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Chhattisgarh, a 21st century State, came into being on November 1, 2000. Chhattisgarh is a state in Central India. It borders Madhya Pradesh on the northwest, Maharashtra on the west, Andhra Pradesh on the south, Orissa on the east, Jharkhand on the northeast and Uttar Pradesh on the north.

The State has successfully embarked on the path of multi sectoral growth plan and has taken the initiative of formulating a host of comprehensive policies for the development of important sectors. The policy announcements have been fine-tuned to meet the targets as envisaged in the Chhattisgarh Vision-2010. With the policy framework in place, a number of large projects have been initiated, particularly in the infrastructure and social sectors. The multi sectoral growth plan lays special attention to the revitalization of the sick segments of the dominant primary sector and of the languishing secondary and tertiary sectors. Along with this a multi tier strategy for the development of horticulture, floriculture, sericulture, pisciculture and agro industrial services has put in place. The telecom, road, IT and urban density is being improved along with development of blocks of contiguous land strips in land pools. Incentives for mega projects, thrust industries, small-scale industries and sunrise industries, particularly information technology have been announced to attract investment in the State. State initiatives have focused largely on critical areas of e-governance, fiscal reforms, social safety, health, environment, education and law & order. The State offers incentives for the revival of existing sick units. The State is heavily dependent on agriculture. With the new thrust of the State Government to push industrial development within the State, opportunities for investments are huge.

Advantage Chhattisgarh

  • Good Governance is the highest priority of the state.
  • There is both policy stability as well as political stability.
  • Rich in mineral resources. There are mega industries in Steel, Aluminum and Cement.
  • Chhattisgarh contributes substantially to the Human Resources of India. A unique Private Universities Act has been passed to attract investments in quality higher education.
  • Sound fiscal position.
  • Chhattisgarh is developing as power hub of the country. Its large power surplus is attracting power-intensive industries and the State is poised to become the power-hub of the nation. Its central location helps easy power transmission to any part of the country. The State is supplying power to Delhi, Gujarat and Karnataka, among others.
  • Chhattisgarh ranks high in terms of good industrial relations and labour productivity.
  • 12% of India's forests are in Chhattisgarh and 44% of the State's land is under forests. Identified as one of the richest bio-diversity habitats, the Green State of Chhattisgarh has the densest forests in India, rich wildlife, and above all, over 200 non-timber forest products, with tremendous potential for value addition.
  • Good connectivity.
  • The state has locational advantage in trading. The state has one existing dry port and another dry port by the container corporation is in the pipeline.
  • The New Economic Policy (NEP) aims to promote private sector participation, especially in infrastructure sector.
  • The NEP also aims to provide "single point contact" and "time bound clearance " for providing requisite facilities, services and statutory clearances for investment.
  • Product specific industrial parks i.e. aluminum and metal park, apparel park, food park and herbal park are being developed.

Government Policies

New Industrial Policy (2004-2009)

Objectives of the Policy

  • Create additional employment opportunities by accelerating the process of industrialization in the state.
  • Ensuring maximum value addition to the abundant, locally available mineral and forest based resources.
  • Ensuring balanced regional development by attracting industries in the economically backward areas of the state.
  • Make industrial investments in the state competitive vis-à-vis other states in the country.
  • Promote private sector participation for creation of industrial infrastructure in the state.
  • Create an enabling environment for increasing industrial production, productivity and quality upgradation to face the challenge of competition emerging from economic liberalization.

Strategy of the Policy

  • Ensure availability of necessary basic industrial infrastructure like rail-road, power, water, etc.
  • Encourage private sector for providing quality infrastructure in the least possible time.
  • Establish new industrial areas, expand the existing industrial areas and to improve available services therein.
  • Set up special industrial parks to provide common infrastructure and services by adopting cluster approach for the development of industries, which have not been developed in spite of availability of necessary resources.
  • Identify and promote such non-traditional industries for which good potential exists in the state due to availability of necessary resources.
  • Establish an effective system of "single point contract" and "time bound clearance" for providing requisite facilities, services and statutory clearances
  • Provide special directed incentives to encourage establishment of industries by the weaker classes and in the economically backward areas of the state.
  • Provide special incentives to small scale and cottage industries to create employment opportunities in the industrial sector in the least possible time throughout the state.
  • Provide incentives to industrial units for technology upgradation and modernization to enable them to face the challenges of global competition.
  • Make arrangements for skill improvement, training and guidance of younger sections to enable them to seek maximum possible employment.
  • Provide special package necessary for rehabilitation of sick and closed industrial units.
  • Establish an effective system of "single point contract" and "time bound clearance" for providing requisite facilities, services and statutory clearances for investment.

Directed Incentives under the Policy

  • Directed incentives will be provided for industrial investment in the state in the form of interest subsidy, infrastructure development capital investment subsidy, exemption from stamp duty, exemption from entry tax, allotment of plots at concessional premium in industrial areas, exemption from land diversion fee, reimbursement of project report expenses, quality certification subsidy, technology patent subsidy, interest subsidy for technology upgradation, etc.
  • Herbal medicine processing, auto components auto components-spare bicycle, aluminum based down stream products, food processing, pharmaceuticals, electronic products, white goods electricity generation from non-conventional sources are the "special thrust industries". These get higher rebate/concessions.
  • Service charges on land allotment reduced from 35 per cent to 15 per cent.
  • Infrastructure subsidy on capital investment up to 9 years equivalent to the commercial tax payment.

Full text of the policy

Industrial Incentives (2004-2009)

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