CHHATTISGARH - IBEFChhattisgarh’s administrative capital is Raipur, which is also its largest...

CHHATTISGARHApril 2010

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Investment climate of a state is determined by a mix of factors

Investment climate of a state

• Skilled and cost-effective labour• Labour market flexibility• Labour relations• Availability of raw materials and natural

resources

• Tax incentives and exemptions• Investment subsidies and other incentives• Availability of finance at cost-effective terms• Incentives for foreign direct investment (FDI)• Profitability of the industry

• Procedures for entry and exit of firms• Industrial regulation, labour regulation, other

government regulations• Certainty about rules and regulations• Security, law and order situation

• Condition of physical infrastructure such aspower, water, roads, etc.

• Information infrastructure such astelecom, IT, etc.

• Social infrastructure such as educational andmedical facilities

Resources/inputs

Incentives to industry Physical and social infrastructure

Regulatory framework

CHHATTISGARH April 2010

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Contents

Advantage Chhattisgarh

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Chhattisgarh

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Chhattisgarh – State profile

• Located in central India, Chhattisgarh covers 135,191 sq km and accounts for 4.1 per cent of total land area of India.

• Chhattisgarh is one among the few landlocked states in the country. It shares borders with the states of Madhya Pradesh and Maharashtra in the West, Uttar Pradesh and Bihar in the North, Orissa in the East and Andhra Pradesh in the South.

• The state is divided into 18 districts. Chhattisgarh’s administrative capital is Raipur, which is also its largest city. Bhilai, Durg, Bilaspur, Korba and Rajnandgaon are the other large cities.

• Chhattisgarh has a tropical climate with three major seasons: hot summers (April to May), monsoon (June to October) and mild winter (November to January).

• The languages spoken are Chhattisgarhi and its local dialects, Hindi and English.

Source: Maps of India

Chhattisgarh April 2010ADVANTAGE CHHATTISGARH

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Mineral resources

Policy and fiscal incentives

Mineral resources are Chhattisgarh’s biggest strength. It has deposits of limestone, iron ore, copper, rock phosphate, manganese, bauxite, coal, asbestos and mica. Chhattisgarh accounts for about 17 per cent of the nation’s coal reserves. The state also has proven diamond reserves along with potential gold reserves.

The state offers a wide range of fiscal and policy incentives for businesses under its Industrial Policy, 2004. Additionally, the state has well drafted policies for the IT/ITeS, minerals and energy sectors.

Advantage Chhattisgarh … (1/2)



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Rich labour poolThe state has a high worker-participation rate (male and female) and most of the labour force is in the 15 to 39 age group. It also has one of the lowest losses in terms of man-days attributed to labour problems in the country.

Advantage Chhattisgarh … (2/2)

Surplus powerChhattisgarh is, presently, one of the few states that has surplus power. It is also among the few profitable states in terms of utility-based electricity. Presence of coal makes Chhattisgarh an ideal location for setting up pit head-based thermal power plants for both, merchant sales and state consumption.



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Parameter Chhattisgarh All-states Source

Economy

GSDP as a percentage of all states’ GSDP 1.8 100.0 CMIE, as of 2007-08, current prices

Average GSDP growth rate (%) 14.2 7.5 CMIE,1999-2000 to 2007-08

Per capita GSDP (US$) 737.1 998.1 CMIE, 2007-08

Physical infrastructure

Installed power capacity (MW) 3,214.2 98,996.4 Central Electricity Authority, as of March 2009

National highway length (km) 2,184 70,548 Ministry of Road Transport & Highways, 2007-08

Airports (no) 2 133 Industry sources

Chhattisgarh in figures … (1/2)


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Parameter Chhattisgarh All-states Source

Social indicators

Literacy rate (%) 64.7 64.8 Census of India, 2001

Birth rate (per 1,000 population) 26.5 23.3 Central Bureau of Health Intelligence, 2007

Ease of doing business

FDI inflows (US$ billion) 0.16* 102.1 Department of Industrial Policy and Promotion, April 2000 to October 2009

Outstanding investments (US$ billion) 74.6 1,709.7 As of December 2008

Industrial infrastructure

PPP projects (no) 4 460 www.pppindiadatabase.com

SEZ (no) 1 98 Formally approved as of June 2009, www.sezindia.nic.in

Chhattisgarh in figures … (2/2)

PPP: public private partnership, SEZ: special economic zone*Figure includes Madhya Pradesh


http://www.pppindiadatabase.com/�

http://www.sezindia.nic.in/�

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Medium HighLow

Medium

High

Gemsand jewellery

Food processing

Mining

BiotechnologyCement

Industry attractiveness matrix

Iron and steel

*Factor advantage

Polic

y th

rust

*Factor advantages include benefits due to geographical location and availability of factors like talent pool, natural resources and capital

Key industries with policy thrust and factor advantages

Power

IT and ITES


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Contents







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Socio-economic snapshot of Chhattisgarh

Parameters Chhattisgarh

Capital Raipur

Geographical area (sq km) 135,191

Administrative districts (no) 18

Population density (persons per sq km) 154

Total population (million) 20.8

Male population (million) 10.5

Female population (million) 10.4

Sex ratio (females per 1,000 males) 989

Literacy rate (%) 64.7

Male (%) 77.4

Female (%) 51.9

Average life expectancy (years) 64.0

Sources: Chhattisgarh at a glance, Census 2001

Chhattisgarh April 2010

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

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Chhattisgarh’s GSDP

• At current prices, the gross state domestic product (GSDP) of Chhattisgarh was about US$ 17.5 billion in 2008-09.

• The average GSDP growth rate between 1999-2000 and 2008-09, was about 13 per cent.

• The state’s abundant resources, such as coal and minerals has led its economic growth with industries in the cement, iron and steel, and power sectors.

Chhattisgarh’s GSDP (US$ billion)

Source: CMIE

CAGR:12.98%



5.855.35

6.157.13

8.889.64

11.3313.76

16.9217.54

0 5 10 15 20

1999-002000-012001-022002-032003-042004-052005-062006-072007-082008-09

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Chhattisgarh’s NSDP

• In 2008-09, the net state domestic product (NSDP) of Chhattisgarh was about US$ 15.3 billion.

• The average NSDP growth rate over nine years to 2008-09, was about 13 per cent.

Chhattisgarh’s NSDP (US$ billion)

Source: CMIE

CAGR:12.97%



5.124.60

5.296.10

7.748.38

9.8412.00

14.8315.33

0 5 10 15 20

1999-002000-012001-022002-032003-042004-052005-062006-072007-082008-09

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The secondary sector has an increasing share in Chhattisgarh’s economy

• In 2008-09, the tertiary sector contributed the highest to Chhattisgarh’s GSDP at 40.1 per cent (US$ 6 billion). It was followed by the primary sector, contributing 35.3 per cent (US$ 5.3 billion), and the secondary sector at 24.6 per cent (US$ 3.7 billion).

• The secondary sector had the highest growth of all three sectors in the period between 2005-06 and 2008-09 (22.6 per cent)

• The secondary sector’s growth was driven by the cement, iron and steel, and power sectors.

Percentage distribution of GSDP

Source: CMIE

CAGR CAGR



40.9 39.4 35.3

15.4 20.4 24.6

43.6 40.3 40.1

0%

20%

40%

60%

80%

100%

1999-00 2005-06 2008-09

Primary Secondary Tertiary

10.9%

22.6%

14.8%

9.8%

15.8%

9.1%

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Per capita GSDP

• In 2008-09, the state’s per capita GSDP was US$ 737.1.

• The per capita GSDP increased at a CAGR of 10.8 per cent between 1999-2000 and 2008-09. It was 2.5 times higher in 2008-09 as compared to that in 1999-2000.

Source: CMIE

Per capita GSDP

(US$

)



293.1258.5

294.2333.0

407.3 432.5499.2

595.8

720.2 737.1

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

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Chhattisgarh’s socio-economic profile

• Chhattisgarh is a relatively new state, having been formed in 2000 after the state of Madhya Pradesh was divided into two.

• Its socio-economic profile is largely rural; 80 per cent of the total population lives in the rural areas and the remaining 20 per cent lives in the urban areas.

• The population density is 154 persons per sq km. The state’s human development index is 0.471 according to the United Nations Development Program (UNDP).

Demographic profile

Percentage of population

Chhattisgarh India

Rural 80 72.2

Urban 20 27.8

Source: Census 2001

• Chhattisgarh's social performance (as measured by the Human Development Index in 2001) shows that certain parts of the state (Durg-0.62, Raipur-0.56 and Korba-0.56) have a better developed social infrastructure as compared to the other districts in the state. This may be attributed to industrialisation and better infrastructure in these regions.

• On the social development index, the state scores 36.4 for urban areas and 28.9 for the rural areas.



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Key industries in Chhattisgarh

Key industries in Chhattisgarh

• Mining

• Iron and steel

• Cement

• Power

• IT and ITeS

• Biotechnology

• Food processing

• Gems and jewellery

• The natural resources, policy incentives and infrastructure in the state support investments in the iron and steel, cement and power sectors.

• Chhattisgarh is among the richest Indian states in terms of mineral wealth, with 28 varieties of major minerals, including diamonds.

• Almost 80 per cent of the population is dependent on agriculture or agriculture-related occupations.

• Chhattisgarh is making significant investments in industrial infrastructure. The Chhattisgarh Industrial Development Corporation has set up four industrial growth centres, five industrial parks and four integrated infrastructure development centres (IIDC). The state is also in the process of setting up two special economic zones (SEZ).



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Rice, wheat and soybean are the key agricultural products

Crop Annual production (‘ooo tonnes)

Rice 5,195

Wheat 157

Soybean 110

Arhar 101

Rapeseed 57

• Rice is the major crop of the state. It is followed by wheat, soybean, arhar and rapeseed.

• The top five crops account for over 90 per cent of the total food grain production.

• In 2007-08, the total production of the top-five crops was 5.62 million tonnes.

Source: CMIE




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Chhattisgarh’s exports trends

• Chhattisgarh’s total exports were US$ 362.2 million in 2005-06. Exports increased at a CAGR of almost 57.2 per cent between 2002-03 and 2005-06.

• Around 17 per cent of the companies in the state manufacture products for exports.

• Nearly 75 per cent of exports comes from Bhilaiand the remaining from Urla, Bhanpuri and Sirgitti.

• The major exports products include steel, handicrafts, handlooms, blended yarn, food and agri-products, iron, aluminium, cement, minerals and engineering products.

Exports trends (US$ million)

Source: Chhattisgarh Industrial Development Corporation



93.2

242.1

310.7

362.2

0

50

100

150

200

250

300

350

400

2002-03 2003-04 2004-05 2005-06

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• According to the Reserve Bank of India, FDI inflows from April 2000 to October 2009 amounted to US$ 163.2 million*.

• As of December 2008, the outstanding investments in the state were US$ 74.6 billion, with the power sector accounting for the major chunk (65 per cent).

Investments and FDI inflows

Break-up of investments by sector

Source: CMIE

* Figure includes FDI into Madhya Pradesh

Source: Department of Industrial Policy & Promotion



30.0%

2.8%64.9%

1.8% 0.4%

Manufacturing

Mining

Electricity

Services

Construction

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Contents







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Road network

• The three National Highways of Chhattisgarh, together, constitute 2,184 km of roads in the state. The State Highways and district roads account for another 8,008 km. The state has a road density of 26.2 km per 100 km.

• The Central Government has allocated US$ 14.6 million for the development of National Highways in Chhattisgarh. Nearly US$ 6 million was allocated for their maintenance in 2008-09.

Road type Road length (km)

National Highways 2,184

State Highways 3,276

District roads 4,732

Source: “Chhattisgarh at a glance, 2007”, Directorate of Economics and Statistics



INFRASTRUCTURE STATUS

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Railways

• Chhattisgarh’s railways sector falls under the jurisdiction of the South East Central Railways. It is well connected to the rest of the country via the railways. Raipur and Bilaspur are the two major railway stations.

• The significant mining and industrial activity in the state was a major reason behind the setting up of the South East Central Railways in1998. It is headquartered in Bilaspur.




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• The state has two domestic airports; the airport at Raipur is in operation, while the Bilaspur airport is not in operation.

• Chhattisgarh also has seven air strips located at Bhilai, Korba, Raigarh, Jagdalpur, Ambikapur, Jashpur Nagar and Sarangarh.

• The Raipur airport is to be expanded with an investment of up to US$ 30 million.

Airports

Domestic airport



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Power … (1/2)

Installed state and private capacity (MW)

Source: Central Electricity Authority

• In 2008-09, the state had a power generation installed capacity of 3,214.2 MW, which comprised 2,508.1 MW under state utilities and 1,156.1 MW under the private sector.

• Over 85 per cent of private sector power capacity and over 93 per cent of state-owned power capacity are coal-based power plants.

• Korba in Chhattisgarh is termed as the “Power Capital” of India with National Thermal Power Corporation’s (NTPC) super thermal power plant working at 90 per cent plant load factor (PLF).

• The state has huge coal deposits, which along with Jharkhand and Orissa’s supply, accounts for approximately 84 per cent of India’s coal reserves.

• In the hydro-power sector, the Hasdeo Bangoreservoir offers a relatively cheaper source of power generation.



1,400 1,400 1,400 1,412 1,4391,688

2,8143,214

0

500

1000

1500

2000

2500

3000

3500

26

• Chhattisgarh’s power is generated by the Chhattisgarh State Power Generation Company Limited (CSPGCL), and by independent power producers (IPP) such as LANCO and Jindal Power.

• Under the Eleventh Five Year Plan, capacity additions – 4,480 MW by the central sector, 3,250 MW by the Chhattisgarh State Electricity Board (CSEB) and 2,950 MW by the private sector –have been planned for the state.

Projects Agency Ownership Thermal (MW)

Sipat Phase I and II NTPC Central 3,480

Raigarh Phase II Jindal Power

Private 750

Pathadi (Lanco) U (I,II)

LANCO Private 600

Korba East Extension CSEB State 250

Korba West Extension

CSEB State 500

Marwa CSEB State 1,500

Korba South CSEB State 1,000

Bhaiyathan CSEB Private 1,600

Select projects for the Eleventh Five-Year Plan

Sources: Chhattisgarh at a glance, 2007, Directorate of Economics and Statistics; Ministry of Power, Government of India; Chhattisgarh State Electricity Regulatory Commission

Power generationcompany

Chhattisgarh State Power Generation Company Limited (CSPGCL)

Power transmissioncompany

Chhattisgarh State Power Transmission Corporation Limited(CSPTCL)

Power supply companies

Chhattisgarh State Power Distribution Company Limited (CSPDCL)

Power … (2/2)

State power utilities



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Telecom• The state is in the process of implementing the

State Wireless Area Network (SWAN), which will be a hybrid of wireless and wire-line access –supporting voice, data and video traffic.

• The wire-line telecom providers are Bharat Sanchar Nigam Limited (BSNL) and Touchtel, while the wireless providers are BhartiAirtel, Vodafomne, Idea Cellular, Reliance Communications and TATA Docomo.

Telecom infrastructure (2007-08)

Number of telephones: 1,217,845(wire line and wireless)

Broadband subscribers: 168,951*

Post offices: 3,124

Telephone exchanges: 633

Sources: Cellular Operators of India, November 2009;Chhattisgarh at a glance, 2007*Includes Madhya Pradesh



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Urban infrastructure … (1/2)

• As of 2007, the state has an urbanisation rate of 17.4 per cent as against the national average of 29 per cent.

• It has 10 municipal corporations and 28 municipalities.

• Maharashtra’s City and Industrial Development Corporation (CIDCO) has been appointed as the advisor to upgrade the capital city, Raipur. It has been named ‘Naya Raipur’, has a project cost of US$ 450 million and includes the following:

• A water supply project for meeting the requirements of an estimated 2.5 million population by 2031.

• A transport hub in the city.

Service Urban population coverage (%)

Protected water supply 90

Sanitation 49

Sewerage system 28

Low-cost sanitation facility 21

Solid-waste collection (metros) 90

Solid-waste collection (towns) Less than 50

Urban water supply and sanitation

Source: Economic Survey, 2001

Sources: Releases from Government of India: Sector-wise, 2000-08, Finance Department, Government of Chhattisgarh



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• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Raipur is one of the 63 identified cities for comprehensive development.

• “Naya Raipur” has been pegged as the fourth-planned city in the country after Chandigarh, Gandhinagarand Bhubaneswar.

• The city has been planned over 8,000 hectares, of which 30 per cent is to be used for residential and economic purposes; Naya Raipur is likely to have a population of 450,000 within a decade.

• Under JNNURM, two projects, costing US$ 99.9 million, have been sanctioned for Raipur for augmenting the current water supply schemes in Raipur and Naya Raipur.

Sources: Government of Chhattisgarh, Finance Department; JNNURM, Ministry of Urban Development, Government of India

Urban infrastructure … (2/2)



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Key public private partnership projects

Contract authority Project Investment(US$ million) Project type Status

Roads

National Highways Authority of India (NHAI)

Karnataka Road Development Corporation (KRDCL)

Aurang-Raipur 41.3 Road, BOT-Toll Under construction

Durg bypass 15.2 Road, BOT-Toll In operation

End of Durg bypass on Chhattisgarh-Maharashtra border 100.9 Road, BOT-Toll Under

construction

Raipur-Durg expressway 24.8 Road, BOT-Toll In operation

Source: pppindiadatabase.com

BOT: Build-own-transfer



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Education sector

• According to the Census 2001, Chhattisgarh has a literacy rate of 64.7 per cent; the male literacy rate is 77.4 per cent and female literacy rate is 51.9 per cent.

• In 2006-07, the state had 3,500 high schools,14,290 higher primary schools, and 36,210 lower primary schools.

• The state also has eight universities, three medical colleges, 16 engineering colleges, 139 government general colleges, 12 polytechnics and 88 Industrial Training Institutes (ITIs).

• Reputed educational institutions in the state are the National Institute of Technology in Raipur, and the Bhilai Institute of Technology in Durg.

• In August 2009, the Government of India approved a proposal to set up an Indian Institute of Management (IIM) at Raipur.

Educational infrastructure (no)

Universities 8 Government colleges 139

Medical colleges 3 Polytechnics 12

Engineering colleges 16 ITIs 88

Chhattisgarh primary education statistics

Number of schools Lower primary: 36,210Higher primary:14,290High schools: 3,500

School dropout rate (2005-06)

Primary: 10.5

Pupil-teacher ratio Lower primary: 51.1Upper primary: 42.6High schools: 26.7

Net enrolment ratio in primary schools

98.7

Retention rate (classes I-V) 69.4

Sources: Chhattisgarh at a glance, 2007; Elementary Education in India, National University of Education, Planning and Administration, as of 2006-07



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Health infrastructure

• Chhattisgarh’s health infrastructure comprises 16 district hospitals, 134 community health centres, 708 primary health centres, 17 civil dispensaries and 4,994 sub-centres.

• There are about three institutions per 100,000 persons, offering Indian systems of medicine.

• Twelve districts in the state have blood bank facilities.

Health infrastructure (no)

District 16

Community health centres 134

Primary health centres 708

Civil dispensaries 17

Sub-centres 4,994

Health indicators

Population served per government hospital

159,500

Population served per government hospital bed

3,955

Birth rate* 26.5

Death rate* 8.1

Infant mortality rate** 60.0

Life expectancy at birth (years)

Male 59.2

Female 58.0

Sources: Ministry of Health and Family Welfare, Central Bureau of Health Intelligence*Per thousand persons**Per thousand live births



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Cultural infrastructure

• There are several sports complexes in Chhattisgarh. Football, cricket, hockey, basketball and kabaddiare the major sports of the state.

• The main sports arenas are the Ravishankar Shukla Stadium in Durg, the Priyadarshini Indira Stadium in Korba, and the Digvijaya Stadium in Rajnandgaon.

• Hockey is a popular sport in the state and the Digvijaya stadium is known as the ‘nursery of hockey’.

• The key hotels in the state are the Royal Palace in Kanker, Kawardha Palace in Kawardha, Hotel Piccadilly in Raipur and Rainbow Hotel in Jagdalpur.

• Chhattisgarh is renowned for its heritage tourism; Bhoramdeo, Dantewada, Deepadih, Dongargarh, Jogibhatta, Rajim, Sirpur, Malhar, Sita Bhengra, and Sheorinarayan are some of the popular heritage sites.

• A five-star hotel with a large convention centre has been planned to come up at Naya Raipur, the Chhattisgarh Government’s new administrative capital.



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Industrial infrastructure• To meet the increasing land demand for new industrial units, the State Government has decided to

set up four ‘star industrial areas’ on 6,836 hectares (Ha) in the districts of Bilaspur, Raigarh, Rajnandgaon and Raipur.

• The Chhattisgarh State Industrial Development Corporation Limited (CSIDC) is the industrial development department of the State Government.

Industrial infrastructure Type and location District Size Investment requirement (US$ million)

Industrial parks Aluminium/metal park Raipur 191.4 Ha Not available

Integrated textile park Bhanpuri, Raipur 8.0 acres 5.0*

Medicinal park Dhamtari 250.0 acres 13.5

Food processing park Rajnandgaon 300.0 acres 6.7*

Engineering park Bhilai 300.0 acres 4.3

Integrated infrastructure development centres (IIDCs)

Tifra (Bilaspur), Shyamtarai (Dhamtari), Teknar (Dantewada), Kapan (Janjgir-Champa)

All between 20-80 Ha

-

Growth centres Siltara Raipur 1,3 Ha 155.9

Borai Durg 436.8 Ha 37.4

Urla Raipur 232.3 Ha 108.6

Sirgitti Bilaspur 371.6 Ha 21.7

Source: Economic Survey, 2008-09

*PPP mode



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Source: sezindia.nic.in, as of June 2009

Industry Location SEZ (No)

Multi-product Raipur 1

Gems and jewellery Raipur 1

• As of June 2009, the state had one formally-approved SEZ (IT/ITeS), located in Naya Raipur.

• The state has important industrial areas in Bhilai, which is home to iron and steel ancillary units, and Korba, which is home to well known companies in the power and aluminium sectors.

Industrial area

Growth centre

Industrial park

SEZs with in-principle approval

SEZs and industrial clusters



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Infrastructure type Investments (US$ million)

Power generation 9,634.8

Roads 65.1

Railways 277.1

Total 9,977.0

• As of December 2008, nearly US$ 10 billion of investments have been made in ramping-up Chhattisgarh’s industrial infrastructure.

• Over 96 percent of the investments in infrastructure have been made in the area of power generation.

• Railways and roads are also expected to receive significant investments over the coming years.

Source: CMIE

Major investments in the infrastructure sector



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Contents







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Industrial Policy, 2004-090

Aim: The state’s industrial policy and initiatives are directed towards achieving rapid economic growth.

Key objectives and initiatives:

• To create a favourable investment environment for increasing industrial production.

• To create additional employment opportunities by accelerating the process of industrialisation in the state.

• To create an enabling environment for maximum value addition to the abundant and locally available mineral and forest-based resources.

• To ensure balanced regional development by attracting industries in the economically backward areas of the state.

• To ensure participation of persons belonging to the Scheduled Castes and the Scheduled Tribes and other weaker sections in the development process.

• To make industrial investments in the state competitive vis-a-vis other states of the country.

• To promote private-sector participation for creation of industrial infrastructure in the state.

• To create an enabling environment for increasing industrial production, improving productivity and upgrading quality in order toface the challenges of competition emerging from economic liberalisation.

• IT, biotechnology and advanced-technology industries to be the thrust industries; they would be entitled to receive additional direct and indirect incentives.

Sector-specific policies … (1/9)


STATE POLICIES AND INCENTIVES

39

Industrial Policy, 2004-09 (continued)

Incentives and concessions:

• Interest subsidy of 40 per cent for general industries and 75 per cent for special-thrust industries (for backward areas, the interest subsidy is 75 per cent).

• Infrastructure development.

• Capital investment subsidy of 25 to 35 per cent of total capital cost, depending on the type of industry and the location of theproposed unit.

• Exemption from electricity duty for a period of 10 to 15 years, depending on the type of industry and the location of the proposed unit.

• Exemption from stamp duty.

• Exemption from entry tax for a period of five to nine years, depending on the type of industry and the location of the unit.

• Allotment of plots at concession rates in the industrial areas.

• Exemption from paying land-diversion fee.

• Reimbursement of project report expenses.

• Quality certification subsidy.

• Interest subsidy for technology up-gradation up to 40 per cent of the total interest paid for a period of five years.




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Mineral Policy, 2001

Aim: To establish an investor-friendly business environment in the mining sector in order to attract both domestic and international private sector investors.


• To provide facilities for maximum participation of the state’s population in minerals-based industries by maintaining transparency

• To increase revenue from minerals.

• To develop mineral resources with a priority for export-oriented minerals, strategic-minerals and base-metals.

• To attract private and foreign investment for high-value minerals (gold, base metals and diamonds) and energy fuels.

• To introduce new technologies, equipment and research and development (R&D) facilities in order to increase the extraction yield , improve the quality of minerals and expand their use.

• To implement the Granite Conservation and Development Rules, 1999.

• To formulate measures to check illegal-mining and pilferage of mineral revenue.

• To develop a knowledge-base and ensure sustainable supply of raw materials for mineral-based industries established within the state through the state mining corporation – the Chhattisgarh Mineral Development Corporation (CMDC).




41

Energy Policy, 2001

Aim: Chhattisgarh has immense potential for coal-based thermal power generation. The policy aims to accelerate the pace of development of the state, bring it at par with other developed states, and ensure the availability of reliable and cheap electricity to every section of society, both, in the rural and areas.


• To provide electricity to the farmers for agricultural purposes.

• To provide quality power at reasonable rates to industries on demand.

• To allow power generation through captive power plants for industries.

• To increase power generation capacity by means of renovation and modernisation, and innovation in renewable energy sources such as solar, biomass and bio-gas.

• To pursue power sector reforms, energy conservation and management.

• To enable and ensure consumer satisfaction.




42

IT and ITeS Policy

Aim: To create an enabling environment for promoting the growth of the IT industry in the state.

Key initiatives and objectives:

• 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 per cent 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.




43

IT and ITES Policy (continued)


• Interest subsidy on term-loans and working-capital of the small scale industrial (SSI) units and large, medium industrial (LMI) units.

• 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 five 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.

• Reimbursement of up to 50 per cent of the fee paid (up to a maximum of US$ 1,630) for an International Organisation for Standardisation (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.




44

Biotechnology Policy

Key objectives:

• 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 per cent 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 institutionalise 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.




45

Biotechnology Policy (continued)

Key initiatives:

• 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.

• 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 postgraduate courses in biotechnology, and industry-partnered education programmes.

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




46

Biotechnology Policy (continued)


• Incentives for ISO certification and other global standards as mentioned under the Industrial Policy, 2004.

• 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-fertiliser, tissue-culture, cocoon-rearing, rhizobium-culture and blue-green algae culture.

• Exemption from pollution-control regulations for all bioinformatics 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 per cent 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, currently, at US 6.4 cents per unit.

• All new biotechnology industrial units will be exempt from paying electricity cess for a period of 10 years after the start of commercial production.




47

Company logos cited in this section are registered trademarks of the respective companies.


Contents







48

Mining

• Chhattisgarh is the among richest Indian states in terms of mineral wealth, with 28 varieties of major minerals including diamonds.

• The state holds the major share of coal deposits in India, which has led to its 'power hub' aspirations.

• It is the only state in India to have tin-ore reserves.

Important minerals reserves in Chhattisgarh (million tonnes)

Mineral India Chhattisgarh Share in India’s reserves (%)

Iron ore 14,630 2,731 18.67

Coal 253,302 41,442 16.36

Bauxite 3,290 148 4.50

Limestone 175,345 9,038 5.15

Dolomite 7,533 847 11.24

Tin Ore 87 32 37.69

Quartzite 1,145 26 2.27

Source: Federation of Indian Mineral Industries, 2007-08

• About one-sixth of iron ore in the country is mined here and one of the best-quality, iron-ore deposits in the world is found at the Bailadila mines in the south of Chhattisgarh from where it is exported to Japan and other countries.

• Rich deposits of bauxite, limestone, dolomite and corundum are also found in the state, making it the ideal location for the lowest cost of production of end-products such as cement and aluminium.


BUSINESS OPPORTUNITIES

49

Mining – company profiles

National Mineral Development Corporation (NMDC)

• NMDC is the country’s single-largest iron ore producer and exporter. It produces more than 28.5 million tonnes of iron ore from its fully-mechanised mines. The company, currently, operates two mines at Bailadila in Chhattisgarh.

• Iron ore from this region is considered the best for manufacturing steel as it has almost 66 per cent super high-grade iron content that is free from sulphur and other deleterious materials. In 2008-09, the company had a revenue of US$ 1.64 billion and an employee base of 5,652.

• NMDC plans to increase its total iron-ore production capacity to 50 million metric tonnes per annum by 2014-15. It has started expansion of its Bailadila 11-B mine by 7 million metric tonnes and at a cost of US$ 132 million. The expansion is expected to be complete in the first half of 2010. In 2009, the company also announced plans to set up an integrated steel plant in Jagdalpur.



50

Iron and steel

• The state is the iron and steel hub of the country. The Bhilai Steel Plant of Steel Authority of India Limited (SAIL) produces more than 4 million tonnes of iron and steel per annum. In addition, substantial capacities have been set up by the private sector as well.

• Chhattisgarh contributes 28 per cent of India's sponge iron production.

• The state ranks third among all the iron-ore producing states in India.

• In 2007-08, the state produced around 31.6 million tonnes of iron ore, amounting to approximately US$ 765 million.

Source: Chhattisgarh State Industrial Development Corporation

Key players

• Steel Authority of India Limited • Monnet Ispat and Energy Limited• Jindal Steel and Power Limited • MSP Steel and Power• Ind Synergy Limited• Prakash Industries Limited• Godawari Power & Ispat Limited• Tata Steel• Essar Steel• Nalwa Steel and Power Limited



51

Steel Authority of India Limited (SAIL)

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 specialises in other products such as wire rods and merchant products.

It is accredited with ISO 9001:2000, Quality Management System Standard and ISO-14001 certification for its environment management systems. The company plans to invest US$ 5.5 billion up to 2012 in its integrated steel plants.

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.

Prakash Industries Limited Established in 1980, the company is a part of the Surya Roshni Group. It had a revenue of US$ 337 million in 2008-09. The company has iron ore and coal mines in Chhattisgarh. It has an integrated steel plant in the Janjgir district and a rolling mill in Raigarh. The company’s products are iron ore, coal, sponge iron, steel bloom, billets, ingots, wires, wire rods and ferroalloys.

Iron and steel – company profiles … (1/3)



52

Jindal Steel and Power Limited (JSPL)

JSPL is one of the largest coal-based sponge iron manufacturers in India. It has an employee strength of over 15,000. The company has a production facility at Raigarh, which has a capacity of 1.3 million tonnes of sponge iron and 3 million tonnes of steel. The company has set up an industrial park in Raigarh that houses 32 industrial units. JSPL is the largest private-sector investor in the state, with a total investment commitment of US$ 6.25 billion. JSPL has plans to set up a steel plant of 7 million tonnes and a 1,600 MW power plant, at an investment of US$ 5.2 billion.

MSP Steel and Power MSP Steel and Power is a part of the MSP Group, which began operations in 1996. The company has manufacturing plants across the Eastern part of India, with sponge iron, thermo-mechanically treated (TMT) bars, ingot and billet producing units in Jamgaon. The company had revenues of US$ 88 million in 2008-09.

Ind Synergy Limited Established in 1986, the company has large mining assets of iron ore, coal, zinc, manganese, etc. It has an iron and steel manufacturing unit in Raigarh, where it produces sponge iron and steel billets – branded as Paramount Steel. It has a production capacity of 300,000 tonnes per annum of sponge iron and 130,000 tonnes of steel.




53

Godawari Power & IspatLimited

A flagship company of the Hira Group of Industries Godawari Power is an integrated steel producer of mild steel wires. It also produces sponge iron, billets, ferroalloys, wire rods, steel wires and fly-ash bricks. The company had revenue of US$ 225 million in 2008-09. It plans to set up an iron-pellet plant in the state and has also been granted two mining leases by the state at Ari Dongri and Boria Tibu.

Tata Steel Established in 1907, Tata Steel is Asia's first and India's largest private-sector steel company. It is among the lowest-cost producers of steel in the world and in the select list of global steel companies. Currently, 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 and is expected to provide direct employment to 4,000 persons.

Essar Steel Essar Steel is a large steel producer with offices in India, Canada, USA and South East Asia. In 2008-09, it had a revenue of US$ 2.8 billion and produced 9 million tonnes of steel. It is in the process of making significant investments in setting up steel plants across the world. The company has a steel-beneficiation plant at Bailadilla, with an annual production capacity of 8 million tonnes.

Nalwa Steel and Power Limited

Formed in 1989, Nalwa Steel is primarily involved in the production of sponge iron, billets, and wire rods. In 2007-08, it produced 198,000 tonnes of sponge iron, 172,800 tonnes of billets and 250,000 tonnes of wire rods. The company has its manufacturing facility in Raigarh and sources its dolomite from Bilaspur and Raipur.




54

Cement

• The state has widely occurring limestone reserves that support a strong cement sector.

• At present, Chhattisgarh accounts for 4.73 per cent of the total limestone reserves in India.

• In 2007-08, the state produced 15.6 million tonnes of limestone, accounting for about 8.3 per cent of India’s production.

• The state has nine major and 12 minor cement units; a majority of the cement production units are concentrated in the Raipur area.

Key players

• Associated Cement Companies Limited

• Lafarge Group

• Grasim

• UltraTech Cement Limited

• Gujarat Ambuja Cement

• JK Lakshmi Cement Limited

• Century Cement

Source: Federation of Indian Mineral Industries, 2007-08



55

Associated Cement Companies Limited (ACC)

ACC is one among the large cement manufacturing companies in India with a production capacity of 21 million tonnes per annum (MTPA). It is also India's largest refractory manufacturer and supplier, the largest research and consultancy organisation in the Indian cement sector and a pioneer in the area of advanced materials. ACC has a cement plant at Jamul in the Durg district, with a production capacity of 1.58 million tonnes. For the year ending December 2009, ACC’s revenue was US$ 1.8 billion.

Lafarge Group Lafarge India is a unit of the Lafarge Group – the world's leading cement and construction material company. The total cement-manufacturing capacity of Lafarge India is 6.5 million tonnes per annum. It has two cement plants, located at Sonadih and Arasmeta with a cumulative capacity of 2.1 MTPA. The company is in the process of expanding its existing units in Himachal Pradesh and Chhattisgarh, which will increase the production capacity to 12 MTPA.

Grasim A company of the Aditya Birla Group, Grasim is a leading cement manufacturer in the country. It ventured into cement production in the 1980s and as of June 2009, had 11 composite plants, 11 split-grinding units, four bulk-terminals and 64 ready-mix concrete plants. The 2008-09 revenue from cement sales was US$ 1.7 billion. It has a composite plant, located at Rawan in the Raipur district, and produces grey cement.

UltraTech Cement Limited

UltraTech Cement is also a part of the Aditya Birla Group, and has an annual capacity of 18.2 million tonnes. It manufactures ordinary portland cement, portland blast-furnace slag cement and portlandpozzolana cement. It also manufactures ready-mix concrete. The company has five integrated plants and six grinding units. Its Chhattisgarn plant is located at Hirmi.

Cement – company profiles … (1/2)



http://www.lafarge-cement.co.in/wps/portal/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd463dNUvyHZUBADlQ1pD�

56

Gujarat Ambuja cement Established in 1986, Gujarat Ambuja has a production capacity of 18.5 million tonnes. For the year ending December 2008, the company had a revenue of US$ 1.4 billion. In April 2009, the company announced plans of setting up a manufacturing plant in Chhattisgarh, at an investment of US$ 650 million. The new plant is expected to have an employee strength of 500 and a production capacity of 2.5 MTPA.

Emami Cement Ememi Cement is a company of the Kolkata-based consumer goods company, the Emami Group, which has decided to enter 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 of 3.1MTPA capacity. The plant is expected to commence operations in 2012.

JK Lakshmi Cement Limited JK Lakshmi Cement was established in Rajasthan in 1938. It has a production capacity of 47.5 MTPA. The company is in the process of setting up a 2.7 MTPA, green field cement plant in Durg.

Century Cement Century Cement is a part of the B. K. Birla Group and is located at Baikunth in the Raipur district. It has a production capacity of 2.1 MTPA. The company sells portland pozzolana cement (PPC), and portland slag cement (PSC), under the brand name – Birla Gold.

Cement – company profiles … (2/2)



57

Food processing industry

• The state’s position as the ‘rice bowl of central India’ and its reliance on agriculture has led to the identification of the food processing industry as a special-thrust industry.

• The Government of Chhattisgarh is setting up a food processing park in the state. The park will be located in district Rajnandgaon (45 km from Raipur) on 120 hectares of land. The project development is in full swing and is being implemented in the PPP mode.



58

Sources: Chhattisgarh State Industrial Development Corporation, Economic Survey 2008-09

• Biodiversity, a dedicated biotechnology policy, and abundance of medicinal plants of over 1,500 varieties are some of the factors that make the state a natural destination for the herbal-medicinal industry.

• It has been proposed to develop a herbal-medicinal park at the Banjari and Bagaudh villages of Kurudhtehsil (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. The park will have about 500 units and with a potential to attract an investment of about US$ 60.97 million. The projects will be implemented through the PPP mode.

Herbal-medicinal industry



59

Gems and jewellery industry

• Chhattisgarh is one of the richest mineral sources in the country, including precious minerals such as gold and diamonds. The state is projected to emerge as one of the 22 economical diamond mines in the world, once production commences.

• The state is planning to establish a gems and jewellery special economic zone (SEZ) to carry out value addition within the state and attract new investments in the sector. The gems and jewellery SEZ will be developed on about 70 acres in Naya Raipur.



60

Sources: Chhattisgarh State Industrial Development Corporation, Economic Survey, 2008-09

• Chhattisgarh is one of the leading producers of tussar and kosa silks in the country and has the potential to be a strong player in the Indian apparel industry.

• The CSIDC is establishing an apparel park on about 20 hectares for the development of textile and textile-based industries and to attract new investment in the sector.

Apparel industry



61

Aluminium and metal industry

• Chhattisgarh’s rich mineral profile and the presence of large iron and steel players have prompted the state to develop the metals sector as a whole.

• Besides other large domestic and international iron and steel manufacturers, Bharat Aluminium Company Limited (BALCO) has a large plant in the state.

• The state plans to develop an aluminium park for downstream products at Bhanpuri near Raipur. It will house more than 100 industrial units to manufacture various aluminium/metal products required in the civil aviation, automobile and construction sectors.

Source: Chhattisgarh State Industrial Development Corporation



62

Major industrial projects being implemented

Promoter Project Investment(US$ million) Location

Aluminium

Bharat Aluminium Company Limited Aluminium smelter project 1,760.9 Korba

Tourism/Entertainment

Raipur Development Authority City centre-cum-multiplex 43.5 Raipur

Airports Authority of India Airport expansion project 29.6 Raipur

Cement

Emami Cements Limited Cement project 347.8 Raipur

Ambuja Cement Eastern Limited Cement project expansion 217.4 Raipur

Power

Wardha Power Company Private Limited

Coal-based power project 3,473.4 Janjgir-Champa

Chhattisgarh State Power Generation Company Limited

Thermal power project 1,195.4 Janjgir-Champa

Iron and Steel

Indus Steel and Power Limited Integrated steel project 43.7 Raipur

Steel Authority of India Limited Integrated steel project 1,087.0 Durg

Source: projectstoday.com



63

Key industrial projects being planned

Promoter Project Investment(US$ million) Location

Infrastructure

Merlin Projects Limited Integrated township 65.2 Raipur

Mining

Rashtriya Ispat Nigam Limited Iron ore mining project 108.7 Rowghat

Iron and Steel

Tata Steel Limited Integrated steel plant 3,913 Bastar

NMDC Limited Integrated steel plant 3,043.5 Bastar

Cement

Kasturi Cement Limited Cement project 489.1 Raipur

Power

NTPC Limited Lara Integrated thermal power project 4,347.8 Raigarh

Chambal Energy Limited Coal-based power project 1,587.0 Janjgir-Champa

Oil and Gas

Essar Oil Limited Paradip-Raipur pipeline project 103.5 Raipur

Source: projectstoday.com



64


Contents







65

• Prior to setting up business in the state, certain approvals are required from different departments. The approvals are to be taken from the State Government in the following order:

Step 1:

Step 3: Water connection

CSIDC allots the plot for setting up a project depending on the nature of industry and scale of investment.

The lease deed is signed between the CSIDC and land applicant.

The completed application form should be submitted to CSIDC, which is also responsible for providing the waterconnection.

CSIDC is responsible for providing an electricity connection.

Application in prescribed format is submitted to the District Trade & Industries centre (for investment up to US$ 2.43 million)/State Investment Promotion Board (for investment above US$ 2.43 million) with environment impact assessment report

Step 1: Allotment of plots/built-up sheds

Step 2: Signing of the lease deed

Step 3: Water connection

Step 4: Electricity connection

Step 5: Pollution clearance

Key approvals required


DOING BUSINESS IN CHHATTISGARH

66

Chhattisgarh Industrial Investment Promotion Rules, 2004 … (1/3)

Name of clearance/activity No of days

Preliminary meeting with the convener after expression of intent by investor 7

Arranging site visit for identification of land for investor's project after preliminary meeting 21

Provisional registration of small-scale industry at District Trade & Industries Centre 3

Issuance of letter-of-intent for allotment of CSIDC industrial land 21

Forwarding of investor's proposal by CSIDC/Directorate of Industries to District Collector for transfer of government land

21

Forwarding investor's proposal by CSIDC/Directorate of Industries to the government for acquisition of private land

21

Approval by government on land acquisition proposal 30

Issuance of notification by the District Collector under Section 4 of the Land Acquisition Act, 1894 :A) Intimation of anticipated compensation amount to the investorB) Publication of Section 4 notification after deposit of anticipated compensation amount

a) 30b) 7

Issuance of certificate for exemption from payment of stamp duty by:A) District Trade & Industries CentreB) Directorate of Industries

a) 7 b) 15

Issue of No Objection Certificate from local bodies for establishment of industry 30



67


Grant of permission for building construction from Gram Panchayat 30

Grant of permission for development of land under the Chhattisgarh Nagar Tatha Gram Nivesh Adhiniyam, 1973 60

Grant of permission of land diversion 90

Grant of permission to develop, erect, re-erect or to make alteration in any place in a building under Chhattisgarh Nagar Tatha Gram Nivesh Adhiniyam, 1973

30

Sanction of allotment of water from Water Resource Department:A) At the applied siteB) At different site

A)60B)90

Issuance of power availability certificate by CSEB 30

Sanction of power supply for LT connection by CSEB 45

Sanction of power supply for HT connection by CSEB 60

Approval of drawings by electrical Inspector 15

Environment consent for small-scale industry under simplified procedures by District Trade & Industries Centre 10

Consent for establishment of Industry under Water (Prevention & Control of Pollution) Act, 1974 120

Consent for establishment of Industry under the Air (Prevention & Control of Pollution) Act, 1981 120

Registration and grant of licence under The Factories Act, 1948 90




68


Approval of plans and permission to construct/extend/or take into use any building as a factory under The Factories Act, 1948

90

Approval of site for hazardous process factory under The Factories Act, 1948 90

Registration of establishment under the Contract Labour (Regulation & Abolition) Act, 1970 30

Registration of Boiler Under Indian boiler Act, 1953 30

Registration under Chhattisgarh Vanijyik Kar Adhiniyam, 1994 1

Registration under The Central Sales Tax Act, 1956 1

Permission for use of forest land for non-forest purposes under Forest (Conservation) Act, 1980A) New applicationB) Renewal of application

A)90B) 30

Permanent registration of small-scale industry at the District Trade & Industries Centre 21

Production certificate for medium-and large-scale industry from the District Trade &Industries Centre 21

Source: Chhattisgarh Industrial Investment Promotion Rules 2004,State Investment Promotion Board, Government of Chhattisgarh




69

Cost of doing business in Chhattisgarh

Cost parameter Cost estimate

Industrial land (per sq ft) US$ 4.5 to US$ 10

Office space rent (per sq ft) US 85 cents to US$ 3 per month

PowerSmall and medium industries: 6.6 cents/kWh to 8.9 cents/kWhLarge industries: 9.2 cents/kWh

Labour (minimum wage per month) US$ 53 to US$ 55

Sources: Industry sources, Directorate of Industries and Department of Labour



70

Contact list

Key agency Contact information

Chhattisgarh State Industrial Development Corporation (CSIDC)

LIC Campus, Pandri, RaipurPhone: 91-77-2583 793/4070 534/2583 789Fax: 91-77-2583794E-mail: [email protected]: www.csidc.com



http://www.kumbengaluru.com/�

71

Annexure

Year INR equivalent of one US$

2000 46.60

2001 48.30

2002 48.04

2003 45.60

2004 43.70

2005 45.20

2006 45.00

2007 42.00

2008 40.20

2009 46.00

Exchange rates

Average for the year



72


India Brand Equity Foundation (“IBEF”) engagedICRA Management Consulting Services Limited (IMaCS) to prepare this presentation and the same has been prepared by IMaCS in consultation with IBEF.

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This presentation is for information purposes only. While due care has been taken during the compilation of this

presentation to ensure that the information is accurateto the best of IMaCS’s and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.

IMaCS and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.

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