Chhattisgarh: Industrial Policy | Chhattisgarh State PSC (CGPSC) Preparation: All subjects - CGPSC (Chhattisgarh) PDF Download

Overview of Chhattisgarh Industrial Policies

Chhattisgarh's industrial policies play a pivotal role in shaping the state's economic landscape, directing development initiatives with a focused strategy.
Let's delve into the key aspects of these policies:

Evolution of Industrial Policies

• The inaugural Industrial Policy of Chhattisgarh dates back to November 1, 2001, marking a significant milestone in the state's economic journey.
• Following this, the second Industrial Policy was rolled out on November 1, 2004, with a defined tenure of five years.
• Subsequently, the Third Industrial Policy was enforced during the period of 2009-2014, each policy building upon the previous ones.
• The most recent Industrial Policy spanning from 2014 to 2019 outlines the state's economic vision for that period.

Ranking in Ease of Doing Business

• Chhattisgarh's commitment to fostering a business-friendly environment is underscored by its notable achievement in the Ease of Doing Business rankings. In 2016, the state clinched the fourth spot in this prestigious ranking conducted by the Department of Industrial Policy and Promotion (DIPP) in collaboration with the World Bank. This recognition highlights the state's proactive measures to attract investments and streamline business operations.
• Industrial policies serve as guiding frameworks that steer a state's economic progression, with each succeeding policy building upon the foundations of its predecessors. By aligning regulatory frameworks, incentives, and infrastructure development with the evolving needs of businesses, these policies create an enabling environment for industrial growth and investment.

Chhattisgarh's New Industrial Policy (2014-19) Overview

Chhattisgarh has introduced a new industrial policy for the years 2014-2019, aiming to boost industrial growth and attract investments in the state.

Main Features of the Policy

• The policy offers a subsidy of Rs. 5 crores to establish an industrial park in the private sector.
• An extensive 'Land Bank' of over 10,000 hectares will be made available for various industries.
• Industries like bicycle manufacturing, pharmaceuticals, electronic products, and textile industries will receive prioritized support under this policy.
• Mega projects in these sectors will benefit from reduced investment thresholds to avail of incentives.
• The Chief Minister Cluster Development Scheme will be launched, providing a subsidy of Rs. 50 lakhs.
• Chhattisgarh will implement the 'Make in Chhattisgarh' policy, akin to the 'Make in India' initiative, to promote manufacturing units with a focus on related industries.
• Residents of Chhattisgarh will be encouraged to establish their enterprises, fostering better employment opportunities.
• The state aims to boost capital investment by enhancing industry competitiveness compared to other states.

Policy Rationale and Impact

• The industrial policy is inspired by the 'Make in India' initiative, aligning with the goal of attracting investors to manufacture goods in Chhattisgarh, known for its mineral-rich resources.

Overview of Industrial Development in Chhattisgarh

Chhattisgarh's industrial landscape has witnessed significant progress, particularly in sectors such as steel, power, cement, and aluminum. Over 120 Memoranda of Understanding have been inked, with 60 projects already operational and expanding, while others are at various stages of development.

• Shift Towards Non-Core Sectors: While the state has excelled in core industries, the current emphasis is on diversifying into non-core sectors like agriculture, automotive, renewable energy, IT, pharmaceuticals, healthcare, and tourism. Notably, the Global Investors Meet in 2012 marked a pivotal entry into non-sector segments.
• Empowering Locals and Diverse Job Creation: Efforts are underway to enhance local employment opportunities within industries, alongside fostering entrepreneurship among the youth to establish their ventures.
• Proposed Industrial Policy Initiatives: The state government is strategizing to establish a land bank for mega industries, introduce tailored incentives for marginalized communities, revitalize defunct enterprises, and facilitate land procurement for small-scale industries surrounding proposed infrastructure projects like the Rail Corridor and railway lines.

Key Initiatives

• Establishment of a land bank to attract large-scale industries
• Special incentive schemes for underprivileged sections
• Revival of ailing industries and employment generation
• Facilitating land acquisition for small-scale enterprises near key infrastructure projects

Conclusion

Chhattisgarh's industrial roadmap showcases a strategic shift towards non-core sectors, emphasizing local empowerment, diverse job creation, and targeted policy initiatives to bolster industrial growth and inclusivity.