Industrial Development & Economic Growth in Chhattisgarh

Chhattisgarh is located in central India. It is among the richest Indian states in terms of mineral wealth, with 28 varieties of major minerals, including diamonds. Chhattisgarh is ranked fifth in terms of value of major mineral production in India. The coal production of the state in 2016-17 was 139.72 million tonnes. The total mineral production in the state during 2016-17 was worth US$ 3.53billion. Moreover, considerable reserves of bauxite, limestone and quartzite are available in the state. Chhattisgarh is the only state in India that produces tin concentrates. The state accounts for 35.4 per cent of tin ore reserves of India. Tin concentrate production in the state stood at 12.12 million tonnes in 2016-17.

The natural resources, policy incentives and infrastructure in the state support investments in the iron and steel, cement and power sectors. Korba district in Chhattisgarh is known as the power capital of India. Coal production & iron ore production in the state accounted for about 21.15 per cent and 16 per cent of the overall coal & iron ore production in India, respectively, during 2016-17. As of September 2017, the state ranked 3rd in terms of value of major mineral production in India. Moreover, considerable reserves of bauxite, limestone and quartzite are available in the state.

Between FY12-17, the Gross state domestic product (GSDP) of the state grew at a CAGR of 12.91 per cent to US$ 45 billion whereas the net state domestic product (NSDP) grew at a CAGR of 12.5 per cent to US$ 39.79 billion.

Chhattisgarh is making significant investments in industrial infrastructure. The Chhattisgarh State Industrial Development Corporation (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 following are some of the major initiatives taken by the government to promote Chhattisgarh as an investment destination:

• As per State Budget 2018-19, all 26 industrial areas under Directorate of Industries will be upgraded.
• A wide range of fiscal and policy incentives for businesses have been announced under the state’s Industrial Policy 2014-19.
• The Government of Chhattisgarh plans to set up a food processing park in Rajnandgaon district on around 303 hectares of land.
• Chhattisgarh state government, in partnership with Indian Railways will build two fully electrified rail corridors in the state at a cost of Rs 10,000 crore (US$ 1.56 billion,).
• Under Atal Mission for Rejuvenation and Urban Transformation (AMRUT), the Urban Development Ministry approved an investment of US$ 331.4 million for infrastructure development of 9 cities in Chhattisgarh.
• 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 2018-19, the state government allocated Rs 4,020 crore (US$ 620.95 million) for the development of roads & bridges in the state.
• By May 2018, the state plans to lay a road network of 808 km, in the state, at an estimated cost of US$ 332.88 million.

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