Finance Commission meets representatives of Chhattisgarh Trade and Industry

The Commission noted all the concerns highlighted by the representatives of the Chhattisgarh Trade and Industry and promised to address them in its recommendations to the Central Government.

The 15th Finance Commission headed by Chairman, Shri N.K. Singh alongwith its Members and senior officials met today with the representatives of the Trade and Industry in Chhattisgarh.

The Commission observed that:

The growth rate of GSDP (at constant price 2011) of Chhattisgarh has fluctuated widely from 2012-13 to 2018-19, compared to GDP (at constant price 2011) of India.

ii) Share of primary, secondary and tertiary sector in GSVA of the State was 44%, 20%, & 36%, respectively, in 2018-19.

iii) In the Ease of Doing Business Rankings, Chhattisgarh was ranked 6th, amongst all states, in 2017.

iv) Major industries in the state are steel, cement, aluminum, and mineral products based such as iron, coal, and limestone.

There was a GST revenue shortfall of Rs. 1,589 crore as compared to the protected revenue of 9 months of 2017-18, which is more than 22% shortfall.

As per State's Memorandum to the 15th Finance Commission, the key initiatives are undertaken by the State Government to promote Investment include:

There exists a single-window facility of online application and approval across all departments, with the timeline fixed for disposal of the applications (service charter defined for all services).

The only online application is allowed for the environment & labor-related approvals, with the introduction of computerized risk assessment along with reduced inspection requirements.

Online system for a construction permit in Chhattisgarh adjudged as the 'Best Practice' in India.1st Commercial Court established in the country in Naya Raipur to expedite commercial cases.

The 15th Finance Commission desired to know the reasons for –

The sharp dip in the real growth rate of GSDP to 1.8% in 2014-15 & 2.8% in 2015-16 from 10% in 2013-14.

The shortfall in GST collections compared to protected revenue may be sought.

The share of agriculture, forestry and fishing sector in GSVA (current prices, 2011) of the State which has increased from 18% in 2011-12 to 21% in 2018-19.

Representatives of Industries Associations included Confederation of Indian Industries/ Goel TMT, Sarda Group, Hira Group, BSBK Group, Urla Industries Association, Laghu Udyog Bharti, Sunpack Industries, Chhattisgarh Sponge Iron Manufacturers Association, G R Mines and Minerals/ CG Steel Chamber and Chhatisgarh Chamber of Commerce and Industries.

The Commission noted all the concerns highlighted by the representatives of the Chhattisgarh Trade and Industry and promised to address them in its recommendations to the Central Government.

(With Inputs from PIB)