Growth and Development in Chhattisgarh: a Credible State

Chhattisgarh Credible solid ground with undreamed of potence drop Introduction Creation of the call forth of Chhattisgarh The creation of Chhattisgarh on November 01, 2000 fulfilled the get hold of for separate put forwardhood that was originally raised in 1925 and subsequently rejected in the lieu in cypherence era by the re earth Reorganisation Commission set up in 1954. The Madhya Pradesh Reorganisation Act 2000 was lastly passed by both houses of Parliament and sancti singled by the President of India on deluxe 25, 2000. This paved the way for the creation of the twenty-sixth extract of India on November 01, 2000.The creation of the new-fangled demesne of Chhattisgarh has succeeded in gran erectg a feel of individuality to its mickle and has provided them with the rummy luck to chart their own destiny. General indite Chhattisgarh located in key India has been shape out of the sixteen eastern and southward-eastern districts of united Madhya Pradesh. It is a aver of matterlocked render marge in the north by Uttar Pradesh and Jharkhand, in the east by Orissa, in the south by Andhra Pradesh and in the West by Madhya Pradesh and Maharashtra.Chhattisgarh is the tenth epicst enjoin in India with an heavens of approximately 135000 sq kms. The terra firma now consists of 27 districts in 5 divisions with capital in Raipur and risque court at Chhattisgarh. The tribe of the state as per 2001 census is 2,55,40,196(prov. ) In m superstartary jimmy of common luxuriantes the give in ranks 16th. 80% of the tally universe lives in verdant atomic number 18as. A large stack of the state of matters world comprises of tribals, plan castes and scheduled tribes. dry province has a state s let out-wittedness 189 which is fairly low as comp ard to India.Sex dimensionality is 991 per thousand of males and ranks 5th in India in this regard. The literacy rate is 71. 04% which is still quite low. competitory compendium of Chhattisgarh F or a comprehensive analysis of the state it is main(prenominal) to assess the disk operating systems capability in legal injury of its inherent strengths and weaknesses. The SWOT analysis which I am going to present is non intended to be exhaustive. However, it is indicative of many of the primary issues that the read will exigency to contend with, going forward with its strengths and opportunities. . WEAKNESSES ThreatsThe absence seizure of large topical anesthetic markets, accomplished labour, competent material infrastructure and low urbanization ar near of the key weaknesses of the State. inland and limited local markets As a virtually landlocked atomic number 18a, the State has to depend heavily on its road and rail line network, which is to a considerable extent limited. to boot a large rural population coupled with low per capita income limits the size of the local market. However, a fewer cities in the State drive demonstrated the potential to weaken i nto substantial local markets, which is evident from their stream levels of per capita spending ? utter telephone denseness The telephone density in the State is low as comp ard to the matter average. This specially inhibits the efficient functioning of the service manu featureuring that depends heavily on Information and chat Technology (ICTs). Opportunities Low skilled labour The relatively low level of industrialization in the State has limited the evolution of skilled labour. The current availableness of skilled labour is further restricted to remove industries only due to the absence of a divergent industrial base doweryicular visible infrastructureState still spend a penny grand area of undeveloped land and regions that have been untouched by modern tuition. dapple this is the result of yrs of preceding thoughtlessness in developing proper physical infrastructure but now lists the weakest attach in the progress towards stinting maturation Frequent dr oughts Although the average rainfall in Chhattisgarh compares well with several different states, leave out of handed-down peeing preservation practices in recent cartridge holders has led to frequent droughts. Further, the proportion of irrigated area in the State is only 16 percent of the positive cultivable area.There is however, potential to raise the proportion of irrigated area to 75 percent of the intact cultivable area Low urbanisation The State ranks low on urbanisation index with limited number of urban centres, which are confined to central Chhattisgarh. Low urbanisation and lack of adequate physical infrastructure are the key reasons wherefore Chhattisgarh is low on national perception, and in any case ranks low on development indicators on with the perceived potential for development. THREATS Over colony on immanent resourcesThe State must(prenominal) accommodate care to use its instinctive resources judiciously. An emphasis on balanced and all- near(p renominal) development would be essential to assure env entreatmentally sustainable ontogeny. Having said that, thither is little doubt that the optimal custom of indwelling assets holds the key to States development process semipolitical compulsions semipolitical will at all levels is a must to enable any bod of mixture. Any disruption in the ill-treat or direction of proposed reforms could hamper the blue-belly movement towards frugalal development hesitation of and opposition to changeThe people of the newly take a shit State beingness accustomed to prior neglect, may look upon any flesh of change with doubt or suspicion. The State must, in the spirit of participatory democracy, take steps to build consensus and infuse a sense of confidence in its people with specific reference to the objectives, direction and ill-use of stinting development While it is utterly essential to understand the weaknesses and threats (signifi can buoyt but not exhaustive), it is th e aggregate of strengths and opportunities that infuses the State and its people with a sense of optimism about the future.STRENGTHS Rich life akin resources Undoubtedly the overlargegest strength of the State, Chhattisgarh used to work 46% of mineral revenues to undivided Madhya Pradesh and is graded support in the list of mineral producing States in the unsophisticated. It has rich deposits of limestone, campaign-ore, copper-ore, rock phosphate, atomic number 25 ore, bauxite, scorch, asbestos and mica. In fact Chhattisgarh, along with Orissa and Jharkhand constitute oer 80% of the nations coal militia. Chhattisgarh in any case has proven reserves of diamond which can, in the future, be a large source of income for the State.Although the State already has a substantial st knife similarman of force industries, a large part of the mineral potential is yet untapped, providing Chhattisgarh with a unique luck to use its mineral wealth to spur economic development. Apart f rom minerals, Chhattisgarh in addition possesses a large forest offer encompassing approximately 44% of the total geographicalal area. However, the true potential of the squirt forest produce is yet to be assessed and utilised. The State has abounding but untapped urine resources essential for harvesting the potential of agriculture. Surplus source Chhattisgarh is fortunate to be one of the few States that are soon motive surplusage. This could be an important bill for industrialists making project and investment decisions, to Chhattisgarhs advantage. Presence of low grade coal makes Chhattisgarh an ideal fix for setting up of low cost pit offer based thermal military force plant, candid of generating power to meet the requirements of an otherwise(prenominal) States . By exploiting its unique location along with large coal reserves, Chhattisgarh has the potential to pass the power generating hub of India Favourable labour climate though the relative skill base is lo w, the presence of a large number of voluntary and able-bodied people contributes to the presence of a substantial workforce. The State has a blue worker participation rate (male and female) and a juicy labour force in the 15-39 age group. It to a fault has one of the ut or so losses in person-days in the demesne attributed to labour problems Relatively low land cost With a lower population density and urbanisation ratio, the State would be able to offer land at extremely competitive prices for just about time to come ? Fiscal position The monetary deficit situation of the State is soon under control. It also has reliable sources of public finance and possesses no deficit on account of either the State electricity Board or Road get off union. This is contrary to the situation in other states, wherein these agencies are the principal contributors to the fiscal deficit. Political Leadership and Bureaucracy The number of bureaucrats and giving medication employees compar ed to the other States in the country.This has also resulted in one of the lowest expenditures in the country on government functioning. The presence of a strong, committed and focussed leadership is an asset. OPPORTUNITIES parvenu State advantage The fulfilment of the admit for a separate State has stipulation a new sense of identity and pride to the local people. Being a new State and with limited legacies of the past, this is a historic opportunity for Chhattisgarh. It can supplement on this status to undertake reforms and pose policies to aid rapid social and economic development.No past legacies provide the State with an opportunity to prepare policies which are based on contemporary economic principles and which serve well micturate responsive governance. Location advantage The geographic location of the State is strategic it borders seven states in the country. NH-6, which connects the west to the east, passes through some of the most industrialised areas of the S tate. Chhattisgarh could use this geographic locational to its advantage to develop a logistics and warehousing network to service the region. Demand for cipher in the countryWhile the rest of India faces acute power shortages, the same is not true of Chhattisgarh. Further, in view of the presence of large coal reserves in the State and the fact that it is situated in the middle of the national power grid makes it an ideal location for setting-up coal pit-head based thermal power plants. Partnership The State recognises the opportunity of an more than and more borderless world and the resulting benefits of hammer partnerships with national and transnational communities, private and developmental institutions to spur economic development. Value additionCurrently a large part of exports from the State is in form of raw material (across minerals, agriculture and forest produce). The state could capitalise on the abundant availability of basic raw material to elevate setting up of processing units for ensuring value addition and subsequently increasing avenues for vocation and enhanced income Service persistence India has make rapid strides in the service industry in the past few decades. The State could potentially capitalise on these areas of country advantage, specifically in the field of randomness and biotechnology.It is precisely this aggregate of strengths and opportunities that gives the State a positive and optimistic outlook on the future and the confidence to draft its view Statement. - Chhattisgarh Economy The union ministry of Statistics, has included Chhattisgarh as one of the top four states nib 10. 8 per cent GDP harvest-feast during 2011-12. It may be termed as a big success, as this was the third grade the state has maintained over 10 per cent GDP cometh which is more than the national average of 6. 5 %.Chhattisgarhs success factors in achieving high growth rate are growth in agriculture and industrial production. Agriculture welkin Agriculture is counted as the chief economic line of the state. About 80% of the population of the state is rural and the main sustainment of the villagers is agriculture and agriculture-based small industry. The major(ip)ity of the farmers are still practicing the traditional methods of cultivation, resulting in low growth rates and productivity. The farmers have to be do aware of modern technologies desirable to their holdings.Providing adequate knowledge to the farmers is essential for break away implementation of the agricultural development plans and to mitigate the productivity. When a very substantial portion of the population is dependent on agriculture, a situation where nearly 80% of a states area is cover only by one crop, immediate attention to spell them into double crop areas is geted. Also, very few cash crops are great(p) in Chhattisgarh, so there is a need to diversify the agriculture produce towards oilseeds and other cash crops. Chhattisgarh is al so called the rice whorl of central India.Chhattisgarh has a limitedirrigationsystem, withdamsandcanalson some rivers. Average rainfall in the state is around 1400mm and the blameless state falls under the rice agroclimatic zone. Large variation in the annual rainfall directly affects the production of rice. Irrigation is the premier(a) need of the state for its overall development and therefore the state government has addicted top priority to development of irrigation. Industrial welkin agent sphere of influence Chhattisgarh is one of the few states of India where the power sector is effectively developed.Based on the current production of surplus electric power, the position of the State is prospering and profitable. Strategically located in central India, Chhattisgarhs large surplus of power can be good transmitted without losses to any of Indias four grids. Chhattisgarh is in the chronically deficit western grid, and is linked to the southern and northern grids. Ch hattisgarh provides electricity to several other states because of surplus production and its power hubs areKorbaandBilaspur. Korba in Chhattisgarh is really the Power great(p) of India.Apart from NTPC and State Electricity Companies, there are a number of private times units of large and small dexterity. The state government has pursued a liberal form _or_ system of government with regard to captive generation which has resulted in a number of private players access up. As per a study made by the Power Finance Corporation Ltd. , New Delhi, the state has potential of 6 blow0 MW of special thermal power in terms of availability of coal for more than coke years and more than 2500 MW hydel mental object. To use this bulky potential, substantial additions to the existing generation capacity are already under way.Non constituted energy sources have been accorded very high priority. A special agency called CREDA (Chhattisgarh renewable Energy Development Agency) has been set up , and over 1200 villages in dense forests are being electrified using off-grid energy. Micro-Hydel power potential is also being tapped in a big way, and several projects have been identified for workable private investment. Chhattisgarh is emerging as the Power Hub of India which has the capacity to cover half the demand-supply rift in the entire country. Steel sector The sword industry is one of the biggest telling industries of Chhattisgarh.Bhilai Steel Plant, operated bySAIL, with a capacity of 5. 4 million tonnes per year, is regarded as a significant contributor to the growth of the states economy . More than 100 steel rolling mills, 90 arse about iron plants and ferro-alloy units are in Chhattisgarh. on with Bhilai, Raipur, Bilaspur, Korba and Raigarh have become the steel hub of Chhattisgarh. Today, Raipur has become the center of the steel sector, the biggest market for steel in India. Aluminium sector Bharat aluminium Company Limited(BALCO), which has a capacity of around one million tonnes each year is the major contributor in this sector.Exports * Handcrafted wood, iron and steel, terra cotta, bell metal and handloom items are major attractions in the international market. * Chhattisgarh is the only state offering quality fabric in Tassar Silk/ Kosa, which has good export potential in the UK, France, Switzerland, Norway, the USA, Canada, Australia, South Africa and Japan. * The state has vast potential for exporting polished foods, organically grown cereals, herbal and medicinal products. * Agricultural products such(prenominal) as rice are directly exported in huge quantities to neighbouring countries .Derivatives and intermediates of rice products, processed foods and biodiesel have a huge potential for exports. * Mineral-based products including steel and pig iron, steel castings, forging and equipment, structural steel, cement and silico-mangnese are also exported from Chhattisgarh. Unlocking Natural Resources Realising the true potent ial of congenital resources in Chhattisgarh would be one of the most immediate priorities of the state. This would ensure economic benefits to more than3/4th of the population and help create large markets within the State that would help propel growth in the unoriginal and the tertiary sectors.Unlocking the true potential of the natural resources would be contingent upon the States ability to address the issues facing agriculture, forestry, minerals and the water resources sectors as follows Agriculture is the primary occupation of the people of Chhattisgarh. About 80% of the population depend on it for their livelihood. It is thus critical to the economy of the State, and any initiatives undertaken in this sector would have a lasting squeeze on the economy. Water being an important input for sustaining agricultural activities, its effective use becomes vital for economic development.Chhattisgarh has sufficient water resources, but this resource largely ashes untapped. In te rms of the irrigation potential, it is estimated that 43- lakh hectare area can be irrigated as against the existing irrigation potential of 1. 34 lakh hectare Forestry has a significant role in the economic development of Chhattisgarh. 44% of the State is covered with forests, ranking it third in India in terms of forest cover. The State boasts of an teemingness of minor forest produce corresponding Tendu leaves, Sal seed, Mahua seed, gum, etc. , which have enormous economic potential Minerals Chhattisgarh is rich in minerals.It produces 20% of the countrys total cement produce. It ranks first in the nation for coal production and second in reserves, third in iron ore production and first in tin production. Limestone,dolomiteandbauxiteare abundant. It is the onlytin-ore producing state in the country. Other minerals include corandum,garnet,quartz,marble,alexandriteanddiamonds Chhattisgarh has not fully realised the potential of its abundant mineral wealth. The presence of vast res erves of coal, iron ore, limestone, diamond, etc. have positioned the State second in the countrys list of mineral producing statesTOURISM Chhattisgarh, situated in the heart ofIndia, is endowed with a rich cultural inheritance and attractive natural diversity. The state is full of ancient monuments, obsolete wildlife, exquisitely carvedtemples,Buddhistsites,palaces,water falls, caves, rock paintings and hill plateaus. Most of these sites are untouched and unexplored and offer a unique and alternate experience to tourists, compared to traditional destinations which have become overcrowded. For tourists who are hackneyed of the crowds at major destinations will like theBastar district, with its unique cultural and ecological identity.Conclusion comparatively being a newly natural state, Chhattisgarh is progressing by leaps and bounds. The global winds of changes can easily be sensed here. With its rich heritage it is competing with other states on number of counts and has been acc epted at various forums for its achievements. It is both the land of opportunities and challenges. I, through this presentation could voice some of the challenges, which the state is facing, however with its inherent strengths, I am sure, the state will grow and develop at a high pace and can become principal state in the country.The people of Chhattisgarh are determined to make the things happen, the way they have envisaged. The people are enterprising and are now well versed with change process. The state has exhibited growth pattern higher(prenominal) than targeted in recent past and would conduct the trajectory. And therefore I must word in the end that Chattisgarh is the credible state with incredible potential. Now I would like you all to please watch this one minute video to get a feel of Chhattisgarh.