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Cement Industry

Chhattisgarh one of the most mineral rich region, which offers lucrative opportunities for cement production at the most competitive prices. The Raipur- Bilaspur belt is full of raw materials, vast natural resources and ample human resource, which is suitable for cement production. The government also offers several concessions for the growth and development of the cement industry. In 2008-09 the State produce 15.6 million tonnes of limes, which account for 8.3 percent of India’s production. At present there are nine major and twelve minor cement units in the State..

Monnet Ispat Group is also present in steel and power is planning to diversify into cement sector. It is planning to set up cement project in Gujarat and Chhattisgarh with an investment of US$ 533.06 million (INR 24,000 million) and is likely to be christened as ‘Monnet Cement’ It will be first set up cement plant in Raipur with a capacity of 3 MTPA and it is likely to become operational by 2013. Ambuja Cement to expand its cement plants at Bhatapara in Raipur district of Chhattisgarh. No additional land will be required and the total project cost is estimated to be US$ 9.99 million (INR 450 million). Ambuja Cement to expand its Rewan cement plants at Raipur. The total project cost is estimated to be US4 2.22 million (INR 100 million). Associated Cement Companies (ACC) to expands its Jamal cement plant in Jamul in Durg district of Chhattisgarh. The project involve expanding the capacity of cement from 1.58 MTPA to 4.33 MTPA and ash capacity from 0.76 MTPA to 2 MTPA Rameshwar Ispat to set up cement grinding unit at Urla in Raipur district of Chhattisgarh. The raw material required for the proposed cement unit will be ash, gypsum and slag, which shall be procured locally. The total estimated cost of the project is US$ 0.04 million (INR 1.85 million). Century Cement is expanding its cement unit at Baikunth in Raipur. It will enhance is capacity from 1.8 MTPA to 2.4 MTPA with an estimated investment of US$ 14.35 million (INR 646 million). The unit will manufacture Ordinary Portland Cement (OPC) and Portland Pozzolona Cement (PPC) and Portland Slag Cement (PSC). Emami Cement - Emami Cement is a company of the Kolkata-based Emami Group, which has entered into the cement business with an investment of US$ 380 million to set up cement plants in Orissa, West Bengal and Chhattisgarh. The Chhattisgarh plant is a 400 acre, fully integrated cement plant with a capacity of 3.1 MTPA. The plant is expected to commence operations in 2012.

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Iron and Steel Industry

Steel industry holds a major position in the arena of Indian industries and the Chhattisgarh contribute 28 percent of India’s sponge iron production. The State ranks third among all the iron-ore producing states in India. Some of the notable steel units like the Bhilai Steel Plant efficiently produces considerable amount of steel products round the year. The advances machineries, tools and equipment used in the iron and steel industry of Chhattisgarh also help in encouraging the yearly production. In 2007-08 the State produced around 31.6 million tonnes of iron-ore amounting to approximately US$ 765 million.

Bhilai Steel Plant (BSP) specializes in heavy rail plates, merchant products and structural that are used by various other industries of India. Acknowledged by the government of India as one of the best steel plants, BSP produces more than 4 million tonnes of iron and steel per annum and stands tall on the industrial contours of Chhattisgarh.

The iron ore reserves of Chhattisgarh are quite abundant in nature. Supported by government and private bodies, the remote areas where iron deposits are found, have become flourishing industrial zones. Steel rolling mills are also present in the State of Chhattisgarh, which are deft in sheet and foil manufacturing and extrusions. The government of Chhattisgarh has opened its doors to private investors who wish to set up new steel plants in the State. With such a significant step, the State government has already covered a considerable journey towards becoming the ultimate steel hub of India.

It can be said that Chhattisgarh steel industry provides momentum to the process of economic progress in the State.

Steel Projects coming up in Chhattisgarh (Since January 2005)

Chhattisgarh State Industrial Development Corporation has signed Memorandum of Understanding (MoU) with various iron and steel project promoters in the State for them to set up Greenfield projects, which are, discuss below:

Vasundhara Steel and Power - Integrated steel plant of capacity 400,000 TPA at a cost of US$ 36.65 million (INR 1,650 million) and a Coal Based Captive Power Plant with Waste Heat Recovery Boiler (WHRB) and Advanced Fluidized Bed Combustion (AFBC) of capacity 82 MW at a cost of US$ 66.63 million (INR 3,000 million).

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Topworth Steels - Sponge iron plant of capacity 120,000 TPA at a cost of US$ 9.77 million (INR 440 million), a power plant of capacity 15 MW at a cost of US$ 8.88 million (INR 400 million) and a Steel Melting Shop and Concast Rolling Mill of capacity 100,000 TPA at a cost of US$ 9.99 million (INR 450 million).

Shree Shyam Global - Sponge Iron Plant of capacity 165,000 TPA at a cost of US$ 13.26 million (INR 597 million), an 8 MW Power Plant at a cost of US$ 7.55 million (INR 340 million), an induction furnace with an installed capacity of 72,000 TPA at a cost of US$ 4.48 million (INR 201.5 million) and a Re-Rolling Mill (Structural) with an installed capacity of 60,000 TPA at a cost of US$ 2.25 million (INR 101.5 million).

Satyarth Steel and Power - Coal based Sponge Iron Plant of capacity 219,999 TPA, a 13 MW Captive Power Plant, Steel Plant (Induction Furnace) of capacity 182,500 TPA, and Re-Rolled Products of capacity 31, 400 TPA with a total investment of US$ 38.87 million (INR 1,750 million).

Salasar Sponge and Power - Sponge Iron Plant of capacity 120,000 TPA at a cost of US$ 21.24 million (INR 956.1 million), a Coal Washery of capacity 576,000 TPA with an investment of US$ 1.93 (INR 87 million), a 30 MW Power Plant at a cost of US$ 22.03 million (INR 992 million), a Steel Plant of capacity 100,000 TPA at a cost of US$ 5.55 million (INR 250 million) and a Ferro Alloys Plant of capacity 20,000 TPA with an investment of US$ 13.10 million (INR 590 million).

Rexon Strips - Integrated Steel Plant of capacity 400,000 TPA with an investment of US$ 36.65 million (INR 1,650 million) and a Coal Based Captive Power Plant with Waste Heat Recovery Boiler (WHRB) and Advanced Fluidized Bed Combustion (AFBC) with a capacity of 82 MW at a cost of US$ 66.63 million (INR 3,000 million).

Shree Radhe Industries - Sponge Iron Plant of capacity 260,000 TPA with an investment of US$ 24.43 million (INR 1,100 million), a 34 MW Captive Power Plant at a cost of US$ 23.32 million (INR 1,050 million), a Steel Melting Shop of capacity 50,000 TPA with an investment of US$ 3.89 million (INR 175 million).

Pushp Steel and Mining - Sponge Iron Plant with an investment of US$ 17.77 million (INR 800 million), a 3 x 8MW Captive Power Plant with an investment of US$ 16.66 million (INR 750 million), an low pollution (Euro IV and Euro V) compliant automotive parts made out of captive materials manufacturing facility with an investment of US$ 49.97 million (INR 2,250 million).

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Prakash Industries Mega Iron and Steel Project with an investment of US$ 225.87 million (INR 10,170 million). It includes.

Particulars US$ (million) INR (million)

Coal based Sponge Iron Plant (DRI Plant) of capacity 4 LTPA 15.55 700

25 MW Captive Power Plant 8.44 380 190 MW Coal based (fluidized bed boiler & thermal boilers) 126.60 5,700

Steel Billets/Blooms/Ingots making facility of capacity 9 LTPA 22.21 1,000

Development of captive coalmine of mining capacity 1 million tonne 5.55 250

Development of captive coal block mine for Captive Power Plant, together with Coal Washery Project of capacity 1 million TPA

5.55 250

Development of iron ore mine with capacity 1 million TPA 3.33 150

Installation of a Mini Blast Furnace for Pig Iron of capacity 2.50 LTPA 11.11 500

Installation of a Sub-Merge Arc Furnace (SAF) for producing Silico Manganese & Ferro Chrome of capacity 1.15 LTPA

9.77 440

Structural Rolling Mill (2 units each of 1.5 LTPA) of 3 LTPA 8.88 400

Wire Rod Mill (2 units of 1.5 LTPA each) of capacity 3 LTPA 8.88 400

Total 225.87 10,170

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Jindal Steel and Power - Mega Steel Project with a total investment of US$ 576.36 million (INR 25,950 million). It includes:

Particulars US$ (Million)

INR (Million)

1 MTPA Plate Mill 99.95 4,500 1.25 million Blast Furnance 88.84 4,000 0.7 MTPA Power Plant Rolling Mill for Re-Bar, TMT and Wire

72.18 3,250

99 MW Power Plant 71.07 3,200 1.25 MTPA Steel Melting Shop 66.63 3,000 2.5 MTPA Sinter Plant 55.53 2,500 0.8 MTPA Coke over Plant 38.87 1,750 2X380 TPD Oxygen Plant 28.87 1,300 3X330 TPD Lime & Dolomite Kiln 16.66 750 Railway Line from Captive Mines to Plant Site 37.76 1,700

Total 576.36 25,950

Crest Steel and Power- 700 TPD Sponge Iron Plant at a cost of US$ 11.16 million (INR 502.3 million), a 16 MW Thermal Power Plant with an investment of US$ 9.47 million (INR 426.2 million) and a 18 MVA Ferro Alloy Plant at a cost US$ 5.25 million (INR 236.5 million).

Chhattisgarh Steel and Power - Sponge Iron (3 x 350 TPD) with an investment of US$ 19.43 million (INR 874.9 million) and 3 x 30 MW Coal plus 3 x 7.5 MW Waste Heat Recovery based Power Generation plant with an investment of US$ 83.82 million (INR 3,773.9 million).

Chhattisgarh Electricity Company - Sponge Iron Plant of capacity 120,000 TPA with an investment of US$ 55.53 million (INR 2,500 million), a 250 MW Power Plant with an investment of US$ 177.69 million (INR 8,000 million), a Steel Plant of capacity 1,000,000 TPA with an investment of US$ 99.95 million (INR 4,500 million), a Coke Oven Battery with an installed capacity of 400,000 TPA with an investment of US$ 35.54 million (INR 1,600 million, a 1,800,000 TPA Pelletizing and Sintering Plant with an investment of US$ 44.42 million (INR 2,000 million) and a Coal Mining and Coal Washery with an investment of US$ 33.32 million (INR 1,500 million).

BigBoss Steel and Alloys - Integrated Steel Plant and a Captive Power Plant project using waste heat with a total investment of US$ 155.48 million (INR 7,000 million).

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Balajee Vidyut and Sponge - Sponge Iron Plant of 60,000 TPA capacity, 15 MW Captive Power Plant and a 6 MVA Ferro Alloys plant with a total investment of US$ 23.32 million (INR 1,050 million).

API Ispat and Powertech - 3 x 350 TDP Sponge Iron Plant with an investment of US$ 22.21 million (INR 1,000 million), a 16 MW power plant at a cost of US$ 9.99 million (INR 450 million) and a 86,400 TPA Steel Ingots manufacturing facility with an investment of US$ 2.89 million (INR130 million).

(Source – New Project in India - http://indscan.weblogs.us/archives/25)

Steel Authority of India - SAIL is the country’s largest steel producer and the Bhilai Steel Plant is one of its largest integrated steel plants. It is a large producer of rails and heavy steel plates and is the country’s sole supplier for 260-m long railway tracks. With an annual production capacity of 3.15 MT of saleable steel, it also specializes in other products such as wire rods and merchant products. The company plans to invest US$ 5.5 billion up to 2012 in its integrated steel plants. In 2009-2010, SAIL recorded revenues of US$ 9.3 billion Monnet Ispat and Energy Limited - The company is a prominent player in the coal-based sponge iron space. It has production facilities in both Raipur and Raigarh, with an annual combined capacity of 860,000 tonnes of sponge iron, 300,000 tonnes of steel and 60,000 tonnes of ferroalloys. A green field steel plant is being set up in Raigarh for the production of flat and long steel products. The plant will have an annual production capacity of 1.5 million tonnes at an investment of US$ 870 million. In 2008-09, the company recorded revenues of US$ 360.9 million. Tata Steel - Established in 1907, Tata Steel is Asia's first and one of India's largest private sector steel companies. It is among the lowest-cost producers of steel in the world and in the select list of global steel companies. In 2009-2010, the company recorded revenues of US$ 5.6 billion. It has an annual crude steel production capacity of 30 million tonnes. The company is in the process of setting up a US$ 4.23 billion green field, integrated steel plant at Jagdalpur, in the Bastar district. The plant will have a total production capacity of 5 million tonnes per annum. Essar Steel - Essar Steel is a large steel producer with offices in India, Canada, USA and South East Asia. In 2009-2010, it had revenues of US$ 2.4 billion and produced 9 million tonnes of steel. The company has a steel-beneficiation plant at Bailadila, with an annual production capacity of 8 million tonnes. Essar aims to reach a capacity of 14 MTPA by 2011-12.

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Herbs and Medicinal Plants (Chhattisgarh – The Herbal State) In view of extremely rich bio-cultural diversity in the State and dependence of forest dwellers for their health requirements on medicinal plants the Government has declared Chhattisgarh as an ‘Herbal State’ in July 2001.

Accordingly the Chhattisgarh Forest Policy has specially provided for evolving a feasible mechanism for conservation, domestication, propagation and non-destructive harvest of medicinal plants with the active help and support from local people including traditional healers and physician. Present Market Situation Analysis The herbal industry in Chhattisgarh is not very organized. There are two source of supply, first the wild collection from forest of Chhattisgarh and second cultivated by the farmers of Chhattisgarh.

Herbal Environment of Chhattisgarh

Most of the medicinal valuable species are in the category of Non Nationalized Non-Wood Forest Produces (NWFP).They are the one on which the State does not have any monopolistic control. Nevertheless, the State develops these resources through enabling policy. Minor Forest Produce (MFP) Federation promotes conservation, cultivation, propagation, value addition, processing and marketing to provide maximum benefits to the local communities. The State has realized the importance of the fast growing medicinal plant sector and the global preference towards the Indian System of Medicine. Realizing the potential of medicinal plants and other non nationalized NWFP, their availability and economic utility in the State, an interdisciplinary Task Force has been constituted in the Federation for conservation and non-destructive harvesting of NWFP on sustainable basis. The Sate Medicinal Plant Board is responsible for timely and effective management of non-nationalized non-wood forest produce including medicinal, aromatic and dye plants through implementation of various projects that are being undertaken from time to time.

Collection and Trade of Non-Nationalized Non Wood Forest Produce (NWFP)

MFP Federation has well distributed network for the collection of superior quality Non-nationalized NWFP.

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• Various NWFP is being conserved and production trends are effectively being monitored through conservation area established in each forest division. Currently about 1 Lac hectares has been brought under conservation.

• The Federation does not collect the Non Nationalized NWFP unless demand for the produce comes in advance of collection season.

• The industries or agencies can place their indent for particular produce giving the specifications and rate offered before the collection season of the produce.

• Accordingly the MFP Federation, Raipur gives its consent after negotiation with the party about rate and sale conditions.

• Then demand for the produce is intimated to concerned district union and primary societies for collection, storage and trans-shipment of the produce to the purchaser.

• The purchaser is required to deposit the 20 percent of the expected sale value in advance.

• The purchaser takes delivery of the produce after paying the sale value including taxes.

• After taking the delivery of the produce the purchaser is free to transport the same on transit pass of forest department to the desired destination.

Collection and Trade Practices of Non-Nationalized NWFP

• The villagers collect the forest produce from forest areas and sell in the local market or to the petty traders in the nearest town.

• Some petty traders purchase the forest produce from the villagers, visiting their homes or villages at regular intervals.

• Main traders of forest produce collect this produce from petty traders or agents appointed by them for the purpose at village or markets.

• The produce collected by the petty traders or agents of main traders is graded / primarily processed.

• The graded / primarily processed material is sold in near by market or to the main traders at Jagdalpur, Bilaspur, Dhamtari and Raipur markets in Chhattisgarh.

• The main trader, if required, further processes/grades the material according to the market need and sells the same in bigger markets of the country.

• The main markets out side the State for the forest produce of Chhattisgarh are in Delhi, Uttar Pradesh, Maharashtra, Madhya Pradesh, West Bengal, Tamil Nadu and Andhra Pradesh States.

• The mode of trade with main traders is based on traditional market linkages and fixation of rates is based on the samples sent to the customer.

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Cultivation by the Herbal Farmers

Presently medicinal plant species from natural origin are almost 90 percent; where as the remaining 10 percent is grown by farmers. But rise in demand of the raw herbs and herbal product the pressure on supply side has increased and destructive harvesting has been started, result of which there are number of plant became threatened and rare and endangered. Herbal Medicinal Park It has been proposed to develop a herbal-medicinal park at the Banjari and Bagaudh villages of Kurudh (30 km from Raipur) in Dhamtari, on about 154 acres of land. The project development cost of the park is estimated to be between US$ 6.09 million and US$ 8.53 million respectively. The park will have about 500 units with a potential to attract an investment of about US$ 60.97 million. The projects will be implemented through the Public Private Partnership (PPP) mode and is being developed by Ramky Infrastructure Limited a Hyderabad (India) based company. The project is expected to be completed by 2014. Gems and Jewellery With a view to attract new investment in this sector, Chhattisgarh State Industrial Development Corporation Limited (CSIDCL) plans to set up 150 units Gems and Jewellery SEZ (Special Economic Zone) on 70 acres of land in Chhattisgarh. The project will be development on Public Private Partnership (PPP) basis with M/s Ramky Infrastructure Limited, a Hyderabad (India) based company. The estimated cost of the project is US$ 386.9 million (INR 17.42 billion). The project is still under planning stage and is expected to be completed by 2014. Government of Chhattisgarh is coming up with its own SEZ policy, which would provide incentives in terms of mining right etc. Gems and Jewellery SEZ will be developed in about 70 acre at the new capital area of Raipur, which is close to the airport. The proposed SEZ will have 'front-end' components for sales and marketing and 'back-end' components for manufacturing units. The front-end components would include identification, grading and certification of diamonds, a world-class gem and jewellery training institute, a gem-testing lab, an assaying and hallmarking centre as well as government offices to facilitate trade. (Source: https://indianewprojects.wordpress.com/2010/04/05/csidcl-plans-to-set-up-150-units-gems-jewellery-sez-on-70-acres-of-land-in-chhattisgarh-project-will-be-developed-on-ppp-basis-with-ms-ramky-infrastructure-ltd/)

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Food Processing Sector The Food Processing Park is proposed to set up in Chhattisgarh in under Public-Private-Partnership and the park will have common facilities such as auditorium, canteen, fire station, medical facilities, logistic hub, weigh bridge, substation, cold storage, warehouse, quality control laboratory and Research and Development unit. An Authorization Agreement has been executed between CSIDC (on behalf of Government) and M/s Ramky Infrastructure Ltd (RIL), a Hyderabad (India) based company, for establishment of the food park. Ramky Food Park (Chhattisgarh) Limited was awarded the concession to develop a 303-acre food processing industrial park in Rajnandagao district of Chhattisgarh on a BOT basis by CSIDC. The concession period is for 90 years. The industrial park will have a leasable area of 195.15 acres. The estimated project cost is US$ 18.54 million (INR 834.84 million). The construction of the project is expected to begin in fiscal year 2011 and will be completed by September 2014. (Source: http://ramkyinfrastructure.com/Business.html)

Apparel Industry

Readymade garments in Raipur are a prospecting business. The wholesale market of Pandri (Raipur) supplies readymade garments in Orissa, Maharashtra, and Jharkhand. To provide a single roof for apparel associated activities and give a boost to apparel industry an Apparel Park is developed in Bhanpuri at Raipur on 1.35 hectare. A four-storied building is constructed consisting of halls having floor spaces of area from 100 sq m. to 400 sq m. Proximity to Inland Container Depot (ICD) Raipur and wholesale cloth market of Pandri is an added advantage. Railway siding is already available near Bhanpuri. This park will have an independent loading / unloading dock, common facility building, outer development, water supply, drainage system etc.

Other industries with growth potential in Chhattisgarh

Besides major sectors such as steel, power and mining, there is high growth potential for various sectors in the State. Information Technology Chhattisgarh has a vision of creating a knowledge society, by harnessing the power of Information and Communication Technology (ICT). To achieve this vision, Chhattisgarh has enunciated many initiatives in the ICT sector, which will deliver significant benefits to the citizens and businesses. This IT and ITES Policy is designed to provide fillip in achieving this vision and laying the foundation of a vibrant IT/ITES industry that harnesses the huge talent pool of the people of Chhattisgarh.

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Supportive Institutional Structure – ChiPS The Chhattisgarh infotech and biotech Promotion Society (CHiPS) has been set up to give momentum to IT growth in the State and implement initiatives for overall socio-economic development. CHiPS ensure top-of-the-board institutionalized coordination and implementation of State’s plans for enabling benefits of IT to every one. A registered society promoted by the State Government, it acts as the nodal agency and prime mover for propelling Information Technology and Biotechnology (including Bioinformatics) growth in Chhattisgarh. The Chief Minister of Chhattisgarh heads the High Powered Governing Council of CHiPS. The Council includes eminent persons from Knowledge and Technology sectors, representatives from Government of India and National Agencies, and key State Government Departments. Develop Software Technology Parks and IT Cities State plans to capitalize opportunities available at International Gateway Hub and Software Technology Park (STP) operational at Bhilai. IT-enabled services, m-commerce, IT enabled support services, are the sectors which will be major areas of attention. Incentives and support will be provided to manufacturing units in computers, telecommunication equipment, entertainment, electronics and related ancillaries in Industrial Estates. Private hardware technology parks would also be promoted. The State Government facilitates single window clearance and a universal over-riding permission that gives the right to enterprises to carry on with activities without barriers of any kind. Residential premises are allowed to set up IT units, particularly related to content industry and remote services. IT industries requiring electrical power up to 15 KVA can be established without any location restrictions. Procedures in respect of some of the existing regulatory legislation relating to labour, factories, shops and establishments for the IT related units have been rationalized. IT as a Thrust Industry Information Technology has been identified as a special thrust industry and a number of incentives will be offered in line with the Industrial Policy of the State. All software industries including Services and Training Institutions in I.T. will be entitled to "Industry" status. Such units shall be eligible for all concessions and incentives applicable to Industries. For the purpose of this clause, accredited Training Institutions will also be eligible to claim industry status, subject to certain norms which will enable them to obtain term loans and bank finance at industry rates.

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Information Technology Promotion Agency To promote entrepreneurship and creating an institutional mechanism for supporting local initiatives, CHiPS would work as a high level Information Technology Promotion Agency. It would focus on strengthening Research and Development efforts of the State and provide financial support for local entrepreneurs. To operationalise this, an Industry Consortium will be formed with active collaboration of the State Government, Non- Resident Indian (NRI), leading industrial houses, software companies and venture capital companies to address the huge opportunity offered by IT enabled services (ITES) and back office services. State will setup incubation centre to provide infrastructure to local entrepreneurs. In addition to the above, the IT industries in the State will also get assistance from –

• A High Level Committee for grant of No Objection Certificates through a Single-Window system.

• Relaxations under Shops and Establishments Act for working hours, work shifts and employment of women.

• Applicability of all relaxations under the Industrial Disputes Act and Contract Labour Act to all IT and ITES units in the State on par with Special Economic Zones.

• Notifying IT and ITES units as continuous process units. • Issuing special passes to vehicles transporting women workers of IT and ITES

units during night times. • Interest free loan for training to ITES units ensuring employment to youths of the

State for a period of two years under ‘Suchna Samarthys’ Scheme. • Suitably amending various laws, acts, rules etc. for facilitating submission of

reports/returns in electronic formats. • Permission to IT and ITES units for self-certification of reports and returns. • Blanket exemption from pollution control regulations.

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Chhattisgarh Industrial Policy (2009-2014) During last 5 years (2004-2009), the development has been reported mainly in core sectors. The State Government is aiming at development of backward area leading balanced development of State. While preparing the draft for Industrial Policy (2009-14) discussions were held with the respective Industrial Association, major industrialist, and departmental officers. Educational seminars have been arranged for departmental officers to study the scenario outside the State to provide for the accelerated grow by the Industrial Policy 2009-14. Industrial Development, employment generation for youth as well as economical and social prosperity is expected on execution of the policy. The main objective of the present industrial policy is to encourage development of allied sectors parallel to core sector. Generate self-employment as well as additional employment opportunities in industries. Promote private sector participation for the development of basic and industrial infrastructure and to create an enabling environment and infrastructure for encouraging export. To create competitive platform amongst the states for domestic as well as foreign direct investment and attract NRI as well as 100 percent FDI investment so as to accelerate industrial investment. To extend more economical aids in backward areas of the State for balanced industrial development. In order to pursue the interest of the formulated industrial policy the government have well thought strategy. It has plan to procure land at the proper places in the State for new industrial areas and to arrange reserved land for industries. To establish specific industrial park for encouraging cluster based industrial development. Also to establish separate industrial areas for steel, cement and electricity projects. To encourage development of basic infrastructure for rail, road and air transportation for industrial development Maximum land utilization and development of quality infrastructure in the established Industrial areas. To promote Public-Private-Partnership in the infrastructure development of industrial areas. To plan for rehabilitation of closed and sick industries. To organize the Entrepreneurship and Skill Development Programmes for encouragement of entrepreneurs. District and State level industry department will be prepared to smoothen land acquisition process for establishment of new industrial areas in the State on large base.

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Action Plan of Industrial Policy (a) Basic Infrastructure

• Public Private Partnership (PPP) model of Common Rail Corridor will be established to provide connectivity to State’s proposed industrial projects from mineral areas.

• National highways, connecting sub highways, ring roads will be developed in the large industries project areas and for up gradation of existing roads initiative will be made for implementation of P.P.P / B.O.T basis.

• In industrial areas, for industrial projects, water supply arrangement initiatives will be made in PPP basis. Water resources will be used very economically so as to avoid adverse effect on water level, drinking water and water supply for irrigation projects.

• Industries will be encouraged for setting up captive power plant to fulfill their own power needs.

• Efforts will be made towards PPP models in the areas of established and establishing mega industrial projects for establishing technical institutions, engineering colleges, polytechnic colleges, and industrial training institutions.

• Vocational trainings will be organized for skilled human resource development. • Research and development programs will be implemented in the technical

institutions considering the industrial demand. • Industry related syllabus would be given preferences in the Engineering,

polytechnic and industrial training institutions. (b) Industrial Infrastructure

• For balanced industrial development, industrial areas will be developed for micro and small industries in different districts as per requirement. In large industrial area 20 percent reservation will be made for micro and small industries out of allocable land.

• In order to develop the industrial infrastructure in State, permission shall be granted for construction of Industrial Area of minimum 75 acres in private sector. For this concession and facilities shall be given. In these area there shall be binding for reservation of 20 percent minimum allocable land for micro & small industries.

• In order to easier the process of land acquisition for industrial purpose and protect the interest of land owner’s family Special facilities like stamp duty in purchase of

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agriculture land till the limit of compensation amount and allotment of land on priority basis in industrial areas for establishment of industry by them.

• Priority shall be given to arrange proper compensation to the landowner’s family affected by land acquisition. Provision shall be made so that landowner should get proper compensation in case of land acquisition/direct purchase for industrial purpose.

• Infrastructure monitoring committee shall be formed at local level in all the industrial areas of States who shall ensure the priority of development, maintenance of industrial areas and quality of development activities.

• It shall be ensured that small industrial areas are established for establishment of micro, small, ancillary and service industry in the areas adjoining to the large industrial projects.

• Special Industrial Area/Park shall be made for “Development of cluster based Industries”. It includes gems & jewellery (SEZ), food processing park, herbal & medicinal park, metal park, apparel park, engineering park, railway ancillary industry complex, aluminum park, plastic park, village industry park and pharmaceutical park.

• Initiatives shall be taken for higher heavy loading capacity RCC road, continuous power supply, water supply, tool room/testing lab, fire brigade, warehousing etc in new and existing industrial areas.

• Special attention shall be paid on environment protection along with industrial development. Effective treatment plant, hazardous waste management system, solid waste disposal, recycled water utilization and dense sapling shall be made mandatory for this purpose.

(c) Admistrative and Legal Reforms

• Continuous monitoring of action taken by various departments on common applications submitted in State Investment Promotion Board (SIPB) by Industries/investors shall be done at high level in order to immediate redressal of matter related to clearance of mega industrial projects.

• State Investment Promotion Board shall function as secretariat of single window system. In order to make effective the working system of “District Investment Promotion Committees” formed at District level and “ State Investment Promotion Board will be formed at State Level under “ Chhattisgarh Industrial Investment Promotion Rules-2004” made under Chhattisgarh Industrial Investment Promotion Act-2002, system of high level monitoring meeting shall be made in order to make available necessary clearance within stipulated time period by concerned departments on investment related proposals.

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• “Nodal Officers” shall be nominated for redressal of matters related to land acquisition / land –allotment. Water allotment and power supply of mega industrial project that shall work for immediate redressal of matters.

• With the objective of immediate redressal of matters related to industries, new District Trade and Industries Centre/sub-offices shall be opened in industrial areas/industrial potential areas.

• Initiatives will be taken for simplification of labour laws. Liabilities of Industries

• Subsidy/Exemptions/Concessions will be available only to those industries which employ minimum 90 percent unskilled labour, in case of availability of skilled labour minimum 50 percent unskilled labour and minimum one third local residents of the States at officers/administrative posts.

• Campus placements by the mega industries will be organized in the technical and management institutions of the State to generate the employment opportunities for the residents of the State.

• In relation to mega industrial projects, “Chief Minister Community Development Fund” will be made for communal development of effected Districts.

• Industrial units have to conduct “Energy Audit” and also they will be required to arrange for “Rain Water Harvesting” facility.

• Efforts will be made that the Mega industrial projects will procure the material needed for production from the micro and small industries of the State and help the State Government in developing the allied industries.

• Industrial units will be responsible for water recycling and water recharging. Export Promotion And Foreign Capital Investment

• An information centre will be established in Raipur where workshops, seminar, training programme will be arranged to educate the entrepreneurs on export promotion related activities.

• Raipur Inland Container Depot will be made well facilitated so as to enable direct export from the State. Efforts will be made towards strengthening the “Foreign Commerce Department”

• Additional Concessions/ facilities will be provided to 100 percent Export Oriented Units (EOUs) and Foreign Direct Investments (FDIs).

• All possible efforts will be made to avail the full advantage of “Foreign Trade Policy 2009-14” released by Govt. of India to the State.

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Simplification of Process and Development of Ancillaries

• As far as possible, Government purchases will be made from micro-small industries only.

• Land acquisition process for inside and outside industrial areas, prevalent land allotment rules will be analyzed to make it logical.

• E-tendering will be implemented for procurement by State government offices. Also, provisions will be made for training in respect of e-tendering procedures.

• Encouragement will be given to development of ancillary industries to State government or central government owned Public Sector undertakings.

Rehabilitation of Sick and Closed Industrial Units Rehabilitation scheme will be framed for economically almost closed / sick industrial units (other than Board for Industrial and Financial Reconstruction related) Entrepreneurship and Human Resource Development

• With the help and co-ordination with the financial institutions, Entrepreneur Development Cell will be established in State Investment Promotion Board (Raipur) for maximum and optimum utilization of available human resources, creating interest towards industries amongst the youngsters and training related to self-employment plans.

• Technical information relating to establishment of Industries and government schemes will be made available to entrepreneurs by effective media. Model project profiles of probable industry will be made accessible to entrepreneurs at District Trade and Industries Centers.

• Availability of administrative, technical, skilled worker and training facilities in the State will be examined .A special Cell will be established under purview of technical education department for co-ordination of demand and supply of the same. The cell will be responsible for starting new subjects and trade based on the prevalent demand in the engineering, polytechnic colleges and industrial training institutions.

Exemption/Concessions for Promotion of Industrial Investment

• Industrial Investment Promotion Schemes in the State - Industries shall be granted Subsidy/Exemption/Concession in according to Annexure - 4 in following items as per their entitlement. -

Interest Subsidy, Fixed Capital Investment Subsidy, Exemption from Electricity Duty, Exemption from Stamp Duty, Exemption/Concession in premium on allotment of land in industrial area, Project report subsidy,

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Exemption from land diversion fee, Quality certification subsidy, technical patent subsidy and Mandi Fee (Market Fee) reimbursement subsidy.

Entrepreneur of Scheduled Caste/Scheduled tribes shall be provided maximum subsidy, rebate and concessions. Margin money subsidy rate is to be enhanced to 25 percent in order to bring them in mainstream of Industrial Development. Apart from this “Scheduled Caste/Scheduled Tribe's entrepreneurs promotion Scheme” shall be started.

Non Resident of India/100 percent FDI investors shall be provided with 5 percent more subsidy as given to entrepreneurs of general category and more benefit by 5 percent in maximum limit and Women Entrepreneurs, Retired soldier from the service of State military and person/family effected from naxilism and handicapped shall be eligible for 10 percent more subsidy as provided to entrepreneurs of general category.

“Chief Minister Self Employment Scheme” shall be commenced to eradicate unemployment prevailing among youth of the State.

• For promotion of Industrial Investment, entire State is classified into Economically Developing Area and Economically Backward Area. Development Block is the base instead of district for measurement of industrial development.

Developing Areas-It contains those development blocks where industrial

development has already been commenced. These are prescribed in the Annexure 6

Backward Areas- In this category, entire development block of most backward schedule caste/tribe population dominated areas and industrially backward development blocks of other districts are included. These are prescribed in the Annexure 7.

• Industries are classified into following five categories depending on the class of investors:

1. Entrepreneurs of General Category. 2. Schedule Class/ Schedule Tribe Entrepreneurs. 3. Non-Resident Indians / 100 percent FDI Investors. 4. Women Entrepreneurs. 5. Retired Soldiers/ Naxalite affected person/handicap.

• Based on size of investment, industries have been classified into following five

categories:

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1. Micro and Small Scale Industries. 2. Medium Scale Industries. 3. Large Industries. 4. Mega Projects. 5. Ultra Mega Projects.

• For promotion of industrial investment, industries are classified into following four

categories.

1. Industries of Saturated Category- No incentives are available to these industries shown in Annexure-2. 2. Priority Sector Industries- Additional eligibility will be available to industries shown in Annexure-3. 3. Core Sector Industries- Industries shown in Annexure 5 will get exemption in relation to stamp duty pertaining to land acquisition for such industries. 4. General Category Industries- It contains all those eligible industrial units, which are not covered under the above-mentioned three categories and eligible for Industrial Investment Promotion Schemes.

• “Economic Promotion for Industrial Investment” as provisioned in this policy shall

be applicable in the following matters –

1. New Industrial Projects – Such new industry who commences commercial production between 1st November 2009 and 31st October 2014. 2. Expansion projects of existing industrial units - An existing industrial unit in production since before 1st November 2009 and new industry having started after 1st November 2009 which additionally invests minimum 25 percent of eligible invested capital in the plant and machinery till date of commencement of commercial production and expands its production (installed capacity or three years actual average production immediately prior to the date of implementation of expansion project, whichever is higher) by minimum 25 percent of its originally installed capacity. (Registered with industries department or three year's average production, whichever is higher) and commence production in the expansion project before 31st October 2014. 3. Projects related to Backward Integration and Forward Integration and Diversification – Existing industrial units shall be eligible for Subsidy / Exemption / Concession on diversification of product and Forward Integration and Backward Integration provided they should increase investment in plant and machinery up to the date of commencement of commercial production by minimum 25 percent. Such subsidy / exemption / concession shall be available on diversified product

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and product / raw material – intermediate product / value added product in relation to Backward Integration and Forward Integration for which commercial production has to be commenced before 31st October 2014.

• Economic promotion for industrial investment shall be available only to such industries, which provide employment, in case of unskilled labour minimum 90 percent, in case of skilled labour minimum 50 percent in case of availability and minimum one third at the level of administrative/managerial position to the resident of State.

• Micro, Small, Medium, Large industrial units and Mega Projects and Ultra Mega Projects who has possessed E.M. part-1/IEM/Letter of Intent/Industrial License before the appointed date of 01.11.2009 or have entered MOU with State Govt. and validity thereof has not yet elapsed but not commenced commercial production till date 31st October 2009 expiry of industrial policy 2004-09, shall be eligible for opting to avail subsidy / exemption / concessions under industrial policy 2009-14 on commencement of commercial production till 31st October 2010.

• Central Government or other State government owned public sector undertakings will not be eligible for subsidies / exemptions / concessions of Industrial Investment Promotion Scheme.

• Fixed Investment exceeding US$ 222.11 million (INR 1000 crore) in the industries other than those pertaining to core sector and saturated category will require approval from Minister of Council for economic promotion for industrial investment.

• For farmers and residents affected by land acquisition for establishment of industrial projects rehabilitation policies will be framed and practiced. Also, stamp duty exemption will be available on purchase of agriculture land from sum received as compensatory remuneration.

• Award scheme to State industries will be expanded. • Monetary subsidy / exemption / concessions given under the policy will be given

to the beneficiary units only to encourage industrial investment under this policy vide issue of notifications and rules under the related laws.

• Subsidy, concessions, exemptions as Stated in the Industrial Policy will also be available on investment in Logistic Hub, Warehousing and Cold storage.

Monitoring of Implementation of Industrial Policy Industrial Policy 2009-14 will commence from 1st of November 2009 and will remain in force till October 2014. During the tenure of five years, the State government reserves its right to amend the policy so as to include, exclude the provisions on time to time reviewing and analysis of industrial development of the State.

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IT and ITES Policy of Chhattisgarh

The main aim of the policy is to create an enabling environment for promoting the growth of the IT and ITES industry in the State.

Key objectives of the policy:

• To foster the growth and development of a competitive IT industry in the State by ensuring anytime and anywhere connectivity.

• To provide all citizens with widespread and easy access to government services at an affordable cost and in the local language, by setting up Integrated Service Delivery Centres (ISDC) across the State.

• To ensure 100 percent IT literacy in all schools and colleges in a phased manner. • To promote local entrepreneurs who are willing to invest in improving IT

infrastructure in the State. • To increase investments to support the IT industry and create employment

opportunities. • To be a significant contributor to India’s IT output by 2020. • The Chhattisgarh Infotech and Biotech Promotion Society (CHIPS) has been set up

to give an impetus to IT growth in the State and implement initiatives for overall socio-economic development.

• IT, biotechnology and advanced technology industries have been declared as the special-thrust industries in the State’s industrial policy and are entitled to receive additional direct and indirect incentives.

Incentives and concessions as per IT Policy: • Interest subsidy on term loans and working capital for the small-scale industries

(SSI) and large and medium industries (LMI). • Infrastructure development or capital investment subsidy to SSI, LMI and mega

units on commercial tax or central sales tax paid within the State. • Exemption from electricity duty for new units. • Exemption from stamp duty on acquisition of property. • Exemption from entry tax. • Allotment of plots at concession rates in industrial areas. • Exemption from land-diversion fee to SSI units on diverted land, up to a maximum

of 5 acres. • Reimbursement of project report expenses. • Non-resident Indians (NRI) and FDI investors to be eligible for receiving

additional 5 per cent directed incentives over the general-category investors.

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• Reimbursement of up to 50 per cent of the fee paid (up to a maximum of US$ 1,630) for International Organization for Standardization (ISO) or any equivalent national or international certification.

• Reimbursement of up to 50 per cent of the expenses incurred up to US$ 10,869 for obtaining a patent.

• Interest subsidy for technology up-gradation on the term loan and working capital borrowed from financial institutions.

Biotechnology Policy of Chhattisgarh Key objectives of the policy:

• To enable the local communities get optimal advantages of their natural, bio-cultural and bio-knowledge heritage in a sustainable manner.

• To create an environment where benefits of bio-resources are not rapidly dissipated, but are available to their natural custodians.

• To contribute 5 percent to the biotechnology output of India by 2012. • To achieve substantial productivity gains and reduce risks to livelihood and

environment in sectors relating to agriculture, forestry, animal husbandry and health – with the ultimate objective of ensuring food security and environment protection.

• To institutionalize major capabilities in biotechnology research and development in general, with particular focus on the indigenous knowledge systems and their applications in furthering socio-economic growth.

• To facilitate an environment for research through development of infrastructure and appropriate incentives.

• To leverage convergence between various fields of related disciplines and provide benefits to society at large.

• To facilitate growth of an industry by providing high-quality infrastructure with the required support services for production including facilitation of venture capital and bank credit flows.

• To address issues such as intellectual property rights, bio-safety, bio-surveillance and bio-ethics.

• Key thrust areas identified in the policy include agri-biotechnology, healthcare including diagnostics, therapeutics, pharmaco-genomics, bioinformatics, industrial and environmental biotechnology.

• Encouraging and facilitating research and development. • Setting up of Chhattisgarh Centre of Excellence in Biotechnology, which would

include an advanced facility for genomics, transgenic research, animal biotechnology, and healthcare-related biotechnology and bioinformatics.

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• Providing excellent infrastructure for biotechnology industry such as biotechnology parks, bio-villages and commercial plant-tissue culture units.

• Human Resource Development by introducing graduate and post-graduate courses in biotechnology and industry-partnered education programmes.

• Smoother and easier clearance procedures for the commercialization of biotechnology products and for investment in the biotechnology industry.

Incentives and Concessions in the Biotechnology Policy

• Incentives for ISO certification and other global standards as mentioned under the Industrial Policy.

• Several industries from the biotechnology sector identified as thrust areas in the Industrial Policy to receive benefits, subject to a minimum investment of US$ 108,695 in plant and machinery. These industries include bio-fertilizer, tissue culture, cocoon-rearing, rhizobium-culture and blue-green algae culture.

• Exemption from pollution-control regulations for all bio informatics units; these units can be established anywhere in the State, regardless of residential, industrial or commercial zoning.

• Exemption from payment of stamp duty on acquisition of land. • Assistance to small-scale biotechnology units located in areas other than industrial

estates, to the extent of 25 percent of the infrastructure cost, subject to a maximum of US$ 217,291.

• Interest subsidy of 5 per cent per annum, subject to a maximum of US$ 10,870. • The State will provide land on lease, or as share of equity in joint ventures for

setting up of biotechnology parks. • Biotechnology units to be provided uninterrupted power supply; the units will pay

industrial tariff for power at US 6.4 cents per unit.

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Major Industrial Projects being Implemented in Chhattisgarh

Promoter Project Investment (US$ million) Location

Aluminium Sector: Bharat Aluminium Company Limited Aluminium Smelter Project 1,760.90 Korba

Tourism/Entertainment Sector:

Raipur Development Authority City centre-cum-multiplex 43.5 Raipur

Airports Authority of India Airport Expansion Project 29.6 Raipur

East Coast Railway Raipur-Tiltagarhrailway Line 129.5 Raipur-Tiltagarh

Cement Sector: Emami Cements Limited Cement Project 347.8 Raipur Ambuja Cement Eastern Limited Cement Project Expansion 217.4 Raipur

Power Sector:

Wardha Power Company Private Limited Coal-based Power Project 3,473.40 Janjgir-Champa

Chhattisgarh State Power Generation Company Limited

Thermal Power Project 1,195.40 Janjgir-Champa

Iron and Steel Sector: Indus Steel and Power Limited Integrated Steel Project 43.7 Raipur

Steel Authority of India Limited Integrated Steel Project 1,087.00 Durg Source: www.projectstoday.com

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Major Industrial Projects being Planned in Chhattisgarh

Promoter Project Investment (US$ million) Location

Infrastructure Sector:

Merlin Projects Limited Integrated Township 65.2 Raipur Mining Sector: Rashtriya Ispat Nigam Limited Iron ore mining project 108.7 Rowghat

Iron and Steel Sector:

Tata Steel Limited Integrated Steel Plant 3913 Bastar NMDC Limited Integrated Steel Plant 3043.5 Bastar Cement Sector:

Kasturi Cement Limited Cement Project 489.1 Raipur

Adhunik Corporation Limited Cement Project 253.2 Raipur

Power Sector :

NTPC Limited Lara Integrated Thermal Power Project 4347.8 Raigarh

Chambal Energy Limited Coal-Based Power Project 1587 Janjgir-

Champa Godawari Power & IspatLimited Coal-Based Power Project 1265.8 Raigarh

Emami Cements Limited Coal-Based Power Project 1160.3 Raipur

Oil and Gas Sector

Essar Oil Limited Paradip-Raipur Pipeline Project 103.5 Raipur

Source: www.projectstoday.com