CHHATTISGARH THE MINERAL BASKET For information, please visit www.ibef.org September 2017 Table of Content Executive Summary……………….….…….3 Advantage State …………………..….…....5 Chhattisgarh Vision………………………...6 Chhattisgarh – An Introduction…………….7 Annual State Budget 2016-17 ……..…..…19 Infrastructure Status...................................20 Business Opportunities…….………..…..…41 Doing Business in Chhattisgarh…….…..…64 State Acts & Policies…….………............…65 EXECUTIVE SUMMARY … (1/2) Strong mineral . Chhattisgarh ranked 3rd in terms of value of major mineral production in India as of February 2017. Coal production base production in the state reached 125.33 million tonnes in 2016-17 (up to February). Sole producer of tin . Chhattisgarh is the only state in India that produces tin concentrates. The state accounts for 35.4% of tin ore concentrate in India reserves of India. In 2016-17 (up to February), tin concentrate production in the state stood at 11,376 kg. Largest producer of . Chhattisgarh is a leading producer of minerals such as coal, iron ore and dolomite. Coal production & iron ore production in the state accounted for about 21.5% and 16% of the overall coal & iron ore production in India, coal, iron ore, and respectively, during 2016-17 (up to February). Iron ore from Bailadila mines in the state is considered to be dolomite among the best in the world, in terms of quality. Korba – Power capital of . Korba district in Chhattisgarh is known as the power capital of India. In the 12th Five-Year Plan, the Government plans to increase power generation capacity of the state by 30,000 MW. As of August 2017, India about 19,556 villages were electrified in the state. Naya Raipur – India’s . Naya Raipur is considered to be India’s fourth planned city, spread over 8,000 hectares with world-class amenities. The city has been selected as a demonstration city under the Global Environmental Facility (GEF) fourth planned city & World Bank-assisted Sustainable Urban Transport Project (SUTP). Source: Economic Survey of Chhattisgarh, 2014-15, Ministry of Mines, Annual Report 2014-15, Aranca Research 3 CHHATTISGARH For information, please visit www.ibef.org EXECUTIVE SUMMARY … (2/2) . E-commerce & other sectors which are in the start up stage have begun to grow in Raipur, converting the Start up hub states into a start up hub. By setting up a start up in the state, the player can enjoy first mover advantage and capture a larger market. The state government has proposed to develop India's largest herbal & medicinal park in Dhamtari on around Strong base for herbal 250 acres of land. For conservation, development & sustainable management of medicinal plants, central and medicinal sector government invested around US$ 1 million in 2014-15. The approximate cost of the project is US$ 3.8 to 5.3 million. The park is being developed under the PPP mode by Ramky Infrastructure Ltd. Leading investment . Chhattisgarh has emerged as one of the most preferred investment destinations in India. The state has been acclaimed as “one of the best fiscally managed states” by the Reserve Bank of India (RBI) & plans to destination in India organise its 2nd global investors meet this year. Strong growth in . Between 2004-05 and 2015-16, the absolute contribution of agriculture in the state’s GSDP grew at a CAGR agriculture and allied of 7.71 per cent. industries sector Source: Economic Survey of Chhattisgarh, 2014-15, Department of Commerce and Industries, Aranca Research 4 CHHATTISGARH For information, please visit www.ibef.org ADVANTAGE: CHHATTISGARH 2011-12 Mineral resources Policy and fiscal incentives 2016-17 . Mineral resources are Chhattisgarh’s biggest strength . A wide range of fiscal & policy incentives for . It has deposits of limestone, iron ore, copper, bauxite, businesses have been announced under the state’s Industrial Policy 2014-19. GSDP was dolomite & coal. GSDP was US$ 24.54 . Chhattisgarh accounts for about 17.0% of India’s coal . Additionally, the state has well-drafted policies for the US$ 45.03 IT/ITeS, minerals & energy sectors. billion reserves. billion Advantage Chhattisgarh Energy rich Rich labour pool . Chhattisgarh is presently one of the few states . Chhattisgarh has a high worker-participation rate (both with surplus power. male and female). It is among the few profitable states in terms of utility based electricity. The state has one of the lowest reported losses of . Presence of coal makes Chhattisgarh an ideal man-days attributed to labour problems in the country. location for pit-head-based thermal power plants . Recently, the Government introduced online for both merchant sales & state consumption. registration for its workers. Note: GSDP - Gross State Domestic Product on current prices Source: Economic Survey of Chhattisgarh 2015-16, 5 CHHATTISGARH For information, please visit www.ibef.org CHHATTISGARH VISION 2022 . Develop a world class rail and . Implemented the Skill road network for better Development Act 2013 to develop connectivity with metros. employment skills among youth. Implement the Bastar-Raoghat . Impart training to 0.2 million people rail project for transporting in 2014-15. minerals. Simplify procedures, and ensure Skill . Be a pollution free industrialised speedy clearances and Transport development state. balanced regional development. Put in place proper pollution . Promote downstream industries control and environment to spread industrialisation. Investment management systems. Environment promotion Vision . Make the state a world class 2022 . Build a primary school within tourist destination. Tourism Education every five kilometres. Promote religious, adventure . Improve distance learning and heritage tourism, and programmes with the help of attract private investment in the Agriculture Infrastructure information and communication sector. technology. Encourage contract farming with the benefit of assured prices . Connect all villages with better to farmers. roads. Ensure efficient use of irrigation, . Increase reliance on renewable rainwater harvesting for agro energy. processing industries. Source: Confederation of Indian Industry 6 CHHATTISGARH For information, please visit www.ibef.org CHHATTISGARH FACT FILE . Chhattisgarh has a tropical climate with 3 major seasons: summer (April-June), monsoon (July-September) & winter (October-March). Parameters Chhattisgarh Capital Raipur Geographical area (sq km) 137,898 Administrative districts (No) 27 Population density (persons per sq km) 189 Total population (million) 25.5 Male population (million) 12.8 Source: Maps of India Female population (million) 12.7 . Chhattisgarh is located in central India. The state shares its border Sex ratio (females per 1,000 males) 991 with Madhya Pradesh & Maharashtra in the west, Uttar Pradesh in Literacy rate (%) 70.28 the north, Odisha & Jharkhand in the east & Andhra Pradesh in the south. The languages spoken are Chhattisgarhi & its local dialects, along with Hindi & English. Raipur, Bhilai, Durg, Bilaspur, Korba & Rajnandgaon are some of the major cities of the state. Source: Government of Chhattisgarh Economic Survey 2015-16, Census 2011 7 CHHATTISGARH For information, please visit www.ibef.org CHHATTISGARH IN FIGURES … (1/2) Parameter Chhattisgarh All states Source Economy 2016-17 2016-17 GSDP as a percentage of all states’ GSDP 1.9 100.0 Central Statistics Office GSDP growth rate (%) 11.26 11.52 Central Statistics Office Per capita GSDP (US$) 1,612.2 1,546 Central Statistics Office Physical Infrastructure Installed power capacity (MW) 12,739.30 329,226.27 Central Electricity Authority, as of August 2017 1 Telecom Regulatory Authority of India, as of June Wireless subscribers (No) 70,916,281 1,186,840,884 2017 1 Telecom Regulatory Authority of India, as of Internet subscribers (No) 24,770,000 422,200,000 December 2016 National highway length (km) 3,078.4 100,087.08 NHAI & Roads and Building Department Airports (No) 2 125 Airports Authority of India-April 2017 Note: 1Denotes Madhya Pradesh including Chhattisgarh 8 CHHATTISGARH For information, please visit www.ibef.org CHHATTISGARH IN FIGURES … (2/2) Parameter Chhattisgarh All states Source Social Indicators Literacy rate (%) 70.28 73.0 Census 2011 Birth rate (per 1,000 population) 23.2 20.8 SRS Bulletin, 2015 Investment Department of Industrial Policy & Promotion, April FDI equity inflows (US$ billion) 1.371 332.11 2000 to March 2017 Industrial Infrastructure Department of Economic Affairs, Ministry of PPP projects completed & operational (No) 9 1,246 Finance, Government of India, July 2016 Department of Commerce, Ministry of Commerce & Operational SEZs (No) 1 186 Industry, June 2017 Note: SRS: Sample Registration System, SEZ: Special Economic Zone, PPP: Public-Private Partnership, 1Including Madhya Pradesh 9 CHHATTISGARH For information, please visit www.ibef.org ECONOMIC SNAPSHOT – GSDP . At current prices, gross state domestic product (GSDP) of GSDP of Chhattisgarh at current prices (in US$ billion) Chhattisgarh stood at US$ 45.03 billion in 2016-17. GSDP of the state at current prices, grew at a CAGR of 12.91% CAGR 12.91% between 2011-02 and 2016-17. 50 45 45.0 40 40.5 35 36.5 30 32.1 25 27.6 20 24.5 15 10 5 0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Source: Directorate of Economics & Statistics of Chhattisgarh, Central Statistics Office 10 CHHATTISGARH For information, please visit www.ibef.org ECONOMIC SNAPSHOT – NSDP . In 2016-17, the net state domestic product (NSDP) of Chhattisgarh NSDP of Chhattisgarh at current prices (in US$ billion) at current prices was recorded at about US$ 36.68 billion. The state witnessed growth in NSDP at a CAGR of 12.5%, CAGR 12.5% between 2011-12 and 2016-17. 4,500 4,000 3,500 3978.8 3,000 3616.8 3275.3 2,500 2886.0 2,000 2474.6 1,500 2208.3 1,000 500 0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Source: Directorate of Economics & Statistics of Chhattisgarh, Central Statistics Office 11 CHHATTISGARH For information, please visit www.ibef.org ECONOMIC SNAPSHOT – PER CAPITA GSDP . In 2016-17, the state’s per capita GSDP at current prices stood at GSDP per capita of Chhattisgarh at current prices (in US$) around US$ 1,612.2.