steel and Power Ltd has received environmental clearance to set up four MTPA coal mining projects and four MTPA coal washeries in Raigarh district of Chhattisgarh.

June 2014 44 44 AUGUST 2015

Source: Chhattisgarh State Industrial Development Corporation, News Article *Up to October 2014

Chhattisgarh is the iron & steel hub of the country. The Bhilai steel plant of Steel Authority of India Ltd (SAIL) produces more than 3.153 million tonnes of saleable steel per annum. In February 2015, the central government announced plans to establish a steel plant in Chhattisgarh with initial capacity of 2-3 million tonnes. The capacity of the plant can be increased to 6 million tonnes.

As of 2014-15, Chhattisgarh accounted for 32 per cent to India's steel/sponge iron production. Chhattisgarh is one of the leading iron ore producing states in India. In 2014-15, the state produced around 30.15 million tonnes of iron ore.


KEY INDUSTRIES – IRON AND STEEL … (1/4)


Some of the key players

• Steel Authority of India Ltd • Tata Steel • Essar Steel • Godawari Power & Ispat Ltd

Steel modernisation and expansion plan (in million tonnes)

Material Capacity as of

2014-15 Capacity after

expansion

Hot metal 4.1 7.5

Crude steel 3.9 7.0

Finished steel 2.6 5.9

Semis 0.5 0.7

Saleable steel 3.2 6.6

Iron ore production (million tonnes)

2009-10 26.21

2010-11 29.32

2011-12 30.46

2012-13 27.96

2013-14 30.16

2014-15 30.15

June 2014 45 45 AUGUST 2015

Steel Authority of India Ltd (SAIL)

Tata Steel


• 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 of 260 metre 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. In 2014-15, SAIL recorded revenues of US$ 1,902.68 million.

• 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 features in the select list of global steel companies. In 2014-15, Tata Steel’s turnover was US$ 6,873.56 million. It has an annual crude steel production capacity of 30 million tonnes. The company has signed an MoU with the state government for setting up of a 5 MTPA greenfield integrated steel plant in Bastar.



Jayaswal Neco Industries Ltd

• Jayaswal Neco Industries Ltd, started in 1976, is a flagship company of the Neco Group of Industries. The company has two business segments – Steel and Iron & Steel Castings – and reported revenues of US$ 501.7 million in 2014-15.

• Some of the steel projects planned by Jayaswal Neco Industry Limited in the state are:

• A new steel project at Raipur.

• An integrated steel plant in Bilaspur district.

Source: Company Website & Annual Reports

June 2014 46 46 AUGUST 2015

Essar Steel

Godawari Power & Ispat Ltd


• Essar Steel is a large steel producer with offices in India, Canada, the US, Middle East and Asia. The company is fully integrated, from iron ore mining to steel retail. It is also a leader in cold rolled, galvanised and pre-coated steel products. It is in the process of making significant investments in setting up steel plants across the world. The company has an iron ore-beneficiation plant at Bailadila, with an annual production capacity of 8 million tonnes. In 2014-15, Essar Steel had revenues of US$ 2.84 billion.

• 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, ferro-alloys, wire rods, steel wires, fly-ash bricks etc. The company had revenues of US$ 321.0 million in 2014-15. GPIL has started its operations in Raipur, Chhattisgarh, as a sponge iron manufacturer in the year 2001 and has also been granted two mining leases by the state at Ari Dongri and Boria Tibu. In December 2013, the company proposed a 1 million tonne steel plant in Rajnandgaon at a cost of US$ 770.0 million.



MOIL • MOIL Ltd is the largest producer of manganese ore by volume in India. The company produces

high, medium and low grade manganese ore. Also, they produce manganese dioxide and chemical grade manganese ore.

• The company has entered into two separate joint venture pacts with SAIL and Rashtriya Ispat Nigam Ltd to set up two ferro alloy plants with a total investment of US$ 101.4 million. The company generated revenues of US$ 136.57 million in 2014-15.


June 2014 47 47 AUGUST 2015

Jindal Steel and Power Limited (JSPL)

Visa Steel


• JSPL is one of the major steel producers in India, with presence in diversified sectors such as mining, power generation and infrastructure. The company operates the world’s largest coal-based sponge iron plant and is the largest producer of coal-based sponge iron in India.

• JSPL has an installed capacity of 3 MTPA of steel at Raigarh in Chhattisgarh. Furthermore, the company is setting up a 7 MTPA steel plant, a 2 MTPA cement plant and 1,600 MW captive power plant with a total investment of around US$ 6 billion. In 2014-15, the company generated US$ 2.23 billion in revenues.

• Visa Steel Limited is engaged in the production of special steel and ferro chrome.

• The company has signed an MoU with the government of Chhattisgarh to set up a 2.5 MTPA integrated carbon steel plant at Kotarlia in Raigarh district. Presently, the land acquisition process for this plant is underway.

• In 2014-15, Visa Steel earned revenues of US$ 212.38 million.




June 2014 48 48 AUGUST 2015

Chhattisgarh has abundant limestone reserves that support a strong cement sector. Chhattisgarh accounts for around 5.4 per cent of the total limestone reserves in India.

In 2014-15*, Chhattisgarh accounted for around 7.9 per cent of the total limestone produced in India. In 2014-15*, the state produced around 13.47 million tonnes of limestone.

The state has ten major operational cement units; majority of the cement production units are concentrated in the Raipur area, Baloda Bazar, Durg and Champa.

In May 2015, Shree Cement established a clinker manufacturing plant in Raipur, Chhattisgarh with 1.5 million tonnes per annum capacity.


KEY INDUSTRIES – CEMENT … (1/2)


Source: Economic Survey of Chhattisgarh, 2014-15, Ministry of Mines *Up to December 2014

Cement facilities in Chhattisgarh

Company No. of plant Location/Unit name

ACC Ltd. 1 Jamul Cement Works

Ambuja Cement 2 Bhatapara and Bhatapara II

Cement Corporation of India Ltd.

1 Akaltara

Century Textiles & Industries Ltd.

1 Century Cement Raipur

Jaypee Cement 1 Bhilai

Lafarge India Ltd. 2 Arasmeta, Sonadih

Ultratech Cement Ltd.

2 Hirmi Cement Works, Rawan

Cement works

June 2014 49 49 AUGUST 2015

ACC Ltd

Lafarge India


• With a production capacity of 30 MTPA, ACC is among the largest research and consultancy organisations in the Indian cement sector and a pioneer in the area of advanced materials. ACC plans to modernise its cement plant at Jamul in the Korba district with an investment outlay of US$ 499 million, and set up a 4 MTPA production capacity. The company had revenues of US$ 1.9 billion in 2014 (December). Till June 2015, company generated US$ 491.24 million revenues.

• 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 over 11 MTPA. It has two cement plants located at Sonadih and Arasmeta.


KEY INDUSTRIES – CEMENT … (2/2)

JK Lakshmi Cement Ltd

• JK Lakshmi Cement Ltd is a renowned and well established name in the Indian cement industry. Its cement comes in three variants: Cement 53 blended, 53 grade OPC and 43 grade OPC. As a part of its US$ 248.8 million expansion plan in Chhattisgarh, the company is coming up with a new greenfield project at Durg (Chhattisgarh), which would enhance its installed capacity to 9.3 MTPA. The plant is expected to commence production in the third quarter of FY13. The company had revenues of US$ 382.72 million in 2014-15.

UltraTech Cement Ltd

• Ultra Tech Cement is a part of the Aditya Birla Group and has an annual capacity of 57 MTPA. It manufactures ordinary Portland cement, Portland blast-furnace slag cement, Portland pozzolana cement, ready mix concrete, and building products and building solutions. The company has 11 integrated plants and 15 grinding units in India. Its plants in Chhattisgarh are located at Hirmi and Rawan.

• It has started a US$ 297 million capacity expansion project at Chhattisgarh with a funding of US$ 100 million from International Finance Corporation. The company generated revenues of US$ 3.75 billion in 2014-15.

June 2014 50 50 AUGUST 2015

Source: Directorate Horticulture and Farm Forestry, Chhattisgarh

The state’s position as the ‘Rice Bowl of Central India’ and its reliance on agriculture have led to brisk growth in the food processing industry as a special-thrust industry.

National Horticulture Mission (NHM) has been implemented in almost 19 districts of the state. Chhattisgarh has 0.77 million hectares of land under horticulture. By 2017-18, the land under horticulture is estimated to increase to 0.82 million hectares. As of 2014-15, the state accounted for about 100 cold storages and the count for cold storages is expected to reach to 120 by 2017-18.

In 2014-15, fruit production in the state was 2.09 million tonnes and vegetables production was about 5.7 million tonnes. The total production of horticulture crops in the state is recorded to be 8.6 million tonnes as of 2014-15.


KEY INDUSTRIES – FOOD PROCESSING INDUSTRY


Horticulture production (in thousand metric tonnes) and area (hectare)

Category Area Production 2014-15

Area to be added Between 2015-16 to 2017-18

Key Crops

Fruits 2,30,466 20,99.6 40,000 Banana, papaya, cashew nut, mango and guava

Vegetables 4,21,094 57,78.2 50,000 Tomato, potato

Spices 95,430 6,69.3 15,000* Turmeric, ginger, chilly

Flowers 10,961 50.0 5,000* Rose, gerbera, gladiola, marigold

Aromatic & Medicinal Plants

12,240 50.0 NA Aloe vera, lemon grass, citridora, khus

June 2014 51 51 AUGUST 2015

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. Forests cover 43.85 per cent of the total geographical area of Chhattisgarh, and the state supplies 17 per cent of the total raw material consumed by AYUSH industries in India. The state accounts for 16.8 per cent of India’s total exports of herbs and medicinal plants.

For conservation, development and sustainable management of medicinal plants, the central government invested US$ 165.34 thousand in 2011-12. The investment reached to around US$ 1 million in 2014-15.

Source: Credible Chhattisgarh, 2012, News articles, PPP: Public-Private Partnership


KEY INDUSTRIES – HERBAL-MEDICINAL INDUSTRY

Proposed clusters under PPP model

Detailed progress of medicinal plantation target and achieved area (hectares)

Name Species Target Achieved (2014-15)

Barnawapara, Kota, Surguja

Satavari (Asparagus racemosus)

150 51.0

Barnawapara, Kawardha

Kalmegh 200 100.0

Panabaras, Antagarh, Kota, Surguja

Giloy 100 35.0

Barnawapara, Kawardha

Sarpagandha 50 3.9

Antagarh, Kota Baibiding 100 22.0


June 2014 52 52 AUGUST 2015

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’s gold reserves are estimated to be around 3 tonnes. Global mining companies such as ACC Rio Tinto and Geomysore Services Pvt Ltd are engaged in reconnaissance and prospecting operations for gold deposits in the state. The state has reserves of alexandrite, a rare gem mineral, as well as other gemstones such as garnet, beryl, rosy quartz and amethyst.

A gems and jewellery park has been set up on a 28.3 hectare plot in Naya Raipur, at an estimated cost US$ 35.8 million. The state has an in-principle approved SEZ for gems & jewellery at Raipur.

In 2013-14, the state had 4.84 million tonnes of gold ore resources while the resources of gold metal was 5.51 tonnes. Alongside, the resources of diamond for the same period were 1.3 million carats.


KEY INDUSTRIES – GEMS AND JEWELLERY INDUSTRY


Source: Chhattisgarh’s Directorate of Geology and Mining

June 2014 53 53 AUGUST 2015

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 4 hectares for the development of textile and textile-based industries and to attract new investments in the sector.

With the help of Apparel Export Promotion Council, three Apparel Training & Designing Centres (ATDC) have been set up in Chhattisgarh at Bilaspur, Raipur and Bhilai. These training centres provide manpower to the state’s apparel industry.

Chhattisgarh will support handloom weavers by promoting its sales via online network and has signed an agreement with Flipkart, the e-commerce giant.

As of 2015, the state government is conceptualizing a five-year plan for the promotion of Kosa silk production.


KEY INDUSTRIES – APPAREL INDUSTRY


Source: Chhattisgarh State Industrial Development Corporation (CSIDC), News articles

June 2014 54 54 AUGUST 2015

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 Ltd (BALCO) has a large plant in the state.

An aluminium park in the Korba district on approximately 140 hectares of land is proposed as one of the growth engines to promote value addition in the aluminium sector.

London-based Vedanta Resources plans to expand the capacity of Bharat Aluminium Company Ltd (the company it acquired in 2001) and is awaiting state government approval.

In January 2015, Bharat Aluminium Company Ltd (BALCO) has received approval to set up a captive power plant of 1,200 MW in the state with an investment of US$ 833.3 million to increase the potential of the plant to 0.57 million tonnes.


KEY INDUSTRIES – ALUMINIUM AND METAL INDUSTRY


Source: Chhattisgarh State Industrial Development Corporation, News articles

June 2014 55 55 AUGUST 2015

Prior to setting up business in Chhattisgarh, certain approvals are required from different departments. The approvals are to be taken from the state government in the following order:



KEY APPROVALS REQUIRED

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

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 water connection.

CSIDC is responsible for providing electricity connection.

An application in prescribed format is submitted to the District Trade & Industries Centre (for investment up to US$ 2.19 million)/State Investment Promotion Board (for investment above US$ 2.19 million) with an environment impact assessment report.

June 2014 56 56 AUGUST 2015

Name of clearance/activity No of days

Preliminary meeting with the convener after the 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 the allotment of CSIDC industrial land 21

Forwarding of investor's proposal by CSIDC/Directorate of Industries to District Collector for the transfer of government land

21

Forwarding investor's proposal by CSIDC/Directorate of Industries to the government for acquisition of private land

21

Approval by government on land acquisition proposal 30



CHHATTISGARH INDUSTRIAL INVESTMENT PROMOTION RULES, 2004 … (1/4)

Source: Chhattisgarh Industrial Investment Promotion Rules 2004, State Investment Promotion Board, Government of Chhattisgarh

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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 (NOC) from local bodies for establishment of industry 30

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, 1973

30

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





June 2014 58 58 AUGUST 2015


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 license under the Factories Act, 1948 90

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 plans and permission to construct/extend or take into use any building as a factory under the Factories Act, 1948

90

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





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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





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Agency Contact information

Chhattisgarh State Industrial Development Corporation (CSIDC)

1st Floor, Udyog Bhawan, Ring Road No.,- 1, Telibandha, Raipur, Chattisgarh India

Phone: 91-771-2583 793/4070 534/2583 789 Fax: 91-771-2583794

E-mail: [email protected] Website: www.csidc.in

State Investment Promotion Board

Near Mantralaya, Renuka Dwar, Shastri Chowk,

Raipur, Chhattisgarh - 492 001 Phone: 91-771-4066351,4066352

Fax: 91-771-4066315 E-mail: [email protected]



CONTACT LIST

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Cost parameter Cost estimate

Industrial land (per sq ft) US$ 6 to US$ 16

Office space rent (per sq ft) US 70 cents to US$ 2.8 per month

Power cost (per kWh) Commercial: US 4.5 cents to US 10.4 cents

Industrial: US 5 cents to US 11.4 cents

Labour cost (minimum wage per day) US$ 3.2 to US$ 3.8



COST OF DOING BUSINESS IN CHHATTISGARH

Source: Industry sources, Ministry of Labour and Employment, Government of India, Chhattisgarh State Electricity Regulatory Commission

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Electronic & IT/ITeS Investment Policy 2014-2019

• To improve the knowledge economy of the state by developing the ecosystem of the state. • To increase the investments in the state.

Read more

Objectives

Industrial Policy 2014-19

• To increase the industrialisation in the state. • To improve the industrial and basic infrastructure for the promotion of participation of private

sector. Read more

Objective

State Policy for Women

• To ensure the effective participation of women in political, social and economic life of the state. • To provide equal accessibility to the resources for self reliance of the women.

Read more

Objectives



STATE ACTS AND POLICIES … (1/4)

http://www.chips.gov.in/sites/default/files/Chips_Book_English.pdf

http://www.csidc.in/IP 2014-19.pdf

http://cgstate.gov.in/html/documents/policies/womenpolicy.pdf

June 2014 63 63 AUGUST 2015

IT / ITeS Investment Policy of Chhattisgarh 2012-2017

• To develop the ecosystem for a knowledge economy in the state. • To promote the state as an investment destination.

Read more

Objectives

Chhattisgarh Solar Policy 2012

• To encourage, develop and promote solar power generation in the state with a view to meet the growing demand for power in an environmentally and economically sustainable manner.

Read more

Objective

Agro & Food Processing Industries Policy – 2012

• To enhance the income of the farmers in the state. • To encourage farmers to diversify for farming of fruits and vegetables and other cash horticulture

crops as alternatives to paddy by developing agro & food processing industries.

Read more

Objectives




http://www.chips.gov.in/sites/default/files/Chips_Book_English final.pdf

http://new.credacg.org/download/1352100398.pdf

http://www.crediblechhattisgarh.com/common/pdf/FoodAgroEnglish.pdf

June 2014 64 64 AUGUST 2015

Industrial Policy 2009-2014

• To accelerate the pace of industrialisation in the state. • To create an enabling environment and infrastructure for encouraging exports from the state. • To promote private sector participation for the development of basic and industrial infrastructure.

Read more

Objectives

Automotive Industries Policy - 2012

• To take initiative for promotion of a non-core sector in the state to encourage the establishment of non-core sector industries in future.

Read more Objective

Mineral Policy 2001

• To establish an investor-friendly business environment in the mining sector in order to attract both domestic and international private sector investors.

Read more Objective




http://chhattisgarh.nic.in/Industrial Policy 2009-14.pdf

http://www.crediblechhattisgarh.com/common/pdf/AutomotiveEng.pdf

http://www.chips.gov.in/sites/default/files/Mineral Policy_English.pdf

June 2014 65 65 AUGUST 2015

Biotechnology Policy

• To enable local communities to get optimal advantage of their natural, bio-cultural and bio-knowledge heritage in a sustainable manner.

• To institutionalise major capabilities in biotechnology research and development in general, with particular focus on indigenous knowledge systems and their applications in furthering socio-economic growth.

• To facilitate an environment for research through development of infrastructure and appropriate incentives.

Read more

Objectives

Energy Policy 2001

• Chhattisgarh has immense potential for coal-based thermal power generation. The policy aims to accelerate the pace of development of the sector, 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.

Read more

Objective




http://www.chips.gov.in/sites/default/files/BTPolicy.pdf

http://www.cseb.gov.in/csphcl/policy/Energy Policy.htm


CONFERENCES/SUMMITS FOR 2015-16

Summit / Conference Venue of Summit /

Conference Date

ISER- International Conference on Emerging Trends in Electronics, Electrical and Computer Science.

Raipur 6th September, 2015

ISER- International Conference on recent Advances in Computer Science and Information Technology

Raipur 20th September, 2015

37th ISPPD Conference Rourkela 8th – 10th October 2015

Source: India Conference Alerts


June 2014 67 67 AUGUST 2015

Average exchange rates


ANNEXURE

Fiscal Year INR equivalent of one US$

2004-05 44.81

2005-06 44.14

2006-07 45.14

2007-08 40.27

2008-09 46.14

2009-10 47.42

2010-11 45.62

2011-12 46.88

2012-13 54.31

2013-14 60.28

2014-15 60.28

2015-16 Q1 64.01


Source: Reserve Bank of India

June 2014 68 68 AUGUST 2015

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