The first time I visited Raipur or for that matter any part
of Chhattisgarh, was on 16th June 2013. I was finally joining Indian
Institute of Management Raipur which would be my humble abode for the next 2
years. As I arrived at Swami Vivekananda airport the first thing that caught my
attention was a huge banner of Jindal Steel and Power Limited (JSPL) showing
their steel plant at Raigarh. I had read about Chhattisgarh being one of the
fastest growing states in India with big steel and power plants. The first
impression of the state at the airport
seemed to reinforce the fact.
Chhattisgarh was formed on 1st November, 2000 from
Madhya Pradesh. It is widely believed that that the state derives its name from
thirty six forts present in the region (chhatis
in Hindi means thirty six and garh
means fort). With a geographical area of around 135000 sq.km,
it is the ninth largest state in India. Growth rate of Chhattisgarh’s economy
was 8.5% in fiscal 2012-13, much greater than the growth rate of Indian economy
in the same period. Chhattisgarh has been labelled as “A land of opportunities”
by its Chief Minister, Dr.Raman Singh. Now let’s dwell deeper into why should Chhattisgarh
be the investor’s choice for opening up new businesses.
Chhattisgarh has rich mineral wealth. It is the fourth
largest iron ore producing state in India with a production of 27.7 million
tonnes in fiscal year 2012-13. State owned National Mineral Development
Corporation (NMDC), Steel Authority of India (SAIL), Essar Steel and
Chhattisgarh Mineral Development Corp are some of the major iron-ore lease
holders in Chhattisgarh. The state is planning to increase its iron ore
production by 33% in the fiscal year 2013-14. This is indeed good news for
steel manufacturing companies like JSPL
and Essar which have set up steel plants in the state as they tend to benefit
from the increase in iron ore production.
Chhattisgarh contributes around 19% to India’s total coal
production. Adani enterprises started coal production at its Parsa east-Kanta
basin mine in April’13. The coal produced from this mine will fuel power plants
in Rajasthan. The state also has proven resources of diamond and other valuable
gems. This can be a huge incentive for investment in technical know-how and
state-of-the-art technology for exploring economic production of the high value
gems. Chhattisgarh is also a major bauxite producer and the largest producer of
tin in India.
Agriculture is the backbone of Chhattisgarh’s economy and
provides employment to a majority of the state’s population. Major agricultural
produce includes kharif crops like rice and maize. Other crops produced are
pulses, groundnut, soya been and wheat. Horticulture and animal husbandry are
also a means of livelihood for many people of Chhattisgarh. Food processing industry
ranks fifth in India in terms of production and it is valued at USD 121
billion. It has vast potential to grow in Chhattisgarh and the government has
taken numerous steps to attract investors. Five zones have been identified for
setting up of food processing plants and the government plans to give them
Special Economic Zone (SEZ) status. Investment subsidy, electricity duty
exemption, stamp duty, VAT exemption and loan assistance are few among the
various incentives planned by the state government for food processing
industry.
Chhattisgarh is one of the few states in India which have
surplus power. It has achieved ‘zero power cut’ status in urban as well as
rural areas and will be able to sustain that in future according to Dr.Raman
Singh. Having become self sufficient in energy sector the state now plans to
attract investment in renewable energy sector. It has significant latent
potential to harness solar power, wind energy, geothermal and small hydropower
sources. Essential elements for development of the industry like robust power
infrastructure, power purchase agreements and tariff plans are already present
in the state. Major power players like Lanco, JSPL, Godawari Power and Ispat
have already shown interest in investing in the renewable energy sector in the
state.
Around 40% of the
land area of Chhattisgarh is under forest cover. The raw materials required for
minor forest produce and herbal medicine sector are available in abundance in
the state. Herbal and medicine parks, industrial clusters and SEZs are a few
ways in which government plans to increase investment in this sector. Over 250
acres of land have been identified in Dhamtari for setting up of herbal and
medicinal parks and they are expected to attract INR 25,000 lakhs in
investments.
Chhattisgarh has rich cultural heritage and bio-diversity. Chitrakoot
waterfalls situated on river Indravati near Jagdalpur is the most popular
tourist destination in Chhattisgarh. Other popular tourist spots include
Indravati national park, Kangar valley national park, Barsoor, Bambleshwari
temple, Bhoramdeo temple and Kotumsar caves. The government has identified four
sectors for promotion of tourism and has initiated tie-ups with various private
players in the hospitality sector.
IT services is one of the fastest growing segments in the
Indian services sector. Availability of skilled talent pool, policy support,
latent potential and robust infrastructure are a few growth drivers of this
sector. Dedicated investment zones, like 7.46 acre plot for setting up Software
Technology Park of India (STPI) in Bhilai and 20 hectares of land at Naya
Raipur have been identified by the government. The government is providing
impetus to investment in IT sector through favourable policy formulation,
interest subsidy, concession on land premium, stamp duty exemption and
technical patent subsidy.
So, it is hardly surprising that economy of Chhattisgarh has
grown at higher rate in the past few years despite the sluggish growth of
Indian economy. The fiscal indicators
depict a robust economy for the state and 10% growth rate is targeted. The
state government also plans to enhance social sector spending to reduce
disparity in human development indicators and achieve MGDs. Considering the government’s
ambitious plans and state’s vast potential, most of which is yet to be utilized,
Chhattisgarh can indeed be labelled as land of opportunities.
References:
1. www.crediblechhattisgarh.com/
5. Planning commission data table
and RBI report on state finances.
Contributed by : Aashwij Mallya, PGP2013-15; He can be reached at pgp13030.aashwij@iimraipur.ac.in
