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CHAPTER 5 Industry An overview of performance Industrial Production 5.1 The index of industrial production (Base 1993-94 = 100) of West Bengal has been consistently rising from 145.2 in 2002-03 to 154.8 in 2003-04, 163.5 in 2004-05 and 183.6 in 2005-06 (See Table 5.1). In 2004-05 and 2005-06, the production indices grew by 5.6 and 12.3 respectively over the corresponding previous years. While all the three major sectors, namely mining, manufacturing and electricity are registering growth, it is heartening to note that the production of the manufacturing sector has been quite impressive. This has also been reflected in the contribution of this sector in the net state domestic product (at constant 1999-00 prices), which has risen from 8.79 per cent in 2003-04. Table 5.1 Index of Industrial Production (Base : 1993-94=100) (Average of April-March) Sector 2002-03 2003- 04(P) 2004- 05(P) 2005- 06(P) Mining 120.0 127.5 141.1 148.0 Manufacturi ng 142.2 151.4 159.7 180.2 Electricity 186.1 201.2 212.5 233.0 General 145.2 154.8 163.5 183.6 Growth over the previous year Mining -4.7 6.2 10.7 4.9 Manufacturi ng 9.8 6.5 5.5 12.8 Electricity 9.3 8.1 5.6 9.6 General 9.3 6.7 5.6 12.3 117
Transcript of 5 Review English... · Web viewThe objective of SAFTA is to reduce existing tariffs to less than 5...
CHAPTER 5
Industry
An overview of performance
Industrial Production5.1 The index of industrial production (Base 1993-94 = 100) of West Bengal has been consistently rising from 145.2 in 2002-03 to 154.8 in 2003-04, 163.5 in 2004-05 and 183.6 in 2005-06 (See Table 5.1). In 2004-05 and 2005-06, the production indices grew by 5.6 and 12.3 respectively over the corresponding previous years. While all the three major sectors, namely mining, manufacturing and electricity are registering growth, it is heartening to note that the production of the manufacturing sector has been quite impressive. This has also been reflected in the contribution of this sector in the net state domestic product (at constant 1999-00 prices), which has risen from 8.79 per cent in 2003-04.
Table 5.1Index of Industrial Production (Base : 1993-94=100)
(Average of April-March) Sector 2002-03 2003-04(P) 2004-05(P) 2005-06(P)Mining 120.0 127.5 141.1 148.0Manufacturing 142.2 151.4 159.7 180.2Electricity 186.1 201.2 212.5 233.0General 145.2 154.8 163.5 183.6Growth over the previous year Mining -4.7 6.2 10.7 4.9Manufacturing 9.8 6.5 5.5 12.8Electricity 9.3 8.1 5.6 9.6General 9.3 6.7 5.6 12.3
Source : Bureau of Applied Economics & Statistics, Govt. of West Bengal.
5.2 In recent years net value added by the major sectors in the industrial sector in the state has increased from Rs.5736.79 crore in 1999-2000 to Rs.7903 crore in 2003-04. As per Annual Survey of Industries value of output increased from Rs.43915 crore in 2001-2002 to Rs.52234 crore in 2003-04. In terms of net value added West Bengal is the 9th largest state in India.
Investment
5.3 The flow of industrial investments to West Bengal has continued to be satisfactory. In 2005, 445 investment proposals with a total investment of Rs.
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17702.14 crore were approved in the State of West Bengal, while 467 proposals with a total investment of Rs. 7671.79 crore were approved in 2004, 485 investment proposals with a total investment of Rs. 6773.02 crore were approved in 2003 and 337 investment proposals entailing a total investment of Rs. 4659.88 crore got approval in 2002. During the period 2002-2005, approved industrial investment in the state has witnessed a compounded annual growth rate of 93 per cent. During the period 1991 to 2005, the State received 4474 approved industrial investment proposals involving a total investment of Rs. 93422.73 crore.
5.4 As per report of Centre for Monitoring Indian Economy, a statement on outstanding investment in the different sectors of the state is shown in the box below.
Box 5.1Trends in investment
Total outstanding investment in West Bengal has grown at an increasing rate between April 2000 and April 20005, registering a CARG of 13.77 per cent during that period. Growth actually picked up from April 2002 onwards and this accelerated growth could be attributed to the investor-friendly approach adopted by the State Government in recent years. In particular, the year 2005 registered a fairly high growth of 34.11 per cent in total outstanding investment which amounted to Rs. 99022.19 crore as on April, 2005 (see Table below). This was probably triggered by a spectacular growth of 291.69 per cent in outstanding investment in the manufacturing sector between April, 2004-05. The high growth in outstanding investment in West Bengal in 2005 was in tune with the investment boom at all India level in the same year. The total outstanding investment in India registered a growth of 25.81 per cent between April, 2004-05.
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(Amount in Rs. Crore)Outstanding Investment
April, 2000
April, 2001
April, 2002
April, 2003
April, 2004
April, 2005
Total Investment
51946.88
52566.21
56650.97
63385.98
73835.52
99022.19
Manufacturing 7959.7 7916.9
510464.
446813.8
56059.0
623733.
0Mining 2116.9
22436.0
21845.7
5 1474.6 2961.37
2628.89
Electricity 24033.01
19130.1
21339.09
28137.09
30675.73
36036.29
Services 16343.38
19954.87
19725.66
22346.97
28867.9
28498.18
Irrigation 1077.37
1077.37
1072.46
1072.46
1072.46
1055.89
Construction 416.5 2050.9 2203.57
3541.01 4199.0 7069.9
4Projects
5.5 Industrial projects actually implemented in the state have also increased. In 2006, 173 projects with investment potential of Rs. 3119.09 crore were actually implemented. During the period 2002-2006, on an average 155 number of projects had been implemented in the state, whereas during the period 1995 -1998, the average number of projects actually implemented was only 35 with an average total investment of Rs. 502.77 crore only. During the period 1991 to 2005, 1218 projects with a total investment of about Rs. 29196 crore were implemented. The industrial projects implemented in different districts between 1991 and 2005 are shown in Table 5.2.
Table 5.2District-Wise Industrial Projects Implemented between 1991 – 2005
District No. Investment (Rs. Crore)Undivided Midnapur 94 12080.80Burdwan 202 7295.63North 24-Pargamas 155 2196.75Hooghly 139 1963.5South 24-Parganas 146 1772.1Howrah 147 1252.66Bankura 56 760.80Kolkata 71 486.91Nadia 11 49.70Jalpaiguri 66 280.59Purulia 16 130.54Darjeeling 40 191.36Malda 7 128.39Birbhum 15 53.20Uttar Dinajpur 18 167.21Coochbehar 6 21.26Murshidabad 25 251.65Dakshin Dinajpur 4 12.78Others 2 5.97
Source : Annual Report, 2005-06, Commerce and Industries Department, Government of West Bengal.
5.6 The table reflects that most of the investments took place in the districts around Kolkata. However, in the recent years the flow of investment in the backward districts like Bankura has been quite impressive.
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5.7 Table 5.3 shows the industry-wise investment that took place in the state during 1995-2005.
Table 5.3Industry-wise units set up in West Bengal during
1995-2005 and investment thereof
Industry No. Of Units
Actual Investment
( Rs. Crore )Cement Glass and Ceramics 64 1040.48Chemicals, Petrochemicals, Industrial Gases, Paints, Pigments, Fertilisers , coal and Tar products,
73 9985.18
Drugs, Pharmaceuticals and Toilet Goods 26 246.39Electrical and Electronics 42 1064.48Engineering 71 801.51Food Products 252 1546.68Hotels, Hospitals, Service sector, Printing media
33 651.60
Leather and Rubber 22 162.34Metallurgical products other than steel 18 400.03Paper , wood, plywood and board 17 159.61Plastic goods 77 1039.71Software and telecommunications 59 599.45Steel Ingots, Alloys, Sponge Iron, Pig Iron, Mini Steel Plant, Billets & Forging and other steel Plants
303 9157.92
Textile 91 1629.10Miscellaneous projects not otherwise classified 70 704.26
Source : Annual Report, 2005-06, Commerce and Industries Department, Government of West Bengal. 5.8 During the period 1991-2005, the food processing, chemical and petrochemicals and the iron and steel sectors experienced the highest amount of investment. Most units were set up in the iron and steel sector (303), with a total investment of Rs. 9157.92 crore. This huge amount of investment took place in mini steel plants, sponge iron, forging, pig iron etc. The easy availability of power, removal of freight equalization, close proximity to areas with natural resources relevant to the industry, and a labour force traditionally skilled in operating iron and steel units are factors that have influenced the surge in investment in this
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sector. In recent years, investment in the cement industry has also picked up. During 2002 and 2004, 11 cement plants have come up in the state - 2 in the large scale and 9 in the medium scale sector. New proposals from big companies for setting up cement manufacturing units in the state have been received.
5.9 After the commissioning of the Haldia Petrochemicals Ltd. (HPL) in 2000, 705 downstream units in the plastic and other related industries were set up till December, 2005, in the state. Of these total downstream units, 674 are in the small scale sector, 94 in the medium scale and 5 in the large scale sectors. Consequently the manufacturing of plastic items like buckets, mugs, containers and moulded furniture has increased in the state.
5.10 In 2006, according to the available information, 173 projects with a total investment of Rs. 3119.09 crore were implemented in the state. This figure is expected to be revised upward significantly as full information on projects implemented flows in. The implemented projects in 2006 for which information is available are shown in Table 5.4.
Table 5.4Industrial Projects Implemented in the State in 2006 (Provisional)
Sl. No.
Name of the Company
Product Location Investment(Rs.
Crore)1 Amar Beverages
Pvt. Ltd.Carbonated Soft drinks & packaged drinking water
Howrah 2.85
2 Amarnath Dyeing & Bleaching Works Pvt. Ltd.
Finising of Cotton and blended cotton textile
Howrah 7.15
3 Amrit Bhog Flour Mills Pvt Ltd.
Maida, Atta, Suji Siliguri 1.83
4 Anjusha Growers & Manufacturers Pvt. Ltd
NPK Granulated Mixture
Derjeeling 2.76
5 Ankit Metal & Power Ltd.
Concast, Rolling mill Bankura 18.00
6 Ankit Metal & Power Ltd .
Captive Power plant Bankura 32.00
7 Arcvac Froge Cast Pvt. Ltd.
Ingots, Steel forgings Hooghly 56.11
8 Arjan Dass Steel Castings Pvt. Ltd .
Mild & Alloy Steel Ingot Casting
Hooghly 5.05
9 Ascon Agro Products 3600 tpa potato flakes Hooghly 40.00
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Exporters & Buildingers Pvt. Ltd.
10 Asha Ispat Pvt. Ltd. Iron, Steel, Bars, Rods, Rounds & Squares
Derjeeling 6.00
11 AH Chung Tannery,
Finished leather South 24 Parganas
2.92
12 Bajrangbali Rolling Mills Pvt. .Ltd.
Hot Rolled Steel Products
Derjeeling 0.75
13 Bankura Projects Pvt. Ltd
MS Ingot Bankura 5.40
14 Bengal Hi-Tech. Steels Pvt Ltd.
MS Ingot / Billets Burdwan 4.46
15 Bhaskar Shrachi Alloys
- Burdwan 8.00
16 Bio-Caps India Ltd, Gelatin Capsules Empty Hooghly 17.0017 Bishan Dayal
Goyal & Son Pvt Ltd.
Steel ingot & other iron & Steel products & Billets
Bankura 23.00
18 Brand Alloys Ltd. Wire Road TMT rebars Forging rod round and bars railway mechanical components
Hooghly 20
19 Budge Budge Refineries Ltd
Paim Oil 90000mt. South 24Pgs 65.00
20 Calstar Sponge Ltd Spongs iron 60000mt Bankura 6.0021 Champdany
Industries LtdJute, Flax yarn jute viscos yarn jute Ramie yarn
North 24 Parganas
25.88
22 Chaint Sheng Tannery
Finished Leather 8000kg South 24 Parganas
4.62
23 Chien Singh Tannery
Finished Leather South 24 Parganas
5.55
24 Chieh hsing Tannery
Finished Leather South 24 Parganas
3.22
25 Chiu lee Tannery Chrome Tanned Leather Kolkata 2.3526 Chun Hing Tannery Finished Leather South 24
Parganas3.40
27 Chung Wah Tannery
Finished Leather South 24 Parganas
2.91
28 Ciria Tanning Leather Goods. South 24 1.35
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Co.Pvt. Ltd. Parganas29 Concast Bengal
Industries Ltd.Sponge Iron Bankura 35.60
30 Cosmic Ferro Alloys Pvt.. Ltd.
Silico manganese Bankura 28.56
31 Cresent Jute Co.Ltd Jute Yarn 5300mt North 24 Parganas
6.55
32 Crescent Tennery Finished Leather Kolkata 1.57
33 Cresmac foundry Pvt Ltd.
Installation of furnace & Other Allied Machinery
Falta ,24 Parganas(S)
1.30
34 Dankuni Food Products Pvt Ltd.
Food \ Spice Products. Hoogly 2.16
35 Daudee Steel Pvt Ltd.
Jute Yarn & Twines Burdwan 16.2
36 Daudee Steel Pvt. Ltd
Steel Ingot Burdwan 16.19
37 Dayamoyee Multipurpose Cold Storage Pvt Ltd
Cold Storage for Storing of Patato
West Midnapur
10.33
38 Dhanbad Fuels Pvt Ltd.
HDPE bags & other packing products.
Howrah 6.68
39 Dali Tannery. Finished Leather South 24 Parganas
2.86
40 Eastern Copper Mfg.Co.Pvt Ltd.
Copper & non-ferrous Metals.
Howrah 2.50
41 Eastern Smithy Pvt Ltd.
Forgings / processing / Stamping / Roolforming of Metal
Hooghly 8.00
42 Evergreen Drums & Cans Pvt Ltd.
Metal Tin Container & Agrobased Products
Howrah 7.47
43 Flender Ltd . Gear Units & Standard accessories
West Midnapur
19.87
44 Fenasas Ltd. Leather finishing Chemical fat liquors & syntanns
Hoogly 1.02
45 Gagan commodities Pvt Ltd.
Sponge iron. Burdwan 26.05
47 Gena Pharmaceuticals Ltd.
Tabs & Caps, Ampuls, vials
North 24 Parganas
9.00
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48 Girirag Plantation Pvt Ltd.
Tea Jalpaiguri 5.00
49 GFM Agro Products Pvt Ltd.
Wholemill Atta Dalda Howrah 5.01
50 Global Auto Mobiles Pvt Ltd.
Motor BykeHooghly
25.00
51 Goyal Mg Gases Pvt. Ltd.
Oxygen Burdwan 52.40
52 GPS Steel Tradelinkers Pvt Ltd.
MS Ingot Bankura 7.79
53 GR Multiplex Packaging Pvt Ltd.
Co-extruded plastic packaging product.
South 24 Parganas
2.18
54 GRD Paper Industries Pvt Ltd.
Kraft Paper. Howrah 4.86
55 Goodwill Tannery Finished Leather South24 Parganas
3.40
56 Gouri Enter Prises. Finished Leather South24 Parganas
0.73
57 Hen Ley Tannery Finished Leather South24 Parganas
1.90
58 Haldia Steels Ltd. 3rd Induction furnace. Raturia, Angadpur
27.00
59 Hargouri Steels Pvt.Ltd.
MS Ingot. Purulia 4.99
60 Hemadri Chemicals & Industries.
Coal Tar Pitch Creosote Oil.
Hooghly 48.91
61 Himalaya cement Industries .
Portland Slog Cement West Midnapur
2.97
62 Hooghly alloy & Steel Ltd.
Steel Ingot Hooghly 15.14
63 Hooghly Jute Mills project .
Sacks & Bags Jute Yams fabrics.
North 24 Parganas
30.48
64 Hooghly Jute Mills project .
Sacks & Bags Jute Yams fabrics.
Hooghly 10.00
65 Hooghly Mills Projects Ltd.
Finishing of Jute Products.
Burdwan 30.00
66 H.M. Ayyub Skin Industries.
Finished Leather South 24 Parganas
1.04
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67 HP Ispat Pvt.Ltd. MS Ingot Bankura 6.6568 HR Ispat Pvt Ltd. Mild Steel. Burdwan 5.1069 Iqbal Tannery Buffalo / Cow- Hides &
Goat SkinKolkata 2.36
70 Imeco Ltd Air pre-heater basket & collecting electrodes for power plants
West Midnapur
11.91
71 Inpex Steel Pvt Ltd. MS ingots Burdwan 12.1172 India dairy
Products Ltd.Pasturised milk Hooghly 1.70
73 India dairy Products Ltd.
Pasturised milk Bankura 1.32
74 Inland Steel Pvt Ltd.
Steel Bar, & rods & Wirerods
Nadia 31.00
75 Ispat Damodar Sponge iron Purulia 30.0076 JJ Exporters Ltd. Silk Fabric doubling. South 24
Parganas20.00
77 J.P. flour mills Pvt Ltd.
Wheat Product. Hooghly 5.96
78 Jaypee Alloy & Castings Pvt Ltd.
MS Alloy Steel ingot. Hooghly 7.95
79 Jayashree Textiles 3850 MTPA of Wool & Installation of 1780spindles.Flax yam.
Hooghly 44.6
80 Jayashree Textiles Addl. 9 looms Hooghly 13.1581 Jupiter Alloys &
Steel ( India Ltd. )Heat Treatment furnace Hooghly 7.00
82 J.C.Traders Finished Leather Kolkata 5.3883 K.S. Gung Tannery Finished Leather South 24
Parganas1.98
84 Kim wah Tannery Finished Leather South 24 Parganas
2.80
85 Kalonona Himghar Udyog Pvt.Ltd.
Preservation of Potato Hooghly 5.80
86 Kamakshi Jute Industres.
JuteYarn. Coochbehar 22.37
87 Kic Metaliks Ltd. Coke Oven Burdwan 3.3088 Krishna Sundaram
Iron & Steel Pvt Ltd.MS ingot Burdwan 4.81
89 K.K.Polycolor Master batch & Howrah 7.98
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India Ltd. Compounds for termoplastic.
90 KSE Electricals Pvt Ltd.
Mfg. of Electrical Industrial machimery
Howrah 2.21
91 Leadstone Energy Ltd.
Installation of Three red lead Furnace
Hooghly 1.20
92 Labbaik intemational
Finished Leather. South 24 Parganas
1.82
93 Liam sing Tannery Finish leather South 24 Parganas
4.08
94 Lyka Udyog Pvt Ltd.
Cold Rolled Steel strips Howrah 23.87
95 M.Rudra & Co.Pvt Ltd.
Tea Black Leaf Jalpaiguri 1.95
96 Ma Mongala Gouri Cold Stroge Pvt.Ltd.
Multipurpose Cold storage
Bankura 5.25
97 Mahadev fabrics Processed knitted fabrics Howrah 14.6398 Maheswari Ispat
Pvt Ltd.Sponge Iron Burdwan 29.53
99 Maritech collaborates
Processing & preservation of fruit & Vegetable
Darjeeling 3.72
100 Micky metalsLtd. Steel ingot Birbhum 5.86101 Milleniun Vyapar
Ltd.Cotton yarn South 24
Parganas74.00
102 Misbahul Haque & Co.
Biscuits South 24 Parganas
1.04
103 Muralidhar Ratanlal Exports Ltd.
Jute hessain Cloth bag. Hooghly 8.78
104 MB Sponge & power Ltd.
Sponge Iron Burdwan 27.62
105 Milan Tannery Raw hide and skin South 24 Parganas
2.69
106 Misbahul Haque & Co.
Finished Leather South 24 Parganas
1.04
107 National Moulding Pvt. Ltd.
Pet Resin Howrah 26.91
108 New Bharat Roller Flour Mills Pvt.
Whole mill Atta Jalpaiguri 0.89
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Ltd.109 Neo Metaliks Ltd. Blast Furnace Burdwan 98.26110 Newby Teas
Overseas Pvt. Ltd.Tea packaging and blending
South 24 Parganas
12.50
111 Nikita Metals Pvt. Ltd.
MS Ingots Burdwan 11.16
112 Nilkanth Ferrous Pvt. Ltd.
Ferro Alloys Bankura 22.28
113 Nowrangroy Agro Pvt. Ltd.
Maida, Suji, Atta Howrah 7.63
114 Nurpur gases Pvt. Ltd
Carbon dioxide gas / liquid
South 24 Parganas
3.38
115 O.S.Split Job Works
Raw hide South 24 Parganas
1.54
116 Pitambar Flour Mills
Rice Bran Oil Howrah 12.48
117 Putinbaree Tea Association
Tea Darjeeling 3.92
118 Pragati Agri Products
Rice Barn Oil Burdwan 5.46
119 Pragma Apparels Pvt. Ltd.
Cotton Garments North 24 Parganas
14.68
120 Price Waterhouse Coopers Ltd.
Information Technology Services
North 24 Parganas
8.45
121 Pronit Agro Product Storage and Mktg. Ltd.
Preservation of potato Burdwan 0.90
122 Radhika Electrocast Pvt. Ltd.
MS Ingot Burdwan 6.40
123 Rajrani Agri Food Ltd.
Rice Barn Oil West Midnapur
14.96
124 Ramdhiha Refrigerator Pvt. Ltd.
Cold storage for potato Bankura 3.87
125 Ramrupai Balaji Steel ltd.
Continuous Billet Casting
Burdwan 39.80
126 Ramswarup Lohh Udyog Ltd.
Billets Granulated Slag, Pig Iron
West Midanapur
450.00
127 Ramtech Business Pvt. Ltd.
Heat Treatment Furnace Hooghly 7.00
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128 Rana Udyog Pvt. Ltd.
Metallurgical machinery Howrah 12.04
129 Rashi Metal Pvt. Ltd.
MS Ingot South 24 Parganas
4.00
130 Rashmi Cement Ltd.
Sponge Iron West Midanapur
20.80
131 RS Concast Limited
Steel ingots Billets Burdwan 14.40
132 Ruchi Soya Industries
Vanaspati Ghee, Edible vegetable oil
East Midnapur
70.00
133 Sapling agrotech(p) Ltd.
Mushroom cultivation and processing
Nandanpur 15.38
134 Satyam Smelters Pvt. Ltd.
Sponge Iron Burdwan 10.19
135 Sambranky Environment
Bio Medical Waste Management
Burdwan 4.50
136 Sheema Tanning Industries
Steel Ingots South 24 Parganas
2.18
137 Shri Shyam Agro Biotech P. Ltd.
Flour mill Burdwan 0.75
138 Shyamali Cold Storage P. Ltd.
Cold Storage for preservation of potatoes
Burdwan 3.74
139 Shyam Ferro Alloys Ltd.
Ferro Manganease, Silico Manganease
Burdwan 37.67
140 Shyam Miller Pvt. Ltd.
Rice and Rice Barn Purulia 1.75
141 Shyam Sel Ltd. Ferro Manganease, Silico Manganease
Burdwan 32.11
142 Shyam Sel Ltd. Billets casting and Captive power
Burdwan 32.96
143 Shyam Steel Industries Ltd.
Sponge Iron Burdwan 150.00
144 Siddhi Vinayak Rice & oil
Rice oil Burdwan 70.30
145 Siemens Public Communication Network
Switching Network Kolkata 200
146 SK Udyog Gypsum plaster Jalpaiguri 2.15147 Skipper Steel Ltd. Steel Structural
FabricationHowrah 6.19
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148 Sai Fertilizer Pvt. Ltd.
Fertiliser West Midnapur
8.00
149 Sova Electrocasting Ltd.
Induction Furnace Burdwan 7.38
150 Sova Ispat Alloys Ltd.
Sponge iron Burdwan 26.50
151 Standard Leather Chrome Tanned Leather South 24 Parganas
3.50
152 Star Leather Finished Leather South 24 Parganas
1.57
153 Star Tanning Industries Pvt. Ltd.
Finished Leather South 24 Parganas
4.60
154 Sumangal Ispat Pvt. Ltd.
Ingots, MS Rounds Burdwan 5.80
155 Surya Alloy Industries Pvt. Ltd.
Railway Track Bankura 15.55
156 SIP Shing Tannery Chrome Tanned Leather South 24 Parganas
5.30
157 Tiger Tanning Industry
Finished Leather South 24 Parganas
5.59
158 Tilaya Steel New Alloy Steel Howrah 3.06159 Tilaya Steel MS Bars and Rods Howrah 4.23160 Tikmani Metal Pvt.
Ltd.Ferro Manganease Burdwan 7.73
161 Ubique Collective Marketing
- Howrah 5.67
162 Ural India Ltd. Heavy Motor Vehicle East Midnapur
70.00
163 Vaibhab Laxmi Agro Food Pvt. Ltd
Rice and Rice Barn Hooghly 2.09
164 Vikash Metal & Power Pvt. Ltd.
Power Generation Purulia 37.30
165 VSP Udyog Pvt .Ltd.
Hot Rolled Semi Finished Iron
Burdwan 6.00
166 VSS Electrocast Pvt.Ltd.
MS Ingot Bankura 18.95
167 Wellman Carbo Metalicks(India) Ltd.
Low ash metallurgical coke
West Midnapur
14.00
168 West Bengal Waste Management Ltd.
Hazardous bio medical waste management
East Midnapur
54.00
169 WEBLEC Finished leather Kolkata 4.53
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170 Wel Hing Tannery Finished leather South 24 Parganas
1.75
171 Xenitis infotech Pvt.Ltd.
Computer case, mouse Hooghly 32.96
172 Yen Petro Products Ltd.
Toluene mixed Xylene Uttar Dinajpur
3.84
173 Yun King Tannery - South 24 Parganas
2.66
Total 3119.09
Source : Department of Commerce and Industry, Government of West Bengal. 5.11 The important projects implemented in the state in 2006 are Ural India Limited’s Rs.70crore heavy motor vehicle project, Siemens Public Communication Networks Private Limited’s Rs.200 crore switching network and radio network project and Shyam Steel Industries Private Limited’s Rs.150 crore sponge iron project.
5.12 Apart from projects actually implemented, 21 major projects (projects with investment over Rs. 25 crore) with a total investment of Rs. 47242.76 crore were under implementation in West Bengal in the year 2006. These projects are shown in Table 5.5.
Table 5.5Major Projects Under Implementation
(Rs. Crore)
Name of the Company Product Location Project Cost
BANKURA DISTRICTManaksia Limited Galvanized Steel coils Bankura 177.41BURDWAN DISTRICTEnfield Exports Limited Pig Iron Comple Panagarh 127.20Ramrupai Balaji Steel Captive Power and
Sponge IronDurgapur 1240.00
BIRBHUM Chariot Eximp Ltd. Integrated Coal
mining & steel plantBhadula 255.00
HOWRAHMahabharat Motor Two wheelers Uluberia 1000.00
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ManufacturingHOOGHLYTata Motors Small Car Project Singur N.A.Global AutomobilesPvt.Ltd.(XENETIS Infotech)
Motor Byke Kamdevpur 300.00
Utkarsh Galva Ltd. Galvanized Plain/ Corrugated steel
Bhadreshwar
100.00
MurshidabadCentury Cement Ltd. Portland Cement Sagardih 210.00Ambuja Cement Eastern Ltd. (Expansion)
Cement Farakka 115.15
South 24 ParganasKitchen Appliances India Computer peripherals,
Glass sheets etc.Taratalla 100.00
North 24 ParganasTexmaco Limited Steel Casting Belghoria 4090.00PURBA MIDNAPURMadras Cement Limited Cement Grinding Kolaghat 160.00Hooghly Metcoke and Power company Ltd.
Coke oven & power plant
Haldia 690.00
Shree Renuka Sugar Limited Steel Ingots/ Billets, Ferro alloys
Haldia 250.00
Hooghly Metcoke and Power company Ltd.
Metallurgical Coke Haldia 690.00
Ural India Ltd. Specialised Vehicle Haldia 528.00Mitsubishi Chemical Corporation
2nd phase of PTA project
Haldia 1760.00
PASCHIM MEDINIPURJSW Industries Ltd. Integrated Steel And
Power PlantSalboni 35000.00
TELCON Heavy Earth moving Equipments
Kharagpur N.A.
Ramswarup Lohh Udyog Ltd.
Heat Treatment furnace
Sadatpur 450.00
Total Number of Mega Projects under Construction 21Total Investment (Rs in Crore) 47242.76
Source : WBIDC.
5.13 It is seen that the largest number of major projects under construction are located in Purba Midnapur. Highest amount of investment took place in the
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iron and steel industry, automobile industry and the cement industry. In Bankura, Birbhum and Coochbehar – the three industrially backward districts- 3 major projects are under construction. The major industrial projects under construction include Ramswarup Lodh Udyog Ltd.’s Rs. 450 crore sponge iron, pig iron project, Neo Metalics Ltd.’s Rs. 450 crore project for production of pig iron, coke, ductile iron, Hooghly Metcoke and Power Co. Ltd.’s Rs. 690 crore metallurgical coke project , Ural India’s Rs.528-crore project, Mitsubishi Chemicals’ Rs.1760-crore project, Rampurai Balaji Steel’s Rs.1240-crore project, etc. Shree Renuka Sugar Ltd. is one of the largest sugar refining plants in India. In the automobile sector, three prestigious projects are those of Tata Motors, Global Automobiles of Xeneitis group and Mahabharat Motors of Salim group. Of them, the two wheeler project of Xenitis group has started production in February 2007.
5.14 The State Government has recognised the need for faster economic development through creation of potential for industrial investment. Thus it has focused on the growth of those industries where the state has comparative advantage in terms of the availability of raw material and marketing. The State Government is putting more emphasis on maintaining a balance between the interest of the industrialists and worker and on restructuring the state level public enterprises. The Government is encouraging foreign direct investment, both technical and financial, as may be appropriate or mutually advantageous. Investors have realized the advantages of investing in the state. This realization of the prospective investors has been fostered by the actual working experience of those, who have already invested in the state. Creating an Investor-friendly Climate
5.15 The number of strikes in industrial units in the state has declined in recent years. As per CMIE report number of mandays lost in the state has considerably decreased from 10570 in 2000-01 to 1291 in 2002-03. Industry-wise negotiations between labour and capital have mostly replaced interaction between labour unions and management at the unit level. This has allowed productive activities to continue smoothly in units unhindered by major labour-management conflicts.The State Government has continued to take measures to bolster investors’ confidence. It continually interacts with business organizations and addresses positively and expeditiously the genuine concerns/problems of the business community.
5.16 In conjunction with practical measures to sustain investor confidence, the State Government has introduced policy reforms in several areas. It has promulgated in quick succession its policies on the development of industries in Bio-Technology, Mines and Mineral, Information Technology and IT Enabled Services sectors. These policy statements have clearly enunciated the State Government’s objectives and demarcated the road map to achieve them.
5.17 The State Government has framed an Act on Special Economic Zone (SEZ). The first sector-specific SEZ in India, Manikanchan Gem and Jewellery Park, has already become operational in the state. Special Economic Zones are being set up in order to encourage hassle-free manufacturing and trading for export
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promotion. This entitles the domestic manufacturers to enjoy certain benefits like tax exemptions. Full income tax exemption is available to profit making SEZ units for the first five years and 50 per cent exemption for the next five years and further 50 per cent exemption on ploughed- back profits for five years thereafter. Recently, the Central Government has also approved the proposal for setting up a Chemical Hub in the state.5.18 The signing of South Asian Free Trade Area (SAFTA) agreement on 1 st
January, 2006, would provide opportunities as well as challenges to West Bengal, one of the Border States in India. The objective of SAFTA is to reduce existing tariffs to less than 5 per cent within a time frame so as to increase trade among SAARC countries. The impact of SAFTA on West Bengal needs to be assessed realistically. On the basis of such an evaluation appropriate policy measures have to be initiated.
Performance of Major Industries
5.19 A better understanding of the performance of the industry sector in the state can be obtained by an analysis of the performance of the major industries. In Table 5.6, production in major industries in the state between 2003-04 and 2006-07 is given.
Table 5.6Production in Important Industries in West Bengal
Industry Unit 2003-04 2004-05 2005-06(p)
April – October 2005-06 2006-07
Jute '000 MT 1333 1367 1369 734 766Hessian '000 MT 297 300 315 185 173Sacking '000 MT 811 807 843 422 469Others '000 MT 225 260 211 127 124Cotton TextileYarn '000 Kg. 36630 36022 35396 22896 22078Cloth '000
Metres2395 3040 4184 2796 2776(E
)
Tea '000 Kg. 200564(R)
215522 (P)
216050(p)
April - November200896 218132
Finished Steel '000 tonnes 1611 1655
1668 April - September
795 805Semi finished steel
‘000tonnes
1079 1119 1083 510 574
Engineering industryWagons
Number 12650 15373 13278 7340 -
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manufactured
Source : Bureau of Applied Economics and Statistics, Government of West Bengal.
Jute Industry
5.20 The production of jute goods increased marginally from 13.67 lakh tonnes in 2004-05 to 13.69 lakh tonnes in 2005-06. In the first seven months of 2006-07, production of jute goods was more than that in the corresponding period of 2005-06.
5.21 However, the situation in the jute industry does not appear to be encouraging. As domestic demand accounts for about 85% of the total demand for jute goods, the Jute Packaging Materials (Compulsory Use in Packaging Commodities) Act, 1987, (JPA), determines decisively the overall demand for jute goods in the country. The provisions of the Act have been diluted in recent years. Instead of increasing the number of commodities to use compulsorily jute packaging, it has relaxed the original stipulations of JPA and allowed commodities like fertilisers, cement, sugar and even foodgrains to use packaging other than that of jute. The jute industry is, therefore, faced with a stagnant and even declining domestic demand. The Central Government was criticised by the Commission of Agriculture Costs and Prices (Government of India) for raising the minimum support price for raw jute and at the same time reducing the demand for jute goods by diluting JPA. The policy has raised the cost of production of jute mills and at the same resulted in lower capacity utilisation for want of demand.
Cotton Textile
5.22 The production of cotton yarn declined slightly to 353.96 lakh kg. in 2005-06 from 360.22 lakh kg. in 2004-05. The production of cotton cloth increased to 41.84 lakh metres in 2005-06 from 30.40 lakh metres in 2004-05. During first eight months of 2006-07 production of both cotton yarn and cotton cloth was same as that during the same period of previous year. However, production of mill made fabric has shown remarkable growth during the period 2000-01 to 2004-05, as reported by CMIE. The production has risen from 0.2 million square metres in 2000-01 to 2.7million Square metres in 2004-05. This rise may have been triggered by an expansion in capacities by the producers in anticipation of growing demand for textile and apparels after elimination of quota
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restrictions under the international Multi Fibre Arrangement (MFA) effective from January, 2005.
5.23 Although it is heartening to note the rising cotton cloth production from 2004-05, the state of the cotton textile industry in West Bengal is in dismal condition. According to Eastern India Textile Mills' Association, out of the 19 textile mills in the private sector, only 7 mills are operating. In general, the condition of the textile industry in the country is not exactly buoyant. The primary problem of the cotton textile industry in the country is that the growth in per capita consumption of cotton cloth has been sluggish. In addition, the organised textile industry is largely non-competitive compared to the decentralised sector, especially the power loom sector. Industry sources concede that the expected increase in capacity in the country to meet post quota rise in export demand has not materialised.
5.24 The Central Government has launched the scheme for Integrated Textile Parks (SITP) in August,2005 in order to strengthen the infrastructural facility. The Government of India has approved one such park in West Bengal out of 26 similar parks in some of the major states of the country. In order to reap benefits of these positive steps, the State Government is trying to develop the infrastructure for the textile industry by setting up a Garment Park and an Apparel Park. Considering the fact that the state has certain inherent strength like competitive base for manufacturing of garments for the domestic market, pioneering status in hosiery sector, creative designing capabilities, availability of technical and ancillary manpower, etc., the state government is exploring various measures for the resurgence of the industry in the state.
Tea
5.25 West Bengal is one of the major tea producing states in India and accounts for roughly 22 per cent of total tea production in India. The production of tea marginally increased to 216.05 million kg. in 2005-06 from 215.52 million kg. produced in 2004-05. In the first 9 months of 2006-07 (i.e. April to October, 2006) production of tea increased to 218.13 million kg. from 200.89 million kg. in the same period of 2005-06.
5.26 There are around 6000 small tea growers and 67 Bought Leaf Factories (BLF) in the state. Tea production in these small tea gardens is quite significant being around 21-22 million kg. each year. The small sector with little or no overheads undersells its products placing the tea estates in the organised sector in a disadvantageous situation. The increased supply and unequal price competition
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have considerably eroded the viability of many tea estates. The tea estates most affected are primarily those which neglected taking measures in the past for improving the productivity of the gardens. The ability of most of the better managed tea gardens to cope with the prevalent situation in the tea industry in the state indicate that with prudent management practices survival of tea units should not be a problem.
5.27 In 2005-06, export earning from Tea has increased marginally. The increase in production does not get translated in higher export earning as prices are lower for Indian Tea. This was exactly the opposite to the all India trend of rising exports and falling tea production in 2004. It can be seen from Table 5.7 that tea prices in all the three major tea producing areas of Dooars, Terai and Darjeeling declined in 2005.
Table 5.7Movement of Tea Prices in West Bengal
(Rs./kg.)Region 1999 2000 2001 2002 2003
(R)2004 (R)
2005 (P)
Dooars 74.13 61.81 65.10 58.02 56.25 66.44 62.15Terai 70.68 57.67 60.48 53.11 51.71 61.97 54.55Darjeeling 167.00 154.00 144.00 128.05 148.80 154.32 146.76
R = Revised P = ProvisionalSource : Tea Board.
5.28 The decline in tea prices has created new problems for the tea industry in the state. This is not a desirable development, especially because the situation in the tea industry in the state was improving. If one considers the number of closed tea gardens reopening in 2004 and 2005 in the state, it seems that the tea industry is somewhat better placed than in the pre 2004 period. It is too early to come to any firm conclusion as the price decline in 2005 was in the second half of the year. It remains to be seen how this impacted on the tea industry. In 2004, 27 closed tea gardens had reopened. In 2005, 7 more closed gardens have opened. Till 2005-06, 17 tea gardens have closed operation. However, as per Tea Market Report, the average price of tea in Kolkata auction market has risen from Rs.70.23 in January-September,2005 to Rs 79.90 in January-September,2006. Total sales from Kolkata and Siliguri Auction markets have decreased marginally from 225.45 million Kg. in 2004-05 to 221.24 million Kg. in 2005-06.
5.29 The State Government has taken a number of steps to assist the tea industry to overcome the crisis faced by it. These measures include : (1) the State Government has reduced the rate of salami for renewal of lease deed in respect of those tea gardens which have been transferred (other than by inheritance) from the level of Rs. 15000 per hectare to Rs. 9000 per hectare. In respect of sick gardens
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the rate has been further reduced to Rs. 4500 per hectare; (2) the State Government has reduced the rate of Agricultural Income Tax payable by tea gardens from 45% to 30%; (3) the State Government has extended the scheme for paying financial assistance to the regular workers of the locked out/closed tea gardens under the Financial Assistance to the Workers in Locked out Industries scheme; (4) the State Government has started distribution of special gratuitous relief to the regular workers of closed/abandoned tea gardens; (5) the State Government has also started implementing schemes under Sampoorna Gramin Rozgar Yojana (SGRY) in the abandoned tea gardens and also initiated relief measures including provision of health care, supply of drinking water and nutrition programme under ICDS; (6) the State Government has also implemented schemes under SGRY in some of the running gardens.
Steel
5.30 The production of finished steel increased marginally to 16.68 lakh tons in 2005-06 from 16.55 lakh tons in 2004-05. In the first six months of 2005-06 (April to September) the production of finished steel was almost the same as in the same period of 2004-05. However, production of semi-finished steel has decreased marginally in 2005-06 compared to previous year. Following the all-India trend, the production of finished steel in the state might have picked up from October, 2005.
5.31 Thus the state accounts for about 10 per cent of India’s total steel capacity. The key advantage of the sector in the state is its proximity to key raw material like coal and iron ore. The Haldia port also ensures availability of imported inputs & export of steel products. Cement 5.32 The cement industry in West Bengal is progressing towards self sufficiency in both demand and supply. The industry was going through a stagnant phase till 2001-02. As per CMIE report, production registered a spectacular growth of 128.56 percent. This jump was triggered by setting up of two major plants - one of Ambuja Cement Limited at Howrah and the other of Larsen Tubro Limited at Burdwan. Major producers like Ambuja Cement, Ultra Tech Cement Company Limited, Durgapur Cement Works Limited, ACC (Damodar) are now in expansion mood. Gujarat Ambuja Cement is setting up a green field cement plant of 1 million tones at Farakka, Madras Cement Company is also setting up a plant at Kolaghat, East Midnapur. Among major producers, Ambuja Cement grew by 3.7%, Ultra Tech grew by 14.7% in 2005-06 compared to previous year. Table 5.8 shows relative position of Cement industry in West Bengal to all India.
Table 5.8Production in Cement Industry in West Bengal and India
State 2005-06Production ( in metric
tonnes)
2004-05Productio
n ( in metric
2003-04Production ( in metric
tonnes)
Growth in2005-06 (Over
previous
Growth in2003-04 (Over
previous
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tonnes) year) year)West Bengal 3.25 3.12 2.74 4.17 13.87
India 141.81 127.57 117.50 11.16 8.57
Source : Cement Manufacturers Association of India.
5.33 The above table depicts the Cement Industry in the state is growing at a steady rate in recent years.
Coal and Other Minerals
5.34 The production of coal increased to 24.42 million tonnes in 2005 from 23.17 million tonnes in 2004. The production of coal and other minerals in West Bengal is shown in Table 5.9.
Table 5.9Mineral Production in West Bengal
Item UnitProduction
2002 2003 2004 2005
China Clay (Kaolin) Tonnes 7827 9587 6747 5739Coal '000 Tonnes 2025 1944 2317 2442Fire Clay Tonnes 2381 3816 6976 6463Apatite Tonnes 8834 6206 5256 5495
Sources : (1) Monthly Bulletin of Mineral Statistics and Information. (2) Monthly Statistics of Mineral Production.
5.35 The production of china clay declined marginally to 57.39 thousand tonnes in 2005 from 67.47 thousand tonnes in 2004 and 95.87 thousand tonnes in 2003. The production of fire clay has also marginally declined in 2005 compared to previous year. However, in 2005, the production of apatite has increased marginally.
5.36 It was noted in the previous Economic Review, that the State Government has announced a new mineral policy. The policy clearly enunciates the State Government’s priorities in selective de-reservation of minerals and mineral bearing blocks so as to allow private participation in mineral exploration and exploitation. Granite for instance, has been de-reserved and is open to exploitation by private companies through competitive bidding. The West Bengal Mineral Development and Trading Corporation Ltd. (WBMDTC) jointly with a private partner is set to extract coal from Trans Damodar Coal Block which has recently been allotted by Government of India. The State Government has also requested Government of India to allot 9 more coal blocks for extraction of coal to meet the demand of the local industry.
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Food Processing and Horticulture
5.37 The Food Processing Industries and Horticulture Department of the State Government promotes food processing industries in the state. There is an increasing trend towards setting up of Food Processing Industries in West Bengal. The department sets up food parks, perishible goods cargo complexes, quality control laboratories, etc. 4 food parks at Sankrail. Chakgaria, Shankarpur and Sultanpur are in operation.
5.38 The Department has been trying to motivate small entrepreneurs to invest in the food processing industry. In this context, the department has recommended 5 proposals from NGOs to Government of India for conducting Entrepreneurship Development Programmes . All five proposals were approved by the Central Government.
5.39 As a result of these efforts of the department (discussed in more detail in chapter 3), in 2005-06, 443 proposals with a total investment of Rs. 380.90 crore for investment in the food processing industry sector were approved by the department. In 2004-05, the number of such approved proposals were 204 with a total investment of Rs. 524 crore. Till November, 2006, 36 more proposals were approved with additional investment of Rs. 180.68 crore.
Social and Physical Infrastructure
5.40 In recent years the Government of West Bengal has laid greater emphasis on developing proper infrastructure, both physical and social, in the state, because the availability of developed infrastructure is crucial for motivating industrial investors to invest in the state.
5.41 West Bengal is perhaps one of the few states in India with surplus power. Installed capacity of power in the state has shown more or less steady growth during the period 1998-2002. In the subsequent two years, however, the growth in installed capacity was negligible. As of 2004-05, the total installed capacity in the state was 7500MW, an increase of 2.32 percent from 2003-04. During the period from 1998-99 to 2004-05 power generation has grown at an annual rate of 9.89 percent. In addition to increasing significantly the installed power generation capacity, the State Government is also implementing a number of schemes for improving and extending the transmission and distribution network. A large number of schemes for installation, augmentation and upgradation of power distribution network are being presently implemented with funds under RIDF VI, VII, VIII and IX. Another set of schemes for developing the distribution system in the state is being implemented with funds from NABARD.
5.42 The State Government has also taken up a programme to maintain this ‘surplus’ situation in the coming years. It is implementing The Purulia Pumped
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Storage Project (4 x 225 MW). Construction of units 4 and 5 (2 x 210 MW) of the Bakreswar Thermal Power Project is being undertaken with loan assistance of JBIC. The first stage of Sagardighi Thermal Power Project (2 x 300 MW) at a cost of Rs. 2326 crore is presently under implementation. Initial infrastructure work is progressing. Progress has also been made in implementing the 5th unit of the Santaldih Thermal Power Plant (1 x 250 MW) at a total cost of Rs. 1354 crore. The construction of unit VII (1 x 300 MW) of DPL thermal power project is progressing. All the above power projects except the Purulia Pumped Storage Project are expected to be completed by the end of the 10 th plan, i.e. March, 2007.
5.43 A major scheme in respect of power transmission is the JBIC-assisted West Bengal Transmission System Project. The project is being implemented in four lots. The first two lots have already been completed. The West Bengal State Electricity Board is also implementing a number of other schemes for strengthening the power distribution system in the state. 5.44 The State Government has also stressed on improving the infrastructure and services in the urban areas. It has also been trying to improve the road connectivity in the state by constructing new roads or improving and strengthening the existing road network.
5.45 The Rs. 1600 crore Kolkata Megacity programme is being implemented by the Kolkata Metropolitan Development Authority (KMDA). Under the programme a total of 130 schemes with a total cost of Rs. 1267.33 crore in various sectors like water supply, traffic and transportation, sewerage and drainage, solid waste management, housing and area development, commercial complex, bustee improvement, environment improvement, were taken up.
5.46 Some of the major on-going projects in the water supply sector are underground reservoirs (UGR) cum boosting stations at Bally for supplying drinking water at Liluah, Bally and Maheshtala. Stabilization of Garden Reach Primary Grid, laying of Ring Main from Garden Reach to Maheshtala and upgradation of Water supply in DumDum Municipality are being completed during the current year. Other important ongoing schemes are integration of Baranagar-Kamarhati treatment plant including UGR at Baranagar and North Dum Dum, piped water supply schemes at Bhatpara, Pujali, Dankuni, Barasat and bulk water supply to West Howrah and augmentation of Chandannagore Water Reservoir.
5.47 In the traffic and transportation sector, the important on-going schemes are widening of EM Bye Pass from R B connector to Kamalgazi, flyover at Bondel Gate, Prince Anwar Shah connector, strengthening of EM Bye Pass from RB Rotary to Garia Hump, link road from Rishra railway station to Delhi road, improvement and widening of Canal East and Canal West Road, twin road from SIPRO to Picnic Garden under Kalyani Municipality and Kulia road under Gayeshpur municipality.
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5.48 In the sewerage and drainage sector, the important on-going schemes are drainage along EM Bye Pass from Kalikapur Bridge to Baghajatin Railway-Over Bridge (ROB), solid waste management schemes in 6 municipal towns. removal of drainage congestion in New Tollygunge area in KMC ward no.114 and peripheral sewerage scheme for West Howrah township.
5.49 In 2005, the Central Government announced a new initiative - the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) - for accelerated development of urban areas. There are two sub-missions under JNNURM. These are – (1) sub-mission on infrastructure and governance and (2) sub-mission on basic services for the urban poor. The Central Government has announced that Kolkata and Asansol will be covered under JNNURM. The Central Government has approved 11 schemes with a total project cost of Rs.950.61crore. 80 urban local bodies are being covered under the schemes viz. a) Urban Infrastructure Development of Small and Medium towns and b) integrated Housing and Slum Development Programme. The State Government has taken up with the Central Government certain procedural issues relating to JNNURM. Discussions are on and it is expected that mutually acceptable procedures/modalities for JNNURM will soon be arrived at.
5.50 In order to remove pollution of the river Ganga and a few other rivers like Damodar and Mahananda Ganga Action Plan (Phase-II) is being implemented in the state. So far, 184 schemes covering 31 towns have been included under Ganga Action Plan (GAP). These include 167 schemes in 26 towns on the river Ganga, 16 schemes in 4 towns on river Damodar and one scheme in Siliguri Town on the river Mahananda. Till date, 174 schemes have been sanctioned under GAP. At the end of 2005-06, 62 schemes were completed. It was expected that another 83 schemes under GAP would be completed by March, 2007. So far, a total sum of Rest.118.19crore has been spent.
5.51 One of the most important infrastructural projects being implemented in the state is the Rajarhat New Town Project covering an area of 3075 hectares in the north eastern fringe of Kolkata. Land acquisition and development have been completed in the Action Area-I covering 660 hectares. In Action Area-II covering an area of 1050 hectares, land filling is in progress. In Action Area-III with total area of 1365 hectares, work has started. Till date, 1200 hectares of land in the New Town have been developed. Residential plots in Action Area-I and II are being distributed. In Action Area-I, 30 acres of land have been set aside for setting up an IT Park. Plots have been allotted to 48 IT companies. Work relating to sewerage, drainage, water supply and internal roads in this area is in progress.
5.52 The State Government formed different Development Authorities in order to develop different urban areas in the State. They are also implementing a large number of schemes. The Assansol-Durgapur region is rich in mineral resources resulting into growth of iron and steel industry in this area. ADDA is constantly working on a number of projects in order to improve the infrastructural
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facility in the region. The Siliguri-Jalpaiguri Development Authority (SJDA) is presently implementing some important projects like widening of Kawakhali road, bridge at North Samaranagar, widening of Sevoke Road phase-II etc.Haldia Development Authority (HAD) implements a number of schemes for improving the road infrastructure. The Srineketan- Shantineketan Development Authority (SSDA) is implementing schemes like construction of indoor sports complex at Bolpur, solar electrification, municipal solid waste management and construction of endogenous tourism complex. The Burdwan Development Authority (BDA) has undertaken the renovation work of Water Treatment Plant, augmentation and strengthening of several drainage system of Burdwan. Digha-Sankarpur Development Authority (DSDA) has completed the work of six link roads and repaired roads within residential areas. Besides, Kolkata Improvement Trust and Howrah Improvement Trust are also implementing a number of schemes in order to improve the infrastructural facility.
5.53 The State Government is encouraging the development authorities to take up schemes on the basis of public private partnership (PPP). Siliguri - Jalpaiguri Development Authority is developing a new township near North Bengal Medical College on PPP basis. Haldia Development Authority is going to take up a water supply scheme on PPP basis. Asansol Durgapur Development Authority is developing a new township and commercial complexes with PPP. The Burdwan Development Authority (BDA) has taken up a number of schemes on PPP basis like development of a township, upgradation of collectorate, development of commercial complexes.
5.54 In recent years, the State Government is continuously working for improving the road infrastructure. The Public Works (PW) and Public Works (Roads) (PWR) departments construct roads and bridges in the state. Considerable progress have been made during the last financial year. During 2005-06 the department took up 55 schemes for widening and strengthening of existing roads in different districts under RIDF-X. Almost whole work was completed within the year. Under the RIDF-XI project, 33 numbers of roads were taken up for the work of widening and strengthening. The work is in progress. The work of 5 other road schemes in different districts like South 24 Parganas, North 24 Parganas, Burdwan and Kolkata was completed.
5.55 All the 13 road schemes taken up by PW department under HUDCO-II were completed by the end of March, 2005. The 5 important road schemes taken up under HUDCO-III included strengthening and widening of BT Road, GT Road (Burdwan Town), Taratalla Road (Old and New), GT Road (Hooghly) and Sevoke Road.
5.56 The PW department was also implementing the fly-over at Taratala crossing. It was completed in February, 2006. The Department has completed the work of some important bridges in Purulia, North 24 Parganas and Malda districts. The construction of bridges over river Ichamati in North 24 Parganas, river Cossai
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in Paschim Midnapore , river Silabati and Ketia Khal in Purba Midnapore are near completion.
5.57 The Central Government has sanctioned with the state’s share of the cess on petroleum products, 13 schemes(under Central Road fund). Out of these, 6 were completed in 2004-05 and the work on the other 5 schemes under Central Road Fund was progressing as follows:
20% of work of improvement of decentralized portion of NH2 from 582 to 611 km. in the districts of Burdwan and Hooghly is in progress.
30% of work of widening and strengthening of Saptagram – Tribeni – Kalna – Katwa road from 0 km. to 34 km. in Hooghly is in progress.
Widening and strengthening of Saptagram – Tribeni – Kalna – Katwa road from 0 km. to 102.26 km. in Burdwan.
50% of work of widening and strengthening of Barakar – Purulia road from 6.65 km. to 74.00 km. in Purulia is in progress.
Besides, 100% work of Budge Budge trank road in South 24 Parganas, and 98% work of Sodepur.
Madhyamgram road were completed in 2005-06.
5.58 The most important road project that is being implemented in the state is the externally aided north-south corridor project. The project has various components comprising National Highway (NH) and State Highway (SH) sections. Civil work for SH10 started in January, 2004, and is expected to be completed by 2007. Award for civil work for SH1 has been completed and work has commenced. The NH component of the project is being implemented by the National Highway Authority of India, a Central Government agency.
5.59 In order to encourage industrialization in economically backward districts of the state Paschimachal Unnayan Parishad was constituted in 2000-2001. The low literacy rate, inadequate health care facilities and prevalence of poverty among the people residing in 74 blocks of five districts, viz. Purulia, Bankura, Paschim Midnapore, Burdwan and Birbhum districts have led the Government to undertake special area development programmes. During the period 2000-2006, a total sum of Rs.9366.46lakh was released. An amount of Rs.7482.58lakh has already been utilized. Developmental work in different sectors like agriculture, rural infrastructure, drinking water, primary education, health and nutrition have been taken up.
Industrial Infrastructure
5.60 The West Bengal Industrial Infrastructure Development Corporation (WBIIDC) is the nodal state level agency for developing infrastructure specifically for the industrial sector. WBIIDC has so far developed 12 growth centers (industrial estates) located at Kalyani (Phases I, II, III), Falta, Uluberia, Bishnupur, Raninagar, Coochbehar, Malda, Dabgram, Haldia and Kharagpur.
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5.61 WBIIDC is setting up four more growth centers at Jalpaiguri, Malda (2nd
Phase), Bolpur and Falta (Phase-II). In these growth centers the infrastructure facilities that are being provided would be the best available in the country. In the Jalpaiguri new growth centre, possession has been taken of 106 acres of land. Land acquisition process for 96 acres is on. Development work is being carried out in the already acquired land. In the Malda growth centre (Phase-II), 52 acres of land have been acquired and development work has started. About 140 acres of land were acquired in the Falta Growth Centre (Phase-II). Development work is progressing. About 41 acres of land have been allotted to one paper manufacturing unit. In the Bolpur New Growth Centre, 131 acres land has been acquired. A joint venture company has been formed in order to develop the area.5.62 The West Bengal Industrial Development Corporation (WBIDC), the prime agency in the state for promoting industries, has in recent years been increasingly involved in developing industrial infrastructure. This shift in WBIDC activity is related to the sharp upturn in industrial investment in the state in recent years. With investment flow no longer a problem, WBIDC promotional activities could best be supplemented by providing state of the art industry specific `parks’ to investors.
5.63 WBIDC has made a major change in land acquiring strategy. In order to ensure speedy availability of land for infrastructural and industrial projects, WBIDC has decided to purchase land directly from the owners, instead of going through the usual land acquisition process.
5.64 Manikanchan Special Economic Zone (Phase-I) was completed in November, 2003. Twenty-five companies have moved into the built-up area in Manikanchan. Export from Manikanchan started from July, 2004. WBIDC has taken measures to expand Manikanchan. The value of export during 2004-05 was Rs.96crore, which is steadily increasing.
5.65 While Manikanchan was the first green field sector specific Special Economic Zone (SEZ) in the country, the State Government has so far received 13 proposals for setting up SEZs. These are being processed.
5.66 WBIDC has set up Shilpangan (Toy Park-Light Engineering Park) with a total investment of Rs. 8 crore for units manufacturing toys and light engineering products on 2.28 acres of land at Salt Lake, Kolkata. Shilpangan is equipped with common facilities like design centers, nodal marketing agencies, shops for supply of raw materials, etc. Twenty four companies producing toys, sports goods and other light engineering products have occupied modules at Shilpangan. The construction of the 2nd Phase of Shilpangan commenced in January, 2005. All the modules in the second phase have been booked.
5.67 WBIDC is setting up a Garment Park on the 9 acre plot of land of the closed National Tannery on Canal-South Road. The Garment Park will have one Common Facility Building, three Standard Design Factory Buildings, working women hostel, truckers’ amenity centre, etc. Almost 70% of the space has been already booked. The project will be implemented in phases. In the 1st phase total
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cost is estimated to be Rs. 46.87 crore. The project site has been cleared of all remnants of the closed factory. The Detailed Project Report (DPR) has been prepared. The tendering process has been completed.
5.68 WBIDC has already set up a Food Park at Sankrail, Howrah. In this Park, 98 acres of land have been allotted to sixteen units. Eight units have commenced project work and five units have started commercial operation. In the 1st phase total investment made by the units was Rs. 130 crore. Another Rs. 230 crore of investment is expected.
5.69 The second phase of Food Park is for both Food Park and Poly Park. The entire land measuring 122 acres have been directly procured from the owners till Dec.2006. Land area identified from the owners of land till 31st March, 2005 was 92 acres. Out of the total land, 32 acres has been earmarked for Food Park and the balance land of 60 acres has been earmarked for Poly Park. The number of applications received for allotment of land is 36 (Poly Park) and 7 (Food Park). Expected investment in second phase of Food Park is expected to be Rs. 100 crore and that for Poly Park is Rs. 200 crore.
5.70 Plasto Steel Park is situated at Borjora in Bankura District, which is 12 kms. from Durgapur railway station. The park is being developed to set up steel (ferro alloys and induction furnace) units and plastic manufacturing units. In the first phase, 190.07 acres of land was acquired during the year 2003-04 and the land was distributed to 19 industrial units. In the second phase, total land purchased directly from the owners was 205 acres (including about 50 acres up to 31st March, 2005). Number of units that had taken possession of land is 42 and the number of units that have already commenced project work is 18. Total investment already made is Rs. 132 crore. Additional investment that will come up in future is estimated to Rs. 300 crore. Damodar Valley Corporation has completed installation of a power substation in the growth centre at an investment of Rs. 44 crore.
5.71 WBIDC is in the process of setting up an Apparel Export Park on 150 acres of land at an estimated project cost of Rs. 50 crore at Uluberia in Howrah district. The Park will be equipped with industrial plot, commercial plot, common facilities centre, warehouse, etc. The Park would focus on integrated units like garment manufacturing units, ancillary units for manufacturing buttons and specialized units like processing or washing units to bring more value addition to the garments manufactured. About 40 units are likely to come up in the Park. Civil construction will be commencing soon. It is expected that the project at its full capacity utilization will create employment opportunity for 20000 persons.
5.72 WBIDC has initiated steps to set up Iron & Steel Park at Kharagpur and Guptamoni under Kharagpur and Jhargram P.S. in West Midnapur district. WBIDC has identified 300 acres of land at Kharagpur and is in the process of acquiring the said land. WBIDC has also identified 2500 acres of land at Guptamoni to set up a Mega Iron and Steel Park. The site is adjacent to NH-6 and has facility for power line. WBIDC is in the process of acquiring the land. As considerable water will
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be required, Irrigation and Waterways Department has sanctioned drawal of 15 mgd. of water from Subarnarekha River which is about 25 km. away from the proposed site.
5.73 WBIDC, jointly with Indian Institute if Technology, Kharagpur, is planning to set up a Biotechnology Park at Dewanmara in West Midnapur district. For this purpose 60 acres of land at Dewanmara have been identified. The Park will have modern facilities to set up Biotech projects. IIT, Kharagpur, will be responsible for providing technologies to support the investors for setting up and operating projects in the Park. A high-tech green city to provide social infrastructure for the Biotechnology Park has also been envisaged. Concept note along with financial projection is being prepared by IIT, Kharagpur. A memorandum of agreement has been signed between IIT, Kharagpur and WBIDC. A project advisory committee has been formed with the Minister of Commerce and Industry as its Chairman.
5.74 In association with Indian Foundry Association, WBIDC is setting up a modern Foundry Park at Hawlibagan under PS-Sankrail on Ranihati-Amta Road in Howrah district. Out of 924 acres of land identified, already 300 acres have been purchased. The balance will be purchased through a committee set up by the State Government. A Special Purpose Vehicle, called Foundry Cluster Development Association has been incorporated. The project cost has been estimated at Rs. 130 crore. Ministry of Commerce, Government of India, has sanctioned Rs. 45.00 crore as grant to meet a part of the cost of the project component under Industrial Infrastructure Upgradation Scheme (IIUS). The first instalment of Rs. 8 crore has been disbursed to the SPV. Infrastructure Leasing and Financing Services (ILFS) has sanctioned Rs. 30 crore as term loan. Balance fund will be provided by the Indian Foundry Association. About 200 units are expected to come up in the Park with investment of approximately Rs. 1600 crore. It is also expected that the project will generate employment for 30000 people.
5.75 Indian Chemical Merchants' and Manufacturing Association (ICMMA) is setting up a Chemical Park at Mouzas – Islampur, Shyamchak and Majukhetra in Howrah district. ICMMA has identified about 150 acres of land to set up the Park. ICMMA has started purchasing the land from the land owners. WBIDC is assisting ICMMA in the acquisition of land as well as in obtaining NOC for the site from environmental angle from West Bengal Pollution Control Board.
5.76 All India Rubber Association is in the process of setting up a modern Rubber Park at Sankrail in Howrah District. About 35 acres of land is under process of direct purchase by a committee formed by the State Government. A project report has been prepared to evaluate the techno-economic feasibility of the Park. A special purpose vehicle (SPV) called South Asia Rubber & Polymers Park Ltd. has been incorporated. Government of India has sanctioned Rs. 15.17 crore as grant for infrastructure facilities at Rubber Park under IIUS. The first instalment of 20% amounting to Rs. 3.14 crore has been released to the SPV. WBIDC has sanctioned a term loan of Rs. 2.90 crore. The balance amount of Rs. 11.12 crore will be contributed by the member units of All India Rubber Industries
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Association. About 250 units are expected to come up in the Rubber Park for manufacturing rubber seeds, footwear, rubber hoses, tubes, micro cellular sheets, hawai chappals, automotive rubber products, etc. The project is expected to generate employment for 16000 people.
5.77 The State Government has set up the Calcutta Leather Complex on an area of 1100 acres of land on the eastern flank of the Metropolitan Bye-Pass, Kolkata, jointly with a private company on BOT basis. This became operational on 30th July, 2005. It provides all modern infrastructural facilities for the relocating tanneries scattered in the eastern part of Kolkata. The complex not only accommodates the relocated tanneries, but also many new leather units. This prime industrial project of the state aims to unite and integrate processing, manufacturing and other subsidiary activities in the leather sector.
5.78 The State Government is considering the setting up of a Semi-conductor Park in West Midnapoe on land adjacent to IIT, Kharagpur. Details of the proposal are being worked out.
5.79 The setting up of Export Promotion Industrial Park at Durgapur over an area of 147 acres was taken up under a Central Government Sponsored Scheme with a Central Grant of Rs. 10.00 crore and matching State Grant of Rs. 4.00 crore. The Scheme aims to develop high quality infrastructure to attract export related industries. The industries intending to set up units of production in this complex will have to export a minimum of 33.33% of the total product in value terms per year. The total project cost as per the current estimate is about Rs. 25 crore. The Asansol Durgapur Development Authority (ADDA) as the implementing agency is investing the balance of Rs. 11.00 crore which will be recovered by leasing out the developed plots and built up facilities like flatted factory floors, industrial sheds, warehousing spaces, etc. An amount of Rs. 15.00 crore has already been spent on the project out of Central and State grants and the ADDA’s own fund.
Development Agencies
5.80 WBIDC, as was noted earlier, is the primary state level agency for promoting industries in the state. WBIDC provides term loans to medium and large-scale industries, promotes joint sector projects, participates in the equity capital of selected projects and also provides different kinds of financial assistance like equipment finance, bridge loan against admitted incentive schemes to industrial units. WBIDC also provides facilitation service to industrial investors through 'Single Window Agency' (Shilpa Bandhu) and the State Investment Facilitation Centre (SIFC).
5.81 In 2005-06, WBIDC sanctioned Rs. 18854 lakh of loans against Rs. 17879 lakh sanctioned in 2004-05. Actual disbursement of loans in 2005-06 was Rs. 11633 lakh against Rs. 8732 lakh in 2004-05. In 2006-07 (up to 31st December, 2006), the amount of loan sanctioned was Rs. 13311 lakh, and disbursement was Rs. 6826 lakh.
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5.82 WBIDC participated in the equity of different companies to the extent of Rs. 19380 lakh in 2004-05 against a target of Rs. 19200 lakh. WBIDC also administers the State Incentive Scheme. In 2005-06, it disbursed Rs. 54.49croreto 98 units as incentives under West Bengal Incentive Scheme,2000.
5.83 WBIDC's financial performance is improving. Recovery of loans with interest increased to Rs. 13068 lakh in 2005-06 from Rs. 8315 lakh in 2004-05. In 2006-07 (up to December, 2006) recovery was Rs.6937 lakh.
5.84 WBIDC achieved net profit of Rs. 907.78 lakh in 2005-06 against a net profit of Rs.907.42 lakh in 2004-05. In 2006-07 (up to December, 2006), net profit is estimated to be Rs.1076 lakh.
5.85 WBIDC's role in promoting infrastructure projects was discussed earlier. There are few other projects which WBIDC is promoting. One of them is the Trade Fair Complex on 17.81 acres of land at the Park Circus Connector. The complex is being developed by WBIDC and Kolkata Municipal Corporation (KMC). Land filling at the site of the complex is complete. The project is being implemented by West Bengal Trade Promotion Organisation as a Special Purpose Vehicle. Land for the project has been provided by KMC and ICICI-WINFRA has prepared market and feasibility reports. The project cost in the 1st phase has been estimated at Rs. 40 crore. The total construction period has been estimated to be around 18 months. The project authorities have already paid Rs. 50 lakh to CESC for electric connection.
5.86 WBIDC is the nodal agency for implementing the project for reclamation of the North Canal System (New Cut)–Kestopur-Bhangarkata canals for navigational purpose. The project envisages the construction of all the necessary infrastructure for navigation and operation of cargo and passenger vessels on the North Canal System of Kolkata. This is a 43 km. long man made canal starting from Chitpur connecting river Hooghly in the west to river Vidhadhari on the east. ICICI-WINFRA has prepared the project brief. The project will be implemented on Build-Own-Transfer (BOT) basis. Six reputed companies have submitted expression of interest for undertaking the project on BOT basis.
5.87 WBIDC is setting up a joint sector company `Hooghly Met Coke and Power Company Ltd.’ (HMCPCL), with Tata Steel for setting up a Merchant Coke Oven Plant at Haldia with a capacity of 0.8 million tonnes of coke annually in the 1st phase. The joint venture company will also generate 60 MW of electricity by utilizing the hot flue gas from the coke ovens. The power generated will be sold to WBSEB. For this a tripartite memorandum of agreement has been signed. The project is for supplying high quality metallurgical coke to international and domestic customers. The 1st phase of the project is estimated to cost Rs. 700 crore.
Information Technology Sector
5.88 The State has identified the information technology(IT) sector as a priority sector for growth. The State formulated an IT policy in 2000 followed by a
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special incentive scheme introduced in 2001. The main objective of the new IT policy is to allow different constituents within the state to leverage this opportunity. It is also encouraging development of high end technology in the hardware and software sectors as well as R&D support relating to the same. At the operational level, the government has made it easy for the investors to set up operations in Kolkata through WEBEL, which is the single window support center for all IT investors. The Government has also evolved a best –in – class package of fiscal incentives and regulatory support to investors. It has undertaken an aggressive e-governance policy to connect almost 3600 gram panchayets and all municipalities. As a matter of fact the state has registered a steady growth in the IT sector with a compound annual rate of growth of 90% during the period 1993-2003. During 2005-06 250 IT and Information Technology enabled service(IteS) companies were operating in Kolkata employing about 45000 professionals. The IT Hub at sector V of Salt Lake is India’s first fully integrated Electronic complex spread over 150 acres of green pollution free area near airport. Table5.10 gives the profile of growth of STPK (Software Technology Park) units.
Table 5.10Growth of STPK Units in Kolkata
Year No. of registered
units
No. of units operational under STPK
Number of exporting
units under STPK
Export(value in Rs. crore)
Percentage change in
export
1992-93 6 3 3 0 0
1998-99 8 30 27 94 141
2001-02 13 105 76 611 64
2002-03 23 114 90 832 36
2003-04 21 122 102 1252 61
2004-05 26 144 112 1741 39
2005-06 39 148 137 2204 27
Source: Quarterly Bulletin of Investment, Industry & Trade in West Bengal,June,2007,Directorate of Industries, W.B.
5.89 As the table depicts the IT sector has registered a tremendous growth in the value of export during the period 2001-02 to 2005-06. The renowned exporters like TCS, Skytech, Cognizant are doing well. The gross value of export under SPTK stood at Rs.2204crore in 2005-06 as against Rs.1741crore in2004-05 and Rs.1252 crore in 2003-04.
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5.90 Major IT companies like IBM, TCS, Congizant, PWC, Skytech, Computer Associates, NIIT, Lexmark, HCL, AIG, Atos Origin, e-Force, Interra, LSI Logic, Ixia, Mahindra BT have set up their operational units in Kolkata. Recently HSBC Electronics Data Processing Pvt. Ltd. has commissioned their facility in Kolkata. WIPRO has started its operation in Kolkata. GECIS, a pioneer and global leader in high quality Business Services and Technology Solutions will be setting up their next development centre at Kolkata. Satyam and ITC Infotech have announced the setting up of their development centres at Kolkata.
5.91 With increasing investment in the IT sector, the State Government has concentrated on developing high class infrastructure so that investors find easy access to built up facilities. The State Government has earmarked 500 acres of land at Rajarhat (New Town). Around 130 acres of land within the Leather Complex at Bantala has also been identified for setting up of IT/ITeS units. An IT park will be set up there. Ministry of Commerce, Government of India has already granted Special Economic Zone status to the proposed IT Park. In addition, 600 acres of land are to be acquired under Rajarhat Police Station in the district of North 24-Parganas for IT and ITeS industry. A 10 acre of developed land at Nonadanga on the EM Bye Pass has been earmarked for IT and ITeS industry. During the next 30 months, 13.3 million sq. ft. of built-up space is going to be added in phases for accommodating IT and ITeS industrial units. Software Technology Parks are also being developed at Siliguri and Haldia. Software Technology Parks have already been set up in Durgapur and Kharagpur.
5.92 The West Bengal State Wide Area Network (WBSWAN) provides a computer networking backbone across the state for carrying voice, video and data over Internet protocol. All the 18 district headquarters and eight commercially important sub-divisions namely Haldia, Siliguri, Kharagpur, Asansol, Durgapur, Bolpur, Alipurduar and Kalyani are connected to Kolkata via 2 MBPS Leased Lines.
5.93 The Central Government has approved the extension of SWAN up to Block level (341 Blocks) with a total project cost of Rs. 67 crore. It has also approved as a Pilot Project the extension of SWAN up to Gram Panchayat level in the Burdwan district.
5.94 The Government of India has approved the National e-Governance Action Plan for implementation during the year 2003-2007. The Plan seeks to lay the foundation and provide the impetus for long-term growth of e-Governance within the country. The plan seeks to create the right governance and institutional mechanisms, set up the core infrastructure and implement a number of Mission Mode Projects in the state to create a citizen-centric and business-centric environment for governance.
5.95 The following are the Mission Mode Projects for the State : 1. Land Records, 2. Transport, 3. Property Registration, 4. Agriculture, 5. Treasuries, 6. Gram Panchayat, 7. Police. The State Government has already sent a DPR to the Central Government.
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5.96 Three telemedicine projects are now running in the state. School of Tropical Medicine, Kolkata has been linked with Habra Government Hospital and MJN Hospital of Coochbehar. In another project, NRS Hospital, Kolkata, has been linked with West Midnapur and Berhampore District Hospitals. In this project, Burdwan Medical College and Hospital has been linked with Suri and Purulia District Hospitals. In the third project, SSKM Hospital, Kolkata, has been linked to Krishnanagar and Balurghat District Hospitals. As a result of these projects, poor patients are getting the benefit of better treatment through telecommunication without having to travel to Kolkata or District Headquarter Hospitals.
5.97 The IT Department of Government of West Bengal has received the Bronze Icon award for the telemedicine project from Government of India in 2004. The telemedicine project has also received the Skoch Challenger Award for e-Governance for 2004.
5.98 The project `Computer Aided Text to Braille System’ for enabling the visually impaired to access and read documents from the internet has been developed at the initiative of the State Government. The Department of IT, Government of West Bengal, was awarded the Golden Icon for the Braille Project in 2004 by Government of India.
5.99 The State Government has approached the Central Government for setting up a submarine cable landing station. There is no submarine cable landing station in India. The proposal is under consideration of Government of India.
Ports
5.100 The total export and import cargo handled by the Kolkata Dock System (KDS) increased to 108.06 lakh tons in 2005-06 from 99.45 lakh tons in 2004-05. The total export and import cargo handled by the Haldia Dock Complex (HDC) increased in 2005-06 to 422.16 lakh tons from 362.62 lakh tons in 2004-05. The growth in traffic from both KDS and Haldia Dock was thus to the tune of 14.75 per cent. Significant growth in traffic in these two Dock complexes was also noticed during the first eight months of 2006-07. The traffic handled in 2005-06 in major ports of India is shown in Table 5.11.
Table 5.11Port-Wise Traffic in April 2005 to March 2006
Traffic (‘000 MT)
% Change over the same period of 2004-
05
% Share
Visakhapatnam 55801 11.27 13.33Chennai 47248 7.86 11.29
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Kandla 45907 10.48 10.97Haldia 42216 16.42 10.08Mumbai 44190 25.59 10.56Jawaharlal Nehru 32808 - 7.84New Mangalore 34451 1.65 8.23Paradip 33109 9.98 7.91Mormugao 31688 3.36 7.57Tuticorin 17139 8.40 4.09Cochin 13938 -1.11 3.33Ennore 9168 -3.29 2.19Kolkata 10806 8.66 2.58Total 418469 10.34 100.0
Source : Monthly Review of the Indian Economy, January, 2006, CMIE.
5.101 As seen above, Visakhapatnam accounts for highest share of traffic handling in India. It is followed by Kandla, Mumbai and Haldia ports. Table 5.12 below shows the comparative figures of total value of export through air, land and sea in the state. Value of export through ports and airways in the state shows an increasing trend compared to that through land.
Table 5.12Comparative statement of exports in West Bengal
( Rs. in Lakh )
Year Kolkata air values *Kolkata sea values
Petrapole value
2003-04 215713.27 966605.88 289330.29
2004-05 249851.62 1450087.28 182865.28
2005-06(Dec.) 201958.70 1034729.68 104333.00
*Includes Haldia seas. Source : Annual Reports WBIDC, 2005-06
Wagons Loaded in West Bengal 5.102 The total number of wagons loaded by Eastern Railway in the state increased to 19.39 lakh in 2006 from 18.78 lakh in 2005. As can be seen from Table 5.13, this increase was primarily due to the fact that the number of wagons loaded with Iron ore increased from 6.9lakh in 2005 to 7.7lakh in 2006. The number of wagons loaded with food grains however declined from 5452 in 2005 to
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3797 in 2006. The number of wagons loaded with miscellaneous commodities increased from 4.02 lakh in 2005 to 4.88lakh in 2006.
Table 5.13Number of Wagons Loaded by Eastern Railway and South Eastern Railway
Eastern Railway
Year Total Coke & Coal Food grains Jute (Raw& Mfg.)
Iron & Steel Misc.
2003 1520214 1075151 4122 9545 65414 3659822004 1736036 1254692 10991 11233 69337 3897832005 1878225 1388836 5452 12635 68995 4023072006 1939520 1356909 3797 13418 76931 488465
South Eastern Railway
Year Total Coke & Coal Food grainsOther Misc.
(including Jute & Tea)
Misc.
2003 1006888 684897 3494 70247 2482502004 978342 644176 2930 77979 2532572005 1046225 685639 2264 84820 2735022006 1068397 689717 1219 84979 293082
Source : Eastern Railway & South Eastern Railway.
5.103 The total number of wagons loaded by South Eastern Railway in the state in 2006 increased to 10.68 lakh from 10.46lakh in 2005. In this case also the number of wagons loaded with coke and coal increased marginally. The number of wagons loaded with other miscellaneous commodities also increased marginally. The number of wagons loaded with miscellaneous commodities also increased from 2.73 lakh in 2005 to 2.93lakh in2006. 5.104 The increase in the total number of wagons loaded with different commodities also indicates the rising economic activity in the state. The relative
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decline in the number of wagons loaded with food grains is not significant as most of the food grains are carried by road transport.
Foreign Direct Investment 5.105 In recent years, West Bengal is receiving foreign direct investment. During 1991 to December, 2005 there were 701 FDI approvals in the state. Out of 701 approvals, there were 202 cases of technical approval and 499 cases of financial approvals. Power and oil refinery sector telecommunication sector and Chemical industry other than fertilizer sector account for major share in FDI investment in the state. Foreign Direct Investment in the service sector and metallurgical sector also shows an encouraging trend contributing more than 3.5 percent in total FD investment in the state. Table 5.14 shows a comparative picture of FDI in West Bengal and other major states of India.
Table 5.14Foreign direct investment and Foreign Technology casesDuring the period from August, 1991 to December,2005
( Rs. In Million)Name of the state No. of approvals Amount of Foreign
Direct InvestmentTechnical Financial
Delhi 308 2583 314135.27
Maharashtra 1348 3868 406761.97
Tamil Nadu 628 2113 230495.80
Karnataka 506 2180 200620.25
Andhra Pradesh 273 1053 118916.49
Gujarat 576 683 129010.05
Madhya Pradesh 73 171 92714.08
West Bengal 202 499 80520.16
Orissa 51 93 82358.00
Haryana 342 570 39568.72
Source : Annual Report, WBIDC, 2005-06.
5.106 Though a late entrant in the field West Bengal is catching up with major industrial states of the country. In respect of total number of FDI approvals West
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Bengal the 9th largest state in all over India and it contributes to about 3.12 percent of total foreign direct investment in the country.
Public Enterprise 5.107 As a part of its larger effort to foster economic and social development, the State Government decided to restructure the state level public enterprises. The Public Enterprise department of the State Government had control over 23 enterprises (PSUs) and one departmental undertaking. Most of these units were acquired by the Government under condition of eroded technological strength, shrinking market segment etc. Over the years the State Government has made every effort to make these units viable. Considerable public fund had been invested in these units but except for a few, most of the units continued to be unviable.
5.108 It is on the basis of this experience that the State Government veered round to the view that a new initiative was necessary in this sphere. Accordingly, a decision was taken to restructure 16 loss making PSUs under the Public Enterprise department. A pilot project for this purpose was designed and financial support was secured from DFID. After successful completion of the pilot project of restructuring, PED has taken preparatory work of the second phase of DFID-aided restructuring programme of 25 PSUs under IT Department, Tourism Department, Commerce and Industries Department and Cottage and Small Scale Industries Department .
5.109 The Pilot Project was taken up to gather experience in the complexities of restructuring of loss making units and also for exploring ways for gaining popular acceptance of the whole concept of restructuring. The State Government also desired to evolve a transparent and consensual framework for the restructuring of PSUs. The State Government had decided on the basis of expert advise that the `restructuring’ process would involve
(a) the closure of unviable PSUs(b) the PSUs that have potential for achieving viability without much
investment, are to be restructured under the continued ownership of the state government
(c) the PSUs requiring large investments would be restructured through the formation of joint ventures with private partners. Such private partners would be allowed up to 74% of the equity capital of the joint venture.
5.110 As all these measures would cause loss of employment, the State Government initiated an intensive dialogue with employees organizations at the unit and state levels. On the basis of a general consensus emerging through such consultations an Early Retirement Scheme (ERS) was designed. Apart from monetary compensation, a social safety net comprising medical and accident/disability coverage for employees and their spouses and a programme for counseling and training for alternative livelihood have also been included under a Social Safety Net Programme (SSNP). Of the 6147 workers, who have taken early retirement, 2480 workers have enrolled for training under SSNP and 550 have been successfully rehabilitated.
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5.111 The four PSUs under PE department that are being restructured with the target of long term viability under the continued ownership of the State Government are : Durgapur Chemicals Ltd., Westinghouse Saxby Farmer Ltd., Gluconate Health Ltd., Britannia Engineering Ltd. Three of these PSEs (DCL, WSF, GHL) have no budgetary support since March-April,2004. The remaining PSE (BEL) is not receiving non-plan budgetary support since December,2005. They have achieved complete or partial self-sustainability. All of them even have shown marginal profit at the end of financial year 2005-06. Measures to further improve the operational efficiency of these units are continuing.
5.112 The department has played the nodal role in restructuring PSEs of different administrative department sof the government of West Bengal. 34 PSEs were taken up for restructuring of which 21 have been closed, 3 are converted to Joint Venture, 4 are retained and 6 are in the process of restructuring. 5.113 In the case of 10 PSUs under PE department which were to be restructured as Joint Sector ventures through the participation of private partners, publicly notified invitation for Expression of Interest (EOI) elicited bids from private parties in respect of 5 PSUs. Bids received for 3 PSUs have been accepted and 74% equity shares of 2 PSUs and 90% equity shares of Great Eastern Hotel along with management control have been transferred to the selected strategic partners. Bids from private parties for 3 PSUs have been rejected. The State Government has decided to close down one of these PSUs and make a second attempt to generate fresh bids from private parties for the other PSUs.
Closed and Sick Industries
5.114 Till March 2006, 334 number of sick industrial units from the state have been referred to the Board for Industrial and Financial Reconstruction (BIFR). Twenty-five of these were Central Public Sector Undertakings (CPSUs) and the rest were private companies. The State Government has been co-ordinating with the BIFR in order to facilitate the revival of sick units referred to the BIFR. It also assists sick industrial units that have been sanctioned revival schemes by BIFR. Revival package was sanctioned to 75 units of which 17 units have been fully revived.
5.115 In the case of CPSUs, out of 12 cases 9 cases were sanctioned revival schemes and so far one unit has been revived. Final orders for winding up of 12 more CPSU units have already been passed. At present revival packages are being implemented in 20 private sector units and in 9 CPSUs. The list of companies which have received BIFR approved rehabilitation packages and their present status are shown below :
Private SectorUnits Physical Progress of Revival No. of
EmployeesABB ABL Limited Revived. Ceased to be sick 3100
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Anantapur Textiles Ltd. Scheme failed. Winding up recommended. Appeal pending.
1100
Asiatic Oxygen Ltd. Revived. Ceased to be sick 400Badrinarain Alloys & Steels Ltd.
Scheme under implementation and the unit is being rehabilitated successfully
200
Bengal Ingot Co. Ltd. Revised scheme under implementation
300
Bengal Paper Mills Ltd. Reopened as a new venture 2000Budgebudge Refineries Ltd. Revived. Ceased to be sick 200Calcutta Chemicals Ltd. Revived. Ceased to be sick 1000Century Extrusions Ltd. Scheme under implementation 300Calcutta Silk Mfg. Co. Ltd. Sanctioned scheme is under
implementation200
Damodar Cement & Slags Ltd. Scheme under implementation 200Everest Paper Mills Ltd. Revived. Ceased to be sick 500Genelec India Ltd. Scheme under implementation 1000Gramophone Co. of India Ltd. Revived. Ceased to be sick 1200Graphitech India Ltd. Sanctioned by AAIFR-Scheme
under implementation200
Gulmohar Papers Ltd. Revived. Ceased to be sick 100GKW Ltd. Scheme under implementation 700Hada Textiles Industries Ltd. Scheme under implementation 800India Hard Metals Ltd. Scheme under implementation 400Jay Engineering Works Ltd. Revised scheme under
implementation1100
Kanchan Oil Industries Ltd. Revived. Ceased to be sick 400Khaitan Agro Complex Ltd. Revived. Ceased to be sick 1200Kolmack Chemicals Ltd. Ceased to be sick. Scheme under
implementation200
Light Metal Industries Revived. Ceased to be sick 200Manas Flour Mills Ltd. Revived. Ceased to be sick 200Standard Pharmaceuticals Ltd. Revival scheme is under
implementation700
Shankar Gas Industries Ltd. Revived. Ceased to be sick 250Small Tools Mfg. Co. Ltd. A rehabilitation scheme duly
approved by High Court is being implemented
500
Supreme Paper Mills Ltd. Revised Scheme is under implementation
1500
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Texmaco Ltd. Scheme under implementation 1700Universal Paper Mills Ltd. Scheme failed. Change of
management. Revised Scheme under formulation
550
Vegetable Products Ltd. Scheme under implementation 250WEBFIL Ltd. Scheme under implementation.
Deregistered from BIFR. 400
33 units 23050Central Sector
Bengal Chemicals & Pharma Ltd.
Scheme under implementation. Revision suggested
800
Biecco Lawrie Ltd. Revived. Ceased to be sick 500Braithwaite & Co. Ltd. Scheme under implementation 3400Burn Standard & Co. Ltd. Being rehabilitated 2500Eastern Coal Fields Ltd. Scheme under implementation 110000Indian Iron & Steel Co. Ltd. SAIL-scheme of Rs. 1081 crore-
package is under implementation21000
Jessop & Co. Ltd. Earlier Scheme failed. Revised Scheme with JV partner having 72% shares is under implementation
6000
National Instruments Co. Ltd. Sanctioned scheme failed. Being handed over to Jadavpur University for revival
700
National Textile Corporation (WBABO) Ltd.
Sanctioned scheme is under implementation
2000
9 Central Government Units 14690042 units 169950
Source : Department of Industrial Reconstruction, Government of West Bengal.
5.116 The State Government has formulated a scheme "The West Bengal Industrial Renewal Scheme '2001" (WBIRS '2001) to provide financial assistance to ailing industrial units. The State Government received 175 proposals from large, medium and small scale units for assistance under WBIRS. However, the experience of the State Government has been that financial institutions are not forthcoming in providing required working capital to the units assisted under WBIRS. This has stalled the revival process in these units.
5.117 The State Government has granted "Waiver of Electricity Duty" amounting to Rs. 800 lakh to two sick/weak units- Hastings Jute Mills Ltd., Reliance Jute Mills Ltd. In the year2005-06.
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5.118 The State Government has modified WBIRS on the basis of the experience of its functioning. As per these modifications, assistance under WBIRS will be limited to :
Remission of Stamp Duty and Registration Fee up to 50% if a closed unit is purchased by another entrepreneur.
Re-schedulement of arrear sales tax dues to long-term soft loans. Waiver of electricity duty up to a period of five years. Disposal of surplus land assets to generate resources for investment in
revival/rehabilitation efforts.
5.119 Capital investment subsidy amounting to Rs. 150 lakh has been granted to 1 unit till 2005-06 as follows :
Sick/Weak Rs. in lakh Employees Status of revivalKusum Products Ltd. 150 450 Being revivedTotal (1 unit) 150 450
5.120 In order to provide time for sick units to explore ways/measures for revival, the State Government declares such units 'relief undertakings' under the provisions of the West Bengal Relief Undertaking (Special Provisions) Act, 1972. A unit declared 'relief undertaking' cannot be winded up under liquidation procedures initiated by creditors. This allows some time to these units. So far, 16 sick units have been declared 'relief undertakings'. These units are shown below :
Companies Employees Status of revivalAnnapurna Cotton Mills Ltd. (Non-BIFR)
700 Being revived under implementation of a
rehabilitation schemeGanges Mfg. Co. Ltd. (BIFR) 6000 - Do -Gem Refineries Ltd. (BIFR) 350 - Do -Kusum Prducts Ltd. (BIFR) 450 - Do -New Central Jute Mills Ltd. (BIFR) 8000 - Do -Opec Innovations Ltd. (BIFR) 700 - Do -PC Chandra & Co. (Non-BIFR) 200 - Do -RDB Textiles (BIFR) 1500 - Do -Jessop & Co. Ltd. (BIFR) 1400 - Do -Angus Jute Works Ltd. (BIFR) 4600 - Do -Hada Textiles Ltd. (BIFR) 800 - Do -Supreme Paper Mills Ltd. (BIFR) 1500 - Do -Anglo India Jute Mills Ltd. (BIFR) 4700 - Do -Webfil Ltd. (CPSE/BIFR) (BIFR) 400 - Do -
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Universal Paper Mills Ltd. (BIFR) 500 - Do -Caledoniun Jute & Industries Ltd. (BIFR)
4700 - Do -
Total 16 units 36500
5.121 In specific cases, the state also allows in specific cases sick units to sell their surplus/idle land for generating fund for revival schemes. Six units have been allowed to dispose off their surplus land.
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