Defence Manufacturing

Sector Profile - 2015

Department of Commerce and Industries

Government of Chhattisgarh
 C O N T E N T S
State Profile: Chhattisgarh 3
Chhattisgarh: Key Strengths 4
Institutional Framework for Investment Facilitation 5
Policy Support 6
Key Investment Enablers 7
Naya Raipur: The new SMART city of Chhattisgarh 9
Sector Snapshot: Defence in India 10
Chhattisgarh: Potential in Defence Sector 11
Key Incentives for Defence Sector 13
Key Contacts

Chhattisgarh: Defence Manufacturing Sector Profile - 2015

 State Profile: Chhattisgarh

State Snapshot
? Geographical area: 1.35 Lakh square km.
State Snapshot
? 27 districts with Raipur as the Capital city
? Major cities: Bhilai, Bilaspur, Raigarh, Durg, Korba
th th
? Ranks 17 in terms of population and 10 in terms of area in the Country
? GSDP growth consistently higher than National average. The State has clocked on
an average, more than 8% growth rate over last 5 years
? GDP Per Capita: INR 69,000 (FY2013-14)
? Established exports profile with exports aggregating INR 30 billion

Rich in Mineral Resources Power Surplus State

8
Of total production in India, Chhattisgarh 8
Uninterrupted Quality power supply
produces: 8
1/3rd of national target of 90,000 MW in
4 30% Aluminum th
12 Five Year Plan to be commissioned in
4 30% Steel/ Sponge Iron
4 17% Coal the State.
4 15% Cement 8
Total installed capacity of 23,000 MW
4 11% Dolomite
8
Planned installed capacity of 41,384 MW
8
High reserves of Bauxite, Limestone , th
Quartzite by the end of the 12 plan
8
Only Tin producing State of the Country

Rich Water Resources

8
Rich water resource State
Rich Mineral Abundant Water Power Surplus
8
5 river basins. 3 major ones Resources Resources State
Mahanadi, Indravati and Rihand
8
Surplus run-off water available Zero power cut across the State
8
INR 15,000 Crore for water resource
development in 12th Five Year Plan Average power tariff 35%
cheaper than all India average
3
Chhattisgarh: Defence Manufacturing Sector Profile - 2015
 Chhattisgarh: Key Strengths

Central Location and Excellent Connectivity

Central Location and Excellent Connectivity
8
Direct physical access to markets of 7 states: Telangana, Andhra Pradesh,
Uttar Pradesh, Madhaya Pradesh , Maharashtra, Bihar and Odisha
8
Total road length of 35,411 km including 12 National Highways
8
1187 km of Rail network
8
Highest freight loading capacity. Railway operations in Chhattisgarh
alone generate 1/6th of Indian Railway's revenues
8
Existing Airport with new, modern terminal building in Naya Raipur. It
has won National Tourism Award 2012-13 for best airport in India in
non-metro category. International flights to commence operations
from Raipur soon.
8Airports proposed at Raigarh and Bilaspur
8
Vizag Port at a distance of 548 km from Raipur
8
Cargo complex is under development by AAI
8
Container Corporation of India (CONCOR) is developing a Logistics Hub
over 100 acres in Naya Raipur

Centrally located with potential to develop

as the logistics hub of Central India Barrier free State

Ease of Doing Business

Land and Construction Cost

amongst the lowest in India

Lower Operating Cost

Indore

Positive Governance
4 Pro-active Government
4 Stable Leadership
4 Enabling Institutions
4 IT leveraged Administration

Chhattisgarh: Defence Manufacturing Sector Profile - 2015

 Institutional Framework for
Investment Facilitation

8
State Investment Promotion Board (SIPB), created to facilitate proposals
with investment above INR 10 Crores.
8
SIPB is the empowered single point of contact for investments in the State.
8
SIPB is headed by the Chief Minister, and consists of departmentally related
ministers and Government officials, so as to ensure inter-departmental co-
ordination.
8
SIPB exercises powers of the State Government and Cabinet in so far as all
matters relating to investment promotion are concerned.

8
Department of Commerce & Industries is tasked with policy formulation
for all industrial investment in the State.
8
Department of Commerce & Industries has identified Auto Sector as a key
focus area of industrial growth within the State.
8
Trade promotion and industrialization are the mandates of Commerce &
Industries Department.

8
Chhattisgarh State Industrial Development Corporation
(CSIDC) is the executive authority involved in Industrial
Promotion and Facilitation.
8
Its functions includes land allocation, entering into JVs,
managing PPPs and maintenance & up-gradation of
industrial areas.
8
It is also the nodal agency for implementing and
monitoring NMFP scheme.

Chhattisgarh: Defence Manufacturing Sector Profile - 2015

 Policy Support

Vision: Make in Chhattisgarh

4
To accelerate pace of industrialization
Industrial Policy 4
To promote private sector participation for the
2014-19 development of basic and industrial infrastructure

4
To develop the ecosystem for a knowledge
Electronics & IT/ITeS economy in the State
Policy 2014-19 4
To promote the State as an investment destination
4
Separate online Single Window Portal

4
Value addition of the agriculture produce, fruits &
Agro & Food vegetables and pulses & oilseeds in the State
Processing Policy 2012 4
Generation of new opportunities of employment
in the agro and food processing sector

4
To bring special focus and spotlight on the Auto
Automotive Policy Sector
2012 4
Tremendous scope given existing metal ancillaries
in Central Chhattisgarh

4
To encourage, develop & promote solar power
generation
Solar Policy 2012 4
To meet growing demand of power in
environmentally and economically sustainable
manner

Introduction of self certification /

Focus on Ease of Doing Business
third part certification

6
Chhattisgarh is an emerging and attractive destination for investors
Chhattisgarh: Defence Manufacturing Sector Profile - 2015
 Key Investment Enablers: Talent Pool
and Educational Infrastructure

4
Indian Institute of Technology (IIT)- MHRD has announced to set up a new IIT in the State of
Chhattisgarh.
4
Indian Institute of Management (IIM) Raipur- A premier national institute in Management
Education/ specialized research established in 2010.
4
National Institute of Technology (NIT) Raipur- Premier institute in Engineering, IT and Technical
Education offering graduate / PG courses established in 2005.
4
All India Institute of Medical Science (AIIMS)- A premier institute for medical science and research
in Raipur established in 2012.
4
New campus of Indian Institute of Information Technology (IIIT) will start from Academic session
2015-16. Centre of Excellence set up by Siemens.
4
Hidayatullah National Law University operational in Naya Raipur.

Ever enlarging and deep pool of talent

Educational Number Intake 4
7 State universities, 1 central university, 6
Institutes Capacity private universities, 204 Government colleges
and 256 private colleges.
Engineering 49 18,870 4
Courses related to IT like B.Sc. in Computer
Polytechnic 43 7,120 Science, PGDCA, BCA etc. - offered by >50
colleges in the State.
MBA 36 2,640 4
Total enrolment of 125,656 students in the
MCA 12 900 Government Colleges in the State (2012-13) .

Total Intake Capacity 29,530

IIM, Raipur IIIT, Naya Raipur NIT, Raipur AIIMS, Raipur

Nearly 30,000 professionals passing out into the job market, annually
First State to provide skill development as a right. 1 lakh
engineering candidates to be job-ready over the 12th plan period

7
Chhattisgarh: Defence Manufacturing Sector Profile - 2015
 Key Investment Enablers: Social
and Physical Infrastructure

Public Transportation Facilities

4
Bus Rapid Transit System (BRTS) under implementation.
4
Raipur Nagar Nigam Transport Limited (RNNTL) - City Bus is operational and
currently 4 routes inside the city are being served by it.
4
4/6 lane road connectivity in Raipur, Naya Raipur, Bhilai and Bilaspur.
4
Travel time is less within the city and there are no traffic jams, which leads to more
productivity and higher quality of life.

Support Facilities
4
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.

Healthcare and Entertainment Facilities

4
Healthcare Institutions such as Apollo, Fortis, AIIMS Raipur
(regional) Vedanta Cancer Care and Research Centre, Care, Sri Satya
Sai Hospital and Narayana Hospitals are functional.
4
6 shopping malls in the city of Raipur, 2 in Bilaspur. More than
15 lakh sq. ft. of shopping space.
4
Presence of major hotel groups: Taj, Hyatt, Marriot, Babylon, VW Canyon, GT
Star, 10 Downing Street. Park Group soon to come.
4
PVR, INOX, CineMax, Glitz, Big Cinema and others.

Good Quality of Life

4
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 others.
4
Excellent Law & Order situation.
4
Abundant availability of comfortable housing at affordable prices.
4
All major and aspirational brands have presence. For example, luxury car
showrooms such as Jaguar, Audi, BMW, Mercedes.

Chhattisgarh: Defence Manufacturing Sector Profile - 2015

 Naya Raipur: The new
SMART city of Chhattisgarh

th
4
Largest Landbank and Greenfield City: 4 New Capital City in the country (and first
in 21st Century) having a total gross area of 237 sq. km. (23,7000 Hectares). Naya
Raipur has emerged as countrys first smart city with World class amenities.
4
Sub-Area Head Quarter (HQ): Chhattisgarh Odisha Sub Area (COSA) setup and
operational in Sector 03 of Naya Raipur.
4
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. 1000 acres being set aside for Indian Air
Force (IAF).
4
Knowledge hub with university, research and institutional complexes.
4
World class amenities including 18-hole Golf Course, Theme Township,
Convention Centre, IT SEZ, Shopping Malls and Multiplexes.
4
In-principle approval received for setting up of Electronics Manufacturing Cluster
(EMC) and IT SEZ in Naya Raipur.
4
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 others.

Ongoing Projects
Up Coming Projects
Star Hotel and Convention Centre, Exhibition
Railway Station, IT Special
Centre, Mana-Tuta Tourism Centre, Indian Institute
Economic Zone (IT SEZ), Sports
of Information Technology (IIIT), Indian Institute of
City, Theme Township, Logistics
Management (IIM), ITM University, Knowledge
Hub, BRTS, Amusement park,
Park, Underground City Electrical Infrastructure,
EMC, ITIR, NIMZ and others.
Underground Telecom System and others.

Chhattisgarh: Defence Manufacturing Sector Profile - 2015

 Sector Snapshot: Defence in India

39 Ordinance Factories

3rd Largest
(Armed Forces in the World) 9 Defence Public Sector Undertakings

50 R&D Laboratories under DRDO

Government Spending Opportunities

4
Trend in Capital Spending: USD 3 billion in 4
India to become the 4th biggest defence
2000 to USD 12.2 billion in 2010 15.1% spender in the world by 2020
CAGR
4
However, even now, 60% of requirements
4
National defence budget: USD 37.3 billion met by imports
for FY 2015 is expected to grow to USD
4
INR 250 billion to be invested in 7-8 years
65.4 billion by 2020

Indigenous Products Key Growth Drivers

4
Small arms & ammunitions 4
Make in India campaign envisages
4
Fighter aircrafts replacement of defence imports worth INR
4
Frigates 84,000 Crore with indigenous manufactured
4
Submarines equipment and products
4
Tanks 4
Dedicated Defence Production Policy, 2011
4
Radars 4
Mandatory offset requirements - Minimum
30% of procurement
4
FDI - Up to 49% allowed
4
Policy for formulation of JV between Defence
PSUs and private sector

Chhattisgarh: Defence Manufacturing Sector Profile - 2015

 Chhattisgarh: Potential in Defence Sector

Key Strengths of Chhattisgarh for Defence Sector

4
Defence manufacturing / production identified as priority
sector in States Industrial Policy This allows for higher
incentives to be given to units in the defence sector.
4
Make in India campaign envisages replacement of
defence imports worth INR 84,000 Crore with indigenous
manufactured equipment and products On similar lines,
Chhattisgarh Government is promoting Make in
Chhattisgarh.
4
PSUs are now eligible to avail of the incentives granted
under the State Industrial Policy. This is a new feature of
the Industrial policy 2014-19 of the State.
4
Strategic safety and depth: Chhattisgarh is located in
seismically safest zone of the Indian sub-continent plate,
significantly far from any hostile international border.

Chhattisgarh: Defence Manufacturing Sector Profile - 2015

 Chhattisgarh: Potential in Defence Sector

Key Strengths of Chhattisgarh for Defence Sector

4
Abundant Water Resources and Uninterrupted Quality Power.
4
Easy availability of land.
4
Single window facilitation through State Investment Promotion Board
(SIPB).
4
Efficient law and order situation; no labour unrest; very stable and
harmonious industrial climate.
4
Enabling physical and social ecosystem; Low Cost of Living.
4
Unique Knowledge Hub: 24 Universities, 450 Colleges, 300,000 Annual
Enrolment. Presence of IIT, IIM, IIIT, NIT, AIIMS and others.
4
Pre-existing base of defence component suppliers around Durg-Bhilai-
Raipur cluster .
4
Abundant and easy access to raw materials that go into defence sector
manufacturing.

12
Chhattisgarh: Defence Manufacturing Sector Profile - 2015
 Defence Sector Incentives in
Chhattisgarh under Industrial Policy
Defence Sector is a priority sector under
Chhattisgarh Industrial Policy 2014-19

Up to
Exemption on Stamp Duty
100%

Up to
Interest Subsidy
60%

Up to Exemption in land premium on land allotment in

50% industrial areas / industrial parks

Up to
Fixed Capital Investment subsidy
45%

Up to
Electricity duty exemption
10 Years

Up to
Entry Tax exemption
7 Years

Note: There is scope for additional incentives on case-to-case basis.

13
Chhattisgarh: Defence Manufacturing Sector Profile - 2015
Notes
Chhattisgarh: State Map (27 Districts)
 Key Contacts
Secretary,
Commerce & Industry Department,
Mantralaya, Naya Raipur - 492002
Tel: 0771-2221308, 4080308
e-mail : singhsk2@ias.nic.in

Convener,
State Investment Promotion Board (SIPB)
Near Mantralaya,
Renuka Dwar, Shastri Chowk, Raipur - 492001
Tel: 0771-4066351,4066352
e-mail: sipb.cg@nic.in

Managing Director,
Chhattisgarh State Industrial
Development Corporation (CSIDC)
Udyog Bhawan,
Telibandha, Raipur - 492006
Tel: 0771- 2583793
e-mail:csidc.cg@nic.in

Director of Industries
Udyog Bhawan,
Telibandha, Raipur - 492006
Tel: 0771-4080954; 0771- 2583652
e-mail: dtic-directorate.cg@gov.in

Chhattisgarh: Defence Manufacturing Sector Profile - 2015