Defence Manufacturing Sector Profile Department of Commerce and Industries Government of Chhattisgarh
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1 Defence Manufacturing Sector Profile Department of Commerce and Industries Government of Chhattisgarh
2 C O N T E N T S State Profile: Chhattisgarh Chhattisgarh: Key Strengs Institutional Framework for Investment Facilitation Policy Support Key Investment Enablers Naya Raipur: The new SMART city of Chhattisgarh Sector Snapshot: Defence in India Chhattisgarh: Potential in Defence Sector Key Incentives for Defence Sector Key Contacts
3 State Profile: Chhattisgarh State Snapshot? State Snapshot?????? Geographical area: 1.35 Lakh square km. 27 districts wi Raipur as e Capital city Major cities: Bhilai, Bilaspur, Raigarh, Durg, Korba Ranks 17 in terms of population and 10 in terms of area in e Country GSDP grow consistently higher an National average. The State has clocked on an average, more an 8% grow rate over last 5 years GDP Per Capita: INR 69,000 (FY ) Established exports profile wi exports aggregating INR 30 billion Rich in Mineral Resources Of total production in India, Chhattisgarh produces: 30% Aluminum 30% Steel/ Sponge Iron 17% Coal 15% Cement 11% Dolomite High reserves of Bauxite, Limestone, Quartzite Only Tin producing State of e Country Power Surplus State Uninterrupted Quality power supply 1/3rd of national target of 90,000 MW in 12 Five Year Plan to be commissioned in e State. Total installed capacity of 23,000 MW Planned installed capacity of 41,384 MW by e end of e 12 plan Rich Water Resources Rich water resource State 5 river basins. 3 major ones Mahanadi, Indravati and Rihand Surplus run-off water available INR 15,000 Crore for water resource development in 12 Five Year Plan Rich Mineral Resources Abundant Water Resources Zero power cut across e State Average power tariff 35% cheaper an all India average Power Surplus State 3
4 Chhattisgarh: Key Strengs Central Location and Excellent Connectivity Central Location and Excellent Connectivity Direct physical access to markets of 7 states: Telangana, Andhra Pradesh, Uttar Pradesh, Madhaya Pradesh, Maharashtra, Bihar and Odisha Total road leng of 35,411 km including 12 National Highways 1187 km of Rail network Highest freight loading capacity. Railway operations in Chhattisgarh alone generate 1/6 of Indian Railway's revenues Existing Airport wi new, modern terminal building in Naya Raipur. It has won National Tourism Award for best airport in India in non-metro category. International flights to commence operations from Raipur soon. Airports proposed at Raigarh and Bilaspur Vizag Port at a distance of 548 km from Raipur Cargo complex is under development by AAI Container Corporation of India (CONCOR) is developing a Logistics Hub over 100 acres in Naya Raipur Centrally located wi potential to develop as e logistics hub of Central India Barrier free State Ease of Doing Business Land and Construction Cost amongst e lowest in India Lower Operating Cost Indore Positive Governance Pro-active Government Stable Leadership Enabling Institutions IT leveraged Administration
5 Institutional Framework for Investment Facilitation State Investment Promotion Board (SIPB), created to facilitate proposals wi investment above INR 10 Crores. SIPB is e empowered single point of contact for investments in e State. SIPB is headed by e Chief Minister, and consists of departmentally related ministers and Government officials, so as to ensure inter-departmental coordination. SIPB exercises powers of e State Government and Cabinet in so far as all matters relating to investment promotion are concerned. Department of Commerce & Industries is tasked wi policy formulation for all industrial investment in e State. Department of Commerce & Industries has identified Auto Sector as a key focus area of industrial grow wiin e State. Trade promotion and industrialization are e mandates of Commerce & Industries Department. Chhattisgarh State Industrial Development Corporation (CSIDC) is e executive auority involved in Industrial Promotion and Facilitation. Its functions includes land allocation, entering into JVs, managing PPPs and maintenance & up-gradation of industrial areas. It is also e nodal agency for implementing and monitoring NMFP scheme.
6 Policy Support Vision: Make in Chhattisgarh Industrial Policy To accelerate pace of industrialization To promote private sector participation for e development of basic and industrial infrastructure Electronics & IT/ITeS Policy To develop e ecosystem for a knowledge economy in e State To promote e State as an investment destination Separate online Single Window Portal Agro & Food Processing Policy 2012 Value addition of e agriculture produce, fruits & vegetables and pulses & oilseeds in e State Generation of new opportunities of employment in e agro and food processing sector Automotive Policy 2012 To bring special focus and spotlight on e Auto Sector Tremendous scope given existing metal ancillaries in Central Chhattisgarh Solar Policy 2012 To encourage, develop & promote solar power generation To meet growing demand of power in environmentally and economically sustainable manner 6 Focus on Ease of Doing Business Introduction of self certification / ird part certification Chhattisgarh is an emerging and attractive destination for investors
7 Key Investment Enablers: Talent Pool and Educational Infrastructure Indian Institute of Technology (IIT)- MHRD has announced to set up a new IIT in e State of Chhattisgarh. Indian Institute of Management (IIM) Raipur- A premier national institute in Management Education/ specialized research established in National Institute of Technology (NIT) Raipur- Premier institute in Engineering, IT and Technical Education offering graduate / PG courses established in All India Institute of Medical Science (AIIMS)- A premier institute for medical science and research in Raipur established in New campus of Indian Institute of Information Technology (IIIT) will start from Academic session Centre of Excellence set up by Siemens. Hidayatullah National Law University operational in Naya Raipur. Ever enlarging and deep pool of talent Educational Institutes Number Intake Capacity Engineering 49 18,870 Polytechnic 43 7,120 MBA 36 2,640 MCA Total Intake Capacity 29,530 7 State universities, 1 central university, 6 private universities, 204 Government colleges and 256 private colleges. Courses related to IT like B.Sc. in Computer Science, PGDCA, BCA etc. - offered by >50 colleges in e State. Total enrolment of 125,656 students in e Government Colleges in e State ( ). IIM, Raipur IIIT, Naya Raipur NIT, Raipur AIIMS, Raipur Nearly 30,000 professionals passing out into e job market, annually First State to provide skill development as a right. 1 lakh engineering candidates to be job-ready over e 12 plan period 7
8 Key Investment Enablers: Social and Physical Infrastructure Public Transportation Facilities Bus Rapid Transit System (BRTS) under implementation. Raipur Nagar Nigam Transport Limited (RNNTL) - City Bus is operational and currently 4 routes inside e city are being served by it. 4/6 lane road connectivity in Raipur, Naya Raipur, Bhilai and Bilaspur. Travel time is less wiin e city and ere are no traffic jams, which leads to more productivity and higher quality of life. Support Facilities Excellent support facilities and on-site infrastructure like internal road network, parking areas, security, uninterrupted power supply, water supply, sewage treatment, solid waste management and landscaping, especially in Naya Raipur. Healcare and Entertainment Facilities Healcare Institutions such as Apollo, Fortis, AIIMS Raipur (regional) Vedanta Cancer Care and Research Centre, Care, Sri Satya Sai Hospital and Narayana Hospitals are functional. 6 shopping malls in e city of Raipur, 2 in Bilaspur. More an 15 lakh sq. ft. of shopping space. Presence of major hotel groups: Taj, Hyatt, Marriot, Babylon, VW Canyon, GT Star, 10 Downing Street. Park Group soon to come. PVR, INOX, CineMax, Glitz, Big Cinema and oers. Good Quality of Life World Class Schools: Delhi Public School (DPS), NH Goel World School, Krishna Public School, Raj Kumar College (Public School), Kanger Valley, Mayur (Mayo) School and oers. Excellent Law & Order situation. Abundant availability of comfortable housing at affordable prices. All major and aspirational brands have presence. For example, luxury car showrooms such as Jaguar, Audi, BMW, Mercedes.
9 Naya Raipur: The new SMART city of Chhattisgarh Largest Landbank and Greenfield City: 4 New Capital City in e country (and first st in 21 Century) having a total gross area of 237 sq. km. (23,7000 Hectares). Naya Raipur has emerged as country s first smart city wi World class amenities. Sub-Area Head Quarter (HQ): Chhattisgarh Odisha Sub Area (COSA) setup and operational in Sector 03 of Naya Raipur. New Cantonment: 500 acres land allotted to Armed Forces and Paramilitary units such as Indo-Tibetan Border Police (ITBP), Central Reserve Police Force (CRPF) and Border Security Force (BSF) in Naya Raipur acres being set aside for Indian Air Force (IAF). Knowledge hub wi university, research and institutional complexes. World class amenities including 18-hole Golf Course, Theme Township, Convention Centre, IT SEZ, Shopping Malls and Multiplexes. In-principle approval received for setting up of Electronics Manufacturing Cluster (EMC) and IT SEZ in Naya Raipur. Notification for Information Technology Investment Region (ITIR) and National Investment & Manufacturing Zone (NIMZ) under process. Completed Projects Over 75 kms of road (phase-i), International Cricket Stadium, Hidayatullah National Law University, Capitol Complex, Expressway (from NH-6 and Airport to Naya Raipur), Muktangan and oers. Ongoing Projects Star Hotel and Convention Centre, Exhibition Centre, Mana-Tuta Tourism Centre, Indian Institute of Information Technology (IIIT), Indian Institute of Management (IIM), ITM University, Knowledge Park, Underground City Electrical Infrastructure, Underground Telecom System and oers. Up Coming Projects Railway Station, IT Special Economic Zone (IT SEZ), Sports City, Theme Township, Logistics Hub, BRTS, Amusement park, EMC, ITIR, NIMZ and oers.
10 Sector Snapshot: Defence in India rd 3 Largest (Armed Forces in e World) Ordinance Factories Defence Public Sector Undertakings R&D Laboratories under DRDO Government Spending Trend in Capital Spending: USD 3 billion in 2000 to USD 12.2 billion in % CAGR National defence budget: USD 37.3 billion for FY 2015 is expected to grow to USD 65.4 billion by 2020 Opportunities India to become e 4 biggest defence spender in e world by 2020 However, even now, 60% of requirements met by imports INR 250 billion to be invested in 7-8 years Indigenous Products Small arms & ammunitions Fighter aircrafts Frigates Submarines Tanks Radars Key Grow Drivers Make in India campaign envisages replacement of defence imports wor INR 84,000 Crore wi indigenous manufactured equipment and products Dedicated Defence Production Policy, 2011 Mandatory offset requirements - Minimum 30% of procurement FDI - Up to 49% allowed Policy for formulation of JV between Defence PSUs and private sector
11 Chhattisgarh: Potential in Defence Sector Key Strengs of Chhattisgarh for Defence Sector Defence manufacturing / production identified as priority sector in State s Industrial Policy This allows for higher incentives to be given to units in e defence sector. Make in India campaign envisages replacement of defence imports wor INR 84,000 Crore wi indigenous manufactured equipment and products On similar lines, Chhattisgarh Government is promoting Make in Chhattisgarh. PSU s are now eligible to avail of e incentives granted under e State Industrial Policy. This is a new feature of e Industrial policy of e State. Strategic safety and dep: Chhattisgarh is located in seismically safest zone of e Indian sub-continent plate, significantly far from any hostile international border.
12 Chhattisgarh: Potential in Defence Sector Key Strengs of Chhattisgarh for Defence Sector Abundant Water Resources and Uninterrupted Quality Power. Easy availability of land. Single window facilitation rough State Investment Promotion Board (SIPB). Efficient law and order situation; no labour unrest; very stable and harmonious industrial climate. Enabling physical and social ecosystem; Low Cost of Living. Unique Knowledge Hub: 24 Universities, 450 Colleges, 300,000 Annual Enrolment. Presence of IIT, IIM, IIIT, NIT, AIIMS and oers. Pre-existing base of defence component suppliers around Durg-Bhilai- Raipur cluster. Abundant and easy access to raw materials at go into defence sector manufacturing. 12
13 Defence Sector Incentives in Chhattisgarh under Industrial Policy Defence Sector is a priority sector under Chhattisgarh Industrial Policy Up to 100% Exemption on Stamp Duty Up to 60% Interest Subsidy Up to 50% Exemption in land premium on land allotment in industrial areas / industrial parks Up to 45% Fixed Capital Investment subsidy Up to 10 Years Electricity duty exemption Up to 7 Years Entry Tax exemption Note: There is scope for additional incentives on case-to-case basis. 13
14 Notes
15 Chhattisgarh: State Map (27 Districts)
16 Key Contacts Secretary, Commerce & Industry Department, Mantralaya, Naya Raipur Tel: , singhsk2@ias.nic.in Convener, State Investment Promotion Board (SIPB) Near Mantralaya, Renuka Dwar, Shastri Chowk, Raipur Tel: , sipb.cg@nic.in Managing Director, Chhattisgarh State Industrial Development Corporation (CSIDC) Udyog Bhawan, Telibandha, Raipur Tel: csidc.cg@nic.in Director of Industries Udyog Bhawan, Telibandha, Raipur Tel: ; dtic-directorate.cg@gov.in
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