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 ranked third in terms of value of major mineral production (excluding atomic, fuel and minor minerals) in India, with 18.1 per cent share in January 2018.

At current prices, gross state domestic product (GSDP) of Chhattisgarh stood at Rs 2.92 trillion (US$ 45.26 billion) in 2017-18A. GSDP (in Rs) of the state at current prices grew at a CAGR of 10.75 per cent between 2011-12 and 2017-18.

Total mineral production in the state during 2017-18 (up to December 2017) was worth Rs 172.21 billion (US$ 2.67 billion). 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. During 2017-18 (up to February 2018), tin concentrate production in the state stood at 15,650 kgs. Chhattisgarh's combined exports of aluminium & products, iron ore, iron & steel products, and cement from Chhattisgarh reached US$ 931.63 million in FY18 and US$ 284.74 million in FY19 (up to July).

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. Moreover, considerable reserves of bauxite, limestone and quartzite are available in the state.

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,). As of October 2018, the Indian Railways has raised private equity for the first of these corridors.
• Under Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Rs 2,192.76 crore (US$ 340.23 million) has been allocated to Chhattisgarh as of April 2018.
• 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.

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