The economy of Chhattisgarh is largely natural resource driven and it leverages the state's rich mineral resources.The key sectors where Chhattisgarh has a competitive advantage include cement, mining, steel, aluminium and power.
CementOne of the most mineral-rich states in India, Chhattisgarh provides a lucrative opportunity for cement production at the most competitive prices. The Raipur- Bilaspur belt is full of raw materials suitable for cement production. Along with vast natural resource, industries also find ample human resource. The state government also offers several concessions for the growth and development of the industry, creating employment and contributing to the welfare of the people. Chhattisgarh has about 3,580 limestone reserves that contributes 4.73 per cent of the total limestone reserves in the country. During 2006-07, Cement production grew by 13 per cent in Chhattisgarh. Currently there are nine major and 12 minor cement units in the state. Most of the plants are in Raipur area.
MiningChhattisgarh has rich mineral resources and major resource base for major mineral-related industries. The mineral industry accounts for about 80 per cent of total industrial units in Chhattisgarh. The state holds a major share of coal deposits in India. It is known as the ‘power hub’ state. Chhattisgarh has the largest reserve of Tin in the country. Also. For quality iron ores, Chhattisgarh is the ultimate choice. Over one-fifth of the iron ore in India is found in the state. Limestone is present in abundance in the state. Other prominent ore reserve are coal, dolomite, quartzite, bauxite and positive indications of high value, rare, alkali and base-metals (including nickel, chromium, and platinum group elements – PGE), gold, diamond, etc. The government puts great focus on the beneficiation and processing of these minerals. Mining has evolved as an emerging sector adding remarkable state revenue, adding to the growth and development of the state.
AluminumChhattisgarh proposes to develop an Aluminium Park at Bhanpuri near Raipur for the promotion of downstream products. The Aluminium Park will be home to more than 100 industrial units manufacturing various aluminium/ metal products. The products manufactured are required by different idustries, such as the civil aviation, automobile and construction.
ExportsChhattisgarh has larger focus on exprort indstry. Bhilai is at the top of the list of exporter cities in the state with about 75 per cent of exports. Others include Urla, Bhanpuri and Sirgitti. Important exportable products of the state include; steel, handicrafts, handloom, blended yarn, food/agri products, iron, aluminium, cement, minerals and engineering products.
Export Potential of Chhattisgarh
- Handcrafted wood, iron and steel, terra cotta, bell metal and handloom items are major attractions in the international market.
- Chhattisgarh is the only state offering quality fabric in Tassar Silk/ Kosa, which has good export potential in the UK, France, Switzerland, Norway, the USA, Canada, Australia, South Africa and Japan.
- The state has vast potential for exporting processed foods, organically grown cereals, herbal and medicinal products.
- Agricultural products such as rice – presently exported in huge quantities to neighboring countries – derivatives and intermediates of rice products, processed foods and biodiesel have a huge potential for exports.
- Mineral-based products including steel and pig iron, steel castings, forging and equipment, structural steel, cement and silico-mangnese are also exported from Chhattisgarh.
The Reserve Bank of India report, 2007 reveals that in 2006-07, 13 projects worth $580 million were sanctioned in Chhattisgarh. This contributes to 0.8% of the total investments in India. The state has attracted investment proposals worth $4.87 billion till October, 2007. One of the largest investors in the state is Vedanta Group. Along with its existing investment, Vedanta plans to invest another USD 2.44 billion for setting up a large aluminium plant in Chhattisgarh. The group has also signed MoUs with five private cement and steel companies worth USD 1.21 billion. The Electricity Board of Chhattisgarh is planning to set up a 1,200 MW power plant at Korba worth USD 2.44 billion.
Source: Projects Today database, June 2004
Between 1996 and 2003, Chhattisgarh attracted over US$ 105 million of FDI.
Source: Secretariat for Industrial Assistance reports
As in 2003, investment projects totalling over US$ 9.8 billion were in
different stages of implementation.
Source: Annual Survey of Industries, 2002-03
Within manufacturing, basic metals including aluminium and iron & steel
accounted for the dominant share of investment.
Potential hubs for investment
Within three years of its formation, Chhattisgarh embarked on social and economic development through policy reforms, focus on infrastructure development and improving the investment climate in the state. The state is richly endowed with natural resources and has large untapped potential for development. Potential exists to substantially increase the pace of economic development in the state by appropriate exploitation of its mineral wealth.
In addition to its present areas of strength in cement, mining and iron and steel, a number of sectors are emerging with substantial potential for private investment and business in Chhattisgarh. The most prominent among these are electricity generation and infrastructure development.
PowerChhattisgarh is a power surplus state. It has most robust power sector that offers a highly competitive scenario for industrial growth. The surplus power can be easily transmitted to all the four major grids of the country. Chhattisgarh has improved its power generation capacity of 1,410.85 MW in 2005-06 from 1,360.2 MW in 2000. A lot of business opportunity is felt in the field of power generation, transmission, and distribution in Chhattisgarh.
InfrastructureA lot of business opportunities lie in the field of infrastructure development in the state. Due to a recently formed state, Chhattisgarh, possesses a wide scope in infrastructure development. This includes urban infrastructure development, industrial infrastructure, social infrastructure, and others.