After being ranked fourth among Indian states in ‘Ease of Doing Business’ Index by The World Bank, Chhattisgarh is taking fresh steps to further enhance its competitiveness and attract a greater number of foreign investors.

The Dollar Business caught up with Dr. Raman Singh, Chief Minister of Chhattisgarh, to hear of his efforts to make Chhattisgarh the easiest state for doing business in.

Ahmad Shariq Khan | August 2016 Issue | The Dollar Business

TDB: Chhattisgarh was formed on November 1, 2000. Within a short span of time, the state has made rapid strides on various fronts. How do you see the journey so far, particularly when it comes to creating enabling environment for industries to flourish?

Dr. Raman Singh (RS): As you rightly pointed out, the State of Chhattisgarh has made rapid progress on many fronts. The gross state domestic product (GSDP) of Chhattisgarh is expected to reach $47.75 billion in FY2018 from $38.68 billion in FY2016. The GSDP of the state grew at a compound annual growth rate (CAGR) of 12.48% between FY2005 and FY2015. We understand that incoming investments are the key to the overall development of the state, and to further bolster it, we are undertaking several initiatives.

Industries form the backbone of the state and have played a vital role in development of the state and providing large scale employment to thousands of citizens. Going forward, we are committed to offering them an enabling ecosystem so that they can flourish at an even faster pace. Our last budget is a testimony to our endeavours in this direction. Like last year, we have kept many provisions in this year’s budget for mass welfare and therefore shaped a pro-people budget. The budget focuses on the growth of farmers, youth, labourers and all the needy sections of the society besides balanced development in all the sectors.

TDB: Chhattisgarh stands fourth among Indian states in ease of doing business and reforms implementation (according to World Bank data). It has also emerged as one of the most preferred investment destinations in the country. The state has been acclaimed as ‘one of the best fiscally managed states’ by Reserve Bank of India. What makes Chhattisgarh an ideal investment destination?

RS: Several factors are responsible for this. A wide range of business friendly policies and incentives have been announced under the State’s Industrial Policy 2014-19. We also have huge land banks that are ideal for big industrial projects. With our total land area of 1,35,000 sq.km, we are the tenth largest state in India. Our state is centrally located, providing access to major markets across the country. Naya Raipur, India’s first greenfield smart city is the template for all smart cities.

Another advantage of Chhattisgarh is that it shares borders with seven other states that facilitates access to a population of about 510 million. Industrially, we have always been very strong in the core sectors and now we are putting a lot of emphasis on helping our industries upgrade and diversify to the non-core, sunrise sectors.
Abundance of natural resources, low-cost around the clock power supply, adequate connectivity, skilled resources, low cost of doing business and good governance have given an industrial edge to Chhattisgarh.

Our existing single-window system, which enables ease of doing business, has been empowered with technology. Further, our common application form for setting up business, faster clearances and process automation are other enabling factors. In fact, we are doing a complete business process reengineering to ensure a hassle-free business environment.
Last but not the least, our fiscal management is focused on optimised utilisation of available resources and distribution of the same as per state’s priorities.

TDB: Chhattisgarh is a leading producer of minerals such as coal, iron ore and dolomite, accounting for about 22.6%, 19.8% and 36.5% of India’s total production of these minerals respectively. Chhattisgarh is ranked fifth, in terms of value, as far as mineral production in the country is concerned. The state also accounts for significant amount of tin ore reserves of India. Considerable reserves of bauxite, limestone and quartzite are also available. Please tell us how you plan to use these assets for ushering in further industrial growth?

RS: Yes, Chhattisgarh has an inherent strength in minerals and we are grateful to nature. Almost all the coal deposits of India, that are the bedrock of the ‘powerhub strategy’, are located in Chhattisgarh and two other states. Incidentally, Chhattisgarh is the sole tin ore producing state of India. Besides having one fifth of the country’s iron ore reserves, the state also abounds rich deposits of bauxite, limestone, dolomite and corundum. It is indeed propitious that the state has large deposits of coal, iron ore and limestone in close proximity. This has reduced the cost of production.

The Chhattisgarh Mineral Development Corporation Ltd. (CMDC) is taking several initiatives to further improve the industrial scenario as far as minerals are concerned. We believe, there is great scope for private participation in the mining sector of Chhattisgarh. The State’s Mineral Policy, 2001, has created a conducive business environment for attracting private investment into the state, both domestic and international. Procedures have been simplified and now there is complete transparency in terms of decision-making.
Another advantage is the easy availability of large cohort of technically qualified human resource that are trained in tailor-made programmes in geology, geophysics, geochemistry, mineral beneficiation, mining engineering and environmental science. The state is also ensuring a minimum lease area with secured land rights so that investors can safely commit large resources to mining projects.

In short, by leveraging our strengths and nature’s bounty of minerals and forest, we are focusing on value addition in these sectors. Chhattisgarh after being established as a core sector hub of the country is looking for new opportunities in the sectors which are directly related to minerals. We are looking for new investments in the heavy engineering sector to leverage our established credentials in iron and steel. Projects like coal gasification would add value to the black diamond of the state. Likewise, we are creating an ecosystem for developing other non-core sectors and boosting our services sector that in turn will accelerate socio-economic growth.
 
TDB: Chhattisgarh is making significant investments in industrial infrastructure. The state also has a notified special economic zone (SEZ) in Rajnandgaon District. Please tell us more about these endeavours and what results are you expecting from them?

RS: As I mentioned, we are developing an enabling ecosystem to welcome new sectors with high investment and employment potential. We are also focussing on fresh opportunities for adding value to the existing sectors. The ecosystem includes connectivity, support infrastructure and logistics, urban development, skilled manpower, ease of doing business, smooth business environment, policies and world-class, sector-focused industrial centres.

We are in the process of developing a 550-km stretch of rail network. Another 750-km stretch is proposed to be developed for aiding better connectivity in the state. I am glad to share with you that in the coming five to six years, we are going to double our rail network without availing any budgetary support from the Ministry of Railways. The projects are being developed through Special Purpose Vehicle of Central and State PSUs, IRCON and the Government of Chhattisgarh.

We are also developing and upgrading a 9,000-km road network with a proposed investment of Rs.24,000 crore in the course of the next three years. Three new airports are proposed that are envisaged to boost the business prospects of the state. World-class logistics hubs and ICDs (Inland Container Depots) are also being created. Naya Raipur is a live example of our commitment towards urban development. In addition to this, we are committed to developing all our major cities which would act as a catalyst to business. The state’s initiatives for skill development have been applauded in the country. We have trained over 3 lakh young people in the last two years.

World-class and sector-focused industrial infrastructure is a prerequisite for industrial development and we are making our efforts in this regard. CSIDC is developing an Electronic Manufacturing Cluster in Naya Raipur, a Plastic Park in Rajnandgaon, a Food Park in Dhamtari and a Defence Manufacturing Cluster in Rajnandgaon. Engineering Park in Bhilai, Metal Park in Raipur and Aluminium Park in Korba are some examples of world-class sector-focused industrial infrastructure that has recently been developed by CSIDC. This infrastructure has pronounced demand from both local and national investors. CSIDC has also created an industrial land bank that is a great boon to upcoming projects.

We are getting intents from investors of national and global repute for investments in our focus sectors. In the last one year, we have received investment intents of more than Rs.76,000 crore, which is an indication that our initiatives are getting the desired results.

TDB: Any message that you would like to send out to the global businesses that are mulling investment in your state?

RS: Our message is fairly straight and simple – we are committed to making Chhattisgarh the easiest state for doing business and want to ensure a comprehensive and congenial ecosystem for industries and investors who chose to partner with us. We offer a wide range of fiscal and policy incentives to businesses under our Industrial Policy, 2014-19. Additionally, the state has well-drafted policies for IT/ITeS, solar energy, agriculture & food processing, minerals and biotechnology sectors. In short, we are committed to offer excellent return on investment (ROI) to our investors.