Chhattisgarh discussing defense manufacturing collaboration with US, Russian firms
What's the story
Chhattisgarh is in talks with defense companies of the United States and Russia to set up manufacturing units in the state.
As part of its Industrial Development Policy for 2024-2030, the state wants to bring Chhattisgarh into India's defense supply chain.
Chief Minister Vishnu Deo Sai told Mint that several firms from these countries attended an investment summit in Mumbai on January 23.
Investment summit
Investment proposals worth ₹6,000cr received by Chhattisgarh
During the Mumbai investment summit, Chhattisgarh received investment proposals worth ₹6,000 crore in different sectors.
The biggest commitment was from Ambuja Cement which proposed an investment of ₹2,367 crore.
However, details of any MoUs signed with defense firms are still unknown.
"We expect investments of up to ₹1 trillion under the new Industrial Development Policy," said Sai.
Policy benefits
Industrial Development Policy offers financial incentives
The new industrial policy is directly connected to job creation and provides a range of financial incentives to manufacturers.
These are offered to those investing at least ₹1,000 crore and employing 1,000 local workers.
They include concessions in electricity duty, stamp duty waivers, partial Employee Provident Fund reimbursement, and transport subsidies for exporters.
The state government is also willing to provide customized incentive packages to big investors under this policy.
Green transition
Chhattisgarh's focus on renewable energy
Chhattisgarh is also gearing up to become a defense manufacturing hub, capitalizing on its Durg-Bhilai-Raipur industrial belt, which hosts several defense component makers.
Though rich in coal, the state is also conforming to global green manufacturing policies.
Sai stressed that renewable energy is now cheaper than coal-based electricity, making it a feasible industry alternative.
By March 2024, nearly one-third of Chhattisgarh's total power generation came from non-fossil fuel sources like solar, wind, and hydroelectric plants.
Infrastructure development
Raipur to be developed as international cargo hub
Chhattisgarh's industrial sector emerged as a major growth driver in FY25, contributing almost 48% to the state's economy.
The state has also received ₹450 crore from the Centre under an interest-free loan scheme linked to economic reforms.
Sai said his government is collaborating with the Union Ministry of Civil Aviation to develop Raipur as an international cargo hub. This will help boost exports of forest produce, rice, fruits, and vegetables.