Chhattisgarh surging ahead on the path of industrialization
Chhattisgarh, which was carved out as a new State from the erstwhile State of Madhya Pradesh in the year 2000 is not only rich in diversified tribal culture but also has a reserve of mineral resources in abundance. The State has four favourable factors for industrial growth and agriculture productivity-land, labour, power and water. This nascent State has peaceful people, political stability, good infrastructure, power and perennial rivers. The State, which boasts of rich reserve of iron ore, bauxite mines, coal and precious gems of international quality, is drawing attention of global community.
A favourable industrial climate has developed leading to rapid industrialization in the newly formed State of Chhattisgarh. With the rich mineral resources, new industrial policy and concerted efforts of the State Government to provide best facilities to the industries, the flow of investment coming to the country has percolated down to Chhattisgarh. The pace of industrialization received a fillip when the First Elected Chief Minister, Dr. Raman Singh took over charge in December 2003. The State came up with a New Industrial Policy for the period 2004 – 2009, which is rated as one of the most attractive and investor friendly Industrial Policy in the country. The New Industrial Policy of the State has created favourable industrial climate in the State. Impediments on the path of investment have been removed and time limit for industrial clearances has been fixed. Now entrepreneurs do not have to run from pillars to post for clearances. Subsequent to the polices of the State government Chhattisgarh could bag first position in terms of actual investment inflows among all Indian States in the first seven months of January to July 2006. As per (Industrial Entrepreneurs Memorandum) report of the Industry Ministry Government of India Rs 37,715 crores was invested in the first seven months of January to July 06 in Chhattisgarh. As per the report Jharkhand stands second with investment of Rs 31, 713 crores and Gujarat third with investment of Rs 31, 325 crores.
The atmosphere for industrialization changed after Chief Minister Dr. Raman Singh initiated dialogue with the leading industrial houses and industrial organizations across the country and abroad to attract investment to the State. The efforts paid rich dividend and within two years, 50 industrial houses inked Memorandum of Understanding (MoU) with the Government of Chhattisgarh to invest Rs 51,000 crore in the State. Most of the companies have started the process of setting up the units.
It may be noted that Chief Minister Dr. Raman Singh was adjudged as the number one Chief Minister among the States in the survey conducted by India Today. Chhattisgarh also bagged number one position in creating better environment for investment in the country. The State has also been awarded number one position by the magazine for providing better facilities to the investors. The magazine after considering various parameters like GDP capital investment, per capita bank loan, industrial disputes, percentage of sick small industries, industrial policy, energy policy etc put the State in the first position. The State has not only reined the stumbling blocks but has also simplified norms and procedures, making it more investor friendly. These are the reasons that propelled industrial giants like Tata Steel, IFFCO, Essar, BALCO and many others to come out with huge investments in Chhattisgarh.
Besides number of small and big industries, Tata Steel Company will be investing Rs 10,000 crore to establish a steel plant in Bastar. Noted fertilizer company IFFCO has entered into power generation sector and signed MoU with State government to set up 1000 MW Thermal Power Plant with an investment of Rs 4500 crore in Sarguja district. Another established group, Essar is investing Rs 7000 crore to set up a Steel Plant in Bastar district. BALCO will be investing more than Rs 5000 crore for power plant in the State.
Chhattisgarh has been the hub of basic and core industries right since its inception. With industrial giants like Bhilai Steel Plant (BSP), National Mineral Development Corporation, South Eastern Coal Field Limited, NTPC, prominent Cement Companies like ACC, Grasim, Lafarge and majority of the Thermal Power projects being established here, the State has a long history of successful industrialization in basic and core industries. This has been possible not only because Chhattisgarh is rich in mineral resources but also because Chhattisgarh has had a long history of cordial industrial relation, peaceful and hard working labour force, competitive input costs in terms of land, labour, power and also because of the congenial, friendly and supportive approach of the State Government.
The Reserve Bank of India (RBI) report has ranked Chhattisgarh as No. 1 in actual investment inflows among all Indian States in the fiscal year 2003 – 04. With an actual investment inflow of more than Rs. 7,700 crores Chhattisgarh cornered approximately 11% of the industrial investment inflow in the country in 2003 – 04 and emerged No. 1, leaving behind the industrially advanced States like Maharashtra, Tamil Nadu, Gujarat and Delhi and this trend is continuing.
Similarly Chhattisgarh has maintained its number one position in terms of fiscal discipline. As per the data released by the Reserve Bank of India on 8th April 2005, fiscal management in Chhattisgarh is much better in comparison to other States of the nation. The report States that status of revenue deficit, gross fiscal deficit, revenue increase, interest payment and financial indicators in Chhattisgarh is far better than other States.
Chhattisgarh bagged third position in India in terms of industrial exports. As per data released by Ministry of Commerce and Industry in January 2005 Chhattisgarh has exported industrial goods of worth Rs 1057 crore in the year 2003-04 and registered export growth rate of 148.77-pc. In terms of value year 2003-2004 exports is Rs. 632 crore more than the preceding years export of Rs 425 crores. Ministry of Commerce and Industry has sanctioned Rs 5.00 crore to Chhattisgarh for promoting export-oriented units of the State. Strategically located in central India Chhattisgarh has good road connectivity and is able to supply power to units round the clock. Situated just five hundred kilometers away from the coastal area, its location in the heart of the country makes this State important. It is an important junction to connect the two metros namely Mumbai and Kolkata. The Mana Airport near the capital Raipur connects it with Mumbai, Kolkata, New Delhi and Chennai.
In investment facilitation the approach of the State government has been that of providing various facilities like infrastructure subsidy, interest subsidy, electricity duty exemption and tax exemption in order to make the investment competitive. In order to make the atmosphere industrially friendly, the State Investment Promotion Act have been suitably amended providing for a State Investment Promotion Board, under the Chairmanship of the Chief Minister. This board meets every quarter and is empowered to take all decisions on behalf of all statutory bodies of the State Government. The State Government has also provided single point of contact for all investors, common application form for all clearances for any new investor coming to the State. The rules in the statute provide for time bound clearance in setting up industrial ventures, land clearance within 21 days, power clearance within 45 days and environment clearance within 120 days are a few examples. The rules also provide deemed clearance in case no action is taken in the stipulated time period. These efforts have paid rich dividends and within two and half years more than 40 industrial units have signed Memorandum of Understandings (MoUs) with Chhattisgarh government in order to invest more than Rs. 53,000 crores in various industrial ventures in the State.
In the last few years, Jindal Steel, Sterlite and others have signed MoUs for investment in the State. Prominent power companies like National Power Corporation Ltd. (NTPC) and State Electricity Board (CSEB) are in the process of commissioning of new power projects. NTPC is now installing a new power generation unit in Bilaspur district. NTPC has started construction work on its 2640 MW Super thermal Pant in Sipat 500 MW power plant in Bhilai and another 600 MW plant in Korba. Government of Gujarat is putting up a 500 MW generation plant in Korba. Additionally new companies like IFFCO and Texas Power Generation have signed MoUs for establishing independent power plants in the State. Sterlite group that had signed an MoU with the State only few years ago has already commissioned its power plant. In fact the congenial industrial atmosphere enabled Sterlite group to put up its power plant within 24 months, whereas average time for setting up such units is 33 months. The renowned cement companies like Lafarge, Grasim, Ambuja, ACC etc are now planning for expansion whereas SAIL unit Bhilai Steel Plant is planning to set up cement plant in the State. Chhattisgarh is nestling atop the world’s largest kimberlite area. Eight blocks have been demarcated for diamond exploration and apart from diamond; four blocks have been demarcated for gold exploration. The nodal agency CSIDC acts as a facilitator for development of medium and large industries in this region. It conceptualizes, plans, implements and maintains various infrastructure facilities in the region. Chhattisgarh State Industrial Development Corporation Limited, Raipur has developed, maintained and is managing approximately an area of 3112 hectares of industrial land. CSIDC has developed various Industrial Growth Centres & Industrial Areas namely Urla, Sarora, Bhanpuri, Rawabhata, Siltara in Raipur district, Borai in Durg district, Sirgitti, Rani Durgavati in Bilaspur district. With investment of around Rs. 16,510 million more than 830 industrial units have been set up in the industrial areas of the State. These units have provided employment to 25,000 people of the State.
The State Government is providing infrastructure facilities in order to attract investment not only in basic and core sectors but also in herbal and medicinal sectors, non-conventional energy (bio-diesel, unit energy, bio-mast) information technology and biotechnology. The State looks forward to join hands with investors within the country and abroad in order to set up various ventures in these sectors.
In fact, the pace of investment in a State depends on various factors. Some factors are proximity of resources, raw materials, and the State’s approach towards the industries. Chhattisgarh is well known for its rich mineral resources including iron ore, coal, bauxite, limestone, diamond, corundum and tin. The bio-diversity of Chhattisgarh forests is another important feature of the State. With 44% of the area under forests Chhattisgarh houses some of the most exotic herbal and medicinal plants found in the country. The State Government has recently embarked on a project for production of bio-diesel through tree born oil seeds viz., jetropa, neem and karanja. Chhattisgarh Bio-fuel Development Authority constituted on 26 January 2005 for promotion of bio-diesel in the State. The Authority has set up bio-diesel Plant near Energy Park-Raipur with an installed capacity of 3 tonnes of Bio-diesel per day. The State Government has declared minimum support prices of Rs.5.50 paisa per kilogram for Jatropha seeds. Chhattisgarh State Minor Forest Federation will purchase Jatropha seeds as well as purchase bio-diesel at the rate of Rs. 30 per liter. After oil extraction oil cakes will used as bio-manure and by-product glycerin will be used for industrial purpose. This year 16 crore-jatropha trees will be planted in the State. State intends to allot Govt. waste/fellow land to Public/Private Companies, Partnership firms and Societies registered under Society Act. Private investors have been invited for Jatropha Plantation and for setting oil expeller and Trans-esterification plant for bio diesel production. Chief Minister Dr. Raman Singh has been using bio diesel fueled vehicle since last one year. A bio-diesel plant has already been installed in Raipur and 3,000 litres of bio-diesel is being produced daily. State intends to produce enough bio-diesel in a period of 10 years to replace the petrol-diesel. With its innovative schemes and investor friendly polices and programmes Chhattisgarh is all set to play a major role in the formation of a new and resurgent India.
K.Venkateshwar.Rao
A favourable industrial climate has developed leading to rapid industrialization in the newly formed State of Chhattisgarh. With the rich mineral resources, new industrial policy and concerted efforts of the State Government to provide best facilities to the industries, the flow of investment coming to the country has percolated down to Chhattisgarh. The pace of industrialization received a fillip when the First Elected Chief Minister, Dr. Raman Singh took over charge in December 2003. The State came up with a New Industrial Policy for the period 2004 – 2009, which is rated as one of the most attractive and investor friendly Industrial Policy in the country. The New Industrial Policy of the State has created favourable industrial climate in the State. Impediments on the path of investment have been removed and time limit for industrial clearances has been fixed. Now entrepreneurs do not have to run from pillars to post for clearances. Subsequent to the polices of the State government Chhattisgarh could bag first position in terms of actual investment inflows among all Indian States in the first seven months of January to July 2006. As per (Industrial Entrepreneurs Memorandum) report of the Industry Ministry Government of India Rs 37,715 crores was invested in the first seven months of January to July 06 in Chhattisgarh. As per the report Jharkhand stands second with investment of Rs 31, 713 crores and Gujarat third with investment of Rs 31, 325 crores.
The atmosphere for industrialization changed after Chief Minister Dr. Raman Singh initiated dialogue with the leading industrial houses and industrial organizations across the country and abroad to attract investment to the State. The efforts paid rich dividend and within two years, 50 industrial houses inked Memorandum of Understanding (MoU) with the Government of Chhattisgarh to invest Rs 51,000 crore in the State. Most of the companies have started the process of setting up the units.
It may be noted that Chief Minister Dr. Raman Singh was adjudged as the number one Chief Minister among the States in the survey conducted by India Today. Chhattisgarh also bagged number one position in creating better environment for investment in the country. The State has also been awarded number one position by the magazine for providing better facilities to the investors. The magazine after considering various parameters like GDP capital investment, per capita bank loan, industrial disputes, percentage of sick small industries, industrial policy, energy policy etc put the State in the first position. The State has not only reined the stumbling blocks but has also simplified norms and procedures, making it more investor friendly. These are the reasons that propelled industrial giants like Tata Steel, IFFCO, Essar, BALCO and many others to come out with huge investments in Chhattisgarh.
Besides number of small and big industries, Tata Steel Company will be investing Rs 10,000 crore to establish a steel plant in Bastar. Noted fertilizer company IFFCO has entered into power generation sector and signed MoU with State government to set up 1000 MW Thermal Power Plant with an investment of Rs 4500 crore in Sarguja district. Another established group, Essar is investing Rs 7000 crore to set up a Steel Plant in Bastar district. BALCO will be investing more than Rs 5000 crore for power plant in the State.
Chhattisgarh has been the hub of basic and core industries right since its inception. With industrial giants like Bhilai Steel Plant (BSP), National Mineral Development Corporation, South Eastern Coal Field Limited, NTPC, prominent Cement Companies like ACC, Grasim, Lafarge and majority of the Thermal Power projects being established here, the State has a long history of successful industrialization in basic and core industries. This has been possible not only because Chhattisgarh is rich in mineral resources but also because Chhattisgarh has had a long history of cordial industrial relation, peaceful and hard working labour force, competitive input costs in terms of land, labour, power and also because of the congenial, friendly and supportive approach of the State Government.
The Reserve Bank of India (RBI) report has ranked Chhattisgarh as No. 1 in actual investment inflows among all Indian States in the fiscal year 2003 – 04. With an actual investment inflow of more than Rs. 7,700 crores Chhattisgarh cornered approximately 11% of the industrial investment inflow in the country in 2003 – 04 and emerged No. 1, leaving behind the industrially advanced States like Maharashtra, Tamil Nadu, Gujarat and Delhi and this trend is continuing.
Similarly Chhattisgarh has maintained its number one position in terms of fiscal discipline. As per the data released by the Reserve Bank of India on 8th April 2005, fiscal management in Chhattisgarh is much better in comparison to other States of the nation. The report States that status of revenue deficit, gross fiscal deficit, revenue increase, interest payment and financial indicators in Chhattisgarh is far better than other States.
Chhattisgarh bagged third position in India in terms of industrial exports. As per data released by Ministry of Commerce and Industry in January 2005 Chhattisgarh has exported industrial goods of worth Rs 1057 crore in the year 2003-04 and registered export growth rate of 148.77-pc. In terms of value year 2003-2004 exports is Rs. 632 crore more than the preceding years export of Rs 425 crores. Ministry of Commerce and Industry has sanctioned Rs 5.00 crore to Chhattisgarh for promoting export-oriented units of the State. Strategically located in central India Chhattisgarh has good road connectivity and is able to supply power to units round the clock. Situated just five hundred kilometers away from the coastal area, its location in the heart of the country makes this State important. It is an important junction to connect the two metros namely Mumbai and Kolkata. The Mana Airport near the capital Raipur connects it with Mumbai, Kolkata, New Delhi and Chennai.
In investment facilitation the approach of the State government has been that of providing various facilities like infrastructure subsidy, interest subsidy, electricity duty exemption and tax exemption in order to make the investment competitive. In order to make the atmosphere industrially friendly, the State Investment Promotion Act have been suitably amended providing for a State Investment Promotion Board, under the Chairmanship of the Chief Minister. This board meets every quarter and is empowered to take all decisions on behalf of all statutory bodies of the State Government. The State Government has also provided single point of contact for all investors, common application form for all clearances for any new investor coming to the State. The rules in the statute provide for time bound clearance in setting up industrial ventures, land clearance within 21 days, power clearance within 45 days and environment clearance within 120 days are a few examples. The rules also provide deemed clearance in case no action is taken in the stipulated time period. These efforts have paid rich dividends and within two and half years more than 40 industrial units have signed Memorandum of Understandings (MoUs) with Chhattisgarh government in order to invest more than Rs. 53,000 crores in various industrial ventures in the State.
In the last few years, Jindal Steel, Sterlite and others have signed MoUs for investment in the State. Prominent power companies like National Power Corporation Ltd. (NTPC) and State Electricity Board (CSEB) are in the process of commissioning of new power projects. NTPC is now installing a new power generation unit in Bilaspur district. NTPC has started construction work on its 2640 MW Super thermal Pant in Sipat 500 MW power plant in Bhilai and another 600 MW plant in Korba. Government of Gujarat is putting up a 500 MW generation plant in Korba. Additionally new companies like IFFCO and Texas Power Generation have signed MoUs for establishing independent power plants in the State. Sterlite group that had signed an MoU with the State only few years ago has already commissioned its power plant. In fact the congenial industrial atmosphere enabled Sterlite group to put up its power plant within 24 months, whereas average time for setting up such units is 33 months. The renowned cement companies like Lafarge, Grasim, Ambuja, ACC etc are now planning for expansion whereas SAIL unit Bhilai Steel Plant is planning to set up cement plant in the State. Chhattisgarh is nestling atop the world’s largest kimberlite area. Eight blocks have been demarcated for diamond exploration and apart from diamond; four blocks have been demarcated for gold exploration. The nodal agency CSIDC acts as a facilitator for development of medium and large industries in this region. It conceptualizes, plans, implements and maintains various infrastructure facilities in the region. Chhattisgarh State Industrial Development Corporation Limited, Raipur has developed, maintained and is managing approximately an area of 3112 hectares of industrial land. CSIDC has developed various Industrial Growth Centres & Industrial Areas namely Urla, Sarora, Bhanpuri, Rawabhata, Siltara in Raipur district, Borai in Durg district, Sirgitti, Rani Durgavati in Bilaspur district. With investment of around Rs. 16,510 million more than 830 industrial units have been set up in the industrial areas of the State. These units have provided employment to 25,000 people of the State.
The State Government is providing infrastructure facilities in order to attract investment not only in basic and core sectors but also in herbal and medicinal sectors, non-conventional energy (bio-diesel, unit energy, bio-mast) information technology and biotechnology. The State looks forward to join hands with investors within the country and abroad in order to set up various ventures in these sectors.
In fact, the pace of investment in a State depends on various factors. Some factors are proximity of resources, raw materials, and the State’s approach towards the industries. Chhattisgarh is well known for its rich mineral resources including iron ore, coal, bauxite, limestone, diamond, corundum and tin. The bio-diversity of Chhattisgarh forests is another important feature of the State. With 44% of the area under forests Chhattisgarh houses some of the most exotic herbal and medicinal plants found in the country. The State Government has recently embarked on a project for production of bio-diesel through tree born oil seeds viz., jetropa, neem and karanja. Chhattisgarh Bio-fuel Development Authority constituted on 26 January 2005 for promotion of bio-diesel in the State. The Authority has set up bio-diesel Plant near Energy Park-Raipur with an installed capacity of 3 tonnes of Bio-diesel per day. The State Government has declared minimum support prices of Rs.5.50 paisa per kilogram for Jatropha seeds. Chhattisgarh State Minor Forest Federation will purchase Jatropha seeds as well as purchase bio-diesel at the rate of Rs. 30 per liter. After oil extraction oil cakes will used as bio-manure and by-product glycerin will be used for industrial purpose. This year 16 crore-jatropha trees will be planted in the State. State intends to allot Govt. waste/fellow land to Public/Private Companies, Partnership firms and Societies registered under Society Act. Private investors have been invited for Jatropha Plantation and for setting oil expeller and Trans-esterification plant for bio diesel production. Chief Minister Dr. Raman Singh has been using bio diesel fueled vehicle since last one year. A bio-diesel plant has already been installed in Raipur and 3,000 litres of bio-diesel is being produced daily. State intends to produce enough bio-diesel in a period of 10 years to replace the petrol-diesel. With its innovative schemes and investor friendly polices and programmes Chhattisgarh is all set to play a major role in the formation of a new and resurgent India.
K.Venkateshwar.Rao
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