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

Introduction

Chhattisgarh, the 17th most populated state in India, stands out as a resource-rich region contributing significantly to the country's power and steel sectors. It holds a pivotal role in producing approximately 15% of the nation's total steel output, highlighting its industrial significance.

Industrial Sector in Chhattisgarh

Chhattisgarh's industrial landscape portrays a vibrant picture of growth and development. Notably, the state is home to diverse industrial units, ranging from large-scale thermal power stations to private generation entities.
For instance:

• The National Thermal Power Corporation Limited (NTPC) operates the Sipat Thermal Power Station in Bilaspur with a robust capacity of 2,980 MW. This facility stands as a cornerstone in the state's power infrastructure.
• GMR Power's thermal power station in Tilda and the Korba Super Thermal Power Station in Korba, boasting a capacity of 2,600 MW, further reinforce Chhattisgarh's prowess in the power domain.
• The Chhattisgarh State Electricity Board (CSEB) plays a pivotal role in ensuring a steady supply of electricity within the state and beyond. With thermal and hydel capacities of 1,780 MW and 130 MW respectively, CSEB contributes significantly to the power grid.
• Moreover, the state's liberal policies towards captive power generation have spurred the emergence of numerous private players in the energy sector, injecting dynamism and competition into the market.

Power Sector Advancements

Chhattisgarh's power sector emerges as a standout success story, characterized by effective development and surplus production.
The state's energy landscape is bolstered by:

• The Chhattisgarh State Electricity Board's robust financial health and surplus electricity production position the state favorably in meeting internal demands and even exporting power to neighboring regions.
• The presence of key players like NTPC, with its flagship Sipat Thermal Power Station, showcases the state's commitment to high-capacity power generation and distribution.
• Private sector investments in power generation, both large and small-scale, underscore the state's attractiveness to investors seeking to capitalize on Chhattisgarh's energy potential.
• The state's strategic approach towards fostering captive power generation has not only diversified the energy mix but has also encouraged innovation and efficiency within the sector.

Chhattisgarh's Industrial and Natural Resources

• Thermal Power Potential: The state of Chhattisgarh boasts an immense potential for additional thermal power, estimated at 61,000 MW, with coal reserves that can sustain this for over a century. Additionally, there is a hydel capacity of over 2,500 MW. Efforts are underway to increase the existing generation capacity significantly to harness this potential.
• Steel Sector: The steel industry stands out as one of the prominent heavy industries in Chhattisgarh. The Bhilai Steel Plant, managed by SAIL and producing 5.4 million tonnes annually, serves as a key growth indicator for the state. Chhattisgarh is home to over 100 steel rolling mills, 90 sponge iron plants, and various ferro-alloy units. Cities like Raipur, Bilaspur, Korba, and Raigarh have emerged as pivotal steel hubs, with Raipur being a central market for steel in India.
• Aluminium Sector: The aluminium industry in Chhattisgarh was established by the Bharat Aluminium Company Limited, boasting an annual capacity of approximately one million tonnes.

Natural Resources

• Forest Resources: The state's forest cover spans 41.33% of its total area, as per recent data from the Indian Forest Service. These forests are rich in resources such as wood, tendu leaves, honey, and lac. Around 3% comprises very dense forest, 25.97% is moderately dense, 12.28% is open forest, and 0.09% is scrubland.
• Mineral Deposits: The region is abundant in mineral deposits, contributing significantly to its economic landscape.

Mineral Deposits in Chhattisgarh

• Rich Mineral Wealth: Chhattisgarh, situated in central India, boasts a diverse range of 28 major minerals, including valuable resources like diamonds.
• Significant Mineral Production: The state ranks fifth in India in terms of the value of major mineral production. It plays a crucial role in the country's cement production, contributing 20% of the total output.
• Coal and Iron Ore Reserves: Chhattisgarh leads in coal production, holding the highest output in India and the second-highest reserves. It also ranks third in iron ore production nationwide.
• Abundance of Key Minerals: The state is rich in resources like limestone, dolomite, bauxite, and tin. Notably, it is the sole producer of tin ore in India. Other extracted minerals include corundum, garnet, quartz, marble, alexandrite, and diamonds.
• Tin Production: Chhattisgarh stands out as the exclusive state in India producing tin concentrates, holding a significant share of the country's tin ore reserves. Tin concentrate production in the state is substantial, standing at 8.81 million tonnes.

Information Technology in Chhattisgarh

• Emerging IT Sector: Chhattisgarh has been making strides in the field of information technology in recent years, with a growing presence in IT projects and consultancy services.
• Government Support: The state government actively promotes IT initiatives and has established CHiPS (Chhattisgarh Infotech Promotion Society) to oversee IT solutions. Notable projects like Choice and Swan have been spearheaded by CHiPS.

Major Companies in Chhattisgarh

• Metal: Bhilai Steel Plant, Jindal Steel and Power, Bharat Aluminium Company
• Oil: Indian Oil Corporation, Hindustan Petroleum Corporation Limited
• Engineering: Simplex Casting Ltd
• Real Estate: CHPL-Dream-Homes (Chouhan Housing Pvt Ltd.)
• Mining: NMDC, South Eastern Coalfields
• Power: NTPC, Lanco Infratech, KSK Energy Ventures, Vandana Vidyut, Chhattisgarh State Power Generation Company, Jindal Power Limited

Exports from Chhattisgarh

• Exports play a crucial role in Chhattisgarh's economy, with approximately 75% originating from Bhilai and the remainder from Urla, Bhanpuri, and Sirgitti. 
• The state exports a diverse range of products including steel, handicrafts, handlooms, blended yarn, food and agri-products, iron, aluminium, cement, minerals, and engineering goods. 
• The Chhattisgarh State Industrial Development Corporation Limited (CSIDC) spearheads export promotion activities in the state.

Chhattisgarh State Industrial Development Corporation (CSIDC)

• The Chhattisgarh State Industrial Development Corporation (CSIDC) is a government organization under the Department of Commerce & Industry in Chhattisgarh, registered under the Companies Act, 1956. It serves as the nodal agency for promoting and facilitating industrial development in the state. 
• CSIDC's key activities include industrial promotion and facilitation, export promotion, conducting industrial potential surveys, land allotment to industries, entrepreneurship development, training, and managing public-private partnerships (PPP). It is also responsible for the development, maintenance, and upgrading of industrial areas.
• CSIDC supports the growth of small, medium, and large industries in the state by providing assistance and working to remove obstacles in industrial development. The organization is involved in planning, implementing, and maintaining various industrial infrastructure projects. Over the years, CSIDC has played a crucial role in establishing large industrial growth centers and areas in Urla, Siltara, Sirgitti, and Tifra. 
• Additionally, it is working on the development of the Electronics Manufacturing Cluster (EMC), an Information Technology (IT) Park, and a Mega Food Park. CSIDC also provides raw materials like iron, steel, and coal to local small-scale industries and other units, offers testing and certification services for industrial products, and operates production units that manufacture furniture and agricultural implements.

Advantages of Investing in Chhattisgarh

• Chhattisgarh's rich natural resources, supportive policy incentives, and robust infrastructure make it an attractive destination for investments in the iron and steel, cement, and power sectors. The Korba district, often referred to as the power capital of India, plays a key role in the state's energy production. As part of the 12th Five-Year Plan, the government aims to increase power generation capacity by 30,000 MW. The state contributes significantly to India's coal production (22.60%) and steel/sponge iron production (19.80%). Additionally, Chhattisgarh has substantial reserves of bauxite, limestone, and quartzite.
• From 2004-05 to 2015-16, Chhattisgarh's Gross State Domestic Product (GSDP) grew at a compound annual growth rate (CAGR) of 11.83%, reaching US$ 36.6 billion. During the same period, the Net State Domestic Product (NSDP) grew at a CAGR of 10.21%, amounting to US$ 26.9 billion.
• Chhattisgarh is making significant strides in industrial infrastructure development. The Chhattisgarh State Industrial Development Corporation (CSIDC) has established industrial growth centers, five industrial parks, and three Integrated Infrastructure Development Centers (IIDC). Additionally, the state has a designated Special Economic Zone (SEZ) in Rajnandgaon District.

Government Initiatives to Promote Investment 

• Industrial Policy 2014-19: The state has introduced a wide array of fiscal and policy incentives under this policy to attract businesses.
• Food Processing Park: The government plans to establish a food processing park on approximately 303 hectares of land in Rajnandgaon District.
• Mission for Integrated Development of Horticulture (MIDH): During 2015-16, the state government proposed an outlay of US$ 13.27 million for this mission and had disbursed US$ 6.63 million by November 2015.
• Atal Mission for Rejuvenation and Urban Transformation (AMRUT): The Urban Development Ministry approved an investment of US$ 331.4 million for infrastructure development in 9 cities across Chhattisgarh.
• Rail Network Expansion: The state government signed an MoU with South Eastern Coalfields Ltd (SECL) and IRCON International Ltd for the construction of approximately 300 km of rail network. This project includes two corridors: the East Corridor and the East-West Corridor.
• Industrial Growth: By March 2015, around 17,615 small industries were established in the state, creating 102,241 jobs. Additionally, 162 large industries were set up, providing 21,693 employment opportunities during the same period.
• Road Infrastructure: As per the 2015-16 budget, an investment of US$ 1.66 billion was allocated for the upgrade of 2,000 km of existing roads under the Public-Private Partnership (PPP) mode. Additionally, US$ 116.6 million was allocated for road connectivity in rural areas under the Prime Minister’s Rural Roads Scheme.