ABOUT CHHATTISGARH

Located in central India, Chhattisgarh covers 135,191 sq km and accounts for 4.1 per cent of the total land area of India. Chhattisgarh is one among the few landlocked states in the country. It shares borders with the states of Madhya Pradesh and Maharashtra in the West, Uttar Pradesh and Bihar in the North, Orissa in the East and Andhra Pradesh in the South. The state is divided into 18 districts. Chhattisgarhs administrative capital is Raipur, which is also its largest city. Bhilai, Durg, Bilaspur, Korba and Rajnandgaon are the other large cities. Chhattisgarh has a tropical climate with three major seasons: summer (April to May), monsoon (June to October) and mild winter (November to January). The languages spoken are Chhattisgarhi and its local dialects, Hindi and English.

PESTEL is an acronym that stands for Political, Economical, Social, Technological, Environmental and Legal. It is used to describe an analysis that is used for determining the opportunities and risks of global expansion. Sometimes it is described as a PEST or PESTLE analysis. The PESTEL analysis provides a strong framework used by global and multinational corporations to set the stage to develop specific tactics to mitigate the risks involved in executing their vision in unfamiliar environments. Below is a bulleted list of some things to consider when writing a PESTEL Analysis.

POLITICAL
Unburdened by Governance legacies, Chhattisgarh has focused only on critical areas of law and order, education, health, environment, social safety nets, fiscal reforms and e-governance. The State has become an enabler and facilitator for the creative energies of its people. Government keeps out of all activities that can be done more efficiently by the private sector. There are no more than six Public Sector Units, that too in critical areas of Social Concern. To eliminate red tape and procedural hassles in getting all sorts of clearances, a special law have been enacted- the Chhattisgarh Investment Promotion Act, 2002. This lays down statutory time limits for all clearances, to be given by a single Point-of-Investor Contact. Facilitation services for the Investor and time bound approvals are thus guaranteed by law in Chhattisgarh. 'Chhattisgarh 2010' - the State's Vision Document lays out the five key actions of the State over the next 10 years and lays special stress on enhancing our human capital. In order to translate the Vision into reality, six-monthly milestones have been prescribed; and we are well on our way to realize the Vision for Chhattisgarh - the Fast Track State. The State cabinet meets every Tuesday and decisions come quickly. All Government functionaries are easily accessible and Chief Minister has an hour - long Jan Darshan every morning where he meets people with no prior appointment.
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Decentralized governance has been firmly established in Chhattisgarh. Strong local governments in both urban and rural areas are halfway into their second term after elections under the 73rd and 74th amendments in 1994 and 1999. Most social sector programmers are run by our Gram Panchayats and urban bodies. The State secretariat has an organic linkage with the local governments in urban and rural areas, as well as district officials. Quick reflexes and a lean bureaucracy ensure a hassle-free environment in Government offices. The small size of government is reflected at all levels. Fiscally prudent policies have ensured that there has been no overdraft from the Reserve Bank of India. The State Government has maintained a cap of 40% on all establishment expenditure. E-governance in Chhattisgarh is oriented towards ensuring peoples access to Government. This makes the Government even more responsive and transparent. People can access a videoconference based Public Grievance Redress System to interact regularly with the Chief Minister and other functionaries. CHOiCE (Chhattisgarh Online information for Citizen Empowerment) is a State-wide e-governance project, being implemented by the focal agency for IT, CHiPS (Chhattisgarh infotech Promotion Society) headed by the Chief Minister.

ECONOMICAL
45% of Chhattisgarh is under forests. The main crops grown here are paddy, wheat, maize, groundnut, pulses and oilseeds. Chhattisgarh is a state rich in mineral resources as Iron-ore, limestone, dolomite, coal, and bauxite. It is the only state in the country producing tin-ore. Other minerals found in the state are korandum, garnet, quartz, marble and diamond. The state`s economy is fuelled by the presence of the Bhilai Steel Plant, S.E.C.Railway Zone, BALCO Aluminium Plant, and NTPC Korba and S.E.C.L. There are eight sponge iron plants in the private sector, 13 ferro-alloy plants, 125 steel rolling mills and one H.R. strip plant. There are nine major cement plants. There are also iron casting units, engineering and fabrication units, agro-based food processing, chemical and plastic industries have been established. The irrigation potential of the state is 13.39 lakh. The important irrigation projects are Ravishankar Sagar Mahanadi Project, Hasdeo-Bango, Kodar, Jonk, Pairi and Arpa. About 90% of the villages are electrified.

SOCIAL
Social infrastructure refers to the facilities and mechanisms that ensure education, health care, community development, income distribution, employment and social welfare. The economy cannot be looked at in isolation without considering the basic needs of the people, and a significant level of investment is needed in this sector. Chhattisgarh has shown a decadal population growth rate of 18.06% (1991-2001) that is better than that of BIMARU States. The State also has one of the highest sex or gender ratios in India, indicating better conditions for women as compared to other States in India Education forms the backbone for social and economic development and the State has shown a healthy improvement in its literacy rates during the last decade. Long distances, lack of adequate transport network, remote villages and dense forest cover have been deterrents to the Governments efforts in delivering health services to the people.
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The current health infrastructure in the State is inadequate to cater to the needs of the population, especially in the rural areas. The primary sector employs a major part of the population, with agriculture being the mainstay of the people. The worker participation of females is very low in Chhattisgarh. Realizing the benefits of social development and welfare, the State Government has given priority to the health and education sectors and given greater allocation to these sectors in its plan outlay for 2001-02 as compared to other BIMARU States. The Government needs to pro-actively develop strategies aimed at benefiting people living in the rural areas and improve its service delivery mechanisms. Peoples participation is the key to ensuring the success of Government programs.

TECHNOLOGICAL
The Village and District Reports assess the existing traditional technology and discuss its advantages, disadvantages and the need for better technology as an input in agriculture and marketing. The Reports point to the failure of technology to develop resources. Traditional technology continues to be prevalent in agriculture, forest gathering and primary processing and in rural non-farm manufacturing. Traditional technology has certain distinct advantages, especially in agriculture and forest based activities. The main advantage is that it is affordable and the process of transferring this technology is rooted within the social structure. However, there is a demand for new technology, so that it can be used to improve productivity. This demand is not articulated as a need to replace traditional technology but rather as a need to access knowledge about new technologies, which can lead to increased productivity and cost reduction. Once they have this information, the people can make an informed choice. The knowledge about forests that exists with the people is considered invaluable and people feel that little can be added to this knowledge, except in the processing of forest produce. Modern technology can add value to local knowledge and help people to understand and learn the mechanics of setting up, running and managing processing units. Another area where modern technology is necessary is the non-farm manufacturing sector. While local markets have sustained many small local producers, there is some apprehension and the feeling that unless new technology can help, small manufacturers will lose out. Generational change in technology is not the only solution; integrated and strategic changes are needed. The criteria for the selection and designing of these must draw from what is faster, efficient, and retains control with people. It is important that technology should not disempowered small farmers, forest gatherers and small producers. An integrated technology regime is required, that combines the best of the traditional and the modern, and does so selectively in separate sectors and processes.

ENVIRONMENTAL
Government recognizes that environmental changes and deterioration are driven by many factors across various sectors and therefore need to be addressed by developing an integrated plan for conserving and utilizing the natural resources of the State. The various steps that would be undertaken by the Government to address the environmental issues under these various sectors are discussed below.
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Land Use The steps that would be taken to prevent land degradation include: Surveying and investigating problem areas and undertaking land use zoning to locate industries according to the existing pollution load and carrying capacity of an area. Restricting diversion of land for non-agricultural purposes, unless essential. Laying emphasis on low cost vegetative measures for optimum utilisation of wasteland. Regulating over grazing and consequent land degradation.

Water Resource Management The Government will develop mechanisms for water resource management. This will include: Conservation of wetlands Development of a methodology for determination of environmental externalities into water pricing Encouragement of optimal use and recycling of waste water. Assessment and monitoring of quality of surface and ground water and its optimal utilization Promoting judicious use of chemical fertilizers and pesticides and implementing measures against their disposal into water bodies. Water Conservation through rain water harvesting.

Agriculture In order to facilitate the ecologically sustainable development of agriculture, the following steps would be taken:

Promotion of collective or group approaches to sustainable resources management Promotion of sustainable farming including organic farming, crop rotation Encourage use of bio-fertilizer and bio-pesticides

Industry The various steps to be taken to pursue integration of environmental concerns in industrial decision making are:

Encouraging fuel efficient devices, environmentally benign technology and environment friendly substitutes to reduce pollution Encouraging generation of energy using biomass which is renewable and environment friendly. Encouraging industries to adopt clean technologies and processes Encouraging the setting-up of combined facilities for effluent treatment and hazardous wastes.
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Preparing a Zoning Atlas, including status of the environment at district levels to guide Environmentally sound location/sitting of industries.

Setting up environmental cells in industries in close liaison with regulatory agencies Providing incentives and punitive measures to ensure fly ash utilization Establishing recycling, reduction and reuse targets for waste generated by polluting industries as a performance standard.

Mining The Government would ensure that exploration and mining activities are undertaken in Accordance with the underlying objectives of this policy, by: Ensuring that mining sites are rehabilitated according to environmental standards Ensuring Environmental Impact Assessment for all mining projects in environmentally sensitive areas. Ensuring regular monitoring of major mining areas Encouraging on-site mineral beneficiation to reduce impact of transportation, processing and utilization. Using suitable abandoned pits for recharge of ground water Forests and bio-diversity The Government would focus on achieving the best mix of conservation and commercial uses of native and plantation forests. The key approaches to forest management and promoting biodiversity would include: Encouraging a forestation of wastelands, other public lands, and private lands. Promoting use of alternate and non-conventional sources of energy such as solar energy wind and biogas. Encouraging use of gas smokeless chullahs/stoves to decrease wood consumption. Using advanced technologies such as remote sensing and Geographic Information Systems for planning, monitoring and evaluating forest cover. Ensuring conservation of medicinal and aromatic plants. Mono-culture to be avoided and multi-storied plantation to be promoted Encouraging Eco-Tourism in protected areas Earmarking special areas for conservation of habitat Providing emphasis on regulatory protection of indigenous, threatened and endangered pieces.

Urban and Transport Planning The policy aims to achieve sustainable use of energy and natural resources, and to improve the safety and aesthetic amenities of urban clusters through:
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Providing adequate green and open spaces in urban areas Improving mass transportation systems to curtail increasing use of fuel, traffic congestion and pollution. Regulating environmental safety for transportation of hazardous substances Strengthening implementation of emission and effluent standards.

LEGAL
The Constitution provides for special provisions for administration and control of Scheduled Areas. The provisions of the Panchayats Extension to Scheduled Areas (PESA) Act, 1996, give special powers to the Gram Sabhas in Scheduled Areas especially in the management of natural resources. State Investment promotion board shall function as secretariat of Single window system. In order to make effective the working system of District Investment Promotion Committees formed at District level and State Investment Promotion Board: formed at State Level under Chhattisgarh Industrial Investment Promotion Rules-2004 made under Chhattisgarh Industrial Investment Promotion Act-2002, system of high level monitoring meeting shall be made in order to make available necessary clearance within stipulated time period by concerned departments on investment related proposals. Nodal Officers shall be nominated for redressal of matters related to Land acquisition/land allotment. Water allotment and power supply of mega industrial project who shall work for immediate redressal of matters. With the objective of immediate redressal of matters related to Industries, new District Trade and Industries Centre/sub-offices shall be opened in industrial areas/industrial potential areas. Initiatives will be taken for simplification and optimization of labor laws.

Porters five forces are the basic tool of analyzing the competitive threats and essential for SWOT analysis. The logic of the Porter system flows directly from industry structure to competitive positioning to company product and market strategy. These five forces determine the average profitability for the industry (English 63). The five forces consist of: internal industry rivalry, threat of new entrants, threat of substitute products, and bargaining power of suppliers and bargaining power of customers.
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Internal Industry Rivalry: MODERATE The rivalry within the software industry is moderate. Companies are spending massive amounts of money on research and development in order to keep up with competition and the newest technologies. In order for a company to keep a large share of the market and remain profitable, it is absolutely necessary to employ the newest and most efficient technologies in their products. Also, the software industry is very specialized and not all companies compete directly with each other since they offer differentiated products. For example, in the graph below, these nine companies listed have the highest market capitalizations in the software industry. Not all of these companies, however, compete directly with each other because they specialize in different products. First, Microsoft Corporation provides software and hardware products and solutions worldwide. SAP AG, together with its subsidiaries, develops, markets, and sells enterprise application software products for corporations, government agencies, and educational institutions. Intuit Inc. provides business and financial management solutions for small and medium sized businesses, consumers, accounting professionals, and financial institutions. Symantec Corporation provides security, storage, and systems management solutions to secure and manage information. Finally, Oracle Corporation, an enterprise software company, engages in the development, manufacture, distribution, servicing, and marketing of data base and application software (Yahoo! Finance). These companies all manufacture software but it is distributed to different consumers and meets different needs. Threat of new entrants: LOW The threat of new entrants into the software industry is pretty low. It would be very difficult for a start-up software company to have large success and steal significant market share from software giants such as Microsoft. Most businesses that have purchased computers that come prepackaged with Microsoft Office and Windows operating system. This is a huge advantage to Microsoft since consumers who buy machines such as Dell, Toshiba, HP, Acer and Lenovo have a familiarity with Microsofts products. It would be difficult for another company to score a deal with computer manufacturers as well as develop a product as efficient as Microsoft Office. Another reason why there is a low threat of new entrants is the high start-up and R&D costs. Software architecture is expensive; you need many programmers, market researchers and other specialized talent to produce a widely circulated software product. Also, businesses and households are brand loyal. They are unlikely to switch their software unless they are truly unhappy with it. Consumers want reliable and dependable software to meet their needs and they are less likely to try new products if their current solution is working well for them. Product differentiation also contributes to the low threat of new entrants. As mentioned above, the top nine companies in the software industry through market cap produce and distribute different products. A new entrant would have difficulty in developing a product that is not currently meeting consumer needs in a new market segment. Software is very specialized and these companies are very established; it would be difficult to steal significant market share from these companies.
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Threat of substitute products: HIGH There is a high threat of substitute products in the software industry. Some companies are looking for basic software with limited capabilities to meet their needs. These customers could potentially switch to cheaper options, especially as technology increases and becomes more advanced. Software companies are also threatened by the media through which its programs operate. As computers become more advanced, a new substitute for software may develop. People are also using their phones, such as PDAs and smart phones, to answer email and use the web. Companies such as Microsoft and Apple have responded to this growing trend by creating operating systems and applications for wireless phones. A big threat to software companies such as Microsoft and Oracle is internet software and open source software. Open source software, which some may call unreliable, consists of programs that perform basic functions such as word processing, spreadsheets and other applications. These services are usually free and could eat into Microsofts market share as it becomes more popular. Internet software is also a big threat to software companies. There is a greater trend toward doing business online, especially with the growth of social networking websites. Increasingly more companies use the internet for their investments, banking services, data and access to the web. There is a threat that they could be switching to internet software as well. Google, who plays a major threat to companies such as Microsoft, are using the growing internet trends to develop products such as Google docs and the social networking feature Buzz. Bargaining power of suppliers: MODERATE-HIGH The bargaining power of suppliers is moderate to high. Software suppliers must stay ahead of the game as far as technology to keep their customers and develop high quality materials. Although there are limited substitute products in the industry, suppliers do have to keep improving on technology and innovation. Suppliers have do have moderate power with big technology companies through high switching costs; it would be costly for big companies such as Microsoft to find a new supplier and start from scratch.

Bargaining power of customers: LOW-MODERATE The bargaining power of customers is low to moderate. Computers have become a necessity for businesses, governments as well as households. Software has helped business become more efficient and has created a standard for competition. Therefore, it is crucial in the business world for companies to invest in up-to-date computers and software. Compatibility also limits the power of buyers; the dominance of a few companies limits bargaining power if consumers are interested keeping consistency with its software use. Also, since there are limited options for a substitute for computer software, customers dont have a large bargaining power. Buyers do have the option however to choose between the specific products and make a decision to cater to their needs.
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