West Bengal Positioning Bengal

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    The Associated Chambers of Commerce and Industry of IndiaASSOCHAM 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

    WEST BENGALUnfolding Growth Strategy

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    ASSOCHAM Corporate Offi ce: 1, Community Cent re Zamrudpur, Kailash Colony, New Delh i - 110 048

    Tel: 46550555 (Hunting Line) Fax: 46536481-82, 46536497-98 E-mail: [email protected] Website: www.assocham.org

    THE ASSOCIATED CHAMBERS OF COMMERCE AND INDUSTRY OF INDIA

    D. S. RAWATSecretary 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 Securityon 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

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    State Profie West Bega............................................................................................. 1

    Population and Demographics, West Bengal, 2011 ..........................................................................1

    Macroeconomic View ...................... ......................... .......................... ......................... ....................2

    Situatio of Ifrastructure ............................................................................................... 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

    Idustria Poicy Eviromet........................................................................................ 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 Idustries ad Key Payers ...................................................................................... 22

    The Spectacuar Tourism Idustry: High Potetia, Higher Hopes................................... 26

    Key Agecies ad their resposibiities......................................................................... 27

    Sustaiabe Security ..................................................................................................... 28

    Key Chaeges for West Begas growth ad deveopmet............................................ 30

    Recommedatios for Sustaiig/Achievig Faster Growth............................................ 31

    Conclusion ....................... ......................... ......................... ......................... .......................... ........33

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

    TABlE oF ConTEnTS

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    1

    West Bengal Unfolding Growth Strategy

    State Prfie West Bega

    West Bengal (WB), also known as Paschim Banga, is situatedin the Eastern part of India. WB is bordered on the southby the Bay Of Bengal and in the north by the Himalayas. Kolkata

    is the states biggest city and also the capital. West Bengals 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 asthe sixth highest contributor to Indias 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 investors

    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.

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    West Bengal Unfolding Growth Strategy

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    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: Tota Gross State Domestic Product (GSDP) at Curret prices ad Growth

    Rate, West Bengal, 2007-08 to 2011-12

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    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 200405 to 200910 is the tertiary

    sector at 15.2percent. Growth has been driven by trade, hotels, real estate, finance, insurance,

    transport and communication.

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    West Bengal Unfolding Growth Strategy

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    Situation of Infrastructure

    Better infrastructure always attracts bigger investment. Keeping this major factor in mind, theGovernment of West Bengal (GoWB) has laid great emphasis on strengthening the existinginfrastructure 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. Thecompany, too, has expressed interest in erecting the same and running itshortly.

    Four major dimesios of ifrastructure i West Bega

    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 Aocatio i 2012 (InR Crore)

    Health Sector 1,049 in 2012 (increased from 2011s 871)

    Agriculture sector 315

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    West Bengal Unfolding Growth Strategy

    Drinking water 800

    Minorities welfare 570 (increased from 2011s 330)

    School Education 2,713

    Allocation to power (including non-

    conventional sources)

    1,010

    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

    Indicator Year West Bengal IndiaUpcoming Trendin

    West Bengal

    Literacy Rate (%) 2011 77.08 74.04 Increase

    Sex Ratio (Females per

    1000 males)2011 947 940 Increase

    Crude Birth Rate(%) 2010 16.8 22.1 Decrease

    Crude Death Rate(%) 2010 6.0 7.2 Decrease

    Infant Mortality

    Rate(%)2010 31 47 Decrease

    Total Fertility Rate(%) 2010 1.8 2.5 Decrease

    Population below

    poverty line (%)2009-2010 26.7 29.8 Decrease

    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.

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    West Bengal Unfolding Growth Strategy

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    Heath Ifrastructure 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

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    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 theroads sector are:

    The Kolkata to New Delhi NH2 has been made

    a 4-lane corridor. The fully operative Durgapur

    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.

    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- Kolaghatand 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

    project undertaken by the National

    Highway Authority of India (NHAI).

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    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.

    Rai Coverage West Bega: 2009-10 to 2010-11

    Particulars Total2009-10 2010-11

    Broad Gauge Route Kilometer 4162.28 4185.03

    Meter Gauge Route Kilometer 106.14 106.14

    Narrow Gauge Route

    Kilometer220.01 220.01

    Number of Railway Stations 815 822

    Passengers Originating (000) 13,75,170 14,95,152

    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.

    Source: WBFIN and Frost & Sullivan Analysis

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    West Bengal Unfolding Growth Strategy

    Passegers haded at major Airports i West Bega

    Airport Category 2007-08 2006-07 Percent

    change

    in growth

    (2006-07

    to 2007-

    08)

    2005-06 Percent

    change

    in growth

    (2005-06

    to 2006-

    07)

    NSCBIAirport

    Domestic 6451430 5187867 24.36 3664548 41.57

    International 1007502 805191 25.13 742247 8.48

    Total 7458932 5993058 24.46 4406795 36.00

    BagdograAirport

    Domestic 338065 259134 30.96 186837 38.70International NIL NIL NIL NIL NIL

    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-establishtrade 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 Bengals power

    infrastructure has been ranked high by NASSCOM. As of March 2011, the installed capacity of

    power/electricity in the statewas 8316.9MW.

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    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 DevelopmentCorporation (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.

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    West Bengal Unfolding Growth Strategy

    Pasto Stee Park (Phase -

    I ad II)

    Iron and Steel and

    Plastic products

    Borjora, Bankura 423.2

    Godapiasal Industrial

    Park

    Cement Godapiasal,

    Pashchim

    Medinipore

    165.5

    Rishi Bankim Industrial

    Park

    Multi product Naihati, 24

    Parganas (N)

    163.38

    Rubber Park Rubber footwear, hoses,

    tubes, automotive

    rubber products

    Sankrail, Howrah 90

    Poly Park Polymer products Sankrail, Howrah 60

    Kadua Food Park Food processing Sankrail, Howrah 52

    Food Park (Phase I ad II)

    (SudhaRas Food Park)

    Food processing Sankrail, Howrah 49.98

    Garmet Park (Paridha) Garments Kolkata 8.78

    Maikacha SEZ (Phase

    I ad II)

    Gems andJewelry Salt Lake, Kolkata 5

    Shipaga (light

    Egieerig Park) (Phase

    I ad II)

    Light

    EngineeringProducts

    Salt Lake, Kolkata 2.25

    Source: WBIDC and Frost & Sullivan Analysis

    Intelligent Parks

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    AN INVESTOR AWARE

    CALCUTTA STOCK EXCHANGE

    Courtesy : CALCUTTA STOCK EXCH

    E-mail : bd@

    Mobile No.:09830

    Tel.: (033)

    Website : ww

    Ensure you have PAN card and Bank account.

    Strike off all blank / irrelevant fields / clauses in the

    agreement(s) executed.

    Be aware that investor complaints against listed

    companies are displayed on the websites of StockExchange (SE).

    Deal only with SEBI registered brokers/ Depository

    Participant (DP).

    Provide your PAN card details in case of transfer /

    transmission of shares in physical form.

    Be alert to any public announcements on theshares of the companies that you have invested.

    In case of any dispute / difference / grievance,

    contact the compliance officer of broker / DP.

    Be aware that all brokers/ DPs are required to have

    a dedicated Email ID for registering your

    complaints. Be aware that value of your investments is subject

    to ups and downs of the market. They do not offer

    guaranteed returns like bank deposits.

    Read the Offer Document (OD) before investing.

    INVEPROT

    FU

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    ESS INITIATIVE FROM

    NVESTOR PROTECTION FUND

    NGE INVESTOR PROTECTION FUND

    e-india.com

    836112625,0901

    025 3000

    se-india.com

    Do not participate in unauthorised and illegal

    trades outside the stock exchange mechanism

    (dabba trading).

    Do not give wrong / contradictory / incomplete

    information in the client registration form. Do not be guided by astrological predictions on

    share prices and market movements

    Do not fall prey to market rumors/ 'hot tips'/

    'opportunity knocks only once' kind of advice.

    Be aware that Mutual Funds and Registrar and

    Share Transfer Agent (RSTA) are required to have adedicated Email ID for registering your complaints.

    Do not invest on any explicit / implicit promises

    made by anyone.

    Do not entrust management of your money /

    securities with broker / sub broker.

    Do not invest in any scheme just because ofincentives / gifts / inducements etc. offered.

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    West Bengal Unfolding Growth Strategy

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    Major Idustria Areas

    Hadia

    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 CokeOven 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.

    "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.

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    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.

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    West Bengal Unfolding Growth Strategy

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    Industrial Policy Environment

    Idustria Picy West Bega

    West Bengal has implemented important policies to ensure increased flow of investment inindustries. Maximization of investments, output, growth and employment in the state arethe 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

    publicprivate 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.

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    West Bengal Unfolding Growth Strategy

    FDI Ifws i Brad Bega

    While Maharashtra leads the country in attracting FDI, West Bengal has turned out to be an

    important hub for FDI as well.

    Foreig Direct Ivestmet (FDI) Equity Ifows, Seected 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 4,730Andhra 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 o f UttarPradesh 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 Idustria Poicies, West Bega, 2012

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    Summary of the Key Idustria Poicies, West Bega: Recet Sceario

    Policy Description& State Government Initiatives

    Industrial Licensing

    Policy

    Atomic energy, five industries of environmental/strategic concern are

    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 Softwareor 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

    Enterprises (MSE) Policy

    The State Government has formulated this policy in order to facilitate

    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 GoWBs 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 tradeoffices; 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.

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    22

    Key Industries and Key Players

    The rare combination of natural resources, policy incentives and infrastructure in West Bengal,has made it an investors paradise in major sectors, such as Petroleum andPetrochemicals,IT and Electronics, Iron andSteel, Tea, Biotechnology, Jute products, Leather andLeather

    Products and Food Processing.The States 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.

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    Key Industries Advantage Bengal Key Players

    Petroleum &

    Petrochemicals

    4 percent of total petroleum production

    and 13 percent of total polymer

    production comes from WB.

    Mitsubishi Chemicals and Corporation,

    Japans major chemical firm has invested

    in a Purified Terepthalic Acid (PTA) plant

    at Haldia with an investment of US $780

    million (phase I & II).

    Indian Oil Corporation Ltd

    (IOCL)

    Oil India Ltd (OIL)

    Oil and Natural Gas

    Corporation Ltd (ONGC)

    Haldia Petrochemicals

    Ltd (HPL): Indias

    second largest integrated

    Petrochemical complex

    IT and

    Electronics

    More than 50,000 professionals areemployed in the IT/ITeS companies in the

    state.

    Durgapur, Siliguri, Haldia have

    appropriate infrastructure in the form of

    Software Technology Parks (STP).

    US $1.10 billion of software has been

    exported from West Bengal in 2009-10.

    Genpact Cognizant Technology

    Solutions

    HCL

    Tata Consultancy Services

    IBM

    Iron & Steel

    West Bengal has become a

    favorabledestination for the steel industry.

    Huge prevalence of iron ore deposits

    have helped to attract new projects. The

    Chota Nagpur plateau on the borders

    of West Bengal is the key place of this

    industry.

    JSW Steel Ltd

    SAIL

    Shyam Steel

    Super Forgings & Steel Ltd

    (SFSL)

    Tea

    West Bengal ranks second in India in

    tea growing, after Assam, and produces

    around 23.7 percent of the total tea

    produced in India

    Around 115,095 hectares of land isunder tea cultivation.

    The total tea production annually was

    228.3 million kg in March 2011.

    Tata Global Beverages

    Goodricke Group Ltd

    MacLeod Russell India Ltd

    Duncan Industries Ltd

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    Biotechnology

    Biotechnology interventions can improve

    the wide variety of commercial crops

    grown in Bengal.

    University of Calcutta and Strategic

    Global Management (India) Private

    Limited are jointly setting up the Kolkata

    Biotech Park of 30 acres at Baruipur,

    Kolkata.

    Research institutes such as

    Bose Institute

    Indian Institute of Chemical

    Biology

    Indian Association for the

    Cultivation of Science

    National Institute of

    Cholera and Enteric

    Diseases

    Jadavpur University

    Indian Institute OfTechnology, Kharagpur

    Jute products

    West Bengal is the leading Jute textile

    manufacturing state in the country today.

    It is the second important agro-based

    industry after the cotton industry because

    it provides:

    (a) Employment to over 6 lakh people.

    (b) Foreign exchange.

    (c) Support to other industries.

    The jute industry in West Bengal has the

    following advantages:

    (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.

    West Bengal Agro Textile

    Corporation Ltd. (Unit:

    Bharat Jute Mills Ltd.)

    Anglo-India Jute Mills Co.

    Ltd

    Auckland International Ltd.

    (Auckland Jute Mill)

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    Leather &

    Leather

    Products

    West Bengal ledin finished leather goods

    export with 13.5 percent of the country's

    leather exports in 2009-10.

    The state had around 538 leather goods

    producing manufacturing units; most are

    small scale units.

    The Government of West Bengal has set

    up an over 1000 acres integrated leather

    complex near Kolkata.

    Khadim India Ltd

    Bata India Limited

    Singhvi International

    Balmer Lawrie and

    Company Limited

    Food Processing

    Countrys largest producer of rice,

    pineapple and other vegetables andfruits.

    Ranks second in production of potatoes

    and litchis.

    Ranks 1stin total meat production

    (including poultry) in the country.

    Accounts for 10percent of the countrys

    edible oil production.

    Spices, coconut, cashew nut, areca nut,

    betel vine and oilseeds are also produced

    in good amount.

    Ranks as one of the best in pisciculture

    as well.

    Ascon Agro PE & B Pvt.

    Ltd. A Pailan Groupcompany

    Dabur Limited

    Frito-Lay a division of

    PepsiCo

    Arambagh Hatcheries

    Unilever and Nestle are also

    interested to set up food

    processing units in the state

    Source: Government of West Bengal and Frost & Sullivan analysis

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    26

    The Spectacuar Turism Idustry: HighPtetia, Higher Hpes

    Aspecial mention of the tourism sector is also desirable here. Tourism in West Bengal is itself ahuge industry in all ways. The state attracts many tourists from all corners of the world everyyear 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. Thenumber 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.

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    West Bengal Unfolding Growth Strategy

    Key Agencies and their responsibilities

    Agency Key Responsibility

    West Bengal Industrial Development

    Corporation (WBIDC)

    Financing of medium and large scale industries.

    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

    Development Corporation (WBIIDC)

    Sustainable industrial development in the state.

    West Bengal Small Industries

    Development Corporation Ltd

    (WBSIDC)

    The promotional agency for growth and

    development of industries and commercial activities

    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 Corporation Limited(WEBEL)

    Development of IT/ITeS industries in the state.

    Investors in new projects are assisted in getting

    necessary approvals. Setting up of IT and electronics

    industry is also facilitated.

    West Bengal Finance Corporation

    (WBFC)

    For implementation of new/expansion or

    modernization of MSMEs

    Source: Government of West Bengal and Frost & Sullivan analysis

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    Sustainable Security

    The need of the hour is to reduce the vulnerability of a strategically located, high value statewith a good growth potential. Enhancement of sustainable security boosts the confidence ofits 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

    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 fullfacilities 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 todays world, 65 all-women police stations will be

    Photo Credit: Bengal Newz

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    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.

    Gree Techgy: The Essece of Sustaiabiity

    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 wastemanagement 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 solidwaste 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.

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    Key Chaeges fr West BegasGrowth and Development

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    Recommendations forSustaiig/Achievig Faster Grwth

    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 investors

    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 usedto 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.

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    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 states 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 couldcapture 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 Bengals very own SHOBUJ BANGLA, SHONAR BANGLA is already well

    positioned to become a leader again.

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    West Bengal

    The Growth Engine of Eastern India

    Mr. U. K. Joshi

    Director, ASSOCHAM

    State Profile

    On the North is the Kanchenjunga crowning the state, whereas at its foot is the Bay of Bengaland through its heart runs the holy Ganges. No other state in India has perhaps such avaried 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, beneficialeconomic policies, favorable demographics and impressive industrial development induce West

    Bengal to turn into an investors destination.

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    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 states 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.

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    Percentage Distribution of GSDP

    In 2009-10, the tertiary sector contributed 57.8 per cent to the states 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

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    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 setup 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 airports

    handling capacity to around 20 million passengers, annually, 8 million as of March 2010.

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    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, 7,039.54MW 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

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    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 countrys 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, Japans 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 countrys 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

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    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 tobe 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 Kutniregions 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 basalttrap 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 betweenthe 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.

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    West Bengal Unfolding Growth Strategy

    Agricuture ad Horticuture

    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

    Indias 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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    NOTES