4 Keys To The Doors Of Investment In Chhattisgarh

Investgarh Chhattisgarh: 4 Keys To The Doors Of Investment In Chhattisgarh

4 Keys To The Doors Of Investment In Chhattisgarh

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Buzzing with a new title, ‘Investgarh Chhattisgarh’, the state is well on its way to dominating many business and industrial sectors. We bring you an insight into four time-tested powerhouses driving the state's industrial growth.

Chhattisgarh Chief Minister Bhupesh Baghel has been pushing for the $100-billion dream for his state. Considering how far Chhattisgarh has come in the last couple of years, the benchmark seems quite achievable. After all, Chhattisgarh is a leading mineral-rich state of India. Today, possibilities for growth opportunities are very high, as Chhattisgarh is seen as a favoured destination for global investors. Here are the four fundamental industrial pillars which include legacy but are also being transformed through innovation and modernisation:

4 Keys To The Doors Of Investment In Chhattisgarh

1. Metals & Mining

There is a clear advantage that Chhattisgarh enjoys with its abundant mineral wealth and only 20% of the total mineral reserves of the state have been mined till now. The good news is that the Bhupesh Bhagel government is actively looking for ways to harness these untapped resources in a sustainable manner.

The government's policies towards mining will be the real game-changer. Recent permission given to captive mines to sell coal in the open market is a positive step in this direction. This production linked incentive scheme for the steel sector is being executed under Atmanirbhar Bharat 3.0 package.

A few other initiatives worth mentioning are:

· Single Window Clearance Portal: To facilitate grant of clearances and approvals with a definitive timeline.

· Setting up a dedicated platform for grievance addressal.

· Logistics support in which Chhattisgarh is a pioneer in the country.

The state has also established an auction mechanism for non-coal mining lease, gold mines, minor minerals and in its logistics policy. Development of a portal to track minerals transport is also underway.

Chhattisgarh contributes 32% to sponge iron or steel production, 30% of India's aluminium production and 37% of dolomite production and there are 28 other different types of minerals. Competitive industrial power tariff supports upstream and downstream industries in the state.

The state is #1 in dolomite, and #2 in coal and iron ore. 8% of India’s limestone comes from Chhattisgarh. It is the only state in India to produce tin concentrates in large quantities and accounts for 35.4% of tin ore reserves of India.

Some significant ongoing metals and mining projects in the State are:

· Gevra open cast coal mining in the implementation stage with a project cost of $1.61 billion.

· Pelma open cast coal mining project with a project cost of $599.91 million.

· Durgapur open cast coal mining project with a project cost of $347.78 million.

4 Keys To The Doors Of Investment In Chhattisgarh

2. Agriculture

Chhattisgarh has India's richest biodiversity habitat. With abundant rainfall, 50% of geographical plains translate to 43% of the land under cultivation. The state's favourable demography and ease of connectivity is an added advantage and a significant growth driver. Chhattisgarh has been able to better its mechanisation of irrigational facilities. Chhattisgarh Centre of Excellence in Biotechnology is also a significant contributor.

But the primary factor in enhancing growth in agriculture will be the policy initiatives of the government. A list of some of the significant factors would be:

· Growing institutional credit and increase in the Minimum Support Price (MSP).

· Introduction of new schemes like the Paramparagat Krishi Vikas Yojana.

· Sansad Adarsh Gram Yojana and opening of wheat and rice exports.

· Krishi Udaan Scheme for produce transportation run by the government, Perishable Cargo Centres, cold storage facilities at Airports and inland container depots, and cargo terminals and warehouses.

Digital innovation in infrastructure development, supply chain management and technology enablement of quality-traceability-logistics and distribution are considerable advantages. The state government has also pursued FDI in the forestry sector. The Japan International Cooperation Agency provided a loan of ¥ 12,287 million (₹ 750 crore) for the Sustainable Forest Management Project India. This should help a large portion of the state's inhabitants who depend on forest produce for their traditional livelihood and better preserve the forest environment. In the forestry sector the government has notified 50 items in the list of minor forest produce. Gatherers are to be trained in a scientific method to collect, process, and add value to such forest produce.

Some other agricultural initiatives by the government are:

· Initiative to nurture muga silkworm growth. This would help amplify and accentuate the growth of textile industries in the state.

· Supportive policies have been enacted to promote and encourage the agricultural start-up ecosystem in the state.

· The government envisages establishing 200 food parks in 110 blocks. Among these, 146 blocks will provide a mechanism to link agricultural production to the market. One of the benefits of this initiative will be to bring farmers, processors and retailers together. It will also ensure maximum value addition, minimal wastage, increased farmer income and creation of employment opportunities.

· Various subsidies and support programmes are fuelling growth in the state's agricultural development, like capital subsidy and interest subvention on projects, technology enhancement, cold chain capital subsidy and interest subsidy.

About 80% of the state's population are engaged in agriculture, and 43% of the entire arable land is under cultivation. This sector is by far the most significant for the state. Focus on this sector will have a more substantial impact on the lives of the 2.55 crore people.

4 Keys To The Doors Of Investment In Chhattisgarh

3. Heavy Engineering

Chhattisgarh is making a significant investment in its industrial infrastructure. There are multiple growth drivers for the state's industry. For example, 'plug and play' infrastructure is an excellent industrial facilitation set-up. The dry port of Raipur and Multi-Modal Logistic Park (CONCOR) of Nava Raipur match international standard infrastructure. Similarly, inland container depots that the government focuses on is needed for industrial transportation.

Some other significant projects need to be mentioned:

· Electronics Manufacturing Clusters at Nava Raipur over large complex of over 41.70 hectares. The cluster has abundant water supply from the Mahanadi River and sufficient power connection to cater to the operational needs of this sector. Land banks and industrial parks have been identified in every district, and the government has reserved over 5,000 hectares for such land banks.

· Greenfield smart city is a massive project with an area of 8,000 hectares. With sustainable and a modern urban transport Project (SUTP), a processing zone (PZ) and a non-processing zone (NPZ) of 10 hectares each, this is a unique and perhaps one-of-its-kind city in the country.

· MSME Technology Centre and CIPET to support the engineering and plastics sector in the state.

· Chhattisgarh State Industrial Development Corporation (CSIDC) has set up industrial growth centres, seven industrial parks and three integrated infrastructure development centres (IIDC). The most significant of these is the city of Nava Raipur, India's first greenfield smart city.

4 Keys To The Doors Of Investment In Chhattisgarh

4. Energy

Chhattisgarh had a total installed power generation capacity of 13,076.27 MW, comprising 8,229.83 MW under private utilities, 1,971.05 MW through state utilities and 2,875.39 MW through central utilities. Energy requirement in the state was 27,303 million units in 2019-20.

With the government's focus on green energy, Chhattisgarh currently has a renewable energy potential of 4,500 MW, including solar (grid-connected and rooftop), wind, biomass and small hydro. The Chhattisgarh government is taking many initiatives to achieve affordable power of Rs 4 per unit and an installed capacity of 30,800 MW.

The state government is committed to reducing emissions by 33% to 35% below 2005 levels and increasing the share of non-fossil fuels in total capacity to over 40% by 2030.

There are 60 solar projects approved and $1.3 bn allocated for setting up 50 solar parks by 2020.

Private or public-private partnership models (PPP) with all necessary amenities related to power projects are being made available to promote solar parks in Chhattisgarh. Grid-connected rooftop project aims to accommodate facilities provided by the central government. Plants with a capacity of 10 kW and above will be supplied with a grid connection.

A significant change from before is the 'single-window clearance system' adopted by the government. Chhattisgarh State Renewable Energy Development Agency (CREDA) will act as a single-window clearance agency and promptly issue no-objection certificates, permissions, sanctions, and acceptances.