INDIAN STATES : WEST BENGAL

General Information

West Bengal is located at the centre of the eastern region of India. It is strategically positioned with three international frontiers, Bangladesh, Nepal and Bhutan. The state of West Bengal borders the states of Bihar, Orissa, Sikkim and Assam. It stretches for about 700 Km, from the Bay of Bengal in the South to the mighty Himalayas in the North.

West Bengal has emerged as a prime investment destination in India with a large number of foreign investments at Howrah and Kolkata. Haldia is set to be the next petrochemical hub. The steel city of Durgapur and the colliery belts of Asansol are gaining popularity as a ferro alloy hub. The northern parts of Siliguri and Jalpaiguri are also attracting scores of investors. Total investments in the state during 1991-2003 stood at Rs.24,436 crores. In 2004, it further rose to 26,480 crores and the quantum of investments is increasing by the year.

Fact File

Source: Economic Survey of Maharashtra 2005-06

Climatic Information

Temperature:

• Summer : 24 degree Celsius to 40 degree Celsius
• Winter : 7 degree Celsius to 26 degree Celsius
• Average temperature in March ranges from 28 degree Celsius to 32 degree Celsius.
• Monsoon: June-September
• Rainfall: 175 Cms (yearly average)

Advantage West Bengal

• The fourth largest growing state in India with the second largest recipient of investments in the country.
  
• West Bengal being an agrarian state offers tremendous potential for agri-business, with fertile soil, five agro-climatic zones and aggressive land reform programmes.
  
• Drastic progress with regard to infrastructure development with reference to flyovers etc.
  
• Significant improvements in the urban infrastructure scenario with reference to water supply, restructuring connectivity etc.
  
• The state has been receiving a number of investments in the iron and steel, chemicals, plastic, information technology and the biotechnology sector.
  
• Landmark developments in real estate scenario.
  
• Provision of high quality power at competitive rates and grid improvements.
  
• Tremendous potential for investment opportunities in the information technology sector, with employment opportunities of high-end jobs in the software industry. The Thrust areas in information technology include software development, niche hardware manufacture, IT real estate, IT enabled services, IT-security etc.
  
• Talented pool of human resources, with forward-looking academic and technology learning centres.
  
• The dairy sector portrays a promising sector with various innovation strategies undertaken currently by the state cooperative sector.
  
• Immense potential for the development of Tourism and related activities.

Economic Infrastructure

Power

The installed capacity in the state is 6877 MW (Including DVC & NTPC). West Bengal is one of the few power surplus state and supplies power to its neighbouring states. It is the only state offering 40 per cent power tariff concession in an ordered scale up to 6-years of production of an industrial unit.

West Bengal has been leading in the power development sector with the state government's ambitious project to install an additional capacity of about 2,470 MW over the next two years. A special project has been taken up in order to raise the proportion of rural hamlets under electrification from 87 per cent to 100 per cent.

Roads

• Highways: National Highways: 1651 Kms
  
• State Highways: 3418 Kms
  
• State Highways: Road (PWD) 12288 Kms
  
• (Zila Parishad): 31064 Kms
  
• (Municipal Road): 18632 Kms
  
• Railway Network: 3867 Route Kms

Telecom

The state telecom industry offers vast potential for investment with the penetration of optic fiber cables and the expansion of broadband services all over the state.

VSNL has its international gateway and earth station in and around Kolkata. Mobile cellular services and email services are available from a host of operators.

Aviation

There are two International Airports at Kolkata and Bagdogra.

Seaports

There are two seaports, Kolkata and Haldia.

Kolkata Port

Kolkata Port is India's only riverine port with two dock systems - Kolkata Dock System at Kolkata with the oil wharves at Baj Baj and a deep-water dock system at Haldia Dock Complex, Haldia for sea borne trade. It has the most sophisticated port facilities with extensive storage facility for diverse cargo. With a modern computerized container terminal, Kolkata port offers a very customer friendly approach.

Kolkata Port handled an all time record traffic of 53.143 million tonnes in 2005-2006 against 46.207 million tonnes in 2004-2005 achieving a growth of 1 per cent, which was much higher than the growth of 10.4 per cent, registered by all Indian major ports.

During 2005-2006, Kolkata Port maintained the 'Second' position amongst all Indian major ports in terms of cargo handling - a feat that was attained by the port in 2004-2005 after a long gap of 37 years.

Traffic at Kolkata Dock System (KDS) increased to 10.806 million tonnes in 2005-2006 as against 9.945 million tonnes in 2004-2005, registering a growth of 8.66%. At Haldia Dock Complex (HDC), cargo traffic increased to 42.337 million tonnes in 2005-2006 from 36.262 million tonnes in 2004-2005, registering a growth of 16.75%.

During the last four-year period, from 2001-2002 to 2005-2006, Kolkata Port increased its cargo volume by 22.74 million tonnes (74.8%), which was the highest amongst all Indian major ports. Compound Annual Growth Rate (CAGR) of total traffic at Kolkata Port during the last four years (from 2001-02 and 2005-06) was 15% against the CAGR of 10 per cent, registered by all major ports of India during the same period. Share of Kolkata Port in total traffic handled by all Indian major ports increased to 12.55% in 2005-2006 from 10.57% in 2001-2002.

Traffic handled in terms of principal commodities at Kolkata port

Haldia Dock Complex

Haldia Dock Complex was commissioned in the year 1977 on the western bank of river Hooghly 50 kms from the pilot Boarding Point. The Haldia Dock Complex was projected to cater to the increasing foreign trade. Haldia Dock Complex was the first modern port project taken up in India having the facilities to handle all types of traffic and bulk cargo. It is also the first dock system in India to provide full-fledged container handling facilities.

There are twelve berths in Haldia Dock System. Nine berths are inside the compounded dock system and the oil jetties are situated on the Hooghly river bank. Out of nine berths inside the dock, two are mechanized coal handling births, berth no.9 is primarily used as a container handling berth, berth no.6 and 7-handle liquid bulk cargo. Others are used for general cargo and containers.

The facilities at Haldia Dock Complex can be grouped as:

• Haldia Oil Jetties - 3 Reverine jetties
• Impounded Dock - 9 berths and 3 under construction
• Haldia Barge Jetties - 2 Reverine Barge jetties for handling of oil barges
• Haldia anchorage for LASH Vessels

Social Infrastructure

Education

The overall literacy rate in West Bengal is 69.2 per cent, which is higher than all India average of 65.4 per cent.

The state of West Bengal has gone a long way ahead to diversify education in various fields. The State Government has been encouraging the introduction of various needs based and job-oriented courses in the emerging areas of science and technology.

The state is giving special attention to the expansion of opportunities for professional education, IT and IT-enabled education, vocational subjects, engineering and management and also to newly introduced subjects like material science, biotechnology, bio-informatics, molecular biology, genetic engineering, nanotechnology, micro-biology etc. Priority is also given for spoken and written skill in English. Emphasis is being given on the development of research activities and other arenas of higher education to keep pace with the changes occurring in modern times.

Facilities at Degree Level for Technical Education in the State of West Bengal

Government/Government Funded Engineering Colleges

• B.E. College (Deemed University), Howrah
  
• Jadavpur University, Kolkata
  
• Regional Engineering College, Durgapur
  
• Kalyani Engineering College, Kalyani
  
• Kalyani University Science Instrumentation Centre, Kalyani
  
• Jalpaiguri Govt. Engineering College

Private Engineering Colleges

• Haldia Institute of Technology (private aided), Haldia
  
• Institute of Engineering & Management, Salt Lake
  
• Asansol Engineering College, Asansol
  
• Netaji Subhas Engineering College, Garia, Kolkata
  
• Bankura Unnayani Institute of Engineering, Bankura
  
• Murshidabad College of Engineering & Technology, Berhampur
  
• College of Engineering & Management, Kolaghat
  
• B.P. Podder Institute of Management & Technology, V.I.P. Road, Kolkata
  
• MCK Institute of Engineering, Liluah, Howrah
  
• RCC College of Engineering, Kolkata
  
• Birbhum Institute of Engineering & Technology Suri, Birbhum
  
• Siliguri Institute of Technology, Siliguri

Facilities at the Post Graduate Level

• University of Kolkata
  
• Jadavpur University
  
• B.E. College (Deemed University)
  
• National Institute of Management

Health

The state has prepared a 10-year Health Sector Strategy (2004-2013) for meeting the State's priorities and addressing the major shortcomings in both public and private health provision. The mission of this policy is to improve the health status of the people of West Bengal, especially the poor and those in greatest need.

In West Bengal, there are government hospitals and health centres in rural areas, block primary health centres and primary health centres established by the government. In addition, there are a few hospitals, nursing homes promoted by private entrepreneurs as well as voluntary organizations. Presently, there are 9794 health units having 69801 beds. The break up is given as follows: -

Major Industries

Petrochemicals and Downstream Industries

The efforts of the Government have led to the finalization of the project parameters of the Haldia Petrochemicals Complex. Planning for ' downstream growth zones' has been initiated. In this process, dispersal of activities to cover all possible areas of the State will be given priority. It is the desire of the government to encourage the development of downstream industries in the State along with Haldia Petrochemicals Ltd (HPL) so that most of the units are ready by the time of commissioning of the mother unit.

Haldia Petrochemicals Ltd is a modern naphtha based Petrochemical Complex located 125 kms from Kolkata, at Haldia, West Bengal, India. It is jointly promoted by West Bengal Industrial Development Corporation, The Chatterjee Petrochem (Mauritius) Co. Ltd. and the Tata Group with an investment of $1.2 Billion. The complex consists of a naphtha cracker unit and associated plants, which manufacture:

• Linear Low Density Polyethylene (LLDPE)
  
• High Density Polyethylene (HDPE)
  
• Polypropylene (PP)
  
• Chemicals

Electronics and Information Technology

The Government is encouraging proposals for setting up large complexes in the 'information technology' segments of the private sector, joint sector and public sector. The Top US-based management consultant, neoIT, has ranked Kolkata among the top three global offshoring destinations. The top 24 global sourcing destinations were surveyed in terms of their current and future attractiveness, based on their access to labour pool, attrition level, telecom and power costs, real estate, wage inflation, airline connectivity, road infrastructure, government support, social environment and crime rates. According to the report, various initiatives taken up by West Bengal government in this sector are fuelling kolkata's potential.

The West Bengal government is looking at developing Tier II cities like Haldia, Durgapur & Siliguri and also suburban areas around Kolkata as the next IT hubs. In the meanwhile, Siliguri Jalpaiguri Development Authority has already floated Expression of Interest for development of an IT park in Siliguri.

West Bengal is on a fast track IT highway and is poised to become one of the top three states in India by 2010 to contribute 15 to 20 per cent of the country's total IT revenue. In order to capture this significant share of the growth and to provide full support to the investor community, the state has crafted comprehensive policies for the development of information technology in the state.

West Bengal Electronics Industry Development Corporation Limited (Webel) is the nodal agency of the Government of West Bengal for developing Information Technology and ITeS industries in the state and creating value for the citizens. Webel facilitates the growth of the industry by a host of measures such as developing infrastructure in the form of land/buildings for the investors and facilitating processes of clearances that are required to set up business, ensures last mile connectivity, assists the government in all its e-governance projects and brings tangible benefits to citizens in the field of health care and IT education. Webel acts as the single window support centre for all services required by the IT & ITES investors in the state of West Bengal.

Iron and Steel, Metallurgical and Engineering

The efforts of the government are addressed for developing these sectors optimally so that the state is able to establish its primacy in this sphere. With easy availability of raw materials, stable power and skilled manpower, a significant growth is expected. Ship breaking activities are being promoted to make available scrap at reasonable rates to the downstream units. Due attention is being given to ferro alloys.

Textiles

The state occupied an important position earlier in the textile sector. It is proposed to formulate a new strategy for development especially in the areas of hosiery, knitwear, ready-made garments etc. In the silk and silk weaving sector, the government is committed to encourage processing and value addition activities. Emphasis is also laid down on expansion of areas under sericulture.

Leather and Leather Products

This sector has a very high potential for growth due to easy availability of raw materials like hides and skins. Availability of skilled manpower for such activities has been the strength of this area. Export oriented units will be benefited through the setting up of the integrated leather complex near Kolkata. Kolkata Leather Complex is being set up in Bantala, primarily to relocate the existing tanneries from Kolkata (Tiljala, Topsia and Tangra). The complex is spread over 1100 acres of land under PS: Bhangore of South 24 Parganas district. The complex is 15 minutes away from Park Circus connector of EM Bypass. The basic idea of relocating these tanneries is to save Kolkata from pollution. As these tanneries are degrading environment and posing health hazards to the surrounding areas. This will be a modern leather complex equipped with common effluent treatment plant. Central Leather Research Institute will be providing technical inputs and will be designing a common chrome recovery plant. The estimated project cost is Rs 320 crores. The leather complex will be an ideal place for leather processing and furnishing units.

Food Processing, Edible Oil, Vegetable Processing and Agriculture

The government will continue to give priority to these segments on account of the fact that development of these segments will further strengthen the agricultural base and increase employment opportunities in the unorganized sector. The state will help in establishing appropriate linkages between growers and processing units. Aquaculture, particularly brackish water shrimp culture in the estuarine areas will be given priority. Floriculture, tissue culture and horticulture will be encouraged.

Medicinal Plants, Rubber, Palm Oil and Tea

The government will provide necessary support for development in these areas.

Manufacture of Basic Drugs, Chemicals and Pharmaceuticals

Considering the traditional strength of West Bengal in these segments, an action plan is being formulated to attract higher investments in this area.

Optimal Utilization of Minerals and Development of Mine-Based Industries

Mining of dolomite, granite, china clay, limestone apatite and fireclay is being encouraged. In the coal sector, high temperature coal carbonization will be encouraged.

Gems and Jewellery

It is proposed to avail of the sophisticated skills available in the state for promotion of jewellery making.

Tourism and Tourist Related Activities

In view of the high employment potentials in this sector, the government is formulating a separate policy for development of tourism. The objective is to realize the full potential of locations like the Sunderbans, hills of Darjeeling, forests of Dooars, places of importance from the heritage point of view and the seaside resorts in coastal areas.

Policy Framework

Information Technology Policy 2003

The state has identified IT as a priority focus sector to be developed into a growth engine. It has developed the new IT policy keeping in mind the enhanced opportunities that IT will unleash over the next decade. These opportunities will allow corporates to create immense value, provide significant opportunities for talent development and employment, and enhance efficiencies in governance and social service. Therefore, the core objective of the new IT policy is to allow different constituents within the State to leverage this opportunity.

Full text of the policy

SEZ Policy

SEZs are specifically delineated duty free enclaves treated as a foreign territory for the purpose of industrial services and trade operations with exemption from customs duty and a more liberal regime in respect of other levies, foreign investment and other transactions. Domestic regulations, restrictions and infrastructure inadequacies are sought to be culminated in the SEZs for creating an internationally competitive environment.
In order to effectively utilise the local abundance of skill and craftsmanship for the Gems & Jewellery sector and considering the emerging opportunities of export in this sector, Govt. of West Bengal has decided to set up a Gems & Jewellery Park on a 5-acre plot of land at Salt Lake, Kolkata.

Full text of the policy (.pdf)

Mineral Policy

Minerals are valuable natural resources and constitute vital raw materials for many basic industries. Thus, the minerals are major resources for development. West Bengal, except Darjeeling district in the north and coalfields region in the West, is covered almost completely by either alluvium or deeply weathered rocks. The rocky terrain, as a whole ranging in age from oldest Archaean to the younger Tertiaries, covers about one fourth of the total surface area of the State, i.e. approximately 21000 sq. km.

The state of West Bengal has an important position in mineral production of the country. In terms of value, the state accounts for 3.8% of mineral production in India and occupies the seventh position. Various metallic and non-metallic mineral deposits have been located both in the Peninsular and Extra-peninsular parts of the state and some of them viz. coal, china clay, fire clay, apatite, dolomite, limestone, silica sand, base metals, wolframite have economic importance.

Biotechnology Policy

The implementation of rural land reform programme in West Bengal has unleashed an economic resurgence in the state, which is expected to propel its rapid stride into a highly industrialized state. The strengths of West Bengal lie in its highly successful agriculture sector. It also has untapped unique resources in the mangroves unlike any other part of the country. Focusing on these strengths, a biotechnology vision statement for West Bengal has been formulated to enhance and organize the existing strengths.

The mission of the state is to ensure scientific and technological empowerment of its human resources. The state aims at creating a strong infrastructure both for research and commercialization. Efforts are being made to launch well-directed effort for generation of products, processes and technologies to enhance the cost effectiveness and productivity of agriculture, modern medicine, pollution control, biodiversity conservation and bio-industrial development.

Export Policy

The Government of West Bengal sees exports as a priority area and in recognition of the state's enormous export potential the Government of West Bengal announces "West Bengal Export Policy". The policy will be in force upto 2007.

West Bengal has distinct advantages in its geographical location in terms of export potential. It is flanked by three of India's SAARC neighbours viz. Bangladesh, Nepal and Bhutan, and it is also close to Myanmar. Its potential is strengthened due to its proximity to the large markets of the South-East Asian countries. Bengal is a prospective gateway for India to expand trade with Bangladesh, Nepal and Bhutan and also with Myanmar through Assam and Manipur. The possibility of land trade with China through the Nathu La Pass in Sikkim offers new opportunities for export growth. Kolkata could serve as the main trading hub and Siliguri as the satellite for India's trade with these neighbours.

Investment Incentives

Investment Incentives as under the IT Policy

Supportive regulatory framework setup for investors

• Procedures under existing labour laws are simplified to ensure smooth operations.
  
• Self-certification allowed for IT companies on various acts.
  
• IT companies are awarded special status under various acts to improve infrastructure availability.
  
• Structural policy changes to boost the growth of IT in the state.

Fiscal Incentive for IT investors

• One time fiscal incentives
  • Exemption from consumption tax
    
  • Quality linked incentives
• Recurring incentives
  • Converting interest subsidy into training subsidy.
    
  • Preference to West Bengal units in award of e-governance projects.
    
  • Special incentives for mega projects.

Investment Incentives as under the SEZ Policy

• Exemptions from stamp duty and registration fees.
  
• Exemptions from all state and local taxes on transaction with the SEZs. This is also applicable with reference to supply from domestic tariff areas to the SEZ.
  
• Single window mechanism which deals with the grant of labour and environment related permits and approvals.
  
• Permissions to generate power for the SEZs own consumption.

Industrial Centres

Permanent Trade Fair Complex

The need for a Permanent Trade Fair Complex at Kolkata has been felt for long. The State Government has now taken the initiative to set up such a complex in Kolkata. The proposed Trade Fair Complex is coming up on a plot of land measuring 18.41 acres at the Park Circus Connector adjacent to the proposed Indian Craft Village Trust (ICVT) and ITC Sonar Bangla Hotel at JBS Haldane Avenue, Kolkata.

The Trade Fair Complex is being implemented under a company called West Bengal Trade Promotion Organisation (WBTPO). Approval of name for West Bengal Trade Promotion Organisation was obtained from Registrar of Companies, West Bengal. WBTPO has been promoted by ITPO, WBIDC and Kolkata Municipal Corporation (KMC).

For steering the project towards completion, three agreements had been signed between:

• ICVT and Kolkata Municipal Corporation (KMC)
• KMC and WBTPO for granting lease of 18.41 acres of land to WBTPO by KMC to set up the aforesaid Trade Fair Complex
• WBTPO and ICVT for compensating physical infrastructure at the existing site and other allied matters concerning land for WBTPO.

Manikanchan

The majority of skilled artisans in the Indian jwellery industry hail from Bengal-a rich pool of human resource for the gem and jwellery industry, which offers immense opportunities both within India and in the global perspective. "Manikanchan", the Gem & Jwellery Park in Salt Lake, Kolkata, is being promoted by WBIDC with I-WIN (a joint venture between WBIDC and ICICI) as the project management consultants. The Government of India has approved this as the first sector-specific Special Economic Zone in eastern India.

The Common Facilities Building with 47840 sq.ft on 6 floors is uniquely designed in the shape of a diamond; space here will cost Rs.1950/sq.ft. The Standard Design Factory is a 7-storeyed building with 141300 sq.ft of space available at Rs.1380/sq.ft

Manikanchan will have a comprehensive infrastructure-a Customs Office for in-house clearance, a Bank, Strong Room, Canalizing and Export Promotion agencies, Exhibition/Conference Hall, a special secure CAD-CAM Design Centre for the use of manufacturers in the Park and of course special security. Rates for power and water are significantly lower than in other growth centres.

Toy Park

A parallel project promoted by WBIDC with Project Management Consultancy by I-WIN is the Toy Park, also in Salt Lake. The Toy Park will have internal concrete roads, it's own electrical sub station, water supply plant and effluent treatment facilities.

Foundry Park

Since the 1940's, Howrah has had a concentration of foundries that led to its being called the "Sheffield of the East". Of late the foundries have faced difficulties due to outdated technology and environmental issues. WBIDC, with the help of the Howrah district administration, has located about 123 acres of land in Domjur for a Foundry Park where the units can be relocated. They will benefit from common infrastructure including common facilities for environmental management. The matter has been taken up with the Pollution Control Board, who has indicated that the site is acceptable in principle, subject to conformation with the pollution control norms. This project will rejuvenate this labour intensive industry that employs over 100000 workers in Howrah alone.

Agri-Business and Retail Initiative

WBIDC is also moving in a new direction-promotion of facilities in Kolkata for retail and services in agri-business and IT-enabled services. To start with, 4 acres of land have been located on the eastern side of the city, next to the Duncans Gleneagles Hospital, with over 250 feet of frontage on the Eastern Metropolitan Bypass. WBIDC has already advertised for bids to develop this land, with incentives for agri-business and ITES. A back-to-back financial arrangement has been worked out with Bengal Chemicals Ltd, the present owners.

Salt Lake Electronics Complex

The 150-acre Electronic Complex in Salt Lake is a green pollution free zone less than 15 kms from the airport. More than 13000 IT professionals work in this complex that includes the "walk-in-wired" infrastructure of Kolkata Software Technology Parks and also infrastructure created by private investors (including the state-of-the-art Infinity Building). Salt lake has over 2 million sq. ft of build-up office space with 250000 sq.ft in the Standard Design Factory and 65000 sq.ft in the STP-II.


Kolkata Leather Complex

After the Kolkata High Court ruled that the tanneries of Kolkata were creating unacceptable pollution hazards in their old sites (Tiljala, Topsia and Tangra), the 44-hectare Kolkata Leather Complex was started at Kariadanga off the Eastern Metropolitan Bypass. This complex will have a common Effluent Treatment Plant to ensure conformation to pollution control specifications, in addition to the pooling of other infrastructure such as electricity, water, tanning space and transport infrastructure.

Major Players in the State

• Reliance Industries
  
• Salim Group (Indonesia)
  
• POSCO
  
• Mittal Steel
  
• Jindal Steel
  
• Wipro
  
• Cognizant Technologies
  
• ITC Infotech
  
• IBM
  
• TCS
  
• Videocon

Useful Web Links

• Government of West Bengal
• West Bengal Industrial Development Corporation