West Bengal 190111 PDF

WEST BENGAL
November 2010
WEST BENGAL November 2010
Investment climate of a state is determined by a mix of factors
• Skilled and cost-effective labour • Procedures for entry and exit of firms
• Labour market flexibility • Industrial regulation, labour regulation, other
• Labour relations government regulations
• Availability of raw materials and natural • Certainty about rules and regulations
resources • Security, law and order situation
Resources/Inputs Regulatory framework

Investment climate
of a state Physical and social
Incentives to industry
infrastructure
• Condition of physical infrastructure such as
• Tax incentives and exemptions power, water, roads, etc.
• Investment subsidies and other incentives • Information infrastructure such as telecom, IT,
• Availability of finance at cost-effective terms etc.
• Incentives for foreign direct investment (FDI) • Social infrastructure such as educational and
• Profitability of the industry medical facilities
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Contents
 Advantage West Bengal
 State economy and socio-economic profile
 Infrastructure status
 State policies and incentives
 Business opportunities
 Doing business in West Bengal
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ADVANTAGE WEST BENGAL
West Bengal November 2010
West Bengal – State profile

• Covering an area of 88,752 sq km, West Bengal is
situated in Eastern India. The state shares international
borders with Bangladesh, Bhutan and Nepal.
• West Bengal has 19 administrative districts. Kolkata is the

state capital. Siliguri, Asansol, Durgapur, Raniganj, Haldia,
Kharaghpur, Darjeeling, Malda, Midnapore, Cooch Behar
and Howrah are the other key cities in the state.
• The Ganges (and its main distributary, Hoogly) is the

main river flowing through the state. The other important
rivers in the state include Damodar, Ajay, Kangsabati,
Teesta, Torsa, Jaldhaka and Mahananda.
• West Bengal's climate varies from tropical savannah in

the Southern portions to humid sub-tropical in the
North.
• Bengali is the official language of the state, though English

and Hindi are also widely used. Nepali is spoken primarily
in the Darjeeling district.
• West Bengal has a rich culture and literature. The

festivals celebrated in the state are Durga Puja, Saraswati
Puja and Kali Puja. Source: Maps of India
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Advantage West Bengal … (1/2)
Geographical advantage
Because of its location, West Bengal offers definite advantage as
the traditional domestic market in Eastern India, the Northeast
and the land-locked countries of Nepal and Bhutan, which are
easily accessible. The state is also an entry point to markets in
Southeast Asia, via the Northeastern states.
Competitive cost of operation

Kolkata, which is a metropolitan city, has a comparatively lower
cost of operating a business as compared to the other cities such
as New Delhi, Bangalore, Chennai, Hyderabad and Mumbai.
Endowed with natural resources

West Bengal has abundant natural resources of minerals and
suitable agro-climatic conditions for agriculture, horticulture and
fisheries. West Bengal also has a prosperous hinterland of some
mineral rich states like Jharkhand, Bihar and Orissa.
Source: Maps of India

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Advantage West Bengal … (2/2)
Educational infrastructure
The state is home to a number of renowned educational
institutions and higher learning centres. There are 18
universities in the state along with sizeable research
institutes.
Excellent connectivity
West Bengal offers excellent connectivity to the rest of
India in terms of railways, roadways, ports and airports.
Major stretches of the golden quadrilateral project also pass
through the Northern districts of the state.
Large English speaking population

Knowledge of English is an advantage of the workforce of
West Bengal, especially in Kolkata, which is one of the four
metropolitan cities of India.

6
West Bengal in figures … (1/2)

Parameter West Bengal All-states Source
Economy
GSDP as a percentage of all states‟
7.8 100.0 CMIE, as of 2007-08, current prices
GSDP
Average GSDP growth rate (%)* 11.5 11.8 CMIE, 2000-01 to 2007-08, current prices
Per capita GSDP (US$) 883.8 992.5 CMIE, as of 2007-08, current prices
Physical infrastructure
Central Electricity Authority, as of March
Installed power capacity (MW) 8,149.5 159,398.5
2010
Cellular Operators Association of India, as of
GSM cellular subscribers (No)# 22,226,828 456,586,162
June 2010
Broadband subscribers (No) 246,896 4,981,976 As of October 2008
Ministry of Road Transport & Highways,
National highway length (km) 2,578 70,548
Annual Report 2008-09
Major and minor ports (No) 1+1 12 + 187 Ministry of Shipping
Airports (No) 2 133 Airport Authority of India
Social indicators
Literacy rate (%) 68.6 64.8 Census of India, 2001
Ministry of Health and Family Welfare, RHS
Birth rate (per 1,000 population) 17.5 22.8
Bulletin, March 2008
*Calculated in Indian rupee terms
#Includes Andaman & Nicobar Islands
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West Bengal in figures … (2/2)

Parameter West Bengal All-states Source
Ease of doing business
Department of Industrial Policy and
FDI inflows (US$ billion) 1.4** 120.2 Promotion,
April 2000 to May 2010
Outstanding investments
120.0 1,972.6 CMIE, as of March 2010
(US$ billion)
Industrial infrastructure
PPP projects (No) 8 515 www.pppindiadatabase.com
Notified as of July 2010,
SEZ (No) 11 363
www.sezindia.nic.in
** FDI inflows for Reserve Bank of India „s (RBI‟s) Kolkata region, which includes West Bengal, Sikkim, Andaman & Nicobar Islands
PPP: public private partnership, SEZ: special economic zone
Parameter West Bengal Government

Policy support
Sectors with specific policies Industry, IT, SEZ, exports, biotechnology
Availability of labour Adequate skilled labour available
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Key industries with policy thrust and factor advantages

Industry attractiveness matrix
High
Biotechnology
Policy thrust
Medium IT
Iron and steel
Jute products
Leather and
Agriculture and Tea leather products
horticulture
Pisciculture and Livestock and
Locomotives aquaculture dairy products
Low Medium High

Factor advantage
*Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital
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Contents
10
STATE ECONOMY AND SOCIO-ECONOMIC PROFILE
Socio-economic snapshot of West Bengal

Parameters West Bengal
Capital Kolkata
Geographical area (sq km) 88,752
Administrative districts (No) 19
Population density (persons per sq km) 904
Total population (million)* 80.2
Male population (million) 41.5
Female population (million) 38.7
Population growth rate 1991-2001 (%) 17.8
Sex ratio (females per 1,000 males)* 934
Literacy rate (%)* 68.6
Male (%) 77.0
Female (%) 59.6
*Census 2001
Source: Economic Survey of West Bengal, 2007-08, Directorate of Economics and Statistics
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West Bengal‟s GSDP
• At current prices, the Gross State Domestic West Bengal‟s GSDP

Product (GSDP) of West Bengal was about US$
2008-09
76.9 billion in 2008-09. 76.9
2007-08 76.6
2006-07 63.0
• The average annual GSDP growth rate from 2005-06 51.0
1999-2000 to 2008-09, was about 11.4 per cent. 2004-05 46.3
2003-04 CAGR
43.3
11.4%
2002-03 36.8
2001-02 32.7
2000-01 29.8
1999-00 29.1
0.0 20.0 40.0 60.0 80.0 100.0

US$ billion
Source: CMIE
12
West Bengal‟s NSDP
• At current prices, the Net State Domestic West Bengal‟s NSDP

Product (NSDP) of West Bengal was about US$ 2008-09 69.1
69.1 billion in 2008-09. 2007-08 69.1
2006-07 57.0
• The average annual NSDP growth rate from 2005-06 46.1
1999-2000 to 2008-09, was about 11.1 per cent. 2004-05 42.1 CAGR
2003-04 39.6 11.1%
2002-03 33.7
2001-02 30.0
2000-01 27.4
1999-00 26.9
0.0 20.0 40.0 60.0 80.0
US$ billion
Source: CMIE
13
The tertiary sector has an increasing share in West Bengal‟s

economy
• In 2008-09, the tertiary sector contributed 54.9 Percentage distribution of GSDP
per cent to the state‟s GSDP at current prices,
CAGR
followed by primary sector (21.9 per cent).
52.1 54.9
• The share of the secondary sector in GSDP was 11.9%
23.3 per cent in 2008-09 vis-à-vis 16.5 per cent
in 1999-2000, its growth being driven by 16.5
15.6%
23.3
registered and un-registered manufacturing.
31.5
21.9 6.9%
• Manufacturing registered the highest growth of
9.9 per cent between 1999-2000 and 2008-09. 1999-2000 2008-09
It was followed by the mining and quarrying at Primary Sector Secondary Sector Tertiary Sector
7.1 per cent.
Source: CMIE
14
Per capita GSDP

• The state‟s per capita GSDP in 2008-09 was US$ 879.4.
• The per capita GSDP increased at a CAGR of 10.2 per cent between 1999-2000 and 2008-09.
• West Bengal has registered an increase in the per capita income owing to investments in sectors such as
steel, real estate, power, retail and IT.
Per capita GSDP

1,000.0
883.8 879.4
900.0
800.0 734.4
700.0
600.7
600.0 522.2 552.3
US$
500.0 449.7
405.2
368.4 372.7
400.0
300.0
200.0
100.0
0.0
1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Source: CMIE
15
Consumer expenditure on household goods and services

• West Bengal is ahead compared to all-India in share of per capita expenditure on food and medical.
• With regards to share of expenditure on education and durable goods, the state is comparable to the all-
India level.
Share of average monthly per capita expenditure on household goods and other services
50.0% 70.0%
39.6% 42.6% Urban 60.0%
57.9% Rural
40.0% 52.3%
50.0%
30.0% 40.0%
20.0% 30.0%
7.1% 6.9% 20.0%

10.0% 5.2%
6.9%
4.2% 3.2% 6.3% 6.5% 2.5%
10.0% 3.7% 4.0% 3.6%
0.0% 0.0%
Food Education Medical Durable goods Food Education Medical Durable goods
All-India West Bengal All-India West Bengal
Source: Household Consumer Expenditure in India, 2007-08 NSS 64th Round
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Socio-economic profile of key cities

• Kolkata, Siliguri, Asansol, Durgapur, Raniganj, Haldia, Kharaghpur, Darjeeling, Malda, Midnapore, Cooch
Behar and Howrah are the key cities and towns in the state.
• Kolkata is the capital and the largest city in West Bengal. It is the third-largest urban agglomeration and
fourth-largest city in terms of area in India. It is the main business, commercial and financial hub of Eastern
India and the Northeastern states.
• Siliguri is the commercial nerve centre of North Bengal. It is also the transit point for air, road and rail
traffic to the neighbouring countries of Nepal, Bhutan and Bangladesh.
• Asansol, a coal mining and industrial metropolis and, one of the busiest commercial centres in India, is the
second-largest city in West Bengal, after Kolkata.
• Durgapur is an industrial city and, is West Bengal‟s third-largest city after Kolkata and Asansol. The city
houses a number of power plants, chemical and engineering industries.
• Raniganj, located in the Bardhaman district is known for its coalfields.
• Darjeeling is internationally famous for its tea industry and the Darjeeling Himalayan Railway is a world
heritage site.
• Cooch Behar is a planned town in North Bengal region with remnants of royal heritage; it is a tourist
destination.
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Key industries in West Bengal

• The natural resources, policy incentives and Key industries in West Bengal
infrastructure in the state support investments in
major sectors such as iron and steel, biotechnology, • Tea
coal, leather, jute products, tea, IT, gems and • Petroleum and petrochemicals
• Leather
jewellery. • Iron and steel
• IT
• Climatic conditions suitable for cultivation of tea • Mineral resources
and jute have made West Bengal a major centre for • Automobile and auto components
these products and related industries. • Biotechnology
• Fisheries
• Agriculture and horticulture
• West Bengal occupies a predominant position in the • Livestock and dairy products
development of micro and small scale enterprises. • Chemicals
As of 2007, there were 900,419 small scale • Textiles
enterprises, accounting for 7 per cent of total such • Jute products
• Vegetable oils
units in the country. • Electronics
• Engineering goods
• The index of industrial production (IIP) in the state
stood at 216.9 in May 2010, registering a growth of
Source: West Bengal Government website
1.9 per cent over May 2009.
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District-wise key industries

District Key industries
Burdwan Iron and steel, fertiliser, mining, equipment manufacturing and cement.
North 24-Parganas Printing and bookbinding, cement, oilseed milling and general electrical works.
South 24-Parganas Cement, agro-based industry, chemicals and equipment manufacturing.
Hooghly Rice mills, rubber and chemicals.
Howrah Foundry, re-rolling mills, basic metal and products, electrical and electronics, transport equipment
and spares, and moulded rubber goods.
Bardhaman Rice and oilseed mills, cutlery, tool manufacturing, iron and steel, fertilisers, mining, equipment
manufacturing and cement.
Darjeeling Tea and tourism.
Bankura Food processing, textiles, plywood, veneer mills, paper and particle board.
Nadia Food processing, jute, pipes and tubes, electronics and computer peripherals.
North Dinajpur Food products, hosiery, garments, chemicals, engineering and fabrication.
Purulia Sponge iron and non-metallic products.
Cooch Behar Fertiliser, jute, electrical casing, mustard-oil mill and food processing.
South Dinajpur Agro- and food-based units, mineral- and forest-based industry, chemicals, handicrafts, engineering
and IT.
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Rice, vegetables, sugarcane and wheat are the key agricultural

products of West Bengal
• Agriculture is the chief occupation of the people of West
Annual production as of
Bengal. It contributed 16.9 per cent to the state‟s GSDP in Crop 2008-09
2008-09. („ooo tonnes)
• Rice, potato, jute, sugarcane and wheat are the top five crops Rice 15,037.3
of the state. In 2008-09, the total production of these major Potato 9,900.3
crops was over 34.9 million tonnes, accounting for over 80
per cent of the total crop production of the state. Jute 7,872.6
Sugarcane 1,405.0
• Rice is the principal food crop of West Bengal. The state is Wheat 764.5
the largest producer of rice in India with an annual output of
15.0 million tonnes. Maize 343.4
Rapeseed &
• Other major food crops include maize, pulses, oil seeds, 315.3
mustard
coconut and tea.
Onion 273.8
• The state supplies nearly 66 per cent of the jute Coconut 245.4
requirements of India and stands first in the country in jute Tea 233.1
production.The districts of Jalpaiguri and Cooch Behar are
the key production centres of jute. Source: CMIE
• Tea is another important cash crop. Tea gardens in the state

are located in Darjeeling and Jalpaiguri, the two Northern
districts of West Bengal.
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West Bengal‟s exports trends

• West Bengal is one of the country‟s leading Exports of leather and leather products
exporters of finished leather goods. In 2008-09, (US$ million)
the state accounted for around 15.7 per cent of
the country‟s exports of leather and leather Leather gloves 145.3
205.5
products. Leather goods 315.4
287.9
Leather garments 14.4
9.5
• West Bengal is also the country‟s leading Footwear components 2.0
exporter of flowers. The state accounted for 2.8
28.2
around 70 per cent of India‟s dried flower Finished leather 35.1
exports in 2008. Leather footwear 3.4
4.9
0.0 100.0 200.0 300.0 400.0

• Flower exports of the state amounted to US$
14 million in 2008-09 (April to February), as 2008-09 2007-08
against US$ 10 million in 2007-08. Source: CLE
• The state has the country‟s largest brackish-

water resources for shrimp farming and, has
been a leading exporter of shrimps from India,
which is the largest exporter of shrimps in the
world.
• West Bengal is also a leading tea exporter.
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Investments and FDI inflows

• According to the RBI, FDI inflows from April Break up of investments by sector
2000 to May 2010 amounted to US$ 1.4
billion*. 1%
4%
• As of March 2010, outstanding investments in Manufacturing
the state were US$ 120 billion. 21% 32% Mining
Electricity
• Manufacturing and electricity sectors accounted
Services
for about 64 per cent of the state‟s total
outstanding investments. Irrigation
10% Construction
32%
*FDI inflows for RBI‟s Kolkata region, which includes West
Bengal, Sikkim, and Andaman and Nicobar Islands.
As of March 31, 2010

Source: CMIE
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Contents
23
INFRASTRUCTURE STATUS
Road network … (1/2)

• West Bengal has a total road length of 92,023 km, Road length (km) as
with a road density of 1.04 km per sq km. There Road type
of 2009
are 14 National Highways running through the
Total road length 92,023
state and covering 2,578 km.
National Highways 2,578
• The golden quadrilateral (GQ) project
State Highways 3,533
undertaken by the National Highway Authority of
India (NHAI) passes through major districts in Source: Ministry of Road Transport & Highways
North Bengal. As of December 2009, four-laning
of Dhankuni-Kolaghat (54.4 km) Kolaghat-
Kharagpur (60.5 km) and Kharagpur-Laxmanath
(65.8 km) sections had been completed. Almost
40 per cent of the GQ‟s Kolkata-Chennai link and
96 per cent of the Delhi-Kolkata link had also
been completed.
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Road network … (2/2)

• A number of road development projects have
been taken up under public private partnerships
(PPP).The berth 4A (Haldia) project, Kolkata-
Durgapur expressway, Palsit-Dankuni road
project and Panagarh-Palsit road project are
some of the PPP projects taken up in the state.
• Two new underpasses are being planned - one

near the Bidhannagar rail station to connect
Ghaznavi bridge with Kazi Nazrul Avenue in
Northeast Kolkata and another to the South of
New Canal.
25
Railways
• West Bengal is well connected through the
railway network. The railway route length in the
state is around 4,500 km.
• Howrah, Asansol, Sealdah, Bandel, Bardhaman,

Kharagpur and New Jalpaiguri are the main
junctions in West Bengal.
• The Indian Railways has an electric locomotive

production unit – Chittaranjan Locomotive
Works (LCW) located on the West Bengal-
Jharkhand border, with a production capacity of
230 engines.
• Indian Railways has also proposed to set up an

electric locomotive assembly and ancillary unit at
Dankuni,West Bengal.
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Airports
• West Bengal has a domestic and an international airport.
• The Netaji Subhash Chandra Bose International Airport is Bagdogra

located in Dum Dum, 18 km from Kolkata; the domestic
airport is at Bagdogra (Siliguri).
• In 2008-09, the total commercial traffic at Kolkata airport

included about seven million passengers and 88,040
tonnes of freight.
• The Government of India has sanctioned US$ 680,000 to

set up a perishable cargo complex at the Bagdogra airport.
• The Kolkata airport is being modernised at a cost of US$

Kolkata
435 million. The project is expected to be completed by
August 2011. It will include a new terminal, modern
taxiways and extension of a runway. The upgrade will raise
the airport‟s handling capacity to around 20 million
passengers, annually, from five million as of 2009.
• Bengal Aerotropolis Projects Limited (BAPL) is developing International airport

India‟s first set of airport cities – „Aerotropolis‟ near the Domestic airport
Durgapur-Asansol region at a cost of US$ 2.2 billion.
27
Ports Inland waterways

• West Bengal has two modern ports located at • Government of India has declared the entire
Kolkata and Haldia; Kolkata is a major port. stretch of the Ganges between Haldia and
Allahabad as National Waterway (NW)-1
• In 2007-08, the combined volume of goods
handled by both the ports was over 53.3 million
tonnes. • The 560 km Haldia-Farakka stretch of NW-1
has been developed as a part of the multi-modal
• The West Bengal Government plans to construct system for cargo tariff from Nepal, Bhutan,
a US$ 265 million container port at Kulpi and a North Bengal and the Northeastern states.
small port at the mouth of the Hooghly river.
• The State Government has initiated plans to
reclaim the 43 km north-canal system that
stretches from the river Hoogly to river
Raimangal on the Bangladesh border.
Kolkata
Haldia
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Power
• As of March 2010, West Bengal had a total Installed power capacity
installed power generation capacity of 8,149.5
(MW)
MW, which comprised 6,013.6 MW under state
utilities,1,361.7 MW under the private sector 9,000.0 8,149.5
and 774.3 MW under the central sector. 8,000.0 7,431.7 7,731.7
7,000.0
5,564.7
• As of March 2010, West Bengal had 6,233.6 MW 6,000.0 5,300.4
of thermal power, 977.0 MW of hydro power 5,000.0
and 164.7 MW of renewable energy sources. 4,000.0
3,000.0
• The State Government is encouraging setting up 2,000.0
of renewable energy-based power plants. 1,000.0

-
2005-06 2006-07 2007-08 2008-09 2009-10
• West Bengal State Electricity Distribution
Company Limited (WBSEDCL) has come into Source: Central Electricity Authority
effect from April 1, 2007 after restructuring of
erstwhile West Bengal State Electricity Board.
WBSEDCL is a major power utility of the state
with consumer strength over 7.4 million, five
zones, 17 circles, 52 distribution divisions and
478 electric supply offices.
29
Telecom
• According to estimates by the Telecom Telecom infrastructure
Regulatory Authority of India, there were 25.2
million wireless connections and 905,816 wire- GSM cellular subscribers: 22,226,828
line subscribers in West Bengal as of March 2010. Internet subscribers: 929,192
Post offices: 9,028
• Kolkata offers about 580 Mbps of international
Telephone exchanges: 269
satellite connectivity through Tata-owned Videsh
Sanchar Nigam Limited (VSNL) and Software Wireless subscribers: 25,165,389
Technology Parks of India (STPI). Wire-line subscribers: 905,816
• The state has two satellite earth stations at Sources: Cellular Operators Association of India, Ministry
of Communications & Information Technology, Telecom
Kharagpur and Durgapur.The Department of Regulatory Authority of India
Telecommunications has selected Digha in the As of 2010
East Midnapore district as the cable landing
station for the submarine-cable laying project Telecom operators in West Bengal
connecting India and Southeast Asia.
• Dishnet Wireless
• Bharti Airtel
Source: Cellular Operators Association of India
• BSNL
• IDEA Cellular
• Reliance Telecom
• Vodafone Essar
• Tata Docomo
30
Urban infrastructure … (1/2)

• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 50 projects costing US$ 1.1
billion have been sanctioned for West Bengal. The projects have been sanctioned for completion between
2006-07 and 2009-2010. Key areas of development are water supply, sewerage, solid-waste management,
construction of flyovers and water treatment.
• Under the JNNURM, the schemes for all urban areas of the state, except the Kolkata Metropolitan Area
and Asansol Urban Area, have been included the schemes of Urban Infrastructure Development Scheme
for Small & Medium Towns (UIDSSMT) and Integrated Housing & Slum Development Programme
(IHSDP).
• Under the UIDSSMT scheme, projects for 26 small and medium towns have been sanctioned at an
estimated cost of US$ 81.4 million. Under the IHSDP scheme, projects for 56 towns have been
sanctioned at the cost of US$ 112 million.
31
Urban infrastructure … (2/2)

Externally aided programmes are as follows:
Project Description
Kolkata Urban Services for the Poor Programme for 40 urban local bodies (ULBs) within Kolkata Metropolitan Area,
(KUSP) excluding Kolkata Municipal Corporation, at a cost of US$ 155 million.
Kolkata Environment Improvement Project with the assistance from the Asian Development Bank and the Department
Project (KEIP) for International Development (DFID), at a cost of US$ 1.7 billion.
Italian Assisted Solid Waste Management Project for water supply and solid-waste management in selected towns of West
& Water Supply Projects Bengal, at a cost of US$ 34 million.
32
Key public private partnership projects

Project cost
Project name Sector PPP type Stage
(US$ million)
Berth 4A (Haldia) project Ports BOT-Toll 43.4 In operation
Kolkata-Durgapur expressway Roads BOT-annuity 93.9 In operation
Palsit-Dankuni Roads BOT-annuity 93.9 In operation

Panagarh-Palsit Roads BOT-annuity 76.1 In operation
Vivekananda bridge and approach Roads BOT-Toll 140.0 Pipeline

Baharampore-Farakka Roads BOT-Toll 210.0 Construction
Farakka-Raiganj Roads BOT-Toll 227.6 Construction
Raiganj-Dalkhola Roads BOT-Toll 122.4 Construction
Source: pppindiadatabase.com
BOT: Build-operate-transfer
33
Education sector … (1/2)

• According to Census 2001, West Bengal‟s West Bengal‟s education statistics*
literacy rate was 68.6 per cent; the male literacy
rate was 77.0 per cent and the female literacy Number of Primary: 49,893
schools Upper primary: 980
rate was 59.6 per cent.
Secondary: 4,582
High and higher secondary:
• As of 2008-09, the state had 49,893 primary 9,659
schools, 980 upper primary schools, 4,582
secondary schools and 9,659 high and higher Pupil-teacher ratio All schools: 47
secondary schools. Primary: 44
Upper primary: 57
Net-enrolment Primary: 84.5
ratio Upper primary: 54.6
Literacy rates (%)
Literacy rate 68.6 Number of 272,923
teachers
Male literacy 77.0
*As of 2008-09
Female literacy 59.6 Source: West Bengal District Information System For
Education
Source: Census of India, 2001 (DISE), 2008-09
34
Education sector … (2/2)

• West Bengal has 18 universities, 53 engineering
Premier institutions in West Bengal
colleges, 450 degree colleges, 43 polytechnics, 50
industrial training institutes, 29 management institutes • University of Calcutta
and nine medical colleges. • Jadavpur University
• National Institute of Technology
• Rabindra Bharati University
• The West Bengal government merit-cum-means • Vidyasagar University
scholarship scheme has been instituted for providing • Burdwan University
financial assistance to the poor and meritorious • West Bengal University of Health Sciences
students of the state for pursuing higher education. • Indian Statistical Institute
The scholarship amount varies from US$ 10 to US$ • Indian Institute of Technology
33 per month. • Indian Institute of Management
• Bengal Engineering & Science University
• Indian Institute of Foreign Trade
Educational infrastructure* • Indian Association for Cultivation of Science
• Indian Institute of Chemical Biology
• Universities: 13
• Engineering colleges: 67
• Degree colleges: 450
• Polytechnics: 43
• Industrial training institutes and industrial training centres:
50
• Management institutes: 29
• Medical colleges: 9
* As of 2007-08
Source: Economic Survey of West Bengal, 2007-08
35
Health infrastructure … (1/2)

• The health infrastructure of West Bengal Health indicators as of 2008
comprised 2,081 hospitals, 1,269 health centres
and 10,356 sub-centres, as of 2007-08. Birth rate (per 1,000 persons) 17.5
Death rate (per 1,000 persons) 6.2
• Bardhaman health city, the first health project in
Infant mortality rate 35.0
West Bengal is being set up near the Durgapur (per 1,000 live births)
Expressway, at a cost of US$ 217 million.
Source: Ministry of Health and Family Welfare,
• The health city, which is expected to be ready by Sample Registration System 2008
2012, will have facilities such as medical colleges,
blood banks, ambulance pool, pharmacy and
others. Health infrastructure ^
• Hospitals: 2,081
• Beds: 82,160
• Health centres: 1,269
• Sub-centres: 10,356
^As of 2007-08
Source: West Bengal Economic Survey, 2007-08
36
Health infrastructure … (2/2)

• The state has launched the Antoyadaya Anna Yojana (AAY) scheme to ensure that families get food
grains; 200,000 family cards for getting food grains have been given under the AAY scheme, which targets
320,000 people.
• The mid-day-meal programme is being run in various urban local bodies; 4,582 primary schools including
Swayam Shikshan Prayog (SSP) centres are running the programme with 800,000 beneficiary students.
• The Sishu Shiksha Prakalpa centres have been constituted to bring all children in the age between five
and nine years in the municipal areas under primary education. These centres are funded by the State
Government. As of 2009, there were1,032 Sishu Shiksha Prakalpa centres in the state.
• The community-based primary healthcare service has been formulated with the objective of bringing an
overall improvement in the urban health scenario in West Bengal; 62 urban local bodies have completed
training of honorary health workers. The programme budget for three years (2006-07 to 2008-09) was
US$ 12.7 million.
37
Cultural infrastructure
• Cricket and football (soccer) are popular sports in the state. Kolkata is one of the major centres for
football in India and, is home to top national clubs such as East Bengal, Mohun Bagan and Mohammedan
Sporting Club.
• Eden Gardens, Salt Lake Stadium and Netaji Indoor Stadium are some of the well known sports
stadiums in the state. West Bengal is known for its premier sports clubs viz., Royal Calcutta Golf Club,
Tollygunge Club, Royal Calcutta Turf Club, Calcutta Rowing Club and Calcutta Cricket and Football
Club.
• Bengal had been the harbinger of modernism in fine arts. Birla Academy of Art and Culture Museum,
Rashtriya Lalit Kala Academy, Academy of Fine Arts, Asiatic Society and Ashutosh Museum of Indian Arts
are some of the art establishments in the state.
• West Bengal has a rich culture and literature. Music forms in West Bengal include Rabindra Sangeet,
Nazrul Geeti, Adhunik, Shyamashangeet, Jibonmukhi, Baul, Gombhira and Bhawaiya,
• Dance forms include Gouriyo Nrityo, Rabindra Nritya, Chhau, Raibense dance, Jhumar and Adhunik
Nritya. Jatra is the traditional theatre form of Bengal.
38
Industrial infrastructure … (1/5)

• West Bengal has 12 growth centres for medium List of IT projects in Kolkata
and large scale industries, set up by the West
Bengal Industrial Development Corporation Project name Location
(WBIDC).There are exclusive growth centres Technopolis Sector V, Salt Lake City
for electronics, software technology, and export
processing. Globsyn Crystals Sector V, Salt Lake City
Infinity-Benchmark Sector V, Salt Lake City
• The Naba Diganta Industrial Township was set up Infinity-Waterside Sector V, Salt Lake City
in January 2006, in the Kolkata‟s Salt Lake
Millennium City Sector V, Salt Lake City
township, to encourage IT and related industries.
The Hub Sector V, Salt Lake City
• West Bengal‟s major industrial areas are Haldia, Infinity (Tower-II) Sector V, Salt Lake City
Kolkata, Asansol-Durgapur region, and Videocon-Salarpuria Sector V, Salt Lake City
Kharghpur.
Bengal Intelligent Park Sector V, Salt Lake City
• WBIDC helps get clearances required for setting Ascendas Rajarhat

up industry. It also focuses on sector-specific Keepeland Rajarhat
infrastructure for industries such as food,
DLF Rajarhat
apparel, biotechnology, IT and electronics.
Unitech Group Rajarhat
Sunrise City EM Bypass
Source: West Bengal Industrial Development Corporation
39

Notified SEZs in West Bengal
Uttarpara: IT/ITeS Park
24 Parganas:
IT/ITeS Park,
electronic and
hardware park
Rajarhat, Kolkata:
IT/ITeS Parks (3)
Durgapur:
IT/ITeS Park Burdwan: IT/ITeS Park, non-
conventional energy park
40

Industrial parks in West Bengal
Borjora, Bankura
district: Plasto Steel Park
(Phase-I & II)
Kolkata:
Garment Park,
Shilpangan
(Light
Engineering
Park)
Howrah: Food Park

Poly Park, Rubber
West Midnapore Park, Apparel Export
district: Biotech Park, Park, Foundry Park
Iron & Steel Parks (2)
41

Industrial parks in West Bengal
Name Products/services Location
Food Park (Phase-I & II ) Food processing Sankrail, (Howrah district)

Poly Park Polymer products Sankrail, (Howrah district)
Rubber footwear, hoses, tubes, automotive rubber
Rubber Park Sankrail, (Howrah district)
products
Biotech Park Biotechnology projects Dewanmara (West Midnapore district)

Plasto Steel Park (Phase-I & II) Iron and steel and plastic products Borjora (Bankurna district)
Iron & Steel Park Steel products Kharagpur (West Midnapore district)
Iron & Steel Park Steel products Jhargram ( West Midnapore district)
Foundry Park Castings, forge and foundry products Howrah
Garments, buttons, accessories, washing/
Apparel Export Park Uluberia, (Howrah district)
processing
Garment Park Garments Kolkata
Shilpangan (Light Engineering
Light engineering products Kolkata
Park)
Source: West Bengal Industrial Development Corporation
42

Formally approved SEZs* SEZs with in-principal approval
Industry Locations No of Industry Locations No of

SEZs SEZs
IT/ITeS Kolkata, Rajarhat, 24 17 IT/ITeS Siliguri 1
South Paraganas,
Electronic Mouza Karaidanga, North 3
Burdwan, Asansol,
hardware and 24 Paraganas
Uttarpura, Jalpaiguri,
software
Electronic hardware Barsat (North 24 1
Engineering Howrah, North 24 3
and software Paraganas)
Paraganas
Leather products Bantola (Kolkata) 1
Biotechnology Siliguri 1
Biotechnology Panargarh (Burdwan) 1
Iron and steel Durgapur, Howrah 2
Steel and allied West Medinipur 1
Textiles Dankuni township 1
products
Multi-products Kharagpur, Haldia 2
Free trade warehousing Haldia 1
zone Metal Mednipur 1
Non-conventional Burdwan 1
energy *As of July 2010
*As of July 2010
Source: sezindia.nic.in
43
Major investments in the infrastructure sector

• As of March 2010, over US$ 22.2 billion of Infrastructure type Investments
investments have been made in ramping up (US$ million)
West Bengal‟s infrastructure.
Power* 12,107.8
• About 54 per cent of the investments made Airport 2,797.7

in infrastructure have been in the area of
Railways 2,780.3
power generation and distribution.
Roads 1,874.8
• Airport and railways are the other key
Shipping 1,862.5
infrastructure sectors attracting
investments.
Source: CMIE, as of March 2010
*Generation and distribution
44
Contents
45
STATE POLICIES AND INCENTIVES
Sector-specific policies … (1/11)

West Bengal Biotech Policy, 2008
Aim: To facilitate the growth of biotech industries and the development of clean biotechnologies.
Key initiatives:
• Conserving bio-diversity through mapping and sustainable use of bio-resources.
• Spreading general awareness for optimum utilisation of biotechnology in the agriculture sector.
• Creating a „centre of excellence for biotechnology‟ as a high quality support service to the biotech industry.
• Facilitating the flow of venture capital funds and bank credit to biotech companies.
• Creating research and development institutions of expertise and manpower quality in the state.
46

West Bengal Biotech Policy, 2008 (continued)
Aim: To facilitate the growth of biotech industries and the development of clean biotechnologies.
Incentives and concessions:
• State capital investment subsidy at 15 per cent of the fixed capital investment, subject to a limit of US$ 300,000.
• Interest subsidy to the extent of 50 per cent of the annual interest liability on the loan borrowed from a commercial
bank/financial institution/non-banking financial corporation approved by RBI, for implementation of an approved project,
subject to a limit of US$ 200,000 per year.
• Government will create opportunities for starting new biotechnology-based businesses by entrepreneurs and stimulate
technological innovations. The government will aim to increase product commercialisation in public private sector for
products acquired from government-funded R&D.
• Other incentives as per the West Bengal Incentive Scheme for micro and small scale enterprises, 2007.
47

The West Bengal incentive scheme for micro- and small-scale enterprises (MSE), 2007
Aim: To provide incentives to the micro and small enterprises in the state.
• Applicable for all MSEs set up in the manufacturing sectors and, also the expansion projects of existing units/enterprises, on
or after April 1, 2007.
• The units may be in the private sector, cooperative sector, joint sector as also companies/undertakings owned and managed
by the State Government and industrial self-help groups.
• This scheme is applicable from April 1, 2007 for a period of five years, i.e., ending on March 31, 2012.
• State capital investment subsidy, ranging from 15 to 35 per cent of fixed capital investment.
• Interest subsidy to the extent of 30 per cent of the annual interest liability on the term loan borrowed from a commercial
bank or financial institution for implementation of the approved project.
• Waiver of electricity duty on the electricity consumed for the production and/or operation, for a period of five years from
the date of commercial production or operation.
• Reimbursement of 80 per cent expenditure incurred by enterprise for paying its contribution towards employees state
insurance and employees provident fund, depending on the location of the unit.
48

The West Bengal incentive scheme for micro- and small-scale enterprises (MSE), 2007 (continued)
• Refund of stamp duty and registration fee paid for the purpose of registration of documents within the state, relating to
purchase and/or acquisition of land and buildings for setting up of the approved project.
• An eligible MSE of women or person belonging to the scheduled castes (SC) or scheduled tribes (ST) entrepreneur or self-
help group will be entitled to 10 per cent additional incentives.
• An existing leather MSE, which relocates to the Kolkata Leather Complex, will be entitled to fixed capital investment subsidy.
If the relocation is accompanied by modernisation, the quantum of subsidy will be 25 per cent of fresh investment in plant and
machinery.
• Reimbursement of expenditure for modernisation up to 75 per cent for micro units and 50 per cent for small scale units,
subject to a cap of US$ 10,000.
49

IT Policy of West Bengal, 2003
Aim: To utilise the potential benefits offered by IT for the development of the state.
Key initiatives:
• Procedures under existing labour laws simplified to ensure smooth operations. In IT, where human resource inputs are highly
flexible and mobile, the Government of West Bengal has committed to move from a regulated administration framework to a
promotional framework to facilitate smooth functioning of the business.
• The government permits self-certification to IT companies on various acts such as Payment of Wages Act, Minimum Wages
Act, Contract Labour (Regulations & Abolition Act), Workmen‟s Compensation Act, Payment of Gratuity Act, Maternity
Benefits Act, Employees State Insurance Act and Water and Air Pollution Act.
• IT companies are awarded special status under various acts to improve infrastructure availability, enabling:
• Automatic clearances under the West Bengal Pollution Control Act.
• Exemption from statutory power cuts.
• Exemption from zoning regulations on application of company.
50

IT Policy of West Bengal, 2003 (continued)
Fiscal incentives:
• Exemption from consumption tax on computer hardware, computer peripherals and other capital goods including captive
power generation sets, during the implementation stage.
• Price preference for all West Bengal Government e-governance projects up to 5 per cent for an IT company with office in
West Bengal and, employing a minimum of 20 per cent of its total workforce in its West Bengal operations.
• For mega-projects that require investments exceeding US$ 5 million and employ more than 750 people in their first year of
operation, the government may consider a special package of incentives on a case-to-case basis.
• Exemptions from stamp duty and registration fee.
• Exemptions from all state and local taxes on transaction with the SEZs; this also applies to supply from domestic tariff areas to
the SEZ.
51

IT Policy of West Bengal, 2003 (continued)
Other incentives:
• State Government will assist IT companies in obtaining any academic/R&D support they require from the appropriate
institutions.
• The State Government has set up a regulatory authority to ensure enforcement, declare penalties (for violation, etc.) to help
IT and ITeS companies provide additional comfort to their customers.
• IT companies in the small scale sector will be reimbursed 50 per cent of the expenditure incurred by them to obtain ISO 9000
certificate or SEI-CMMi Level 5 or COPC-2000 or eSCM level 3, with a ceiling of US$ 0.01 million.
52

Special Economic Zone Act (SEZ), 2003
Aim: To develop the export potential of the state
Key initiatives:
• SEZ units are permitted to take job work abroad and export goods from there, while continuing to be eligible for the benefits
entitled to an SEZ.
• SEZ units will have access to international finance at international rates through offshore banking units (OBU) to be set up
within the SEZ.
• Exemption from customs duty on import of capital goods, raw material, consumables and spares.
• Entitlement of duty-free imports of samples upto US$ 6,000.
53

West Bengal Export Policy, 2003
Aim: To make exports a priority area, recognising the enormous export potential of the state.
Key initiatives:
• The State Government has constituted three export awards viz., Best Exporter Award, Award for Quality and Best Small Scale
Industry Exporter Award.
• A commerce cell has been set up in the Directorate of Industries to look after all aspects of export promotion.
• A state export promotion council has been set up in the Directorate of Industries, with the participation of commodity boards
and export promotion councils located in Kolkata and the chambers of commerce and industry, in order to provide a forum for
exchange of views, information sharing and removing hindrances and obstacles faced by exporters.
• Round-the-clock movement of export cargo within Kolkata will be allowed on specified roads, in relaxation of existing orders
prohibiting movement of trucks within the city during daytime.
• The State Government will take steps to set up inland container depots and/or dry port facilities at the export centres to
prevent difficulties in cargo storage, customs clearance and container availability at these locations.
• The State Government will support and facilitate the setting up of export parks for various products, so that all the necessary
infrastructure facilities are available at one place and regular monitoring is possible.
54

West Bengal Export Policy, 2003 (continued)
Aim: To make exports a priority area, recognising the enormous export potential of the state.
• Exemption from sales tax on proceeds from transfer of licenses, such as exim-scrip, replenishment license, advance license and
duty entitlement passbook (DEPB) license.
55

Industrial Policy of West Bengal, 1994
Aim: To generate industrial promotion and economic development in the state
Key objectives:
• To attract foreign technology and investment, as may be appropriate.
• To encourage private sector to accelerate growth.
• To improve and upgrade industrial infrastructure, which is indispensable for accelerated growth of industries.
• To improve social infrastructure facilities such as development of satellite township, housing, healthcare, education, water
supply, hotels, etc.
• To look at the joint and assisted sectors as effective instrument for mobilising necessary resources and expertise in important
areas of economic activities.
56
Contents
Logos used in this section are registered trademarks of the respective companies
57
BUSINESS OPPORTUNITIES
Tea
• West Bengal is the second-largest tea growing
Key players
state in India, after Assam, and accounts for
around 24 per cent of the total tea produced in • Tata Tea Limited
India. • Goodricke Group Limited
• Mcleod Russel India Limited
• As of 2007, 115,095 hectares of land was under • Bagaria Group
• T&I Global Limited
tea cultivation.
• Williamson Magor Group
• Andrew Yule Group
• The total annual production of tea was 226.8 • Teesta Valley Exports Limited
million kg (mkg), as of 2008. • Duncans Tea Limited
• Diana Tea Company Limited
• Tea gardens in the state are located in Darjeeling • Hanuman Tea Company Limited
and Jalpaiguri, the two northern districts of West • Kamala Tea Company
Bengal. • Norban Tea & Exports Limited
• Darjeeling tea has a geographical indicator (GI).
58
Tea – company profiles … (1/4)

Tata Tea Limited • Tata Tea Limited is the largest brand of tea in India. It acquired the UK-based Tetley Group in
2000.
• The company has five major brands in the Indian market, viz.,Tata Tea, Tetley, Kannan Devan,
Chakra Gold and Gemini.
• It has its headquarters and six tea estates in West Bengal.
Goodricke Group • GGL, a part of Camellia plc. UK, is engaged in the cultivation, manufacture, and sale of tea in India.
Limited (GGL) • It has 17 gardens, including three gardens in Darjeeling, two in Assam and 12 in Jalpaiguri.
• Its turnover in 2009 stood at US$ 85.1 million on a total crop production of 20 million kg.
• It launched cold tea and has entered the ready-to-drink products market in 2009.
Mcleod Russel India • Mcleod Russel India Limited produces around 80 million kg of tea every year from tea estates in
Limited Assam, West Bengal and Vietnam, employing 80,000 people.
• The company has its registered office in Kolkata.
• The six tea estates in Jalpaiguri district produce 6.5 million kg of tea, annually.
Bagaria Group • The Bagaria Group has operations in steel product manufacturing, tea estates and wind farms, with
a group turnover of about US$ 112 million during 2009-2010.
• The group has three tea estates in West Bengal. The Gyabaree and Millikthong tea estate is one of
the biggest tea estates in Darjeeling with an annual production of 280,000 kg.
• There are two other tea estates in Phuguri and Orange Valley in Darjeeling with a combined
production of 300,000 kg.
59

T&I Global Limited • TIGL is among the leading manufacturers and exporters of tea processing machinery in the world,
(TIGL) headquartered in Kolkata.
• It is a government recognised export house, with a global market share of over 40 per cent. The
company has a full-fledged manufacturing unit at Kolkata.
• TIGL has set up a1,000 acre Mainak Hills Tea Estate and Green Tea factory in North Bengal.
Mainak produces over 800,000 kg of tea per annum.
Williamson Magor • Williamson Magor Group, established in 1868, produces around 35 million kg of tea every year.
Group
• The Group has 28 tea estates, in Assam and West Bengal, including six tea estates in Dooars.
Andrew Yule Group • Andrew Yule Group, headquartered in Kolkata, is a US$ 124 million multi-product, multi-unit
conglomerate.
• The group has 15 tea gardens in Darjeeling, Dooars and Assam, producing around 10 million kg of
tea, annually.
Teesta Valley Exports • Teesta Valley Exports Limited, established in 1841, has tea estates in Darjeeling, Assam and
Limited Dooars. The Group has two tea estates in Darjeeling.
• The group exports tea to Japan, Russia, Germany, Holland, France, UK, USA, Singapore, Hawaii
and other East European countries.
60

Duncans Tea Limited • Duncans Tea Limited, headquartered in Kolkata, is a part of the diversified Duncan-Goenka Group,
established in 1859.
• The company has 13 tea estates, located in the Doors, Terai and Darjeeling.
• The company markets tea under the brands namely Runglee Rungliot, Double Diamond, Super,
Shakthi, Sargam, No1, Kings Cup and Aag.
Diana Tea Company • Diana Tea Company Limited is a tea-producing company, which was promoted by Late
Limited Radheshyam Singhania in 1976. The company is among top five producers of tea in the Dooars
region.
• It has four tea garden viz., namely Baintgoorie tea estate, Goodhope tea estate, Ambari tea estate
and Diana tea estate, all located in Jalpaiguri. The total capacity of the company is 5 million kg of
tea per annum.
• The company has entered the packed tea segment to be sold throughout North India through its
distributor network. It has also entered the dipping-tea bag segment and has installed vending
machines in corporate houses of Kolkata.
Hanuman Tea Company • The company incorporated in 1961, is mainly engaged in the cultivation, production and sale of tea
Limited and power generation.
• The company has its tea gardens and processing unit at Sonitpur in Assam and Jalpaiguri in West
Bengal. The registered office is located at Kolkata.
61

Kamala Tea Company • Kamala Tea Company was incorporated in 1914.
• The company owns the Kamala Tea Estate with a grant area of around 750 hectares located in the
Terai region in the Darjeeling district of West Bengal.
Norban Tea & Exports • Norben Tea & Exports Limited was originally incorporated as Daga Plantations Limited in the early
Limited 1990s.
• Norben has established new tea plantations and a new factory in Berubari in Jalpaiguri district of
West Bengal, to manufacture tea with an installed capacity of 1.2 million kg of processed tea per
annum.
• The company has three divisions, namely Berubari, Pareshnagar and Sakati.
62
Petroleum and petrochemicals

• West Bengal accounts for around 4 per cent of the Key players
country‟s production of petroleum products and 13
per cent of polymer production. • Indian Oil Corporation Limited (IOCL)
• Oil India Limited (OIL)
• Haldia Petrochemicals Limited is one of India‟s largest • Oil and Natural Gas Corporation Limited
integrated petrochemical complexes.
(ONGC)
• Mitsubishi Chemicals and Corporation, Japan‟s major • Haldia Petrochemicals Limited (HPL)
chemical firm has invested in a Purified Terepthalic
Acid (PTA) plant at Haldia at an estimated cost of US$
355 million.
63
Petroleum and petrochemicals – company profiles … (1/2)

Indian Oil Corporation • IOCL is India's largest company by sales with a turnover of US$ 54 billion in 2009-2010. It is
Limited (IOCL) the eighteenth largest petroleum company in the world.
• It owns and operates 10 of India‟s 19 refineries, as of 2009-2010, the company had a refining
capacity of 60.2 MTPA (1.3 million barrels per day).
• It has a refinery at Haldia, with an installed capacity of 6 MTPA.
• IOCL has invested US$ 623.7 million for improvement of diesel quality and distillate yield
(hydrocracker) at Haldia and, for capacity expansion of the refinery from 6 MTPA to 7.5
MTPA, the project was commissioned in December 2009.
• IOCL has signed a memorandum of agreement (MoA) with the WBIDC for setting up a
chemical hub in Haldia, at an investment of around US$ 3.2 billion.
Oil and Natural Gas • ONGC is India‟s leading oil and gas exploration and production company.
Corporation Limited • The company has 240 onshore production installations, 70 drilling rigs and 15,800 km pipeline
(ONGC) network.
• ONGC has acquired five onshore blocks, spreading over 16,500 sq km in West Bengal for US$
2 billion, as of December 2009.
64
Petroleum and petrochemicals – company profiles … (2/2)

Oil India Limited (OIL) • OIL, established in 1959, is primarily engaged in exploration, development, production and
transportation of crude oil and natural gas in India.
• OIL owns 10 crude oil pumping stations and 17 repeater stations spread across Assam, West
Bengal and Bihar.
• The company also owns and operates a 660 km petroleum product pipeline, connecting Numaligarh
Refinery Limited in Assam to Siliguri in West Bengal.
Haldia Petrochemicals • HPL is a modern, naphtha-based petrochemical complex located at Haldia, 125 km from Kolkata
Limited (HPL)
• It is a joint venture project of the Government of West Bengal with the Chatterjee Group, the
TATA group and IOCL as major stakeholders.
• It has a total capacity of 520,000 tonnes per annum of ethylene.
• The company is expanding capacity by about 30 per cent, which will take ethylene production
capacity to 670 kilo tonnes per annum (KTPA) from 520 KTPA.
65
Leather
• West Bengal is one of the leading exporters of
finished leather goods, accounting for almost Key players
15.7 per cent of the country's leather exports.
• Khadim‟s
• As of 2008, the state had around 538 • Bata India Limited
manufacturing units producing leather goods. • Singhvi International
• West Bengal Leather Industrial Development • Balmer Lawrie and Company Limited
Corporation provides market facilities for the
leather products manufactured by small scale
industries located in the state.
• The Government of West Bengal has set up an

integrated leather complex on the Eastern fringe
of Kolkata, spread over 1,100 acres.
66
Leather – company profiles

Khadim‟s • The Khadim group has a significant presence in the footwear segment, especially in the East and
South of India.
• It has a manufacturing unit at Kasba Industrial Estate, Kolkata.
• The company has multi-brand retail outlets in 21 states and has 540 exclusive retail outlets across
the country.
• Its sales stood at US$ 53 million in 2009-2010.
Bata India Limited • Bata India Limited, incorporated in Kolkata, is the largest shoe manufacturer in India.
• The company has 35 per cent share of the organised footwear market and its retail footprint spans
more than 1,250 stores; it sells over 45 million pairs, annually.
• Bata has a manufacturing unit in West Bengal.
• The company plans to open 240 stores in a span of next two years, with an investment of US$ 87
million.
Singhvi International • Singhvi International, established in 1974, is engaged in the export of leather hand gloves and safety
garments world-wide.
• The company had a turnover of US$ 8 million in 2008-09.
• It has its registered office in Kolkata.
Balmer Lawrie and • Balmer Lawrie is a Government of India enterprise, headquartered at Kolkata.
Company Limited
• The company manufactures leather chemicals.
• It has manufacturing operations at Kolkata, Mumbai, Chennai, Mathura, Silvassa and offices at many
locations in India.
67
Iron and steel

• With more than US$ 22.2 billion worth of Key players
investments in pipeline, West Bengal has emerged
as a favoured destination for the steel industry. • JSW Steel Limited
• SAIL
• Its deposits of iron ore have helped attract new • Shyam Steel
projects. The Chotanagpur plateau bordering
West Bengal is the nerve-centre of this industry. • Jai Balaji Industries
• Bhushan Power and Steel Limited
• The Joint Plant Committee (JPC) for steel has • Arcelor Mittal
been constituted by the Government of India for • UIC Udyog Limited
formulating the guidelines for production and
distribution of steel materials in the country. • Gonterman-Peipers (India) Limited
Headquartered in Kolkata, it has regional offices • Super Forgings & Steel Limited (SFSL)
in New Delhi, Mumbai, Chennai, Kanpur and
Hyderabad.
68
Iron and steel – company profiles … (1/3)

JSW Steel Limited (JSL) • JSW Steel Limited is among the largest private steel companies in India, with a capacity of 7.8 million
tonnes per annum (MTPA).
• The company is setting up a 10 million MTPA steel plant at Salboni in West Bengal.
Steel Authority of India • SAIL is the leading steel maker in India, with a turnover of US$ 10.4 billion in 2009-2010.
(SAIL)
• Indian Iron & Steel Company (IISCO), which was a 100 per cent subsidiary of SAIL, has been
amalgamated with the parent company.
• The company has an integrated steel plant in Durgapur.

Shyam Steel • Shyam Steel, established in 1953 in Howrah, is a leading manufacturer of steel re-bars and
structures.
• The company achieved a turnover of over US$ 220 million in 2009-2010.
• It has a plant at Durgapur comprising steel melting furnace, billet casting plant and rolling mill.
Jai Balaji Group • Jai Balaji Group is among the leading manufacturers of steel in Eastern India, headquartered in
Kolkata.
• The company has integrated steel production facilities in nine manufacturing units, spread across the
states of West Bengal (three plants), Chhattisgarh, Orissa and Jharkhand.
• The company is setting up a 5 million tonne steel plant in West Bengal‟s Purulia district,
69

Bhushan Power and • Bhushan Power and Steel Limited is a fully integrated 1.5 MTPA steel making company, with a
Steel Limited turnover of US$ 938 million in 2009.
• The company has seven plants, in Chandigarh, Derabassi, Kolkata and Orissa.
• The company is planning to set up a 2 MTPA capacity integrated steel plant with a captive power
plant in Burdwan district of West Bengal.
• It has also planned a 6 MTPA plant in Asansol, West Bengal. The first phase is scheduled to have a 3
MTPA and a 1,000-MW power plant.
Arcelor Mittal • Arcelor Mittal is world's number one steel company, with operations in more than 60 countries.
• The company has its design and engineering centre in Kolkata.
• The facility, which started operations in May 2008, serves the entire design needs of Arcelor Mittal,
globally. The headcount at the centre is expected to go up to 250 over the next five years from
over 60, as of 2007-08.
• The company has approached the West Bengal Government for setting up a steel unit in the state.
70

UIC Udyog Limited • UIC is an ISO 9001:2000 certified business house in steel wire industry, incorporated in 1999.
• In West Bengal, the company‟s multi-product plant is at Kalyani, wire division is located at Nadia
Industrial Growth Centre and the pin division is located at Hooghly.
• The company had a revenue of US$ 70 million in 2008-09.

Gonterman-Peipers • An ISO 9001:2000 company, promoted in collaboration with Gontermann-Peipers Siegen, Germany, a
(India) Limited leading European manufacturer of rolling mill rolls since 1825.
• In 1981, the company was taken over by the ISPAT Group.
• Its products include cast rolls and forged rolls. The company has registered office in Kolkata.
Super Forgings & • Incorporated in 1968, SFSL manufactures and processes value-added mild steel.
Steel Limited (SFSL)
• The company was initially a trading unit in alloy steels, started in 1960.
• The product line of SFSL includes tools steel, stainless steel (including corrosion resistant steel), high
value alloy steel and carbon steel.
• The products find applications in defence, general engineering, power generating industries,
automobiles, aeronautics, etc.
• A multilocational company, SFSL has four units in West Bengal, three in Howrah and one in Dankuni.
71
Information technology
• Around 500 IT and ITeS companies are operating Key players
in the state, employing more than 60,000
professionals. • Genpact
• Cognizant Technology Solutions
• The state has identified IT as a priority focus
• Patni Computer Systems
sector to be developed into a growth engine for
the future. • HCL
• Microtech Software
• The IT and ITeS sector is projected to • Tata Consultancy Services
contribute 15 to 20 per cent to the state‟s • CMC Limited
economy by 2010.
• IBM Global Services
• West Bengal has 14 IT parks. A 16-acre SEZ by • Siemens Information Systems Limited
Tata Consultancy Services has been granted • Wipro
formal approval and is expected to be • ITC Infotech
operational by 2011.
• Diadem Technologies
72
IT – company profiles … (1/3)

Genpact • Genpact is a global remote processing operations company that services clients across the world
with its IT-enabled services.
• It has an 80,000 sq ft facility in Kolkata and another new facility is being constructed on a three
acre area at Salt Lake, which would employ up to 1,500 people.
• It has also signed to acquire 700,000 sq ft at InfoSpace, an IT/ITeS SEZ developed by Unitech
Hitech Structures,which will house 7,000 professionals.
• The company has approached the West Bengal Government to set up an IT SEZ in Kolkata with
an investment of over US$ 22.2 million.
Cognizant Technology • CTS is a global e-business and application development company.
Solutions • CTS, Kolkata services several large clients from the banking, hospitality (restaurant), healthcare,
(CTS) financial, airline and information-driven sectors of the global market.
• It has signed a memorandum of understanding with Calcutta University, wherein the university
will provide management and software training to a batch of 400 professionals hired by CTS,
Kolkata.
• The company is investing around US$ 46 million to expand its facility at Kolkata.
Patni Computer Systems • Patni Computers is one of the leading global providers of IT services and business solutions.
• Patni has 28 international offices across the America, Europe and Asia-Pacific, and 23 global
delivery centres in strategic locations across the world.
• Of the total 23 global delivery centres, one is located in Kolkata.
73

HCL • Incorporated in 1976, HCL is a leading global technology and IT enterprise with annual revenues of
US$ 5 billion. The company‟s operations span across 26 countries. It has delivery facilities in the US,
the UK, Finland, Poland, Puerto Rico, Brazil, China, Malaysia, Singapore, Australia, Czech and India.
• In India, the company has offices in 170 cities and 500 points of presence reaching 4,000 towns. In
West Bengal, HCL has two offices in Salt Lake City, Kolkata.
Microtech Software • Microtech Software, headquartered at Kolkata, started its operations in1992.
• The company is in the business of integrating different parts of IT operations.
• It is a Microsoft Gold Certified Partner and a Microsoft Small Business Specialist.
Tata Consultancy • A company of the TATA group, TCS is a well recognised global service provider for a wide range of IT
Services (TCS) solutions, consulting, BPO, engineering services and IT infrastructure.
• The company has offices across the world at more than 40 countries, including 78 locations in India.
• It has two offices in Kolkata.
• CMC Limited, an IT solutions company and a subsidiary of TCS, was incorporated in 1975.
CMC • The company‟s service offerings include enterprise resource planning (ERP), data warehousing,
Limited networking, embedded product development services, systems study and systems integration.
• It has 18 offices worldwide, including one office in Kolkata.
IBM Global Services • IBM is a leading global IT services and solution provider with offices across the world, including India.
• IBM has been present in India since 1992. The company‟s Indian operations offer software, storage,
systems and servers, semiconductors, etc.
• Since inception, IBM India has expanded its operations considerably with regional headquarters in
Bangalore and offices in 14 cities, including a global delivery centre in Kolkata.
74

Siemens • SISL is a leading systems integrator and total solutions provider offering high-end consultancy in areas
Information such as healthcare, telecommunications, manufacturing, utilities, public sector and government.
Systems Limited • The company‟s services include enterprise solutions, management consulting, security solutions and
(SISL) operation related services.
• Its registered office is located at Mumbai; the company also has one office at Kolkata.
Wipro • Wipro is a global IT services company providing consulting, business process outsourcing, business
technology services, enterprise application services, infrastructure management, testing, product
engineering, engineering design and product support.
• The company is headquartered at Bangalore; it has one office at Kolkata.
ITC Infotech • ITC Infotech, a global IT services company, is a fully-owned subsidiary of ITC Limited, the US$ 5 billion
diversified conglomerate.
• Headquartered in Bangalore with wholly-owned subsidiaries in the UK and the US, ITC Infotech provides
comprehensive solutions through development centres, offices, and delivery centres in North America,
Europe and Asia Pacific, in addition to two delivery hubs in Bangalore and Kolkata.
Diadem • Diadem Technologies started operations in 1998.

Technologies • The company is a web services provider offering web hosting, reseller hosting and domain services.
• It is headquartered at Kolkata.
75
Mineral resources
• The Raniganj coal belt accounts for over 30,147 million metric tonnes of quality coal. Reserves of coal
bed methane (CBM), an alternative source of natural gas, in West Bengal is estimated as 1.64 million cu
ft.
• Rock phosphates deposits are found in Beldhi, Chirugora and Kutni regions of Purulia districts.
Deposits of granite and kaolinite are found in Purulia, Bankura and the Birbhum districts.
• Good quality pegmetallic-quartz is available at Mirmi in the Purulia district; deposits of basalt-trap
rocks used for preparing road metals are available in the Birbhum district.
Automobile and auto components

• The automobile industry in West Bengal is dominated by original equipment manufacturers (OEM).
• The auto components industry comprises units manufacturing a range of products from simple nuts and
bolts to complex items such as shafts, radiators and axles.
• Hindustan Motors is a leading player in West Bengal. The company is engaged in the manufacturing of
passenger cars (Ambassador and Contessa) and multi-utility vehicles (Trekker, Porter and Pushpak) in the
state. The company is developing 314 acres of land near its Uttarpara plant to set up a township with a
residential complex, an IT park and an auto ancillary park.
76
Biotechnology
• West Bengal has many attributes that favour the development of biotechnology industry. It has rich natural
resources based on a diversity of flora and fauna.
• A wide variety of commercial crops are cultivated, which can be improved by biotechnology interventions.
Examples of such interventions are application of bio-fertilisers for soil fertility, bio-pesticides for
environment friendly integrated pest management, genetic modification to produce golden rice, tissue
culture for horticulture, floriculture and medicinal plants.
• Research institutes such as Bose Institute, Indian Institute of Chemical Biology, Indian Association for the
Cultivation of Science, National Institute of Cholera and Enteric Diseases, Jadavpur University and Indian
Institute of Technology, Kharaghpur are engaged in high quality research in various areas of biotechnology.
• A 30 acre biotechnology park is being set up at Baruipur, Kolkata to be known as Kolkata Biotech Park.
The park is a joint venture between the University of Calcutta and Strategic Global Management (India)
Private Limited.
77
Fishery
• The state has a long coastline of over 150 km and innumerable water bodies, which generate a huge
potential for inland fishing and give it a prominent position in fish cultivation.
• West Bengal ranks first in freshwater fish production and second in shrimp aquaculture.The export
market for shrimps, prawns and processed fish produced in the state have increased over the years.
78
Agriculture and horticulture

• West Bengal comprises of six agro-climatic zones and offers a diverse variety of environment for
agriculture and horticulture produce. It produces 250,000 tonnes of fruits and over 10 million tonnes of
vegetables.
• The state ranks third in India in flower production after Karnataka and Tamil Nadu with an annual
turnover of US$ 14 million. West Bengal accounts for 70 per cent of India‟s dried flower exports.
• There is good potential for exporting flowers like gladioli, gerbera, tuberose, rose and orchids to
countries in the Netherlands, Middle-East, the UK and Japan.
• Indoor plants and foliages such as asparagus, palms, cycads and ferns are also grown in the state.
Livestock and dairy products

• The state has a favourable climate for poultry breeding and is considered as one of the most attractive
poultry markets in India. It has enormous export potential in poultry and duck meat.
• West Bengal has the second-highest indigenous cattle population in the country and the second-highest
poultry population in the country.
• The state is one of the leading producers of meat. The total production of meat in 2007-08 was 500,000
tonnes.
79
Major projects being implemented

Cost
Name of the project Promoter Industry Project ownership
(US$ million)
Assam border-Gairkatta NH- National Highways Authority of
46.7 Roadways Central Government
31C road project India
Coal mining Satgram UG
Eastern Coalfields Limited 46.1 Coal Central Government
project
Cement (Murshidabad) Century Textiles & Industries
43.5 Cement Birla BK Group
project Limited
Material
Material handling equipment
TIL Limited 43.4 handling Private (Indian)
(West Bengal) project
equipment
Commercial complex Kolkata Metropolitan Commercial
43.4 State Government
(Kolkata) Development Authority complexes
Cement (Durgapur) project
Birla Corporation Limited 42.1 Cement Birla MP Group
expansion
Bandel-Naihati river bridge
Eastern Railway 41.3 Railways Central Government
project
Paper (Ballavpur Ranigunj) Ballavpur Paper Manufacturing 41.3 Paper and
Private (Indian)
project Limited paper products
Bengal Beverages
Aerated drinks unit 13.6 Aerated drinks Private (Indian)
Re-rolling mill unit Amit Metaliks 8.9 TMT rods Private (Indian)
Source: projectstoday.com
80
Key projects being planned

Cost
Project name Promoter Industry Project ownership
(US$ million)
Vegetable oils (Haldia) Suman Agritech Private
43.4 Vegetable oils Private (Indian)
project Limited
Consumer electronics Videocon International 43.4
Consumer electronics Videocon Group
(Siliguri) project Limited
Integrated steel (Durgapur) Jagdamba Fiscal Services
43.4 Primary steel Private (Indian)
project Private Limited
Integrated educational
Other community
complex (Debrupayan JIS Group 43.4 Private (Indian)
services
Nagar)
Fabrication (Madhavpur) Bansal Poles & Towers
40.2 Iron and steel products Private (Indian)
project Limited
Rammam hydro-power West Bengal State
38.4 Hydel-based power State Government
project Stage-I Electricity Board
Hospital (Kolkata) project Global Sunrise 38.0 Hospitals Private (Indian)
Cement grinding (Sagardighi) Century Textiles &

38.0 Cement BK Birla Group
project Industries Limited
Integrated steel unit Adhunik Corporation 1.6 Steel Private (Indian)
Amrit Exports
Garment factory 1.1 Readymade garments Private (Indian)
Source: projectstoday.com
81
Contents
82
DOING BUSINESS IN WEST BENGAL
Key approvals required

List of approvals and clearances required Department
Incorporation of company Registrar of companies
Registration, IEM, industrial licenses
Department of Industries, West Bengal State Government
Permission for land use
West Bengal Industrial Development Corporation (WBIDC), West
Allotment of land Bengal Industrial Infrastructure Development Corporation, West
Bengal Small Scale Industries Development Corporation
Site environmental approval
No-objection certificate and consent under Water and West Bengal Pollution Control Board (WBPCB)
Pollution Control Act
Registration under States Sales Tax Act and Central and
State Excise Act Excise Department, Government of West Bengal
Commercial taxes
Sanction of power West Bengal State Electricity Board, Kolkata Electric Supply
Corporation, Damodar Valley Corporation, Durgapur Projects
Power feasibility
Limited, Dishegarh Power Supply Company Limited, according to
Power connection area demarcated.
Approval for construction activity and building plan
Public Works Department, Government of West Bengal, State
Water and sewerage clearance
Water Investigation Department
Water connection
83
Cost of doing business in West Bengal

Cost parameter Cost estimates Source
Cost of land (per sq ft) US$ 4 to US$ 100 Industry sources
Hotel room cost (per night) US$ 108 to US$ 152 Indian hotel survey
Cost of office space US$ 4 to US$ 12 Industry sources

(rent per sq ft)
Cost of residential space US$ 2.6 to US$ 6.3 Industry sources
(rent per sq ft)
Power Commercial: 22 cents per kWh West Bengal State Electricity Distribution
Industrial: 33 cents per kWh Company Limited
Water Commercial and industrial: US$ 11 Kolkata Municipal Corporation
to US$ 15 per month
Labour cost in West Bengal

Minimum wages
Industry Category of workers
(US$ per day)
Agriculture - 1.8
Un-skilled 2.5
Construction of roads and building
Skilled 2.8
Un-skilled 1.8
Transport
Skilled 2.8
Un-skilled 3.0
Industries
Skilled 3.3
Source: Labour Department, Government of West Bengal
84
Single-window approval mechanism

„Shilpa Bandhu‟ or the State Investment Facilitation Centre (SIFC) is the state-level nodal agency for single-
window clearances in West Bengal. The purpose of „Shilpa Bandhu‟ is to provide guidance and information to
investors about policies and programmes of the state. The agency is monitored by an empowered
committee.
SIFC offers assistance in the following areas:

• Approvals from the Secretariat for Industrial Assistance and Foreign Investment Promotional Board.
• Registration by Directorate of Industries.
• Clearance from the Pollution Control Board.
• All clearances related to power.
• Identification, allotment, mutation/conversion of land and other infrastructural facilities.
• Guidance to entrepreneurs on investment prospects in over 200 ready projects developed by WBIDC.
District Industry Centre (DIC) is the district-level committee for single-window clearance that provides
sanctions and clearances for setting up small scale industrial units in the state.
The committee is convened by the General Manager, District Industries Centre and includes the
Environmental Engineer of the West Bengal Pollution Control Board, Superintending Engineer/Executive
Engineer of West Bengal State Electricity Board, District Officer of Housing and Urban Development
Authority and the Assistant Director of Factories.
85
Key nodal agencies in West Bengal

West Bengal Industrial • The WBIDC focuses on financing of medium and large scale industries.
Development Corporation • It provides assistance service and facilitates investment proposal through “Shilpa Bandhu”.
(WBIDC)
West Bengal Industrial • The WBIIDC is responsible for balanced and well-planned industrial development in the
Infrastructure Development state.
Corporation (WBIIDC) • It promotes joint sector and assisted sector units in important industry segments.
• Set up in 1961, WBSIDC is the promotional agency for growth and development of
West Bengal Small Industries industries and commercial activities in the small and medium sector in the state.
Development Corporation Ltd
(WBSIDC) • WBSIDC has developed 35 industrial and commercial estates all over the state.
• WEBEL is responsible for the development of IT/ITeS industries in the state.

West Bengal Electronics Industry
Development Corporation • It assists investors in obtaining all necessary approvals for new projects and facilitates setting
Limited (WEBEL) up of IT and electronics industry.
• WBFC provides loans to small and medium scale industries.

West Bengal Finance • It focuses on the development of export-oriented units.
Corporation (WBFC)
• It has special schemes such as the National Equity Fund scheme for setting up of nursing
homes and for acquisition of electro-medical equipment.
86
Contact list
Key agency Contact information
West Bengal Industrial Development Corporation "Protiti",
(WBIDC) 23, AbanindranathTagore Sarani, (Camac Street)
Kolkata - 700017,
Phone: 91-33-2210 5361-65
Fax: 91-33-2248 3737
Email: wbidc@wbidc.com
Website: http://www.wbidc.com/
West Bengal Industrial Infrastructure Development 5, Council House Street, 3rd Floor
Corporation (WBIIDC) Kolkata-700 001
Phone: 91-33-2230 5804-08
West Bengal Small Industries Development Corporation Shilpa Bhawan, 31, Black Burn Lane, 2nd floor
Limited (WBSIDC) Kolkata-700 012,
Phone: 91-33-2237 3895
Fax: 91- 33-2234 6057
West Bengal Electronics Industry Development Webel Bhavan, Block-EP & GP, Sector-V, Salt Lake
Corporation Limited (WEBEL) Kolkata-700 091
Phone: 91- 33-2357 1704/06
Fax : 91-33-2357 1708 /23571739
West Bengal Finance Corporation (WBFC) 12A, Netaji Subhas Road, 3rd and 4th Floor,
Kolkata-700 001
Phone: 91-33-2230 0055/3259/4954/3083
Fax: 91-33-2230 1250
87
Annexure
Exchange rates
Year INR equivalent of one US$

2000 46.6
2001 48.3
2002 48.0
2003 45.6
2004 43.7
2005 45.2
2006 45.0
2007 42.0
2008 40.2
2009 46.0
2010 47.4
Average for the year
88
DISCLAIMER
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to prepare this presentation and the same has been content is not to be construed in any manner whatsoever
prepared by IMaCS in consultation with IBEF. as a substitute for professional advice.
All rights reserved. All copyright in this presentation and IMaCS and IBEF neither recommend nor endorse any
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89

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WEST BENGAL

Investment climate of a state is determined by a mix of factors

Resources/Inputs Regulatory framework

 Advantage West Bengal

 State economy and socio-economic profile

 State policies and incentives

 Doing business in West Bengal

West Bengal – State profile

• West Bengal has 19 administrative districts. Kolkata is the

• The Ganges (and its main distributary, Hoogly) is the

• West Bengal's climate varies from tropical savannah in

• Bengali is the official language of the state, though English

• West Bengal has a rich culture and literature. The

Advantage West Bengal … (1/2)

Competitive cost of operation

Endowed with natural resources

Source: Maps of India

Advantage West Bengal … (2/2)

Large English speaking population

Source: Maps of India

West Bengal in figures … (1/2)

West Bengal in figures … (2/2)

Parameter West Bengal Government

Key industries with policy thrust and factor advantages

Low Medium High

 Advantage West Bengal

 State economy and socio-economic profile

 State policies and incentives

 Doing business in West Bengal

Socio-economic snapshot of West Bengal

West Bengal‟s GSDP

• At current prices, the Gross State Domestic West Bengal‟s GSDP

0.0 20.0 40.0 60.0 80.0 100.0

West Bengal‟s NSDP

• At current prices, the Net State Domestic West Bengal‟s NSDP

0.0 20.0 40.0 60.0 80.0

The tertiary sector has an increasing share in West Bengal‟s

Per capita GSDP

Per capita GSDP

Consumer expenditure on household goods and services

7.1% 6.9% 20.0%

All-India West Bengal All-India West Bengal

Source: Household Consumer Expenditure in India, 2007-08 NSS 64th Round

Socio-economic profile of key cities

• Raniganj, located in the Bardhaman district is known for its coalfields.

Key industries in West Bengal

District-wise key industries

Rice, vegetables, sugarcane and wheat are the key agricultural

• Tea is another important cash crop. Tea gardens in the state

West Bengal‟s exports trends

0.0 100.0 200.0 300.0 400.0

• The state has the country‟s largest brackish-

• West Bengal is also a leading tea exporter.

Investments and FDI inflows

As of March 31, 2010

 Advantage West Bengal

 State economy and socio-economic profile

 State policies and incentives

 Doing business in West Bengal

Road network … (1/2)

Road network … (2/2)

• Two new underpasses are being planned - one

Source: Maps of India