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 fourth in terms of value of mineral production (excluding atomic, fuel and minor minerals) in India, with a 15.66 per cent share in 2017-18.

At current prices, the total GSDP of Chhattisgarh reached Rs 3.62 trillion (US$ 51.83 billion) in 2020-21. The state’s GSDP increased at a compound annual growth rate (CAGR) (in Rs) of 9.65 per cent between 2011-12 and 2020-21.

Total mineral production in the state during 2018-19 was Rs 9,575 crore (US$ 1.37 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 accounted for 35.4 per cent of tin ore reserves of India. During 2017-18, tin concentrate production in the state stood at 16,758 kgs. Chhattisgarh's combined exports of aluminium & products, iron & steel, iron ore and iron & steel products from Chhattisgarh reached US$ 931.63 million in FY19 and US$ 727.48 million between Apr-Dec 2019.

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.

As of December 2019, Chhattisgarh had a total installed power generation capacity of 12,758.60 MW, comprising 8,194.30 MW under private utilities, 2,211.05 MW under state utilities and 2,353.16 MW under central utilities. Energy requirement in the state was 27,303 million units between Apr-Jan 2019-20.

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. As of November 2019, the state had two formally approved SEZs.

Total merchandise exports from Chhattisgarh were US$ 1,243.43 million in FY19 and US$ 960.39 million between Apr–Dec 2019.

The following are some of the major initiatives taken by the government to promote Chhattisgarh as an investment destination:

• As per State Budget 2019-20, government has allocated Rs 193 crore (US$ 27.61 million) for construction of bridges and Rs 674 crore (US$ 96.43 million).
• In May 2019, Swami Vivekananda Airport of Raipur bagged fifth position in the country for Airport Service Quality (ASQ) survey.
• In December 2019, the Airports Authority of India (AAI) recommended to privatise Raipur airport.

• Under 2020-21 State Budget, the state government has allocated Rs 5,144 crore (US$ 736.01 million) has been allocated towards school education and Rs 779 crore (US$ 111.46 million) has been allocated towards higher education.
•  Government has announced the allocation of Rs 5,000 crore (US$ 715.4 million) for buying food grain crops.
• During 2019, 61 IEMs have been filed in Chhattisgarh with a proposed investment of Rs 5,132 crore (US$ 734.30 million).
• Under State Budget 2020-21, Rs 396 crore (US$ 54.89 million) has been allocated for the three smart cities.
•  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$ 303.92 million) has been allocated to Chhattisgarh as of January 2019.
• The 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.

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