West Bengal Unfolding Growth Strategy

The Associated Chambers of Commerce and Industry of India ASSOCHAM Corporate Office: 1, Community Centre, Zamrudpur, Kailash Colony, New Delhi – 110048 Tel: 011 46550555 (Hunting Line) • Fax: 011 46536481/82, 46536498 Email: [email protected] • Website: www.assocham.org

The Associated Chambers of Commerce and Industry of India

D. S. Rawat Secretary General, ASSOCHAM

MESSAGE

I am happy to know that the Associated Chambers of Commerce and Industry of India (ASSOCHAM) is organizing a seminar on “Positioning Bengal-Partnering for Growth, Development and Sustainable Security” on 22nd August, 2012 in Kolkata West Bengal as we all know is a progressive state and is considered an investment hub. Globalization of market and a dynamic economy have given tremendous thrust to the over all growth of the State. West Bengal has been blessed with large skilled, educated, young workforce. Besides, the state has investor friendly policy environment which facilitate huge scope for the investment. To give a brief overview of the areas of potential investment in West Bengal, ASSOCHAM and Frost & Sullivan have prepared a study which carries a long term vision for growth and development in the state. I am sure this study will give rich insight and adequate knowledge to all the stakeholders. I congratulate my colleague Mr. U.K. Joshi, Director and his team for this commendable initiative. I would also like to extend my compliments to our Knowledge Partner “Frost & Sullivan”, ITC Limited, State Bank of India, SREI Group and Mani Group for their kind support at the Seminar. I wish the seminar a great success.

D.S. Rawat

ASSOCHAM Corporate Office: 1, Community Centre Zamrudpur, Kailash Colony, New Delhi - 110 048 Tel: 46550555 (Hunting Line) • Fax: 46536481-82, 46536497-98 • E-mail: [email protected] • Website: www.assocham.org

Table of Contents

• State Profile – West Bengal...... 1 Population and Demographics, West Bengal, 2011...... 1 Macroeconomic View...... 2 • Situation of Infrastructure...... 4 Soft Infrastructure...... 4 Medical Infrastructure...... 5 Physical Infrastructure...... 6 Roads...... 6 Railways...... 8 Airways...... 8 Inland Waterways...... 9 Ports...... 9 Power...... 9 Communication...... 10 Industrial Infrastructure...... 11 Growth Centers...... 11 Special Economic Zones...... 11 Industrial Parks...... 12 Intelligent Parks...... 13 Major Industrial Areas...... 16 • Industrial Policy Environment...... 18 FDI Inflows in “Brand Bengal"...... 19 Export Snapshot Of "Brand" Bengal...... 19 Major State Industrial Policies, West Bengal, 2012...... 19 Summary of the Key Industrial Policies, West Bengal: Recent Scenario...... 20 • Key Industries and Key Players...... 22 • The Spectacular Tourism Industry: High Potential, Higher Hopes...... 26 • Key Agencies and their responsibilities...... 27 • Sustainable Security...... 28 • Key Challenges for West Bengal’s growth and development...... 30 • Recommendations for Sustaining/Achieving Faster Growth...... 31 Conclusion...... 33

An Article • "West Bengal - The Growth Engine of Eastern India" U.K. Joshi, Director, ASSOCHAM...... 34

State Profile – West Bengal

est Bengal (WB), also known as Paschim Banga, is situated Win the Eastern part of India. WB is bordered on the south by the Bay Of Bengal and in the north by the Himalayas. Kolkata is the state’s biggest city and also the capital. West Bengal’s total area is34,267.3 sq miles or 88,752 km2.It has two huge natural zones,in the north there is the sub-Himalayan and Himalayan region and the GangeticPlain is in the south.The main occupation of the residents of the state is farming. West Bengal ranks as the sixth highest contributor to India’s Gross Domestic Product (GDP).With the highest population density and a high per capita income of about $848 in East India, West Bengal is the fourth largest growing state in terms of the economic growth rate. WB holds the distinction of being the fourth largest economy in India,it trails Maharashtra, Uttar Pradesh and Andhra Pradesh.In this report, we analyse the rare combination of growth, rapid economic development and sustainable security in WB.With a constant progress towards betterment, WB is strengthening its economic, social and infrastructural positionand is emerging as an investor’s paradise, as, “Brand Bengal.” Population and Demographics,West Bengal, 2011

According to the 2011 national census provisional results, West Bengal ranks as the fourth most populous Indian state with 7.5 percent of the total national population.WB ranks as the second- most densely populated state after Bihar. The child population decadal growth rate decreased to 13.93percentin between 2001 and 2011 from 17.80 percent between 1991 and 2001.

1 West Bengal – Unfolding Growth Strategy Macroeconomic View GSDP, Selected States, 2007-2012

In terms of Gross State Domestic Product (GSDP), West Bengal ranks sixth in India, behind Maharashtra, Uttar Pradesh,Andhra Pradesh, Tamil Nadu and Gujarat.WB ranks second after Bihar in terms of percentage growth of GSDP for 2011-12 and is well above the national percentage of 15.68.

Chart 1: Total Gross State Domestic Product (GSDP) at Current prices and Growth Rate, West Bengal, 2007-08 to 2011-12

2 West Bengal – Unfolding Growth Strategy Sectoral Composition of the Economy

In 2009-10 the tertiary sector of the economy (service industries) was the largest contributor to the GSDP at current prices, contributing 57.8percent. The primary sector comprising agriculture, forestry and mining contributed 24.0 percentfollowed by 18.2percent from secondary sector (industrial). The fastest growing among the three sectors from 2004–05 to 2009–10 is the tertiary sector at 15.2percent. Growth has been driven by trade, hotels, real estate, finance, insurance, transport and communication.

3 West Bengal – Unfolding Growth Strategy Situation of Infrastructure

etter infrastructure always attracts bigger investment. Keeping this major factor in mind, the BGovernment of West Bengal (GoWB) has laid great emphasis on strengthening the existing infrastructure and building new infrastructure to encourage more investments. Domestic as well as international investors are paying more attention to the relatively developed physical and social infrastructure framework, which the state is offering them.Public-Private Partnerships are recognized and encouraged by the GoWB for maintainance, development and upgradation of infrastructural facilities. The state has invited Larsen & Toubro to set up a 700-800 MW thermal power plant in the West Midnapore district, which happens to be an ‘Ultra’ affected area. The company, too, has expressed interest in erecting the same and running itshortly.

Four major dimensions of infrastructure in West Bengal

Soft Infrastructure

West Bengal has strong socio-economic indicators reflective of a state focussing on human development. It performs better than the Indian average on most indicators. The state has continually invested in health and education. Sectors Budget Allocation in 2012 (INR Crore) Health Sector 1,049 in 2012 (increased from 2011’s 871) Agriculture sector 315

4 West Bengal – Unfolding Growth Strategy Drinking water 800 Minorities welfare 570 (increased from 2011’s 330) School Education 2,713 Allocation to power (including non- 1,010 conventional sources) Road sectors 1,175.42 Outlay towards industry 500 IT sector 102.75 Micro Small and Medium Enterprises sector 286

Source: Planning Commission and Frost & Sullivan Analysis

Key Socio-Economic Indicators, West Bengal and India, 2009-2011

Upcoming Trendin Indicator Year West Bengal India West Bengal Literacy Rate (%) 2011 77.08 74.04 Increase Sex Ratio (Females per 2011 947 940 Increase 1000 males) Crude Birth Rate(%) 2010 16.8 22.1 Decrease Crude Death Rate(%) 2010 6.0 7.2 Decrease Infant Mortality 2010 31 47 Decrease Rate(%) Total Fertility Rate(%) 2010 1.8 2.5 Decrease Population below 2009-2010 26.7 29.8 Decrease poverty line (%) Source: Planning Commission and Frost & Sullivan Analysis

Medical Infrastructure

The urban healthcare scenario in West Bengal has been improved with the formation of community-based primary healthcare services. Budding health workers have completed their training through 62 urban local bodies.The first health city project in West Bengal, Bardhaman health city, is being set up near the Durgapur Expressway, at an estimated cost of INR 315 crore. This upcoming health city will have numerous facilities like medical colleges, blood banks, ambulance, medicine shops and others.

5 West Bengal – Unfolding Growth Strategy Health Infrastructure as of 2010-2011

Physical Infrastructure

The rest of India is excellently connected with West Bengalthrough roadways, rail network, ports, inland waterways and airports.

Roads

6 West Bengal – Unfolding Growth Strategy Since there is huge demand for speed and quality in connectivity, the GoWB has taken up an ambitious infrastructure renewal and expansion program.Some of the recent key initiatives in the roads sector are:

• WB has developed the North South Economic Order at a cost of US$210.0 million with the aid of the ADB. This will enhance the connectivity of Kolkata and the southern port of Haldia with the northern part of the state. • The North South Corridor, the National Highway projects of Dankuni- Kolaghat and Dankuni Kharagpur, Vivekananda Bridge which is the gateway to NH2 have been completed and are fully operational. • NH41 from Kolkghat to Haldia, NH31 passing through North Bengal, NH117 from Kona to NetajiSubhas Docks, NH35 from Barasat to Petrapole and NH31 from Kolkata to Dalkhola are all to be developed into 4-lane highways. • A 100 km long Eastern link Highway project has already been initiated, which will connect Barasat to Raichak. • The State Highway connecting NH31 from Siliguri to Jalpaiguri via Falakata will be transformed into a National Highway. • Major North Bengal Districts will be connected by the Golden Quadrilateral The Kolkata to New Delhi NH2 has been made project undertaken by the National a 4-lane corridor. The fully operative Durgapur Highway Authority of India (NHAI). and Kona Expresswaysprovide easy entry into Kolkata from the NH2.

Under the Jawaharlal Nehru National Urban Renewal Mission, the GoWB has already initiated an action plan of INR 2,70,000Lakh, forfurther developing the road infrastructural conditions.

Wellknown foreign companies are approaching the GoWB with a keen interest of being a partner to further develop the road infrastructure. Salim Group, which is based in Indonesia, has already bagged two state projects, one for constructing the Eastern Link Highway from Barasat to Raichak and the other for building two 4-lane Road Bridges across the Hooghly and Haldi rivers in order to improve connectivity between Kolkata and Haldia.

7 West Bengal – Unfolding Growth Strategy Railways

Railway tracks of 4154.98 km are well disseminated across the state, of whichapproximately 54 percent run on electricity. Railways in West Bengal are divided into Eastern Railway, South- Eastern Railway, North-East Frontier Railway and Metro Railway. The East West Metro Corridor Project is currently ongoing which will connect Salt Lake to Howrah. The State Government is also planning to the extend East-West Metro from Salt Lake to Netaji Subhas Chandra Bose Airport.

Rail Coverage – West Bengal: 2009-10 to 2010-11

Total Particulars 2009-10 2010-11 Broad Gauge – Route Kilometer 4162.28 4185.03 Meter Gauge – Route Kilometer 106.14 106.14 Narrow Gauge – Route 220.01 220.01 Kilometer Number of Railway Stations 815 822 Passengers Originating (‘000) 13,75,170 14,95,152 Source: WBFIN and Frost & Sullivan Analysis Airways

Netaji Subhas Chandra Bose International (NSCBI) Airport connects Kolkata to the rest of India and all other prime locations of the world. During 2009-10 (April-December), the total commercial traffic from Kolkata airport 59,80,895 passenger flights and 78,927 tons of cargo. Currently, modernization of the international terminalhas been done at approximately US $435.0million . A new terminal, modern taxi stands, a runway extension and a new integrated cargo complex have been developed.

The other fully operational Airport at Bagdogra links Siliguri to important destinations within India. Siliguri is the gateway to the North Eastern States and a very important trade and logistics hub for the region. The Government of India is willing to set up a perishable cargo complex at the Bagdogra airport and has sanctioned US$6,80,000.

Two domestic airports at Cooch Behar and Behala, 16 km from Kolkata,are also on the verge of being fully operational, with the joint initiatives of the State Government and the Airports Authority Of India. Other provisional Airports are Malda, Balurghat and Durgapur.

8 West Bengal – Unfolding Growth Strategy Passengers handled at major Airports in West Bengal

Airport Category 2007-08 2006-07 Percent 2005-06 Percent change change in growth in growth (2006-07 (2005-06 to 2007- to 2006- 08) 07) Domestic 6451430 5187867 24.36 3664548 41.57 NSCBI International 1007502 805191 25.13 742247 8.48 Airport Total 7458932 5993058 24.46 4406795 36.00 Domestic 338065 259134 30.96 186837 38.70 Bagdogra International NIL NIL NIL NIL NIL Airport Total 3,38,065 2,59,134 30.46 1,86,837 38.70 Source: Airports Authority of India and Frost & Sullivan Analysis

Inland Waterways

The GoI has declared the entire Gangetic stretch between Haldia and Allahabad as the National Waterway (NW-1). The 43 km stretch from river Hooghly to river Raimangal on the Bangladesh Border, which is the North Canal Syatem, was once the artery of trade for Bengal. The TransportDepartment of the GoWB has already laid plans and initiated them to re-establish trade links, which will in turn boost the economic development of the region.

Ports

Kolkata and Haldia are two modern ports in West Bengal, of which Kolkata is the major one. According to the last available figures (2008-2009), these ports together handled 54.22 million tons of cargo. In terms of cargo handling, in 2008-2009, Kolkata port was ranked fifth among all the major Indian ports. In the 11th5-year plan, Kolkata Port Trust was given an outlay of US $222.3Million.Upgradation and mordernization of both the ports is ongoing, so that they can handle more cargo in the coming years.

Besides this, Dubai-based DP World along with the GoWB is constructiong a 3000 acre port- cum-SEZ in Kulpi. Ministry of Shipping, GoI, has already initiated the set up of a Deep Sea Port near Kolkata to increase marine fish and fish products’ export to over 25000 tons/annum.

Power

In power development, West Bengal has been a leader over the years.West Bengal’s power infrastructure has been ranked high by NASSCOM. As of March 2011, the installed capacity of power/electricity in the statewas 8316.9MW.

9 West Bengal – Unfolding Growth Strategy Power generation handling agencies of West Bengal: • West Bengal State Electricity Development Corporation Limited • West Bengal Power Development Corporation Ltd • Durgapur Projects Ltd. (State Sector) • Damodar Valley Corporation • National Thermal Power Corporation (Central Sector) • Calcutta Electric Supply Company • Dishergarh Power Supply Company (Private Sector)

Setting up of renewable energy based plants is highly encouraged by the State Government. Moreover, the proposal for setting up of green field steel/aluminium plants will also increase the capacity of the power sector.

Communication

Videsh Sanchar Nigam Limited (VSNL)and 5 Software Technology Parks of India(STPI) Earth Stations at Kolkata, Durgapur, Kharagpur, Haldia and Siliguri provide international satellite connectivity of more than 580 Mbps to the state's capital, Kolkata.Bharat Sanchar NigamLimited (BSNL) is the main public player along with private players like Reliance Infocomm, Vodafone and Bharti Airtel. Leased BSNL lines to Mumbai provide cable connectivity and submarine cables provide onward connectivity to the State. A submarine cable landing station is upcoming at Digha.

Information Technology is considered a key sector in the State. With a belief that the IT sector has the potential to uplift the living conditions of the state's people, GoWB is initiating measures to spread IT infrastructure throughout the state.

10 West Bengal – Unfolding Growth Strategy Industrial Infrastructure

Modernization of infrastructural facilities and creation of new clusters and growth centers have already been initiated by the GoWB. As infrastructure creation depends on investments, the State is attracting entrepreneurs in order to ensure private participation in this area and is successfully laying the groundwork for state-of –the –art industrial facilities.Tax incentives and infrastructural offerings in Growth Centers and SEZs boost the investment scenario of the state and will attract more investors in the coming decade.

Growth Centers

The State is working in tandem with the West Bengal Industrial Infrastructure Development Corporation (WBIIDC) to develop Growth Centers. So far WBIIDC has been instrumental in establishing 15 Growth centers in different locations such as Kalyani (Phase I, II, III), Falta(Phase I, II), Uluberia, Bishnupur, Raninagar, Coochbehar, Malda (Phase I, II), Dabgram, Haldia, Kharagpur and Bolpur.Developed land, industrial sheds, water and power supply, street lighting, internal drainage and sewerage systems are some of the assured infrastructure facilities provided in these Growth centres.

The Integrated Industrial Hub at Jalpaiguri and Industrial Auto Park at Jhargram are two upcoming Industrial Parks for which the WBIIDC is working on a public-private partnership (PPP) model.

Infrastructural facilities like developed land, industrial shed, water and power supply, street lighting, internal drainage and sewerage systems are integral offerings in a growth center.New Growth Centers will also add facilities like telephone, banks, post offices, fire stations, police outposts, and shopping centers, etc.

Special Economic Zones

In order to generate more employment, growth of specially designed SEZs in selected sectors are required. These SEZs will enhance industrial infrastructure creation;these are entitled to several concessions and special incentives nationally as well as within the state, such as- • Tax exemption of 100 percent for the first 5 years, and then 50.0 percent for next 5 years. • License not necessary for import and custom duty exemption for raw materials, capital goods, spares, etc. • Central excise duty exempted on procurement of capital goods, raw materials, and spares, etc. from the domestic market. • Central Sales Tax exemption on domestic purchases. • Manufacturing sector offers 100 percent FDI.

11 West Bengal – Unfolding Growth Strategy The State Government has already recognized the need of SEZs;at present there are 5 fully functional SEZs in the State - Falta SEZ (which is a multi-product zone), Manikanchan at Saltlake (dealing with Gems and Jewellery), Wipro at Saltlake(dealing with IT/ITes), Dalmiya and Co. Ltd. at Bantala (dealing with IT/ITes) and UnitechHightech at Rajarhat(dealing with IT/ITes).

More requests for setting up SEZs are coming to the State, mostly from sectors like IT and ITES, Hardware and Software Electronics, and Engineering, etc. So far, West Bengal has received as many as 47 requests, of which 11 are notified, 22 formal and 14 in-principle requests.

Distribution of approved Special Economic Zones (As of 21.2.2012)

State Formal In- Notified Exporting SEZs (Central Govt. + Approvals principle SEZ State Govt./Pvt. SEZs + notified approvals SEZs under the Act, 2005) West Bengal 22 3 11 6 Source: GoWB and Frost & Sullivan Analysis

Industrial Parks

Product and sector specific Industrial Parks are developed by the West Bengal Industrial Development Corporation to ensure fast industrial growth.

State Industrial Parks upcoming or in progress or developed(As of 21.2.2012)

Name Products / Services Location Area (acres) Raghunathpur Steel and Iron and Steel, Cement Raghunathpur, 7420.24 Allied Industrial Park and Power Purulia Shalboni Industrial Park Iron and Steel Shalboni, Pashchim 4500 Medinipore Panagarh Industrial Park Engineering and Panagarh, 2716.19 manufacturing Bardhhaman Salanpur Industrial Park Iron and Steel Salanpur, 2550 Bardhaman Ranigunj Aluminium and Aluminium Smelter Raniganj, 1500 Non-ferrous Metals Park Plant and Power Plant Bardhaman Vidyasagar Industrial Engineering and Kharagpur, 1246.05 Park manufacturing Pashchim Medinipore Foundry Park (Phase I Castings, Forgings and Sankrail, Howrah 556.93 and II) other Foundry items

12 West Bengal – Unfolding Growth Strategy Plasto Steel Park (Phase - Iron and Steel and Borjora, Bankura 423.2 I and II) Plastic products Godapiasal Industrial Cement Godapiasal, 165.5 Park Pashchim Medinipore Rishi Bankim Industrial Multi product Naihati, 24 163.38 Park Parganas (N) Rubber Park Rubber footwear, hoses, Sankrail, Howrah 90 tubes, automotive rubber products Poly Park Polymer products Sankrail, Howrah 60 Kandua Food Park Food processing Sankrail, Howrah 52 Food Park (Phase I and II) Food processing Sankrail, Howrah 49.98 (SudhaRas Food Park) Garment Park (Paridhan) Garments Kolkata 8.78 Manikanchan SEZ (Phase Gems andJewelry Salt Lake, Kolkata 5 I and II) Shilpangan (Light Light Salt Lake, Kolkata 2.25 Engineering Park) (Phase EngineeringProducts I and II) Source: WBIDC and Frost & Sullivan Analysis

Intelligent Parks

13 West Bengal – Unfolding Growth Strategy AN INVESTOR AWARENESS INITIATIVE FROM CALCUTTA STOCK EXCHANGE INVESTOR PROTECTION FUND

• Ensure you have PAN card and Bank account. • Do not participate in unauthorised and illegal • Strike off all blank / irrelevant fields / clauses in the trades outside the stock exchange mechanism agreement(s) executed. (dabba trading). • Be aware that investor complaints against listed • Do not give wrong / contradictory / incomplete companies are displayed on the websites of Stock information in the client registration form. Exchange (SE). • Do not be guided by astrological predictions on • Deal only with SEBI registered brokers/ Depository share prices and market movements Participant (DP). • Do not fall prey to market rumors/ 'hot tips'/ 'opportunity knocks only once' kind of advice. • Provide your PAN card details in case of transfer / INVESTOR transmission of shares in physical form. PROTECTION • Be aware that Mutual Funds and Registrar and • Be alert to any public announcements on the FUND Share Transfer Agent (RSTA) are required to have a shares of the companies that you have invested. dedicated Email ID for registering your complaints. • In case of any dispute / difference / grievance, • Do not invest on any explicit / implicit promises contact the compliance officer of broker / DP. made by anyone. • Be aware that all brokers/ DPs are required to have • Do not entrust management of your money / a dedicated Email ID for registering your E-mail : [email protected] securities with broker / sub broker. complaints. Mobile No.: 09836112625, • Do not invest in any scheme just because of • Be aware that value of your investments is subject 09830040901 incentives / gifts / inducements etc. offered. to ups and downs of the market. They do not offer Tel.: (033) 4025 3000 • Do not be influenced by advertisement/ advices/ guaranteed returns like bank deposits. rumors / unauthentic-news promising gains and Website : www.cse-india.com • Read the Offer Document (OD) before investing. windfall profits in mass media. • Do not expect unrealistic / guaranteed returns.

Courtesy : CALCUTTA STOCK EXCHANGE INVESTOR PROTECTION FUND AN INVESTOR AWARENESS INITIATIVE FROM CALCUTTA STOCK EXCHANGE INVESTOR PROTECTION FUND

Courtesy : CALCUTTA STOCK EXCHANGE INVESTOR PROTECTION FUND "We all say that Kolkata is the cultural capital of the country and Mumbai is the financial capital of the country. But this International Financial hub in Kolkata will boost investments, employment, resources and the new resurgence of Bengal. It is a collective package," said Ms. Mamata Banerjee, CM of West Bengal, while addressing the inaugural programme of the International Financial Hub.

Major Industrial Areas

Haldia

• Oilgiants like the Indian Oil Corporation Ltd, Indian Oil Petronas Ltd., HindusthanFertilizer Corporation, Tata Chemicals Ltd., Haldia Petrochemicals Ltd., Mitsubishi Chemical Corporation, Hindustan Unilever Limited, Dhunseri Petrochem & Tea Ltd., ShamonIspat Ltd., Ambo Agro Products Ltd., Exide Industries, etc are based here.

• The area has location advantage andgood cargo handling facilities,

• In a joint venture, the WBIDC and Tata Steel areon the verge ofsetting up a Merchant Coke Oven Plant,which will generate 0.8 million tons of coke annually in Phase I and also 60MW of power.

Kolkata

• The strategic location of Kolkata is important for industrial development so the whole of Eastern and North-Eastern India considers it the main commercial and financial hub..

• Kolkata has Eastern India's only major International Airport. Kolkata port is also considered one of the most well managed and promising ports in India.

• Many industries like jute, leather units, chemicals, plastics, etc., havetheir base at Kolkata, Howrah and the city suburbs.

• Presence of numerous Industrial Parks and SEZs signifies Kolkata as an upcoming major Electronics and IT Hub. National and international firms dealing inbanking, insurance, tea, etc., are also setting up offices here.

16 West Bengal – Unfolding Growth Strategy Asansol-Durgapur Region

The Asansol - Durgapur region is situated at 150km from Kolkata.

• Coal, iron ore, copper and bauxite like minerals are richly present in the region. There are industrial units producing iron and steel, engineering goods, and electrical equipment, etc. The Alloy Steel Plant at Durgapur and Railway Locomotive Plant at Chittaranjan are the region's main industrial units.

• In order to uplift the industrial development scenario, with modernised water supply, drainage and sewerage provisions, there is a proposal for infrastructural investment of INR 15000 million in Asansol urban area under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

• Durgapur Aerotropolis a project by Bengal Aerotropolis Projects Ltd. (BAPL) is in progress.

Kharagpur

• Kharagpur, which boasts of the first IIT campus, is an ideal investment destination as it is at a distance of just 120 km fromKolkata and railways connect it well to the rest of India.

• The largest railway workshop in India and the world's longest railway platform is situated in Kharagpur.

• The town has a strategic location, which has encouraged the establishment of consumer goods, plastic, chemical and engineering industries like Tata Metaliks, Flender McNeil, etc. Besides the Diesel and EMU workshops have fuelled the growth of Micro and Small Enterprises and other ancillary units.

17 West Bengal – Unfolding Growth Strategy Industrial Policy Environment

Industrial Policy – West Bengal

est Bengal has implemented important policies to ensure increased flow of investment in Windustries. Maximization of investments, output, growth and employment in the state are the main aim of the policies. West Bengal has not been able to attract the high levels of desired FDI and industrial policiesare undertaken to increase this. The policies cover various industries such as Petrochemicals, Electronics andInformation Technology, Iron andSteel,micro, small and medium enterprises, etc; a major thrust is given to the manufacturing sector.

The Associated Chamber of Commerce (ASSOCHAM) recently suggested that West Bengal needs to build 17 inter-dependent clusters for small and medium enterprises (SMEs) through public–private partnership (PPP) in order to have inclusive growth. The estimated cost of the clusters will be around INR 400 crore.

“Setting up these new clusters will increase the State's revenue by 10 percent while it is expected to create direct employment for around five lakh people,” Mr D.S. Rawat, national secretary general of ASSOCHAMsaid while releasing a study paper, ‘Cluster Development for Inclusive Growth in West Bengal'.

ASSOCHAMhas proposed clusters at Barjora, Khejuri, Bargachia, Mansinghapur, Hantal, Sahadatpur, Jagat, Udhaynarayanpur, Domjur, Alipurduar, Mogra, Nathungram, Metiabruz, Tiljala, Topsia, Phoolbagan, Daspara, Ahiritola, Taltala, Lenin Sarani, Bowbazar, Kalighat, Matiary, Nabadwip, Ranaghat, Jhalda, Purulia, Begunkodar, Tansi, Kalyanpur, Purandarpur and Dhopagachi. Mr. Rawat said about 90 percent of industries in Bengal were micro- small- and medium-enterprises, employing around 25 lakh. In order to sustain development, the clusters should be connected through the internet. Cluster members, customers and entrepreneurs can have easy coordination through this e-cluster model.

18 West Bengal – Unfolding Growth Strategy FDI Inflows in “Brand Bengal” While Maharashtra leads the country in attracting FDI, West Bengal has turned out to be an important hub for FDI as well. Foreign Direct Investment (FDI) Equity Inflows, Selected States, 2009-10-2011-12 State 2009-10 2010-11 2011-12 Maharashtra 39,409 27,669 44,664 Delhi 46,197 12184 37,403 Karnataka 4852 6133 7,235 Tamil Nadu 3,653 6,115 6,711 Gujarat 3876 3294 4,730 Andhra Pradesh 5710 5753 4,039 West Bengal 531 426 1,817 Total 1,23,120 88,520 1,73,946 Source: Department of Industrial Policy and Promotion, India and Frost &Sullivan analysis Note: The values are in INR Crore; Maharashtra includes Dadra and Nagar Haveli and Daman and Diu; Delhi includes part of Uttar Pradesh and Haryana;Tamil Nadu includes Pondicherry; West Bengal includes Sikkim, Andaman and Nicobar Islands.

Export Snapshot of “Brand Bengal” The export snapshot of the State is quite impressive. For many years, West Bengal has beenthe country's leading exporter in: • Finished leather goods • Flower • Shrimp • Tea Major State Industrial Policies, West Bengal, 2012

19 West Bengal – Unfolding Growth Strategy Summary of the Key Industrial Policies, West Bengal: Recent Scenario

Policy Description& State Government Initiatives Industrial Licensing Atomic energy, five industries of environmental/strategic concern are Policy required to obtain an industrial license for manufacturing activity. In addition, industries, which have the following specifications have industrial licenses necessitated: • Reserved items for the small-scale sector, manufactured by non- small-scale industrial units or units, with more than 24 percent foreign equity. • Units not relating to Electronics, Printing, and Computer Software or any other notified non-polluting industry and located 25 km within Standard Urban Area Limits of cities with 1 million population. The five industries of strategic, social or environmental importance are that of alcoholic drinks, tobacco and substitutes, electronic aerospace and defense equipment, industrial explosives and hazardous chemicals. Micro & Small Scale The State Government has formulated this policy in order to facilitate Enterprises (MSE) Policy investment and promotion of Small andMedium Enterprises. Facilities and services adhering to industrial extension, provision of sites for sheds construction, credit, training, machinery supply, domestic marketing and exports, special incentives for enterprises in backward area and technological up-gradation are key points of this policy.

The GoWB’s marketing policies for SMEshave some salient features like price preference in purchases, exemption from payments of Earnest money, product distribution through PDS, construction and development of industrial estates, plots, commercial and trade offices; extension of credit support. Incentives are also provided as per eligibility under West Bengal Incentive Scheme. Micro and small industries in areas of handicrafts, handlooms, textiles, sericulture, khadi and village industries are also highly being promoted by the GoWB.

20 West Bengal – Unfolding Growth Strategy Environment Policy The overall objectives of this policy are:

• Conservation and efficient use of environmental resources.

• Resource flow enhancement and judicious use.

• Policies and projects to be integrated with environmental concerns.

The GoWB's policy is framed to maintain a balance between development requirements and the environment and natural resources’ preservation.

The West Bengal Pollution Control Board is responsible for implementing environmental laws and regulations within the State. The Bio-Diversity Board of West Bengal plays a crucial advisory role regarding matters related to preservation of bio-diversity in the state. It makes significant contributions in terms of ensuring sustainable and optimized use of various biological resources. IT Policy Value creation, talent pool development and growth in employment opportunities are the main aim of this policy. Improvement of governance and social service efficiencies is also one of the thrust areas. SEZ Act This policy is formulated for the development and operational activities for the specially designed Special Economic Zones in West Bengal. The policy gives thrust to acceleration in economic reforms and rapid systematic growth in the SEZs. Export Policy This policy was formulated to help the State capitalize on its tremendous export potential. Besides it can also help to formulate export plans for untapped possibilities. Source: Government of West Bengal and Frost & Sullivan analysis

21 West Bengal – Unfolding Growth Strategy Key Industries and Key Players

he rare combination of natural resources, policy incentives and infrastructure in West Bengal, Thas made it an investor’s paradise in major sectors, such as Petroleum andPetrochemicals, IT and Electronics, Iron andSteel, Tea, Biotechnology, Jute products, Leather andLeather Products and Food Processing.The State’s climate makes it an ideal destination for tea and jute cultivation.

Some industry stalwarts are already finding Bengal the most attractive destination. Here are some recent quotes from these eminent persons,

"….there are some initial signs that the Government is putting inefforts to attract the corporates, including some industry experts…."– Sunil Goel, Director, Global Hunt.

“We have huge plans for India and West Bengal in coming years. Emerging technologies and new business models will continue to accelerate growth and development in the region. This is where all the action will be in the next decade. Frost & Sullivan was one of the first companies to arrive in India and ever since we have grown our base and relationships. Unlike most companies in our sector, we started by developing relationships with local governments, investors and companies” – David Frigstad, Chairman, Frost & Sullivan.

“We have already invested over INR1,000 crore in West Bengal. We have come today to see various other avenues, which could be of mutual benefit and interest. Some areas we are looking at are deep sea port, hydro-electricity, IT parks, and construction of roads both in the hills and plains,” – Cyrus P.Mistry, Managing Director, Shapoorji Pallonji & Company.

West Bengal is taking greater initiative in developing micro and small scale enterprises. The state has around 900,419 small scale enterprises, which account for 7.0percent of total units in the country.

The metropolitan city of Kolkata has a comparative advantage over the other metropolitan cities of India as the operating cost of business here is lower. Bengal has a large population fluent in English, which is an advantage of the state workforce, especially in Kolkata.

22 West Bengal – Unfolding Growth Strategy Key Industries Advantage Bengal Key Players • 4 percent of total petroleum production • Indian Oil Corporation Ltd and 13 percent of total polymer (IOCL) production comes from WB. • Oil India Ltd (OIL) • Mitsubishi Chemicals and Corporation, • Oil and Natural Gas Petroleum & Japan’s major chemical firm has invested Corporation Ltd (ONGC) Petrochemicals in a Purified Terepthalic Acid (PTA) plant • Haldia Petrochemicals at Haldia with an investment of US $780 Ltd (HPL): India’s million (phase I & II). second largest integrated Petrochemical complex • More than 50,000 professionals are • Genpact employed in the IT/ITeS companies in the • Cognizant Technology state. Solutions IT and • Durgapur, Siliguri, Haldia have • HCL Electronics appropriate infrastructure in the form of • Tata Consultancy Services Software Technology Parks (STP). • IBM • US $1.10 billion of software has been exported from West Bengal in 2009-10. • West Bengal has become a • JSW Steel Ltd favorabledestination for the steel industry. • SAIL •Huge prevalence of iron ore deposits • Shyam Steel Iron & Steel have helped to attract new projects. The • Super Forgings & Steel Ltd Chota Nagpur plateau on the borders (SFSL) of West Bengal is the key place of this industry. • West Bengal ranks second in India in • Tata Global Beverages tea growing, after Assam, and produces • Goodricke Group Ltd around 23.7 percent of the total tea • MacLeod Russell India Ltd produced in India • Duncan Industries Ltd Tea • Around 115,095 hectares of land is under tea cultivation. • The total tea production annually was 228.3 million kg in March 2011.

23 West Bengal – Unfolding Growth Strategy • Biotechnology interventions can improve Research institutes such as – the wide variety of commercial crops • Bose Institute grown in Bengal. • Indian Institute of Chemical • University of Calcutta and Strategic Biology Global Management (India) Private • Indian Association for the Limited are jointly setting up the Kolkata Cultivation of Science Biotechnology Biotech Park of 30 acres at Baruipur, • National Institute of Kolkata. Cholera and Enteric Diseases • Jadavpur University • Indian Institute Of Technology, Kharagpur • West Bengal is the leading Jute textile • West Bengal Agro Textile manufacturing state in the country today. Corporation Ltd. (Unit: • It is the second important agro-based Bharat Jute Mills Ltd.) industry after the cotton industry because • Anglo-India Jute Mills Co. it provides: Ltd (a) Employment to over 6 lakh people. • Auckland International Ltd. (b) Foreign exchange. (Auckland Jute Mill) (c) Support to other industries. • The jute industry in West Bengal has the following advantages: Jute products (a) Ganga-Brahmaputra Delta provides the raw materials. (b) Coal is obtained from Raniganj and Jharia close by. (c) Good connectivity by roadways, waterways and railways. (d) Neighboring states of U.P., Bihar and Orissa offer cheap labor. (e) Favorable humid climate for spinning of the jute (f) Kolkata provides easy port facilities.

24 West Bengal – Unfolding Growth Strategy • West Bengal ledin finished leather goods • Khadim India Ltd export with 13.5 percent of the country's • Bata India Limited leather exports in 2009-10. • Singhvi International Leather & • The state had around 538 leather goods • Balmer Lawrie and Leather producing manufacturing units; most are Company Limited Products small scale units. • The Government of West Bengal has set up an over 1000 acres integrated leather complex near Kolkata. • Country’s largest producer of rice, • Ascon Agro PE & B Pvt. pineapple and other vegetables and Ltd. A Pailan Group fruits. company • Ranks second in production of potatoes • Dabur Limited and litchis. • Frito-Lay a division of • Ranks 1stin total meat production PepsiCo (including poultry) in the country. • Arambagh Hatcheries Food Processing •Accounts for 10percent of the country’s • Unilever and Nestle are also edible oil production. interested to set up food • Spices, coconut, cashew nut, areca nut, processing units in the state betel vine and oilseeds are also produced in good amount. • Ranks as one of the best in pisciculture as well. Source: Government of West Bengal and Frost & Sullivan analysis

25 West Bengal – Unfolding Growth Strategy The Spectacular Tourism Industry: High Potential, Higher Hopes

special mention of the tourism sector is also desirable here. Tourism in West Bengal is itself a A huge industry in all ways. The state attracts many tourists from all corners of the world every year because of the vast diversity ofits flora and fauna. Its natural beauty makes it a favourite tourist spot. Tourism in West Bengal is a revenue earner for the local people as well. WB's economic activities havebeen substantially enhanced by tourism. As the numbersof tourists are increasing every year, the GoWB has initiated plans to further develop the Tourism Industry. The number of health resorts and restaurants are also rising in the tourists spots of the state in order to facilitate the tourists.

Ms Banerjee said “We discussed measures to develop tourism in the state by promoting eco- friendly projects, which will be of international standards”, when she met Rachpal Singh, Tourism Minister after inaugurating Digha Beach Festival in January 2012.

West Bengal is a perfect tourism blend of some of the most wonderful beaches, hill stations and national parks. Darjeeling, a hill station in West Bengal is famous all over the world for its scenic beauty.

West Bengal also provides a wonderful option for shopping with the option to buy some wonderful cotton and silk sarees. The handicrafts of the rural people of the state are well appreciated all over the world. The appointment of superstar Shah Rukh Khan as West Bengal's brand ambassador will boost tourism in a big way.

26 West Bengal – Unfolding Growth Strategy Key Agencies and their responsibilities

Agency Key Responsibility West Bengal Industrial Development • Financing of medium and large scale industries. Corporation (WBIDC) • Provides service assistance and facilitates investment proposal through ‚'Shilpa Bandhu'.

• Promotion of joint sector and assisted sector units in important industry segments. West Bengal Industrial Infrastructure • Sustainable industrial development in the state. Development Corporation (WBIIDC) West Bengal Small Industries • The promotional agency for growth and Development Corporation Ltd development of industries and commercial activities (WBSIDC) in the small and medium sector in the state.

• It has already developed 37 industrial and commercial estates all over the state. West Bengal Electronics Industry • Development of IT/ITeS industries in the state. Development Corporation Limited (WEBEL) • Investors in new projects are assisted in getting necessary approvals. Setting up of IT and electronics industry is also facilitated. West Bengal Finance Corporation • For implementation of new/expansion or (WBFC) modernization of MSMEs Source: Government of West Bengal and Frost & Sullivan analysis

27 West Bengal – Unfolding Growth Strategy Sustainable Security

he need of the hour is to reduce the vulnerability of a strategically located, high value state Twith a good growth potential. Enhancement of sustainable security boosts the confidence of its residents, investors, and national policy makers. The GoWB has also paid heed to this need and is making significant and rapid improvements in this area.

NSG Hub

Former Union Home Minister P. Chidambaram inaugurated infrastructure facilitiesfor the National Security Guards (NSG) commando hub at Kolkata. National Buildings Construction Corporation of India (NBCC) has constructed the hub, which has permanent buildings, commando barracks as well as an infrastructural framework for administration and Photo Credit: Bengal Newz other works. The hub of 20 acres is located at ‘Badu’, near Kolkata International Airport; a squad of 241 crack commandos for anti-terror and counter- hijack operations are residing here for over a year.

“The infrastructure facilities at the hub have now been made permanent and it will have full facilities for the commandos stationed here for special operations,” NSG Director General Rajan K Medhekar.

After the November 26, 2008 Mumbai attacks, decisions were taken to have National Security Guard (NSG) commandos at the country's strategic locations to ensure reduction in terrorist activities and quick anti-terror operations whenever required. Four NSG hubs have been inaugurated in Mumbai, Hyderabad, Chennai and Kolkata.

Police Commissionerates In West Bengal

The law enforcement body in the urban locales of the state is called a Police Commissionerate. The Commissioner of Police heads the commissionerate. Under West Bengal police, there are four commissionerates atHowrah,Bidhanagar,BarrackporeandAsansol-Durgapur. Siliguri and Haldia are gearing up to get to two more Police Commissionerates soon.

All-Women Police Stations

CM Mamata Banerjee recently announced that in order to curb the crime offenses against women, which arealarmingly increasing in today’s world, 65 all-women police stations will be

28 West Bengal – Unfolding Growth Strategy set up across districts.The purpose is to deal with crime against women in the state as well as to encourage women to join the police service.

Green Technology: The Essence Of Sustainability

A major Problem in any modern state now is hazardous and biomedical waste management. A fully operational Hazardous Waste Treatment Facility is already present in West Bengal. The Environment Department is willing to set up more such facilities in the State through the PPP model. Removal and treatment of solid wastes and hazardous wastes, including chemical wastes and plastics, isalready permissible by the Environment Department.

During the 2012-13 Annual Plan of the Government, there are proposals to fund projects on waste management in Tribal areas as well. State environment pollution levelsare strictly monitored. Industrial emission levels in Kolkata and Howrah are closely monitored, too. Plans are there to cover all industrial towns shortly.

In 2012-13, INR 50 lakh has been granted to curb state environmental pollution. The West Bengal Pollution Control Board (WBPCB) is working in tandem with the GoWB in this regard and in order to curb pollution in textile industries, it has proposed a treatment plant for Textile Parks. To initiate this facility, the State Government has already granted a substantial sum of money for the current plan period.

The proposal to hike Green Revolution allocation in the East from INR 400 to INR 1000 crore under Rashtriya Krishi Vikas Yojana in 2012-13 budget will intensify the region's agricultural research. A task force has been formed for this purpose. It has recommended promotion of water management efficiency and innovative precision farming practices arealso encouraged in consultation with the state governments of Bihar, Chhattisgarh, Uttar Pradesh, Orissa, Jharkhand and West Bengal. Recommendations are made for rice productivity improvement in the Eastern States, so appropriate infrastructure is being developed with a vision to bring stability to the rice based cropping system in the Eastern states.

An expert committee has been formed by the GoWB for the management of municipal solid waste and recycling in state urban areas. Waste management projects worth INR212 crore, which should benefit nearly 35 lakh people across the state havealready been taken up by the Government.

29 West Bengal – Unfolding Growth Strategy Key Challenges for West Bengal’s Growth and Development

30 West Bengal – Unfolding Growth Strategy Recommendations for Sustaining/Achieving Faster Growth

In order to sustain faster growth a proactive and sustainable drive under the able guidance of the GoWB is desired, which will attract investors across sectors.

• The state should capitalize on its core competencies across all sectors. So more focus should be given to industries, in which the State has a competitive advantage.

• Improvement of rural productivity, capturing Indian as well as global consumer demand, more revenue generation from the Tourism sector, etc.

• The State should encash on its strategic location and build up a strong brand in the investor’s mind by highlighting its core strengths, geographical and logistical advantages.

• The pro-industry outlook of the Government would also come tothe forefront if the decision making process becomes faster and has more transparency.

• Land acquisition procedure should be more regulated. Procedures like auction can be used to determine correct compensation price. Monetary as well as non-monetary compensation can attract more landowners to donate their land.

• More thrust on infrastructure strengthening is desired. Development of infrastructure can be considered a direct poverty alleviation strategy as well.

• There is need to create more industrial clusters, which will ensure common facilities, which in turn will reduce operating costs, there will be an increase in competitiveness and development ofskills of the concerned sector.

31 West Bengal – Unfolding Growth Strategy • West Bengal’s tax and non-tax sources generate low revenue. The Government has already taken initiatives for this, more emphasis should be given. Improvement in the scenario of State finances plays a major role in building up the brand of a State.

• Though Bengal’s rank is good in the Healthcare sector, more Public-private partnerships (PPPs) in the sector can reduce the dependance and burden on public healthcare systems.

• Multinational research houses should be engaged to do constant research that is locally useful and in tandem work should be done for the betterment of the State.

• By 2020, West Bengal should be progressing towards the Global Mega Trend: a) Complete Recyclability from Households (Cradle to Cradle Concept) b) Zero Waste/ Emissions c) Zero Defects and Zero Faults d) Carbon Neutral Cities e) Zero Accidents f) Zero Emissions from Cars g) Zero Breaches of Security h) Carbon Neutral Factories and Retail Stores i) Zero Crime Rates

32 West Bengal – Unfolding Growth Strategy Conclusion

The above report firmly portrays that West Bengal has been able to keep pace with the industrial development.

Mr. Sam Pitroda, an eminent Indian innovator, entrepreneur, policymaker and advisor to the Indian Prime Minister, recently consulted with Ms. Mamata Banerjee as an advisor to “Resurgent Bengal”.He suggested that “We now need numerous energetic people across the fields of education, technology, health and investments to join us for the state’s overall development.”

Overall, the situation is encouraging and there is enormous scope for further development. Some sectors based in the state hold great growth potential and in the coming years, these sectors could capture a large chunk of the investment coming in India. The availability of talent and cheap labor further increases the development scope of the region. Presently, West Bengal is undergoing a very exciting but challenging phase, with lots of opportunity ahead to take it to the top tier of progress. The Government is already formulating the best plans through a long term multivariate approach focussing on various potential sectors. MSME, form the largest cluster of industries in the state. Realizing the ample opportunity of growth among the MSMEs, the Government is focussing on the Public-private partnership (PPP) route. The upcoming sustainable security measures and those thatare already prevalent in the state make it a preferred and potential destination. West Bengal’s very own “SHOBUJ BANGLA, SHONAR BANGLA” is already well positioned to become a leader again.

33 West Bengal – Unfolding Growth Strategy West Bengal

The Growth Engine of Eastern India

Mr. U. K. Joshi Director, ASSOCHAM

State Profile

n the North is the Kanchenjunga crowning the state, whereas at its foot is the Bay of Bengal Oand through its heart runs the holy Ganges. No other state in India has perhaps such a varied landscaping as the state of West Bengal.

West Bengal is a state in the eastern part of India. It is the thirteenth largest state of India and is spread over 88,752 kilometers. On the north of West Bengal are the Himalayas whereas the south is adorned by the Bay of Bengal. Bengal is one of those Indian states which have a very rich cultural heritage and a glorious history. Abundant in natural and human resources, West Bengal has evolved from an agrarian economy to well structured services based junction offering Tourism, Education, IT/ITES, Skill development, HRD. A stable political status, beneficial economic policies, favorable demographics and impressive industrial development induce West Bengal to turn into an investor’s destination.

34 West Bengal – Unfolding Growth Strategy Economic Scenario of the State

Economic Snapshot- GSDP

At, Current Prices, the Gross State Domestic Product (GSDP) of West Bengal was about US$ 84.4 billion in 2009-2010. The average annual GSDP growth rate from 2004-2005 to 2009-10, was about 12.7 per cent.

Per Capita GSDP

The state’s per capita GSDP in 2009-10 was US$ 956.4 as compared to US$553.7 in 2004-05. The per capita GSDP increased at a CAGR (Compound Annual Growth Rate) of 11.5 per cent between 2004-05 and 2009-10. West Bengal has registered an increase in the per capita income owing to investments in sectors such as steel, real estate, power, retail and IT.

35 West Bengal – Unfolding Growth Strategy Percentage Distribution of GSDP

In 2009-10, the tertiary sector contributed 57.8 per cent to the state’s GSDP at current prices, followed by primary sector (24.0 per cent) and secondary sector (18.2 per cent)

At a CAGR of 15.2 per cent, the tertiary sector has been the fastest growing among the three sectors from 2004-05 to 2009-10. The growth has been driven by trade, hotels, real estate, finance, insurance, transport, communications and other services. The primary sector grew at a CAGR of 12.7 per cent between 2004-05 and 2009-10. The secondary Sector grew at a CAGR of 11.5 per cent between 2004-05 and 2009-10. It was driven by manufacturing, construction and electricity, gas and water supply.

Physical Infrastructure

Roadways

West Bengal has a total road length of 92,023 km, with a road density of 1.04 km per sq km. there are 17 National Highways running through the state and covering 2,578 km. The Golden Quadrilateral (GQ) project undertaken by the National Highway Authority of India (NHAI) passes through major districts in north

36 West Bengal – Unfolding Growth Strategy part of West Bengal. As of July 2011, four laning of Dhankuni-Kolaghat (54.4 km) and kharagpur- Laxmanath (65.8 km) sections had been completed.

A number of road development projects have been taken up under Public Private Partnerships (PPP). The berth 4A (Haldia) project, Kolkata- Durgapur expressway, Palsit-Dankuni road project and Panagarh-Palsit road project are some of the PPP projects taken up in the state.

Two new underpasses are being planned- one near the Bidhannagar rail station to connect Ghaznavi bridge with Kazi Nazrul Avenue in Northeast Kolkata and another to the south of New Canal.

Railways

West Bengal is well connected through the railway network. The railway route length in the state is around 4,481 km. Howrah, Asansol, Sealdah, Bandel, Bardhaman, Kharagpur and New Jalpaiguri are the main junctions in West Bengal. The Indian Railways has an electric locomotive production unit- Chittaranjan Locomotives Works (CLW) located on the West Bengal- Jharkhand border, with a production capacity of 230 engines. Indian Railways has already started work to set up an electric locomotive assembly and ancillary unit at Dankuni, West Bengal.

Airports

West Bengal has two domestic and international airports. The Netaji Subhash Chandra Bose International Airport is located in Dum Dum, 18 km from Kolkata; the domestic airports are at Bagdogra (Siliguri) and at Bahala 16 km from Kolkata.

In 2009-10 (April-December), the total commercial traffic at Kolkata airport included about 5,980,895 passengers’ flights and 78,927 tonnes of cargos. The government of India has sanctioned US$ 680,000 to set up a perishable cargo complex at the Bagdogra airport.

The Kolkata airport is being modernized at an estimated cost of US$ 435 million. It will include a new terminal modern taxiways and extension of a runway. The upgrade will raise the airport’s handling capacity to around 20 million passengers, annually, 8 million as of March 2010.

37 West Bengal – Unfolding Growth Strategy Ports and Inland Waterways

West Bengal has two modern ports located at Kolkata and Haldia; Kolkata is a major port. In 2008-09, the combined volume of goods handled by both the ports was over 54.2 million tonnes. The West Bengal government plans to construct a US$ 265 million container port at Kulpi and a small port at the mouth of the Hooghly river. Government of India has declared the entire stretch of the Ganges between Haldia and Allahabad as National Waterway (NW-1). The 560 km Haldia-Frraka stretch of NW-1 has been developed as a part of the multi-modal system for cargo tariff from Nepal, Bhutan, North Bengal and the Northeastern states.

Power

As of March 2011, West Bengal had a total installed power generation capacity of 8,316.9 MW, which comprised of 6,012.96 MW under state utilities, 1,358.67 MW under the private sector and 945.26 MW under the central sector. Of the total installed power capacity, 7,039.54 MW was contributed by hydro power and renewable power contributed 161.05 MW of capacity. The State Government is encouraging setting up of renewable energy-based power plants. West Bengal State Electricity Distribution Company Limited (WBSEDCL) has come into effect from April1, 2007 after restructuring of erstwhile West Bengal State Electricity Board. WBSEDCL is a major power utility of the state with consumer strength of over 8.4 million, 5 zones, 17 regional offices, 53 distribution divisions and 459 customer care centers.

Key Industries

The natural resources, policy incentives and infrastructure in the state support investments in major sectors such as iron and steel, Biotechnology, coal, leather, jute products, tea, IT, gems and jewellery. Climatic conditions suitable for cultivation of tea and jute have made West Bengal a major centre for these products and related industries.

West Bengal occupies a predominant position in the development of micro and small scale enterprises, the state has around 900,419 small scale enterprises, accounting for 7 per cent of

38 West Bengal – Unfolding Growth Strategy total such units in the country. The growth rate of Index of industrial production of West Bengal stands at 3.4 per cent in 2009-10.

Tea

West Bengal is the second largest tea growing state in India, after Assam, and Accounts for around 23.7 per cent of the total tea produced in India. As of 2007, 115,095 hectares of land was under tea cultivation. The total annual production of tea was 228.3 million kg (mkg), as of March 2011. Tea gardens in the state are located in Darjeeling and Jalpaiguri, the two northern districts of West Bengal. Darjeeling tea has a geographical Indicator (GI).

Petroleum and Petrochemicals

West Bengal accounts for around 4 per cent of the country’s production of petroleum products and 13 per cent of polymer production. Haldia Petrochemicals Limited is one of the largest integrated petrochemicals complexes. Mitsubishi chemicals and Corporation, Japan’s major chemical firm has invested in a purified Terepthalic Acid (PTA) plant at Haldia at investment of US$ 780 million.

Leather

West Bengal is one of the leading exporters of finished leather goods, accounting for almost 13.5 per cent of the country’s leather exports in 2009-10. As of 2008, the state had around 538 manufacturing units producing leather goods. West Bengal leather Industrial Development Corporation provides market facilities for the leather products manufactured by small scale industries located in the state. The government of West Bengal has set up an integrated leather complex on the eastern fringe of Kolkata, spread over 1,100 acres.

Iron and Steel

West Bengal has emerged as a favored destination for the steel industry. Its deposits of Iron ore have helped attract new projects. The Chota Nagpur plateau bordering West Bengal is the nerve centre of this industry. The Joint plan committee (JPC) for steel has been constituted by the Government of India for formulating the guidelines for production and distribution of steel material in the country. Headquartered in Kolkata, it has regional offices in New Delhi, Mumbai and Chennai.

Information Technology

Around 500 IT and ITes companies are operating in the state, employing more than 50,000 professionals. The state has identified IT as a priority focus sector to be developed into a

39 West Bengal – Unfolding Growth Strategy growth engine for the future. West Bengal has 18 IT based SEZs with formal approval. A 16 acre SEZ by Tata Consultancy Services has been granted formal approval and is expected to be operational by 2011. A number of towns such as Durgapur, Siliguri, and Haldia are also emerging as suitable IT destinations with appropriate infrastructure in the form of Software Technology Parks (STP). Software worth of US$ 1.1 billion has been exported from West Bengal in 2009-10.

Mineral Resources

The Raniganj coal belt accounts for over 30,147 million metric tonnes of quality coal. Reserves of Coal Bed Methane (CBM), an alternative source of natural gas, in west Bengal is estimated to 1.64million cubic feet. Rock phosphates deposits are found in Beldhi, Chirugora and Kutni regions of Purulia districts. Deposits of granite and Kaolinite are found in Purulia, Bankura and the Birbhum districts. Good quality pegmetallic-quartz is available at Mirmi in the Purulia district; deposits of basalt–trap rocks used for preparing road metals are available in Birbhum district.

Automobile and Auto Components

The automobile industry in West Bengal is dominated by Original Equipment Manufacturers (OEM). The auto components industry comprises units manufacturing a range of products from simple nuts and bolts to complex items such as shafts, radiators and axles.

Biotechnology

West Bengal has many attributes that favor the development of biotechnology industry. It has rich natural resources based on a diversity of flora and fauna. A wide variety of commercial crops are cultivated, which can be improved by biotechnology interventions. Examples of such interventions are application of bio- fertilizers for soil fertility, bio-pesticides for environment friendly integrated pest management, genetic modification to produce golden rice, tissue culture for horticulture, floriculture and medicinal plants. A 30 acre biotechnology park is being set up at Baruipur, Kolkata to be known as Kolkata Biotech Park. The park is a joint venture between the University of Calcutta and Strategic Global Management (India) Private Limited.

Fishery

The state has a long coastline of over 150 km and innumerable water bodies, which generate a huge potential for inland fishing and give it a prominent position in fish cultivation. West Bengal is the largest producer of fish and shrimps in the country. It is also the largest supplier of fish and supplies nearly 80 per cent of the carp seed demand of the country. The state produces significant amount of fresh water fish.

40 West Bengal – Unfolding Growth Strategy Agriculture and Horticulture

West Bengal comprises of six agro climatic Zones and offers a diverse variety of environment for agriculture and horticulture produce. It had produced 2,861,000 tones of fruits and over 21.9 million tones flowers in 2009-10. The state is among the leading producers of flowers (loose) with a production of 55,200 tones flowers in 2009-10. West Bengal accounts for 70 per cent of India’s dried flower exports. There is good potential for exporting flowers like gladiolus, gerbera, tuberose and rose to countries in Holland, Middle-East, the UK and Japan. Indoor plants and foliages such as asparagus, palms, cycads and ferns are also grown in the state.

Livestock and Dairy Products

The state has a favorable climate for poultry breeding and is considered as one of the most attractive poultry markets in India. It has enormous export potential in poultry and duck meat. West Bengal has the second-highest indigenous cattle population in the country. The state is one of the leading producers of meat. The total production of meat in 2008-09 was 527,000 tones.

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41 West Bengal – Unfolding Growth Strategy About ASSOCHAM

ASSOCHAM acknowledged as Knowledge Chamber of India has emerged as a forceful, pro-active, effective and forward looking institution playing its role as a catalyst between the Government and Industry. ASSOCHAM established in 1920 and has been successful in influencing the Government in shaping India’s economic, trade, fiscal and social policies which will be of benefit to the trade and industry.

ASSOCHAM renders its services to over 4,00,000 members which includes multinational companies, India’s top corporates, medium and small scale units and Associations representing all the sectors of Industry. ASSOCHAM is also known as a Chamber of Chambers representing the interest of more than 350 Chambers & Trade Associations from all over India encompassing all sectors.

ASSOCHAM has over 100 National Committees covering the entire gamut of economic activities in India. It has been especially acknowledged as a significant voice of Indian industry in the field of Corporate Social Responsibility, Environment & Safety, Corporate Governance, Information Technology, Agriculture, Nanotechnology, Biotechnology, Pharmaceuticals, Telecom, Banking & Finance, Company Law, Corporate Finance, Economic and International Affairs, Tourism, Civil Aviation, Infrastructure, Energy & Power, Education, Legal Reforms, Real Estate, Rural Development etc. The Chamber has its international offices in China, Sharjah, Moscow, UK and USA. ASSOCHAM has also signed MoU partnership with Business Chambers in more than 45 countries.

The Associated Chambers of Commerce and Industry of India ASSOCHAM Corporate Office 1, Community Centre, Zamrudpur, Kailash Colony, New Delhi-110048 Tel: 011 46550555 (Hunting Line) | Fax: 011 46536481/82, 46536498 Email: [email protected] | Website: www.assocham.org

NOTES