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West Bengal's development scenario bright for investment

West Bengal's government recently announced infrastructure development programmes worth US$25.2 billion - worth only a little less than total foreign direct investment (FDI) to China in the first half of 2007. Such figures illustrate the scale of dynamic, rival agendas set in either country to lever development potential in the race for greater prosperity.

Hong Kong infrastructure and real estate companies, particularly those run by Indian expatriates with direct connections with West Bengal, can find a considerable list of upcoming opportunities, including in the fields of logistics, infrastructure development and tourism.
Large-scale works ahead.
The new pro-industry approach of the socialist-leaning West Bengal government has resulted in project announcements and implementations on a grand scale. The state is already attracting investments in many different sectors, including ship building, development of special economic zones, light product manufacturing, power generation, iron and steel, IT, retail, agriculture and tourism.
Industry friendly policies, easy procurement of land, the availability of skilled, professionally-trained labour, various central government and state financial assistance schemes are among the advantages in which companies investing in the state have become involved.
Call for investors to India's professionally-trained environment.
West Bengal is particularly well-endowed with minerals, making it among the best destinations for iron and steel plants. Also, with the state being among the top agri-producing states, there's potential for agri-based industries to set up shop.
The huge, western subcontinental state is working towards becoming the leading power generator in the country. West Bengal's government is following the SEZ and industrial parks strategy to industrialisation, which means that units in these regions can avail themselves of some key tax benefits and labour-friendly policies.Beeline for West Bengal by investors and workers.
All this has worked in favour of domestic Bengali companies, many of which are expanding facilities. Furthermore, almost every big company in every industrial sector in the country is making a beeline for West Bengal.
To attract foreign companies to the state, the government is regularly sending business delegations to various trading centres.Most recently, delegations have gone to Russia, Singapore and Taiwan. The government is also working towards strengthening cross-border trade with Bangladesh, by developing the road network while also working on facilitating various tariff and non-tariff areas.Forging a new future in steel and engineering.The iron and steel sector is growing at a rate of around 10% and almost all major players throughout the country have set up base and are expanding. Important players include SAIL, Bhushan Ltd, Gonterman Piepers, Electrosteel Casting and Vesuvius India.Among the new ventures, Bhushan Steel has recently announced plans to set up a two million tonne per annum steel plant.Headlining the projected development JSW Bengal Steel is planning a US$ 8.7 billion steel venture in Salboni, with a capacity of around 10 million tonnes per annum. The first phase of the project is expected to become operational by 2011.
Consumer durables company Videocon has recently submitted a US$ 3.7 billion investment proposal to the Bengali government for setting up a 3 million tonne steel plant in the state, among other projects.
For its part, the Bengali government has put in place industry-friendly policies to boost the sector, including technology upgrades, research and development grants, government procurement and selection for joining given construction projects.
Engineering projects are taking a leading part in development too. US giant GE Equipment Services (GEES) has picked up a 15% equity (US$37.5 million) in railway wagon maker Titagarh Wagons Ltd (TWL), to tap the vast logistics business through West Bengal.
In fact, GE plans to invest US$8 billion over the next three years in the country as a whole, with a substantial amount earmarked for West Bengal. These investments would be targeted at developing infrastructure facilities such as a deep sea port, a railway freight corridor, a transport hub and associated housing and healthcare projects.
Shipbuilding company APJ Bharti Shipyard is planning to set up a shipyard in the state, with an investment of US$ 500 million while McNally Bharat Engineering Company Ltd, a part of the giant Indian tea conglomerate Williamson Magor group, has announced a US$ 5 million investment plan to set up a plant, to help in executing turnkey projects for the steel players in the state.
Boost for automotive development.Automotive developments are also underway. Tata Motor has its huge Singur project, from which an automotive components sector has received a major boost, with a number of players setting up shop in West Bengal. The government has also received proposals for several component manufacturing parks.Caparo Engineering India, a wholly-owned subsidiary of the Euros 2 billion Caparo Group of the UK, is setting up a sheet metal and stamping facility at Singur to supply Tata Motors.Other auto component makers making a beeline for Singur include Rasandik Engineering, Rucha Engineering, Lumax and JBM Auto.
Green and IT options part of the growth cycle.The West Bengal government has some ambitious plans in the energy sector, among which it's promoting renewable energy projects. These would be implemented through a Green Energy Development Corporation (GEDC).
The state government expects investments to the tune of US$2.7 billion in renewable power projects during its 11th Five-Year Plan set between 2007 and 2012.
Suzlon Energy has already submitted a US$1.5 billion investment proposal to the state government, for a wind energy project, in coastal Digha in West Bengal.
Bhaskar Group, a well-known name in the field of solar wafer cells, has also drawn up a US$ 1 billion investment proposal along with a US company, which is expected in Haldia.
The private sector is investing in captive power plants, as newer manufacturing facilities arise. Bhushan Steel and Strips, which has announced a steel manufacturing facility in the state, is also setting up a 1000 MW thermal power project, at an investment of around US$1 billion.
IT sector on huge growth cycle.The IT sector in West Bengal is growing at a rate of almost 70% annually, even though average growth in the sector nationwide is only between 35% and 37%.
The growth has been fuelled through SEZ and IT parks. "We have set a target of contributing about 15% to the country's total revenue earnings from IT exports and be among the country's top three states in terms of generating revenues from IT-related activities in the next five years," said a spokesman for the government's IT secretariat.Major players such as IBM, Tata Consultancy Services, Cognizant, PwC, Skytech, NIIT, HCL, Genpact and Wipro are operating in West Bengal. Other companies which have charted out their expansion plans in the state include Convergys, HCL Infotech and Patni.US-based Accenture is in talks with the government for setting up its centre in the state's capital, Kolkata. Accenture's Kolkata centre would be its largest across Asia.
Leading software exporter Satyam Computer Services Limited is planning to expand operations in West Bengal, and is keen on acquiring more land. The company currently has an IT and BPO centre in the Salt Lake Electronics Complex.
As many as 13 IT Parks are being planned in the state, to create an additional 13.3 million sq feet of built-up space.
The state government is planning two new IT-specific special economic zones (SEZs) to accommodate IT giants - Infosys, Wipro and TCS. The two SEZs would be owned by the state and located in Rajarhat (323 acres) and Kalyani (200 acres).
To attract more foreign IT companies to the SEZs, the government plans to send official delegations to Taiwan and Singapore, among others.
Besides these parks, towns such as Durgapur, Siliguri, Haldia are emerging as suitable IT destinations, as they have developed software technology parks.
The West Bengal government has also put in place an IT policy with e-governance as the most important feature, aimed at connecting the state's 3,600 local self-governments and municipalities. The policy also focuses on promoting IT education to create skilled professionals in the field.
Infrastructure on the upgrade.Investment for infrastructure in the offing.West Bengal is investing in infrastructure development, by way of upgrading road, rail and air network, and setting up industrial infrastructure by way of SEZs, industrial parks and clusters.
The government is upgrading the infrastructure of the Durgapur-Asansol industrial region. The upgrade includes a greenfield airport, housing, markets, and other infrastructure. The project will take off from January 2008, and will be completed by June 2010.Port infrastructure is another focus area for the government, which is in the process of sprucing up the facilities at the existing ports, while looking at proposals for new port facilities.One such is the Kulpi port, jointly promoted by DP World, Keventers Agro and West Bengal Industrial Development Corporation (WBIDC). The port will come up adjacent to a SEZ, close to Diamond Harbour.

Push for tourism.

The huge potential of tourism has brought forth a policy framework to attract more tourists as well as investors.
In 2004, less than one million foreign tourists and 12.3 million domestic tourists visited the state. The government has allocated around US$650,000 in the state budget to boost tourism.
The state's tourism ministry has also commissioned a study to international consulting firm, Ernst and Young, to target the most appropriate areas of tourism development in the state, and to chalk out a strategy for boosting the sector.
The state government is planning to make investments to the tune of US$75 million with assistance from the Asian Development Bank, to promote beach tourism. For this, the UN Development Programme has been asked to study the entire east coast.
from special correspondent Reena Mital, Mumbai

Courtesy: Special correspondent Reena Mital, Mumbai for International Market News