Introduction to the economy of Chhattisgarh

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Introduction to the economy of Chhattisgarh:-

 

Economy of Chhattisgarh boasts of a thriving infrastructural support which is aptly enhanced by multifarious industries. While agriculture and power are the key drivers of growth in the state, real estate, banking & finance and tourism sector are the other allied industrial zones that collectively form a strong economic platform for Chhattisgarh.

Salient Highlights:-

  • One of the few states having surplus electricity, Chhattisgarh is quite efficient in utility-based power consumption. Korba district in Chhattisgarh is known as the power capital of India. It is also among the few profitable states in terms of utility-based electricity. By the end of 2016-17, Chhattisgarh has planned to achieve installed power generation capacity of 30,000 MW. The gross state domestic product (GSDP) of Chhattisgarh is expected to reach US$ 47.75 billion in FY 2018 from US$ 36.6 billion in FY 2015.
  • Between 2011-12 and 2016-17, the agriculture sector grew on an annual rate of 3.7% (in real terms). At the same time, the manufacturing and services sector grew at an annual rate of 8.1% each. In 2016-17, the largest contribution to GSDP wad from manufacturing (49%), followed by services (36%) and agriculture (15%) sectors.
  • During this period, the per capita income of Chhattisgarh increased at an average rate of 14%, from Rs 55,177 in 2011-12 to Rs 91,772 in 2016-17. In comparison, the per capita income of India was Rs 1,03,007.
  • During this period, the per capita income of Chhattisgarh increased at an average rate of 14%, from Rs 55,177 in 2011-12 to Rs 91,772 in 2016-17. In comparison, the per capita income of India was Rs 1,03,007.
  • The Gross State Domestic Product (GSDP) of Chhattisgarh for 2017-18 at current prices is estimated to be Rs 2,77,000 crore, computed from the fiscal deficit estimates for 2017-18. This is 5% higher than the revised estimates for 2016-17.
  • Gifted with mineral resources, Chhattisgarh has a vibrant mining industries offering employment to local people. Chhattisgarh is a leading producer of minerals such as coal, iron ore and dolomite, accounting for about 22.6 per cent, 19.8 per cent and 36.5 per cent of India’s production, respectively. Moreover, considerable reserves of bauxite, limestone and quartzite are available in the state. Chhattisgarh is the only state in India that produced tin concentrates. The state accounts for 35.4 per cent of tin ore reserves of India.
  • Apart from major minerals, the state has huge deposits of bauxite, limestone and quartzite, all of which contribute the much needed income to the state exchequer.
  • Chhattisgarh has emerged as one of the most preferred investment destinations in India. The state has been acclaimed as “one of the best fiscally managed states” by the Reserve Bank of India (RBI). The state attracted cumulative FDI worth US$ 1.29 billion from April 2000-March 2016.
  • A wide range of fiscal and policy incentives for businesses have been announced under its Industrial Policy, 2014-19. Additionally, the state has well-drafted policies for the IT/ITeS, solar energy, agro and food processing, minerals andbiotechnology sectors. Chhattisgarh stands fourth among Indian states in rankings based on ease of doing business and reforms implementation, according to a study by the World Bank and KPMG.

Key Sectors:-

 

Agriculture
Bastar plateau, Chhattisgarh plains and Northern hills are the prime geographical landmarks that have been marked as the productive areas of Chhattisgarh Agriculture. In the year 2002, out of the entire land area of 13787000 hectares, the net irrigated region of Chhattisgarh was around 10, 72, 000 hectares. This indicates the extensive contribution of agriculture towards the economy of Chhattisgarh. Except from a total of 10, 13, 000 hectares which has been recognized as unsuitable for farming, the remaining lands of the state are extremely fertile and gives a high production of crops round the year. Maize, rice, paddy, jowar, groundnut, gram, oilseeds and wheat are the chief crops of Chhattisgarh that gives a high yield in the respective cropping season. Engineering equipments play a vital role in enhancing the agricultural production. Chhattisgarh has a well-equipped agricultural engineering department which specializes in different types of advanced tools and machineries that are used by the farmers of the place to increase the overall grain production.

Horticulture is a significant extension of agriculture industry in the state of Chhattisgarh. Medicinal herbs, flowers and aromatic plants form the key component of horticulture in the state. Farmers migrating from other adjacent states and villages are primarily absorbed by the horticulture industry of Chhattisgarh. This in turn leads to better economic prospects of the specific sector. The government of Chhattisgarh offers co-operatives to the farmers of the state to enable them to buy best quality seeds and agricultural tools. Also, from time to time, the state and district level co-operatives provide loan facilities to the under-privileged peasants. Chhattisgarh agriculture, with each passing day, is gaining a new momentum which will help it to forward its steps towards a economically viable phase.

Banking and Finance:-

Chhattisgarh Banking & Finance plays a significant role in the over-all progress of the economy of the state. Banking sector of the sate involves a wide gamut of operational transactions such as cash withdraw and deposit various types of loans, acceptance and encashment of cheques, among many others. The government of Chhattisgarh has its own department of finance which deals with a number of non-banking activities too. From regular appraisal of receipt and expenditure to declaration of state budget, the finance department of Chhattisgarh also looks into the pension related issues of the people of the state. Another important service provided by the department is the issue of circulars regarding various amendments and new improvements in the financial sector of the state. This helps in keeping the concerned sectors updated about the latest happenings in the banking industry.

Providing a number of flexible financial services like that of home loans, ATMs, car loans etc, the banking and financial institutions of the state forms a compatible base on which factors of economic growth gain a positive dimension. Almost all the nationalized banks of India are present in each of the districts of Chhattisgarh. State Bank of India, Union Bank, Vijaya Bank, Allahabad Bank, United Bank of India, syndicate Bank and Oriental Bank of Commerce are some of the prominent financial institutions that are present in the sate of Chhattisgarh. Treating customers with all the advanced financial facilities, the banking & finance industry of the state strives to perform better than the best of all other fiscal organizations of India.

 

Tourism

Enriched with myriad treasures of natural splendor, the Chhattisgarh Tourism Industry adds a significant boost to the economy of the state. From the artistic rock engravings in the ancient hills and pristine streams to wildlife parks and tribal communities, the state of Chhattisgarh is synonymous to eternal aesthetic pleasure.

Some of the enigmatic touristy places of Chhattisgarh that receive record number of footfalls round the year are as follows:

  • tiratgarh waterfalls
  • Palace of Kawardha
  • atanpur temples
  • ailash gufa
  • kanker palace
  • danteswari temple
  • indravati and kanger valley national park
  • mahamaya temple
  • dandak caves
  • chitrakot waterfalls
  • jonk and apara lakes

The tribal communities of the state like Gond, Muriya, kol, Munda, Bhunjia, Dandami, Savra, Halba, Parja, Parghi, Kamar and many others entices the tourists through their distinctive cultural heritage which include a vibrant palate of folk arts and religious rituals which are totally unheard of in the modern-day world. People from all over the world come to visit the exotic and unexplored tourist spots of Chhattisgarh. The various well-furnished hotels, resorts and lodges of the state efficiently accommodate the tourists along with offering them best tour and travel packages. From Raipur, Bilaspur, Bastar, Janjgir-champa, Kanker, Raigarh and Mahasamund to Surguja, Rajnandgaon, Durg, Dhamtari, Jashpur, Korea, Korba, Kawardha and Dantewada, all the districts of Chhattisgarh are brimming with an individual tourism trait. This individuality and uniqueness help in manifold increase in the revenue generation for the state of Chhattisgarh. The tourism department of the state works on effective initiatives such as launching of promotional campaigns, establishment of more tourist stay-inns and exploration of many hidden natural pockets to widen the prospects of the sector further.

Thermal Power Plants

Chhattisgarh Thermal Power plants generates electricity on such levels that are quite sufficient in meeting the demands of the whole state. Korba thermal Power station at the CESB East Bank, National Thermal Power Corporation Limited, Hasdeo Bango project are worth of mention.

It is believed that that the state of Chhattisgarh, with its wide-spread coal mines possesses a total capacity of 61000 MW of thermal power generation. Over the years, with the installation of captive power plants in various strategically located areas, a major boost is experienced by the electricity generating units of the state. The National Thermal Power Corporation Limited with three 500 MW and three 200 MW centers is positioned in the Korba area of Chhattisgarh and consumes 40, 000 MT of coal on a daily basis. Apart from supplying power to the core regions of Chhattisgarh, this unit of NTPC also distribute electricity to other states of India like Gujarat, Maharashtra and Madhya Pradesh and even to Dadra, Nagar Haveli, Daman and Goa. Hasdeo Thermal Power station which is also known as CSEB West Bank was installed in the year 1983 and has a capacity of 840 MW. Whereas CSEB East Bank in the Korba region has an electricity potential of 540 MW. IBP Explosive Plant at Gopalpur near Korba of Chhatissgarh state has an installed capacity of 25, 000 MT per year. Bango Hydel Plant is another significant project of the sate which is able to generate 120 MW of electricity. South Eastern Coal Fields (SECL) in and around the Korba district of Chhattisgarh are the prime raw material sources for the thermal power plants of the sate. There are around 12 coal mines in Chhattisgarh.

Mining

Chhattisgarh Mining sector has emerged in the state with huge possibilities. Since the entire region is blessed with rich deposits of iron ore, coal, bauxite, cassiterite and dolomite, the Chhattisgarh Mineral Development Corporation continuously engages in various commercially-benefiting exploration and mining lease activities. The Directorate of Geology and Mining in the Raipur district of Chhattisgarh is famous for its knowledgeable personnel who can impart resourceful information regading the traits and location of various minerals found in the state. South Eastern Coal Fields, also called as SECL, at Korba of Chhattisgarh is an excellent base from where the mining sector of the state has received major impetus. Since the reserves of tin, iron , dolomite and other similar elements are spread over the huge geographical space of Chhattisgarh, hence it is but natural that mining and production cost are quite low which in turn brings greater returns economically. Mining engineers of Chhattisgarh are known for their outstanding expertise. It is the mastery and acumen of the geophysicist, geologists and geochemist departments that collectively make it possible to perform well on a consistent basis. Singhbhum and Bastar regions of Chhattisgarh are coming up as prominent hubs of jewellery and gems park. Since there are evidences of diamond and gold deposits too, hence the government of Chhattisgarh is welcoming many private mining companies also. In the recent past, several foreign investors have showed considerable interest in the mining industry of Chhattisgarh. As the Chhattisgarh Mining rules and regulation of the state are quite conducive to export -related opportunities, so a number of mining units have already started establishing their base in the state.

Industrial Organization

The Chhattisgarh Government is projecting the potentiality of the state to rope in major industrial groups to invest in the state and improve the overall industrial picture. It has achieved considerable success in bringing major industrial houses that have established factories and plants in different regions of the state. The presence of Industrial Organizations in Chhattisgarh proves the progress the state has achieved. The major Chhattisgarh Industrial Organizations are: –

  • Bhilai Steel Plant – the only producer of heavy steel plates and rails in India. It produces railway tracks of varied lengths and other merchant products.
  • National Thermal Power Corporation Limited – NTPC as it is popularly called is the largest thermal power generating company in India. It has a large coal based power station in Korba.
  • South Eastern Coalfields Limited – the largest coal producing organization with many coalfields in Chhattisgarh.
  • BALCO Aluminum Plant – Third largest aluminum producer of the country.
  • S.E.C. Railway Zone

These Industrial Organizations of Chhattisgarh have acted as the catalyst, building the industrial atmosphere of the province. The above-mentioned organizations do not only have their offices in the state but they have opened factories and plants that give large amounts of output. Also the presence of a major railway zone has helped the industrial communication to a great extent. To know more about the Industrial Organizations in Chhattisgarh, please log into the below mentioned links:

  • Bhilai Steel Plant
  • S.E.C. Railway Zone
  • BALCO Aluminum Plant
  • National Thermal Power Corporation Limited
  • South Eastern Coalfields Limited

Chhattisgarh Real Estate

Chhattisgarh Real Estate industry marks the tremendous infrastructure possibilities of the state. Starting from housing complex and official buildings to tourist resorts, bungalows and shopping malls, the industry of real estate in Chhattisgarh boasts of numerous profitable building and construction ventures that can transform the present economy into a symbol of immense prosperity. The main thrust of the state government of Chhattisgarh is on the complete infrastructure of the place which includes roads, hospitals, hotels, office apartments, residential flats and public utility spaces like parks. Since the districts of Chhattisgarh are resplendent with abundant natural beauty, the private real estate agencies focus more on construction of lodges, cottages and resorts in the land. Previously the real estate sector of Chhattisgarh was not present in the place in an organized form. But with due passage of time, the touristy spots of the state started attracting a huge rush of people from different parts of the world. Also, the non resident Indians begun showing major interest in the sector by investing large sums of money. All these led to the evolution of a new and improved state of real estate zone. Among the many existing and upcoming agencies and companies, the name of Chhattisgarh Real Estate which is located in the Raipur district of the state claims a special mention. With a dedicated team of architects and construction designers this company is continuously engaged in providing the most competitive property deals to the clients. There are several other real estate agencies too that promise to unique housing and infrastructure solutions within a very reasonable rate. With the joint effort of both the government of the state and Chhattisgarh Real Estate agents, the state is steadily getting an all new look.

Chhattisgarh Aluminium

Chhattisgarh Aluminum sector boasts of several core units and extrusion plants that are famous for their world-class quality. Bharat Aluminum Company Limited ranks high on the horizon of Chhattisgarh industries. Producing million tonnes of sheets and foils, the other aluminum units of the state aptly encourages the overall development of the economy.

Bharat Aluminum Company Limited in the Korba district is one of the proud manifestation of the industrial advancement of Chhattisgarh. Catering to the needs of a diversified range of manufacturing sectors of the state, the company also acts a vital job providing sector. Engaging a major portion of the local population, the company enables the state to increase the volume of income generation. Reserves of bauxite ore are spread across the length and breadth of Chhattisgarh. In fact such is the abundance of bauxite deposits in the various districts of the state that even after ample usage, a portion is transferred to other states of India for different industrial zones. The Chhattisgarh Mineral Development Corporation provides all possible assistance to the aluminum industries of the state so that more productive results could be achieved within a short span of time. Providing the basic framework for varied exploration works, the corporation also sees to the fact that not a single aluminum company of the state lags behind due to any financial or infrastructural constraint. As significant drivers of economic progress, Chhattisgarh Aluminum industries performs extremely well on both the state and national levels.

Steel

Chhattisgarh Steel industry holds a major position in the arena of Indian industries. 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. Bhilai Steel Plant 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 with its 3.6 million tonne capacity, stands tall on the industrial contours of Chhattisgarh. The Chhattisgarh State Industrial Development Corporation Limited consistently maintains and upgrade the in-built infrastructure of Chhattisgarh commercial units that are located in various districts of the state. The iron ore reserves of Chhattisgarh are quite abundant in nature. Supported by government and private bodies, today even the remote locales where iron deposit 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 a 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.

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