CHHATTISGARH - India Brand Equity Foundation, IBEF, Business

CHHATTISGARHNovember 2010

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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


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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

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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)




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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.




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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)


*Calculated in Indian rupee terms


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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



http://www.pppindiadatabase.com/

http://www.sezindia.nic.in/

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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



10

Contents








11

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


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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%



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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


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%


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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


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%


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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$


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


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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.



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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.


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


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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.


• 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).


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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




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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


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


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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


68.9%

26.0%

2.1%

2.7%

0.3%

Electricity

Manufacturing

Services

Mining

Construction


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Contents








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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


INFRASTRUCTURE STATUS

Source: Chhattisgarh Economic Survey, 2008-09


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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.




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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



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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.


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


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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



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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



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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



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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)



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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



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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


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


Source: Ministry of Health and Family Welfare, 2008


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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.



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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



36

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



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



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



39

Contents








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


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.




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.




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.




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.




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.




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.


• 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).




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.


• 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.




48

Company logos cited in this section are registered trademarks of the respective companies.

Contents








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


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.



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



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)



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.




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.




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



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)



http://www.lafarge-cement.co.in/wps/portal/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd463dNUvyHZUBADlQ1pD

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)



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.



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



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.



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



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



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



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



65

Contents








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.


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



68


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


… (2/3)



69


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


… (3/3)



70

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



71

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



http://www.kumbengaluru.com/

72

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



73

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presentation.

Neither IMaCS nor IBEF shall be liable for any direct or

indirect damages that may arise due to any act or

omission on the part of the user due to any reliance

placed or guidance taken from any portion of this

presentation.

DISCLAIMER


Documents

CHHATTISGARH - India Brand Equity Foundation, IBEF, Business