To boost farm & industrial output CM's Mantra: Generate POWER

Chhattisgarh Chief Minister Raman Singh is passionately committed to boosting agricultural and industrial production in the state. Singh has the solution to solve the twin problems. “Step up power generation” is the CM's Mantra. Agriculture, on which 85 percent of the state's population depends for its livelihood, needs power. So does industry, which needs electricity to survive, expand and thrive. Both provide jobs that could raise the standard of living of the Chhattisgarh people. And that is Singh's goal and he is confident of achieving it in the near future. In an interview with Satya Swaroop, Managing Editor of New Media, publishers of a chain of transcontinental magazines, including Indo-US Business, Singh says he is looking at the target of 10,000 MW of power generation. Here are the excerpts.

What's your government's major thrust?
The major thrust area of our government is power generation. Because both industry and agriculture sectors are dependent largely upon power. In Chhattisgarh two major sectors in which investment is made are steel and power. So our main thrust area is the power sector. We are looking at a target of 10,000 MW of additional power generation so that industry and agriculture are assured of adequate and unhindered supply of power. We are going to provide 100,000 additional new connections to improve the irrigation facility across the state.

What are the unique opportunities that your state is providing to woo Foreign Direct Investment?
Our industrial policy mainly focuses on investments in tribal areas and we are giving special exemptions and facilities for investments in this regard. That's why industrial groups like TATA and ESSAR and companies such as IFFCO are coming to Chhattisgarh. We are also receiving large Foreign Direct Investment in sectors such as power and steel. In our new industrial policy, we have formulated very good investor friendly provisions to woo Foreign Direct Investment as well as other investments. We are number one in investment inflow.

What is your vision for your State?
My vision for Chhattisgarh is: To harness the natural resources of the State for a sustainable economic and social development. I would like to see Chhattisgarh in the next 10 years amongst one of the front ranking States in India. This would be achieved by doubling the per capita income in next 5-7 years. Millennium Development Goals would be achieved by 2015. I would like to make Chhattisgarh's physical and social infrastructure the best in the country in the next 10 years. By 2015, Raipur the State capital would be amongst one of the best cities in India.
The motto of my Government is “Vikas mool mantra, Aadhar loktantra”. It clearly means, driving development through democratic means. For me means are as important as the ends. The ultimate vision is to create a society in Chhattisgarh that is driven by equal opportunity and social justice. A society where opportunities to its people are not hyphenated by their geographical location, education or social standing.

What are your main priorities?
The Main priorities of my Government are: Bringing the marginalized and backward people of Scheduled Castes and Scheduled Tribes, constituting about 44 percent of the Chhattisgarh's total population into the mainstream, is one of the biggest challenge and top most priority of my Government. Secondly, growth with equity is a must for sustainable economic and social development of the State. I am trying to make the industrial growth more broad based by encouraging investment in the sun rise sectors like Information Technology, biofuel, biotechnology, tourism etc. apart from consolidating the growth in core sectors where we are already very strong.
About 80 percent of the population of Chhattisgarh still lives in rural areas and robust growth in agricultural sector with crop diversification etc. is a must. Balanced regional development is another important priority as North and South Chhattisgarh are highly under-developed and need to catch up with Central Chhattisgarh. Chhattisgarh is the new State and augmentation of State's physical and social infrastructure along with its capacity building is another important priority for me.

What steps are you taking to promote investments in the State?
Steps taken to promote investments in Chhattisgarh are:
Chhattisgarh has one of the most forward-looking Industrial Policy with additional incentives for NRIs and Foreign Direct Investment. Chhattisgarh is the first state to have Statutory Investment Promotion Board by an Act to take decisions with regard to investment. It ensures that investors rights are legally enforceable apart from giving a single window clearance.
We are consolidating our industrial growth in core sectors like power, steel, mineral production etc., where we are already strong. We have also announced a slew of measures to attract investment in sunrise sectors like Information Technology, biofuel, food processing, herbal & medicinal processing, biotechnology, tourism etc.

What are the macro-economic indicators? What steps are being taken to tackle budget deficit?
The economy has made significant strides over the last two years and is cruising on a steady growth path. The GSDP has recorded an average annual growth rate of 7.69 percent during the last three years as against the 10th Plan target of 6.10 percent. While the consistent growth rate of 10 percent in the agricultural sector is attributable to the overwhelming emphasis on increasing the irrigation potential, the New Industrial Policy announced in 2004 has facilitated a buoyant growth rate of 11 percent in the Manufacturing Sector as against the projected growth rate of 7.50 percent for the 10th Plan Period.
As far as tackling budget deficit is concerned, we have focused on a two-fold strategy; namely, (a) augmenting tax revenue by rationalization and simplification of tax structure leading to increased voluntary compliance and (b) cutting down non-developmental expenditure. During 2004-05 our growth rate in Sales Tax revenue (28 percent) was highest amongst all other states and non-tax revenue has maintained a steady growth rate of 20 percent. Besides, we have enforced strict fiscal discipline and establishment expenditure has been capped at 40 percent of revenue receipts. In fact, during 2004-05 we ended up with a surplus budget.

What are you doing to improve the investment climate in the State?
Chhattisgarh enjoys a very harmonious industrial relation and to give you an example the Bhilai Steel Plant which was commissioned in 1956 has not lost a single man hour till date. Chhattisgarh is a peaceful state with no law and order problems.
Chhattisgarh is one of the best fiscally managed State as per a report of the Reserve Bank of India (RBI). In fact, their establishment expenses at 33 percent of the State's Revenue Receipts is one of the lowest in the country. The State as a policy encourages outsourcing and hiring employees on contract. They believe in the PPP model. The State is leveraging IT for improving Governance. The State has a very positive forward looking bureaucracy. All these makes Chhattisgarh an ideal destination for attracting investment. In fact, as per the RBI survey report in the last financial year, amongst all States, Chhattisgarh was ranked 1st in investment with an actual inflow of Rs. 7.8 billion.

India's most inviting Investment Destination

Chhattisgarh has breath-taking natural beauty and coupled with it are special tribal cultures, arts, ancient monuments, important archaeological sites, caves, waterfalls and tourist destinations. The state is blessed with minerals aplenty, including diamond, gold, tin, uranium, bauxite, iron-ore, and coal. Industrial peace, low cost of labour and land, and an atmosphere encouraging and supportive of entrepreneurship have helped the state garner investments. The Asian Development Bank, the European Union and the Canadian International Development Agency have designated Chhattisgarh a 'focus state'.

Abundant natural resources are attracting industrialists. Chhattisgarh drew the maximum industrial investment of all states in 2003-04 and 2004-05. The biggest industrial premise is the Bhilai Steel Plant and the Bharat Aluminium Company plant at Korba having a capacity of one-lakh tones and the production capacity is to be increased to four lakh tonnes. The state produces twelve million tonnes of cement in eight big cement factories and twenty-three sponge iron units produce 22 lakh tonnes of sponge iron.
The state has a good potential in the power sector and pharmaceuticals. A process is underway to establish units in these niche sectors with governmental approvals and encouragement.
The State Investment Promotion Act has now come into effect with its inherent and effective statutory provisions for single point of investor contact and time-bound clearances. And now small industries are to get 10 percent rate priority on government purchase and there is exemption of diversion fee for these small industries.



The government has agreements inked with 40 industrial groups for investing Rs 44,000 crore in the state and 1,500 small industries are to invest another Rs 82 crore.
Major industrial areas include Bhilai where the the Bhilai Steel Plant (BSP) was established as one of the temples of modern India. BSP is the highest profit-making unit among public sector steel plants. The ancillaries of the plant are also located here. Besides two large and medium, 27 small industries have also been set up, with an investment of around Rs 115 crore.
Durg is where the Borai industrial centre is spread over an area of 437 hectares. A water scheme is under implementation with private sector partnership at this place to supply 30 million litres per day to this town and its surrounding areas.
Korba is termed as Chhattisgarh's power capital; electricity-producing units here include the National Thermal Power Corporation (NTPC), the Chhattisgarh State Electricity Board (CSEB), and the Bharat Aluminium Company.
Urla, the industrial area in Raipur, stretches over 815 hectares. It has 45-km BT roads, a water supply system and a power sub-station. Besides 60 large and medium industries, 550 small-scale industrial units have also been set up at Urla. More than Rs 400 crore has been invested here, employing 16,000 people. One dry port (container freight station) has been set up to facilitate custom formalities for exporters and importers.


The 1,260-hectare Siltara growth centre is located about 13 kms from Raipur on the National Highway 200. The water supply is through the Kharoon river, providing three M.G.D for industrial use. It has three large and medium industrial units, apart from nine small-scale industries. It also has a private power plant. More than Rs 700 crore has been invested here. Proposals are in the pipeline to establish two sponge iron plants, one ferro-alloys plant, and one LPG refilling unit. Other facilities include a 23-km-long road and two petrol pumps.
The Sirgitti Industrial Centre in Bilaspur is spread over 430 hectares. It houses seven large and medium industries and 195 small industries. With an investment of Rs 93 crore, the industrial centre provides employment to 4,500 people. Many ancillary units are also being set up in Sirgitti as the headquarters of the Bilaspur Railway Zone and South Eastern Coalfield are located here.
Plans are underway to build infrastructure for creating industrial centres in the least developed districts like Sarguja, Kawardha, Raigarh, Mahasamund and Dhamtari. The Anjani industrial centre has already come up in Pendra Road.
A food park is being set up over 40 hectares in Tedesara in Rajnandgaon district and Borai Industrial Centre in Durg. Cold storage facilities have been created in Tedesara, while a common food-processing facility is coming up in Borai. In the food park, 300 units would be set up with a total investment of Rs 50 crore. Basic infrastructure like road, power, water and communication has now been developed. The food park would not only preserve and add value to agriculture produce but would also give real value to the farmer.
Another area of priority development is agro parks. In Bastar, 20 hectares of land has been reserved for setting up an agro park. The Central Food Technology Research Institute has been consulted for the organised development of the park. The park will provide facilities to farmers for preserving their produce and calculating rates. Besides cold storage, a guidance centre will be available for farmers.
In a bid to extend the contribution of Chhattisgarh in aluminium production and development of ancillary units, an Aluminium Park is also being set up with assistance from the Bharat Aluminium Company.
The IT Park at Bhilai was set up by the Chhattisgarh government to provide latest information to Chhattisgarh's youth about information technology, development of software, and other matters of interest. Basic infrastructure and other facilities are available at low cost and entrepreneurs willing to set up units here are to get relaxation in export and custom duties, besides income tax.
The software technology park is not only useful for local entrepreneurs but also for transnational corporations.
Chhattisgarh is also a very prominent centre for inter-state cloth market. Besides wholesale trade, a prominent market for readymade clothing already exists in Raipur. To bring different markets in a single premise, the apparel park has been proposed at two places in Raipur. Around 60 hectares of land has been reserved in Ravabhata and 1.6 hectares in Pandri for the same purpose.



A proposal is in the pipeline for the establishment of a gem and jewellery park in Raipur for crafting precious minerals available in the state and to market it at good prices. Besides training facilities, efforts will be made to place the valuable diamond and stones in international showcase events. The government also plans to develop the ornament-making industry within the state.
Chhattisgarh has a rich potential of the sale and production of herbs and herbal medicines. With different varieties of herbal medicines gaining currency, the worth of the international market of herbal produce is estimated at over US $60 billion. In Chhattisgarh, about 7,000 joint forests managing committees and 913 primary committees are involved in the herbal medicine trade. The state herbal medicine board has been set up while a research centre is also in the pipeline.
All in all Chhattisgarh is a state, which is prone to attract more investors for the simple reason that the government is willing to woo them with gusto.This is a great opportunity for national and international investors.

India's Emerging
Power Hub

15 months from now, we will not be a power-deficit state. And from then on, there will be no looking back. We are going to be one of the major exporters of power by the end of 2007”

What are your thoughts about the policies of the state government, especially regarding the power sector?
The policy of our state government is very clear. We have to develop our state as the power hub of the country. The Power Finance Corporation has very recently done a research and survey of the entire country and they found that Chhattisgarh has got enough coal, water and land to sustain 35,000 MW of thermal power generation for the coming 100 years. This is the kind of potential the state has.
The study also says that Chhattisgarh is one of the best destinations for investment because of two-three reasons. One of course is the availability of resources. The second one is the logistical location of the state. The state is situated right in the center so it is very easy to reach any part of the country. Third is the excellent work of culture of the state, which boasts harmonious industrial relations. Our Hon'ble Chief Minister is absolutely determined to make our state the power hub of the country.
But while we strive to make it as the power hub, we do not overlook the interests of the common people. Under the new Electricity Act, the state gets nothing in return when a new power plant is set up here, unlike other industries which pay a sales tax on their produce. In Chhattisgarh, electricity is a product cannot be taxed by the state government. So we do not get any revenue. Also, there are not many ancillary industries and the number of jobs created in a thermal power plant is also very limited.
Our cabinet has taken a very balanced decision, which is investor-friendly, safeguarding at the same time, the state's interests. Although today our state is experiencing a power shortage, by the middle of next year we are hopeful that all our demands for electricity are met.



Your state has a vast area of wasteland and forests, and waste from all that land can be converted into bio-mass and consequently bio-fuel. What steps has your state has taken to harness these resources ?
As many as 29 bio-mass based power plants are under way and hopefully they will be completed by next year. Already three plants have been commissioned and another six are in progress. But that will give us about 300 MW. But many entrepreneurs have set up captive power generation plants. You will be surprised to know that our capacity generation is about 1400 MW and private entrepreneurs have a generation capacity of about 1700 MW and another 1000 MW is under construction. So private people have more installed capacity power generation. Then there is the public sector undertaking such as National Thermal Power Corporation (NTPC), which is coming up with a mega thermal power plant with a capacity of 2980 MW. Also there are integrated power plants like Jindal with 1,000 MW and a few others. Chhattisgarh State Electricity Board (CSEB) has a joint venture with IFFCO for a 1000 MW power plant. CSEB itself is also planning a few power plants at different places like Sarguja and Janjgir.

What about FDI in sectors like infrastructure and energy?
We are getting a lot of offers of FDI in the infrastructure sector but we are considering and encouraging only serious players. In the alternative energy segment, though we have not gone ahead, we have yet to make a start but we have sanctioned about 10 mini hydel projects and we are welcoming more. In the wind energy also we have formulated our policy and we have given permission for four wind masts to Suzlon.

Harnessing IT with IIT help
e-Classroom:
A Unique Feat



Chhattisgarh, the centrally located and land-locked state, has achieved a remarkable feat in the realm of Information Technology (IT). The state, despite the limitations due to limited air connectivity, has gone ahead to excel in two areas e-governance and e-classroom models.
“The e-class room is a unique and rare model, developed in collaboration with the Indian Institute of Technology (IIT) Kanpur, “ said Aman Kumar Singh, CEO, Chhattisgarh Infotech and Biotech Promotion Society (CHiPS), in an interview to Indo-US Business.
Singh explained that e-class room involved on-line classes for students and on-sight training for teachers, who were being sent to Kanpur. “The studio at IIT, Kanpur, is linked to schools in Chhattisgarh,” he added.
“This model has been developed for the first time in the country. The model is so effective and successful that France has tied up with IIT Kanpur to take advantage of it,” Singh said.
He said ChiPS had also implemented successfully e-Governance and e-gramswaraj programmes.
Singh said the state faced the problem of connectivity by air. “IT firms based outside the state are interested in coming to Chhattisgargh, but flights to Raipur, the state capital are very limited; only one in a day. This impediment is hampering the growth of the IT industry in the state,” he said.
According to Singh, State's Chief Minister Raman Singh has personally taken up the issue with concerned authorities to have better air links with other cities and IT centres.
In Chhattisgarh, Information Technology (IT) is treated as a “Thrust Industry.” Chief Minister Raman Singh says that his state's dream is to create a “knowledge Society” by harnessing the power of Information and Communication Technology (ICT), a society driven by equal opportunities and social justice.
The objectives of the state's IT policy include development of Chhattisgarh as a leading destination for IT investment, leveraging IT for improving governance, taking the Internet to masses for facilitating information access and using IT as an enabler for development in non-IT industries.
ChiPS has been set up to give impetus to IT growth in the State and implement initiatives for overall socio-economic development. CHiPS ensures top-of-the-board institutionalized coordination and implementation of State's plans for enabling benefits of IT to every one.



ChiPS acts as the nodal agency and prime mover for propelling IT and biotechnology (including bioinformatics) growth in Chhattisgarh. Chief Minister Raman Singh himself heads the governing council of CHiPS. The Council includes eminent persons from Knowledge and Technology sectors, representatives from the union government and national agencies.