CHAPTER 5

Industry

5.1 The flow of industrial investments to West Bengal has continued to be impressive. In 2005, up to November, 386 investment proposals with a total investment of Rs. 17968.41 crore were approved for West Bengal. In 2004, 456 proposals with a total investment of Rs. 7593.90 crore were received by the state. In 2003, the state received 458 investment proposals with a total investment of Rs. 6773.02 crore. In 2002, investment proposals entailed a total investment of Rs. 4659.88 crore, and in 2001 this was Rs. 1541.27 crore. That is between 2001 and November 2005, proposed total industrial investment for the state has increased 11.66 times. 5.2 In the period from 1991 to 2004, approved industrial investment proposals received by the state were 4029 involving a total investment of Rs. 75720.59 crore. 5.3 In the Box 5.1, a statement on outstanding investment in the different sectors of the West Bengal economy in recent years according to the Centre for Monitoring Indian Economy is shown.

Box 5.1

Trends in Investment Total outstanding investment in West Bengal has grown at an increasing rate between April 2000-05 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. (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 7916.95 10464.44 6813.85 6059.06 23733.0 Mining 2116.92 2436.02 1845.75 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 7069.94 Projects under Implementations 17016.97 20171.6 18842.99 20259.81 25683.86 26656.5

Source : Annual Review of West Bengal Economy, Centre for Monitoring Indian Economy, 2004-05.

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5.4 Industrial projects actually implemented in the state have also been increasing. In the period 2001 to 2004 the average number of projects implemented per year was 138 with an average total investment of Rs. 2200 crore. Compared to this in the period 1995 to 1998, the average number of projects implemented was 35 with an average total investment of Rs. 502.77 crore only.

5.5 In the period from 1991 to 2004, 991 projects with a total investment of Rs. 26680.14 crore were implemented.

5.6 The industrial projects implemented in different districts between 1991 and 2004 are shown in Table 5.1.

Table 5.1 District-Wise Industrial Projects Implemented between 1991 – 2004

District No. Investment (Rs. Crore)

Undivided Midnapur 43 8942.14

Burdwan 148 6562.85

North 24-Pargamas 139 1996.92

Hooghly 114 1751.93

South 24-Parganas 127 1688.89

Purba Midnapur 21 1515.41

Howrah 111 1002.13

Bankura 41 607.54

Kolkata 68 472.70

Nadia 20 256.12

Jalpaiguri 55 249.83

Purulia 17 181.76

Darjeeling 34 155.41

Paschim Midnapur 12 960.66

127

Malda 7 128.39

Birbhum 11 36.57

Uttar Dinajpur 8 25.74

Coochbehar 6 21.26

Murshidabad 4 11.37

Dakshin Dinajpur 3 6.82

Others 2 5.97

Total 991 26580.14

Source : Annual Report, 2004-05, Commerce and Industries Department, Government of West Bengal.

5.7 In the period 1991-2004, 234 new iron and steel units were set up in the state with a total investment of Rs. 8356 crore. In the last three years (2002 to 2004), 108 iron and steel projects with a total investment of Rs. 1864.42 crore were implemented in the state. 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 sector.

5.8 In recent years, investment in the cement industry has also picked up. Prior to 2000, West Bengal had just two cement units, Damodar Cement in Purulia and Birla Corporation in Burdwan, both in the large scale industrial sector. In the period 2002 to 2004, 11 cement units 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, 697 downstream units in the plastic and other related industries were set up till November, 2005, in the state. Of these total downstream units, 627 are in the small scale sector, 65 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 2005, according to the available information, 161 projects with a total investment of Rs. 1914.72 crore were implemented in the state. This figure is expected to be revised upward significantly as full information on projects

128

implemented flows in. The implemented projects in 2005 for which information is available are shown in Table 5.2.

Table 5.2 Industrial Projects Implemented in the State in 2005 (Provisional)

Sl. No. Name of the Company Product Location Investment

(Rs. Crore)

1 Aditi Plastics Pvt. Ltd. Injection,Moulded Plastic Sanitary Item

Howrah 2.51

2 Alam Tannery PL Finished leather from Buffalo/Ox/Cow/Goat Hide

24-Pgs(S) 11.94

3 Alloy Steel Plant, SAIL Replacement of Blast Furnace

Burdwan 10.00

4 Ambaji Green Tree Syringe PL

Disposable Syringe with needle

Howrah 6.50

5 Ambo Agro Products Ltd Refined Edible Oil Purba Midnapore

50.00

6 Amicus Oils & Chemicals PL Refined Rice Bran Oil, Veg.Edible Oil, Acid

Nadia 5.76

7 Amiya Steels PL Sponge Iron Bankura 10.69 8 Ankit Steel Works PL Sponge Iron Bankura 28.08

9 Aryavrata Trading PL Sponge Iron including all grades of Steel

Paschim Midnapore

4.17

10 Ashirbad Food Products Pvt. Ltd.

Flour Mill Purulia 4.28

11 Ashirbad Buiscuit Pvt. Ltd. Biscuits Hooghly 3.55 12 ASL Iron & Steel Co. PL Sponge Iron Purulia 8.96 13 Asyst Software Pvt. Ltd. Software Development 24-Pgs (N) 4.00

14 B.D. Corporates PL Flour Milling by Power Machine

Hooghly 2.80

15 Baba Ispat Pvt. Ltd. MS Angles, Channels, flats etc.

Burdwan 5.97

16 Baidyapur Himghar PL Coldstorage Burdwan 3.95

17 Balaji Paper & Newsprint PL Writing & Printing Paper Paschim Midnapore

15.76

18 Balmer Lawrie Co. Ltd. Addition & alteration of existing equipments

24 Pgs.(S) 1.50

19 Bengal Recyclers & Fabricators

Scrap Processing Burdwan 0.97

20 Bhagawati Sponge Iron Sponge Iron Burdwan 10.32 21 Bhagwangi Ispat PL MS Ingot Burdwan 5.75 22 Bhatkhawa Tea Plantation Processing & Blending of Jalpaiguri 0.53

129

Industries Ltd. Tea 23 Bisco Steel Udyog Pvt. Ltd. Sponge Iron Purulia 9.77 24 Bisco Steel Udyog Pvt. Ltd. Induction Furnace Purulia 9.46 25 BMN Alloy Steels PL Steel Ingot Hooghly 2.11 26 BMW Ceramics PL Fly ash, Clay Brick Purba Midnapur 4.87 27 Brahm Alloys PL MS Ingot Burdwan 5.34 28 Bravo Sponge Iron PL Sponge Iron Purulia 9.64 29 C.P. Rerollers PL Billets, Induction Furnace Burdwan 15.15

30 Calypso Bengal Foods (P) Ltd.

Pineapple slice,tidbits and juice and pulps

Darjeeling 9.00

31 City Alloys PL MS Ingor Burdwan 4.61

32 Corporate Ispat Alloys Ltd. Ferro Manganese, Ferro Silicon/Chrone Burdwan 8.50

33 Creative Polypacks PL HDPE/PP Film Howrah 2.22 34 Cresent Manufacturing PL Port Land Slag Cement Bankura 2.71

35 Dalmia Tea Plantation & Industry Ltd.

Tea Black-Leaf in Bulk Darjeeling 6.50

36 Dalu Holding Pvt. Ltd. Processing & Blending of Tea

Jalpaiguri 3.34

37 Dinman Polypacks PL Woven Sacks on Circular Loom

Burdwan 6.20

38 Diwan’s Hygenic Products PL

Sweet Meat Product, Whey

Howrah 4.88

39 Dollon’s Food Products PL Milk, Condenced Milk, Chhana/Paneer, Ice Cream Khoa/Peda

Hooghly 4.88

40 Durga Tea Industries Manufacturing of Tea Jalpaiguri 1.66 41 Durgamata Coldstorage Cold storage for potato Burdwan 4.18

42 Durgapur Hi-Tech Cement Works

Portland Cement Burdwan 75.00

43 Durgapur Iron & Steel Co.PL MS Ingot Burdwan 7.94 44 Durgapur Metaliks Ltd. Pig Iron Burdwan 32.93

45 Durgapur Steel Plant Installation of Ladel Furnace

Burdwan 21.85

46 East India Flour Mills PL MS Ingot Hooghly 5.71

47 East India Holdings PL MS Ingots, Billets, Rolled Products

Burdwan 10.00

48 Eastern Smithy PL

Forging,Pressing, Stamping, Roll-forming of metal powder metallurgy

Hooghly 8.00

49 Electrosteel Castings Ltd. Metallurgical Coke Purba,,Midnapur 13.85

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50 Electrosteel Castings Ltd. Sponge Iron Purba, Midnapur 28.74

51 Ellenbarrie Industrial Gases Ltd.

Industrial Gas Howrah 35.00

52 Emami Paper Mills Ltd. Newsprint & Printing & Writing paper

24-Pgs. ((N) 10.00

53 Essel Kitchenware PL Tableware, Kitchenware & other Household Plastic

24-Pgs.(N) 13.55

54 Favorich Mark PL Grain Processing Howrah 4.56 55 Fine Trade Commerce PL Atta, Maida, Suji, Bran Howrah 4.35 56 Ganges Vally Foods PL Biscuit Hooghly 2.67 57 Gee Pee Foods PL Potato Chips Hooghly 8.45

58 Gel Copper India PL Super enameled copper wire

Howrah 1.80

59 Glasshouse Developer PL Steel Ingot Burdwan 5.88

60 Golden Polyproducts Ltd. Manufacturing of Mono lyyer/multi-layer film PVC pipes

Burdwan 3.39

61 Graphite India Ltd. Graphite Electrodes Burdwan 159.15

62 Haldia Petrochemicals Ltd. Modernisation & Expansion

Purba Midnapur 40.10

63 Holoflex Ltd. Hologram 24-Pgs(N) 7.04 64 Hooghly Dairy Pvt. Ltd. Milk Products Hooghly 3.88 65 Hupson Tannery Finished Leather 24-Pgs.(S) 5.46

66 Imeco Ltd. Air pre-heater basket and collecting electrodes for power plants

Paschim Midnapur

11.91

67 Indian Oil Corporation Quality Upgradation Project EURO-III equivalent

Purba Midnapur 360.00

68 Inox Air Products Ltd. Oxygen & Nitrogen gas Paschim Midnapur

8.50

69 Iqbal Tannery Buffalo & cow hides & goad skin

24-Pgs.(S) 2.36

70 J.P.Flour Mills PL Wheat Product Hooghly 5.96 71 Jai Balaji Sponge Iron Ltd. Power Land Ferro Alloys Burdwan 85.00 72 Jalpesh Cold Storage PL Cold Storage for potato Jalpaiguri 4.07 73 Jay Pee Alloy & Castings PL Non-Alloy & Steel Ingot Hooghly 7.00

74 Kalimati Steel PL Low Ash, Metallurgical Coke

Paschim Midnapur

12.39

75 Kalpana Industries Ltd. Poly Venyl Choloride Compound

24-Pgs. (S) 1.17

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76 Kalyan Confectionary PL Hard Boiled Chocolate and Deposited Candy

24-Pgs.(N) 5.91

77 Kamarhati Co. Ltd. Jute Yearn and Twine Kolkata 6.07

78 Kanchan Oil Industries Vegetable Oil Paschim Medinipur

41.60

79 Limtex Steel Ltd. Manufacturing of CTC Tea

Darjeeling 10.13

80 Loknath Hi-Tech.Thermoutensils PL

Disposable Container like plastic cup, glass, etc.

Hooghly 1.70

81 Ma Amba Sponge Iron PL Sponge Iron Bankura 12.62 82 Ma Chandi Durga Ispat PL Sponge Iron Burdwan 11.68 83 Ma Chinnamastika Sponge Iron Purulia 13.38

84 Manaksia Steel PL

Iron & Steel Production like Flat, Angle, Channel, Round etc.by Re-Rolling Mill

Howrah 2.20

85 Meadow Food Specialties Milk Products 24-Pgs (N) 3.50 86 Meghna Farm Products Milk Products 24-Pgs.(S) 1.93

87 Micky Metals Ltd. Steel Ingot, Non-Alloy Bar & Rod

Birbhum 5.86

88 Mondal Cold storage Cold storage Bankura 8.40 89 Nanibala Cold Storage Preservation of Potato Bankura 2.37 90 Narayan Wires PL GI Wire, H.B.Wire Howrah 4.97 91 National Moulding Co. Ltd. Plastic Products Hooghly 14.80

92 Nishapati Cold storage Multipurpose Cold storage

Burdwan 4.36

93 Orion Metal PL Mild Steel Ingot Hooghly 3.26

94 Pacific Jute Ltd. Jute Yarn, Jute Cloth & Bags

24 Pgs.(S) 6.00

95 Palashbari Tea Company Ltd.

Black Tea Jalpaiguri 0.67

96 Panagarh Cold storage PL Preservation of vegetable, fruit

Burdwan 5.17

97 Payodhi Foods PL Pasteurized butter, cream,ghee,cheese,milk

Howrah 2.51

98 Podder Mercantile PL HDPE/PP Film Howrah 3.76 99 Pooja Polypacks Mansion HDPE/PP Film Bags Howrah 3.45 100 Pratyaha News Services PL Newspaper printing Bankura 2.80

101 Price Waterhouse Coopers Ltd.

Information Technology & Advisory Services, ITES & BPO

24-Pgs (N) 31.05

102 Promit Agroproducts Preservation of Potatoes Burdwan 3.91

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Storage Marketing Ltd.

103 Pulsar Rubber Manug. Co. PL

Rubber profiles & shapes 24-Pgs. (N) 6.00

104 Putinbarree Tea Association Ltd.

Tea Darjeeling 3.92

105 R.S.Synthetic (I) Pvt. Ltd. Manufacturing of Mosquito Net

Birbhum 300

106 Ramco Industries Ltd. Port Land Cement Paschim Midnapur

16.50

107 Rampurhat PSC Sleepers Pvt. Ltd.

Press-stressed Concrete Sleeper

Birbhum 5.27

108 Rashi Ispat Ltd. MS Ingot Howrah 2.26

109 Rashmi Ispat Ltd. Sponge Iron Paschim Midnapur

15.86

110 Rohit Ferrotech Limited H.C.Ferro Chrome Bankura 8.45 Sl,

No. Name of the Company Product Location

Investment (Rs. Crore)

111 S.R.Shoes PL Eva Footwear, Leather Footwear

Kolkata 3.10

112 Sagar Multipurpose Storage PL

Multipurpose Cold storage

Howrah 3.21

113 SAJ Industries PL Biscuit Howrah 3.60

114 Santima Cold Storage PL Multipurpose Cold storage

Bankura 4.31

115 Satyanarayan Cold Storage PL.

Preservation seed, table potato, fruit, vegetable

Burdwan 7.28

116 Savitri Sponge Iron Pvt. Ltd. Sponge Iron Burdwan 5.08

117 See Food Pvt. Ltd. Frozen fish & Shrimps Purba Midnapur 4.57

118 Shakanbari Oversees Traders PL

Oxygen Nitrogen Gas Burdwan 5.50

119 Shive Durga Rice Mills PL. Rice & Rice Bran Dakshin Dinajpur

3.17

120 Shiva Polymers Pvt. Ltd. PP/HB/PE Woven Fabrics & Shocks FIBC bulk bag on circular loom

Howrah 4.64

121 Shivalaya Cold Storage Pvt.Ltd.

Cold Storage for Potato Burdwan 4.68

122 Shivam India Ltd. M.S. Billet &TMT Bar Burdwan 50.00

133

123 Shree Basukinath Cold Storage PL.

Cold Storage for low storing low sugar process grade potato

Paschim Midnapore

1.09

124 Shree Gopal Gobinda Sponge PL.

Sponge Iron Burdwan 3.02

125 Shree Hazarilal Cold Storage PL.

Multipurpose Cold Storage

Jalpaiguri 4.98

126 Shree Jagannath Silpodyog Ltd.

Atta, Maida , Suji Nadia 2.75

127 Shree Parashnath Re-rolling Mills

Angles , Challens , Steel Iron

Burdwan 8.60

128 Shree Warishpriya Steel Co. PL.

M.S. Ingot Burdwan 3.56

129 Shaym Steel Industries Ltd. Spong Iron Burdwan 12.00 130 Shaym Super Cement Portland Slag Cement Burdwan 1.82 131 Siddhi Vinayak Alloys Ltd. MS Ingot Burdwan 6.41 132 Siliguri Agrotch Pvt.Ltd. Rice & Rice Bran Uttar Dinajpur 3.73 133 Skipper Steels Ltd. Steel Pipe & Tubes Howrah 5.66 134 Snowtex Udyog Ltd. Refectory Bricks Burdwan 2.25

135 Sonar Bangla Cold Storage PL.

Potato Prescription Bankura 4.71

136 Soumin Cold Storage Ltd. Cold Storage Hooghlt 6.55

137 SRMB Srijan Pvt. Ltd. Mild Steel Ingot/Structural Bars/Roads

Burdwan 14.00

138 SRS Sponge Pvt. Ltd. Sponge Iron Purulia 6.20

139 Steel Crackers Pl, Steel cast tube and re-rolling products

Hooghly 3.50

140 Stylographies Pvt. Ltd. Digital Printing 24-Pgs.(North) 1.91

141 Supreme Oil Industries Ltd. De-oiled Rice Bran Oil , Rice Bran Oil

Burdwan 1.28

142 Sure Safe Glass Works Pvt. Ltd.

Toughened Glasses 24-Pgs (South) 3.65

143 Swastik Metcast Pvt. Ltd. Aluminum Casting Howrah 1.00

144 Swastik Metcast Pvt. Ltd. Machining , Fabricating & Pasting of Aluminum

24- Pgs(North) 5.03

145 Syeedabad Tea Company Ltd.

Tea Manufacturing & Processing

Darjeeling 3.00

146 The Indian Iron & Steel Com. Ltd.

Rehabilitation of Burnpur Works

Burdwan 13.45

147 The Sun Rolling Mills Pvt. Hot Rolled Steel , Bar, Howrah 3.60

134

Ltd. Round, Flat , etc.

148 Tims Polymers Pvt. Ltd. HDTE /PP Bags 24-Pgs(North) 4.91

149 Tirupati Mechnotech Pvt. Ltd.

Processed Dry , Fly, Ash & Packaging

24-Pgs(South) 0.70

150 Tirupati Sponge & Steel MS Ingot Bankura 5.59 151 Tista Cold Storage Pvt. Ltd. Cold Storage Jalpaiguri 5.68

152 Topline Tea Company Pvt. Ltd.

Black Tea Darjeeling 2.03

153 Uma Poly Solutions Pvt. Ltd.

Solar Collectors/Panel/Semi-finished Plastic

Howrah 6.25

154 Usha Company Pvt. Ltd. Billing &Customer Care , Software for Telecom

Kolkata 5.04

155 Uttarayan Cold Storage Pvt. Ltd.

Multipurpose Cold Storage

Jalpaiguri 3.50

156 Vijay Sponge & Inspat Ltd. Sponge Iron Purulia 12.95

157 Viswarupa Steels Pvt. Ltd. MS Ingot Howrah 5.78

158 VSP Udyog Pvt. Ltd. Steel Ingot Burdwan 8.56

159 Wanson Leather Industries Finished Leather 24(pgs)(S) 10.80

160 Webel Mediatronics Ltd. Transmitter 24Pgs(S) 0.16

161 Xenitis Infortech PL. Computer Case, Mouse, SMPS, Keyboard, Laptops etc.

Hooghly 22.96

T o t a l 1914.72 Source : Department of Commerce and Industry, Government of West Bengal.

5.11 The important projects implemented in the state in 2005 are Graphite India Ltd.’s Rs. 159.15 crore graphite electrodes project, Indian Oil Corporation’s Rs. 360 crore quality upgradation-Euro-III equivalent project, Jai Balaji Sponge Iron Ltd.’s Rs. 85 crore power land ferro-alloys project, Durgapur Hi-Tech Cement Workers’ Rs. 75 crore Portland Cement project, Ellanbarie Industrial Gases Ltd.’s Rs. 35 crore industrial gas project, Rs. 42.60 crore vegetable oil project of Kanchan Oil Industries, National Moulding Co. Ltd.’s Rs. 14.80 crore plastic product project, Shivam India Ltd.’s Rs. 50 crore MS billet and TMT bar project, etc. For other projects implemented in 2005 see Table 5.2.

5.12 Apart from projects actually implemented, there were as on 31st December, 2005, 65 major projects (projects with investment over Rs. 25 crore) with a total investment of Rs. 8987 crore under implementation in West Bengal. These projects are shown in Table 5.3.

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Table 5.3 Mega Projects Under Construction (As on 31.12.05)

(Rs. Crore)

Name of the Company Product Location Project Cost

BANKURA DISTRICT Sri MP Ispat & Power (P) Ltd. Steel Billets, Rolled

products Bankura 210

Sodepur Engineering Ltd. Ferro Alloys Bankura 28

Concast Infrastructure Pvt. Ltd. Pig Iron Bankura 50

Sova Ispat Ltd. Sponge Iron, Rolled Products, Ferro Alloys, Pig Iron and Captive Power Plant

Mejia 249

Govinda Impex Pvt. Ltd. Rolled products, Ferro Alloys & MS Billets

Barjora 120

Rashmi Metals Pvt. Ltd. Ferro Alloy Bankura 32

Lafarge India Ltd. Cement Mejia 110

BURDWAN DISTRICT Shri Ramrupai Balaji Sponge Iron, Rolling

Mill, Induction Furnace, Blast Furnace with Captive Power Plant

Durgapur 175

Shyam Shree Steels Ltd. Sponge Iron, Steel Ingots, Rolled products and Captive power plants

Durgapur 90

Adhunik Ispat Pvt. Ltd. Sponge Iron, Steel Ingots with Captive power plants

Durgapur 65

Sova Ispat Alloys Ltd. Ferro Alloys Durgapur 26 C P Sponge Iron Pvt. Ltd. Sponge Iron Durgapur 30 Adhunik Corporation Ltd. Sponge Iron, Steel

Ingots Burdwan 90

SAIL Bansal Service Ltd. HR Steel Products Burdwan 150

136

Neo Metalics Ltd. Pig Iron, Coke, Ductile Iron

Burdwan 470

Jai Balaji Sponge Ltd. Integrated Steel Plant, Captive Power Plant

Burdwan 650

Enfield Exports Ltd. Pig Iron Power Plant Burdwan 127 Legancy Corporate Services Rolled Steel Products

Asansol 30

Shri Ramrupai Balaji Steels Ltd. Integrated Steel Plant, Captive Power Plant

Burdwan 1200

Jagadamba Fiscal Services Pvt. Ltd.

Pig Iron, Ductile Pipe Durgapur 120

Shree Mahalaxmi Viniyog Pvt. Ltd.

Sponge Iron, Pig Iron Panagarh 34

Jagadamba Fiscal Services Pvt. Ltd.

Clinkers and Cement Durgapur 30

Sneha Planners Ltd. Diversified Jute Products

Asansol 30

Bally Jute Company Ltd. Diversified Jute Products

Asansol 30

Shyam Metalics Pvt. Ltd. Pig Iron, Steel Billets, GI/DI Pipes, Rolled Products

Ranigunge 90

BIRBHUM Siddhi Vinayak Agro Ind. Pvt. Ltd.

Rice Bran Oil Bolpur 36

COOCHBEHAR Eastern Coated Steels Pvt. Ltd. CR Steel Products,

GP/GC Sheet Coochbehar 78

DARJEELING Electrosteel Castings Ltd. (Expan.)

Hydel Power – 24 MW Kurseong 150

HOWRAH BMW Industries Ltd. GP/GC Sheet Howrah 200 Kamini Steels Ltd. Pig Iron, Coke Howrah 35 Shivam India Pvt. Ltd. MS Billet, SS Billet Angadpur 28 Bishan Dayal Goel & Sons Pig Iron Bagnan 62 Zindal India Ltd. CR Coils, JP/GC Sheets Howrah 100 Ambuja Cement Eastern Ltd. (Expansion)

Cement Howrah 33

Swastik Refinery Pvt. Ltd. Edible Oil Jangalpur 28

137

HOOGHLY Manab Ispat Pvt. Ltd. Rolled products, ERW

Pipes, Black & Galvanised, Alloy Steel & non-alloy Steel Ingots

Serampore 35

Indvac Metals & Forge Pvt. Ltd. Foundry Products Hooghly 38 Utkarsha Galva Ltd. Cold Rolling Mill Hooghly 100 PURULIA Mark Steels Ltd. Sponge Iron, Steel

Ingots, Rolled products with Captive Power Plant

Neturia 200

Sonic Thermal (P) Ltd. Pig Iron Purulia 30 Ispat Damodhar Ltd. Sponge Iron, Steel

Ingots, Rolled Products Purulia 40

Bikash Metal & Power Ltd. Sponge Iron , M. S. Billet. Hot Rolling Mill. Captive Power Plant Ferro Manganese.

Purulia 111

Damodar Cement & Slag Ltd. Cement Madhukunda

50

PURBA MIDNAPUR Hindusthan Seals Ltd. Alluminium Rolled

Products and Flat Products, Steel CR Plant & Galvanising sheet

Haldia 240

Hooghly Metcoke & Power Co. Ltd.

Metallurgical Coke , Gomut Power Plant.

Haldia 690

Chariat Exim. Ltd. Pig Iron, DI Pipe, Ductile Iron

Haldia 70

Electrosteel Castings Ltd. (Expansion)

Coke, Sponge Iron, Captive Power Plant (18 MW)

Haldia 154

Sanghi Industries Ltd. Cement Haldia 100 M P Glychem Industries Ltd. Edible Oil Haldia 150 Haldia Vegetable Oils & Foods Food Products Haldia 130 Teej Impex Pvt. Ltd. Speciality Solvent Haldia 30 Mirage Impex Pvt. Ltd. Plastic Packaging Film Haldia 50 Ural India Ltd. Specialised Vehicle Haldia 525 PASCHIM MEDINIPUR Rashmi Ispat Pvt. Ltd. Sponge Iron, Steel Jhargram 50

138

Ingots/Billets & Captive Power Plant

Rashmi Cement Ltd. Integrated Steel Plant Jhargram 40 Ramswarup Lohh Udyog Ltd. Sponge Iron, Pig Iron,

Captive Power Plant Kharagpur 450

RBA Exports Pvt. Ltd. Pig Iron, Coke Kharagpur 45 Ramco Industries Ltd. GI Sheet Kharagpur 30 UAL Bengal Sponge Iron, Pig Iron,

MS Ingots, Rolled products, Captive Power Plant

Kharagpur 110

Rasmi Cement Ltd. Cement Jhargram 70 Kanchan Oil Industries Ltd. Edible Oil Jhargram 45 24-PARGANAS (SOUTH) Budge Budge Refineries Ltd. Edible Oil Budge

Budge 65

Enfield Ispat Ltd. Steel Billet & Bolt Products. Captive Power Plant

Falta 110

24-PARGANAS (NORTH) Hukumchand Jute Mill Diversified Jute

Products Naihati 30

Electrosteel Castings Ltd. (Expansion)

DI Pipe, CI Pipe, TMT MBF, Coal Sinter

Khardaha 213

Total Number of Mega Projects under Construction 65 Total Investment (Rs in Crore) 8987

Source : WBIDC.

5.13 It is seen that the largest number of major projects under construction are located in Burdwan followed by Purba Midnapur. It is interesting to note that in the industrially backward district of Bankura, 7 major industrial projects are coming up. Six of these are in the iron and steel industry and the other is a cement unit. In Purulia, another industrially backward district, 5 major projects are under construction. Here also 4 are in the iron and steel industry and the other is a cement unit.

5.14 The major industrial projects under construction include Ramswarup Lokh Udyog Ltd.’s Rs. 450 crore sponge iron, pig iron project, Neo Metalics Ltd.’s Rs. 470 crore project for production of pig iron, coke, ductile iron, Hooghly Metcoke and Power Co. Ltd.’s Rs. 690 crore metallurgical coke project with 60 MW power plant at Haldia, Enfield Exports Ltd.’s Rs. 127 crore pig iron with captive power plant project, Sova Ispat Ltd.’s Rs. 249 crore sponge iron, etc. project, Sri MP Ispat and Power (P)

139

Ltd.’s Rs. 210 crore steel billets, rolled products projects, etc. Most of the projects coming up are in the iron and steel industry (see Table 5.3).

5.15 While industrial investment has been increasing specially from the beginning of this decade, the employment potential of most new units is much lower than the old labour intensive units in existence in the state. In the liberalized era with increasing competitive pressure, units have had to minimize cost specially labour cost in order to survive. Consequently new units are highly capital intensive with high fixed capital to value added ratio and low wages to value added ratio. In Table 5.4, the ratio of fixed capital to gross value added and wages to gross value added at 1980-81 constant prices for the factory sector in West Bengal in different years are shown. To facilitate comparison the ratios are expressed by taking the 1980-81 ratios as 100. It is seen immediately that in the factory sector the ratio of fixed capital to gross value added (at constant prices) increased from 147.42 in 1990-91 (1980-81 = 100) to 187.75 in 2001-02. On the other hand the ratio of wages to gross value added at constant 1980-81 prices, declined from 69.00 in 1990-91 (1980-81 = 100) to 49.05 in 2001-02. The same declining trend is also noted in the case of the ratio of emoluments to gross value added.

Table 5.4 Input Intensity in the Factory Sector of West Bengal at Constant 1980-81 Prices Year Fixed Capital

Gross Value Added Wages

Gross Value Added Emolument

Gross Value Added 1980-81 100 100 100 1990-91 147.42 69.00 72.19 2001-02 187.75 49.05 52.04

Source : Basic Data-Annual Survey of Industries, Various Issues, ratios computed by BAES.

5.16 This had adverse impact on the employment in the organized manufacturing sector in the state. While new units are employing less labour in order to minimize their wage bill, old units are lowering their wage bill through retrenchment or by other means to remain competitive. Moreover, a large number of units have not been able to cope with the rising competitive pressures and have closed down. The upshot of the whole process has been that existing labour intensive industries have either closed down or have slashed down their labour force, while employment generated through new capital intensive units has been largely inadequate to compensate for the loss in industrial employment in recent years.

5.17 In these circumstances the need is to increase manifold industrial investment in the state. The State Government has been able to overcome the earlier misgivings of investors in investing in a state under a pro-labour government. Investors have

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realized the advantages of investing in a state where organized labour, without jeopardizing the basic interest of workers, consciously creates an environment conducive for productive activities. This realization of the investors has been fostered by the actual working experience of those who have invested earlier in the state.

5.18 As was noted in the previous Economic Review, the number of strikes in industrial units in the state has declined in recent years. 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.

5.19 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.

5.20 In conjunction with practical measures to sustain investor confidence, the State Government has set in place a number of policy initiatives. The State Government has promulgated in quick succession a Bio-Technology Policy, Mines and Mineral Policy, Information Technology Policy and Policy for IT Enabled Services. These policy statements have clearly enunciated the State Government’s objectives and demarcated the road map to achieve these.

5.21 The State Government has also been the first State Government in India to formulate 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.

5.22 The signing of South Asian Free Trade Area (SAFTA) agreement on 1st 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.

5.23 As the availability of developed infrastructure is crucial for motivating industrial investors to invest, the State Government has taken up a mammoth programme for infrastructure development.

5.24 The state is perhaps one of the few states in India with surplus power. The State Government has taken up a programme to maintain this ‘surplus’ situation in

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the coming years. It is implementing The Purulia Pumped Storage Project (4 x 225 MW). Considerable progress has been made in the construction of this project. Details are given in chapter 7. Construction of units 4 and 5 (2 x 210 MW) of the Bakreshwar 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.

5.25 All the above power projects except the Purulia Pumped Storage Project are expected to be completed by the end of the 10th plan, i.e. March, 2007.

5.26 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. Details of these schemes are shown in chapter 7.

5.27 The major scheme in this sphere 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.

5.28 The West Bengal State Electricity Board is also implementing a number of other schemes for the strengthening the power distribution system in the state. The details are set out in chapter 7.

5.29 The State Government has also been improving the physical and social infrastructure in the state specially in 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.

5.30 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. Till December, 2005, 94 of the schemes

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have been completed. The remaining schemes are in different stages of progress. Some of the major on-going projects in the water supply sector are underground reservoirs (UGR) for supplying drinking water at East-West road, Liluah, Bally and Maheshtala, stabilization of Garden Reach Primary Grid, laying of Ring Main from Garden Reach to Maheshtala, 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.

5.31 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.

5.32 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), peripheral sewerage scheme for West Howrah township, solid waste management schemes in 9 municipal towns.

5.33 The Kolkata Improvement Trust (KIT) also implements schemes under Kolkata Megacity Programme (KMP). KIT has completed the construction of rehabilitation building for widening of Dhakuria Station road. KIT has completed the construction of a 5 storied commercial complex.

5.34 The Howrah Improvement Trust (HIT) is also implementing schemes under KMP. HIT has completed the renovation of railings and curves of Rishi Bankim Setu, renovation of structure, railings, kerbs of GT road bye-pass and augmented the capacity and outflow of Padmapukur Balancing Reservoir. HIT has taken up the renovation of pavements and railings of Southern carriageway of southern approach to Rishi Bankim Setu.

5.35 Under KMP 1.768 km. of eastern drainage channel at Salt Lake has been re-excavated.

5.36 On 3rd December, 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. The Central Government has announced that Kolkata and Asansol will be covered under JNNURM. The State Government has prepared a list of 57 schemes with a total cost of Rs. 2159 crore for Kolkata under JNNURM. The State Government has also forwarded DPR for 10 schemes for Kolkata at the request of the

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Central Government as a prelude to the launch of JNNURM. The total cost of the 10 schemes is Rs. 678.43 crore.

5.37 The State Government has prepared a set of schemes at a total cost Rs. 1470 crore for Asansol under JNNURM. In the interim, seven DPRs for schemes for Asansol have been forwarded to the Central Government.

5.38 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.

5.39 Ganga Action Plan (Phase-II) is being implemented in the state to stop pollution of mainly Ganga and a few other rivers like Damodar and Mahananda. 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.

5.40 Till date, 171 schemes with a total cost of Rs. 30932.58 lakh have been sanctioned under GAP. At the end of 2004-05, 45 schemes were completed. It is expected that another 85 schemes under GAP will be completed by March, 2006. Work on 17 schemes under GAP will continue after March, 2006. Forty-one sanctioned schemes are yet to be taken up. Total expenditure under the programme up to 10.11.05 has been Rs. 8890.41 lakh.

5.41 The most important infrastructural project 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. And in Action Area-III with total area of 1365 hectares, work has started. Overall till date, 1200 hectares of land in the New Town have been developed at a cost of Rs. 170 crore. Residential plots in Action Area-I and II are being distributed. For other details see chapter 11.

5.42 In Action Area-I, 30 acres of land have been set aside for setting up an IT Park. Plots to 48 IT companies have been allotted. Work relating to sewerage, drainage, water supply and internal roads in this area is in progress and is expected to be completed by February, 2006.

5.43 The different Development Authorities formed to develop different urban areas in the state are also implementing large number of schemes.

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5.44 The Asansol Durgapur Development Authority (ADDA) in 2005-06, up to November, 2005, completed 3 road schemes, improved and strengthened one important road, completed 90% of the work of black topping of a road. ADDA has also completed during the same period a drainage scheme, 70% of the work for developing a children’s park, 60% of the work for extension of Bidhannagar Government Sponsored Girls’ High School. The on-going schemes under ADDA includes 9 road schemes (2 of these are for black topping of roads), 2 drainage schemes, schemes for development of parks in Asansol and Durgapur and schemes for extension and remodeling of 3 schools.

5.45 The Siliguri – Jalpaiguri Development Authority (SJDA) is presently implementing the widening of Kawakhali road (including land acquisition), bridge over river Karala near Dinbazar, bridge over river Fuleswari at Dharainagar, widening of Sevoke road phase-II and another road at PWD more, Jalpaiguri, construction of railway under bridge including approach road at Bharatnagar.

5.46 Haldia is fast developing into a major industrial town in the state. The Haldia Development Authority (HDA) implements a large number of schemes each year. It has completed in 2005-06, a 1.6 km. road and 70% of a 5.95 km. road. The on-going projects of HDA include construction of Bye Pass road from Sutahata to Horekhali, extension of HPL Link Road from Meghnad Saha Polytechnic to Haldi river embankment, construction of four lane road from Khudiram colony to NH-41 at Peerage Hotel, improvement of existing approach road at Geonkhali, construction of bye pass road from Khudiram Square to River Ring Road and MCC PTA plant, and strengthening of River Ring Road from Shaw Wallace to MCC PTA plant.

5.47 The Srinekatan-Santinekatan Development Authority (SSDA) is presently (2005-06) implementing the following schemes : construction of girls’ hostel mainly for Visva Bharati students (nearly complete), construction of indoor sports complex at Bolpur (25% of the work completed), construction of bus-truck terminal at Bolpur Bye Pass Road, implementation of municipal solid waste management project, construction of drainage system (300 metres of drain completed), construction of environmental park at Lahabundh (30% completed), construction of common facility center for SHGs (70% complete), construction of indigeneous tourism complex (20% completed).

5.48 The Burdwan Development Authority (BDA) has taken up a number of schemes on public-private partnership (PPP) basis. These include development of a township, upgradation of collectorate, development of commercial complexes, bus terminus and improvement of roads. While work on the collectorate and Nababhat complex is progressing, land acquisition procedures have been initiated for the

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complex at Alisha. PPP agreements are being executed for Satellite Township at Goda and Kamnora. The selection of private partners is in progress for Burdwan Health City and Way Side Facilities at Bamchandaipur.

5.49 BDA has completed in 2005-06, six roads of a total length of 4.75 km., layed 900 mm diameter pipe for a length of 100 metres and completed 300 metres of fencing on both sides of GT road.

5.50 Digha Sankarpur Development Authority (DSDA) is implementing at present 20 link roads of a total length of 9 km. (3 km. of link roads completed), a bituminous road of 5.5 km. length and sinking 10 tubewells (5 tubewells sunk). DSDA has also completed in 2005-06, 4 drains of a total length of 900 metres.

5.51 The Jaigaon Development Authority (JDA) has completed in 2005-06 up to November, 2005, 400 metres of road and constructed 4 water supply schemes for bus terminus, college campus, house connections and supply to adjoining villages.

5.52 The State Government is encouraging the development authorities and other agencies involved with the development of urban areas to take up schemes on the basis of public private partnership (PPP). Under KMDA the following schemes are being undertaken or are to be undertaken on the basis of PPP.

West Howrah Township

Stadium Based Commercial Complex at Rajdanga in East Kolkata

Kolkata Logistics Hub at Kona in Howrah

Dankuni Township

Flyover connecting EM Bye Pass to VIP Road near Ultadanga

Kalyani – Dum Dum Expressway

Water Park near Ruby Hospital along EM Bye Pass

Extension of EM Bye Pass from Kamalgazi to Baruipur

Elevated road corridor from Park Circus to EM Bye Pass near Parama Island

Upgradation of facilities in and beautification of Salt Lake sector V.

5.53 Siliguri - Jalpaiguri Development Authority is developing a new township near North Bengal Medical College on PPP basis. Haldia Development Authority is

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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.

5.54 Integrated Development of Small and Medium Towns (IDSMT) programme is being implemented in the state. It is a centrally sponsored programme with matching assistance from the State Government with the objective of developing small and medium towns. Physical progress made so far under this scheme is detailed below :

a) Total number of Urban Local Bodies covered 121 b) Fund released till date since the 6th Plan Rs. 120.27 crore c) Assets created in the Urban Local Bodies : i) Market/commercial complex 175 no. ii) Roads 246 km. iii) Bridge 03 no. iv) Industrial estate 15 no. v)Bus/Truck terminal 50 no. vi) Tourist dormitories 62 no. vii) Marriage halls 08 no. viii) Culverts 44 no. ix) Conversion of service privies 22000 no. x) Community latrines 70 no. xi) Pay & use toilets 10 no. xii) Street light poles 2000 no. xiii) Cattle sheds 03 no. xiv) Other assets 100 no. d) Employment generated 900000 mandays

5.55 The Public Works (PW) and Public Works (Roads) (PWR) departments construct roads and bridges in the state. The PW department took up 15 schemes under RIDF-VII. Fourteen of these were for widening and strengthening of existing roads in different districts. At the end of 2004-05, 11 of these schemes were completed. In one case while the road work was complete, work on the bridge was continuing. In two other schemes, 80-90% of the work was complete. The construction of a bridge over river Gadadhar river was nearing completion. All these schemes have been completed in 2005-06.

5.56 PW department took up the construction of 11 roads and a bridge under RIDF-X. Only one road scheme was completed by the end of 2004-05. Considerable progress has been made in implementing 5 other road schemes. Around 85% of the

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work on construction of a bridge was completed. In the case of 5 other schemes the tendering process had started.

5.57 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. Of these, the last two schemes were completed by the end of 2004-05. The other 3 schemes are supposed to have been completed by 2005-06.

5.58 The PW department is also implementing the fly-over at Taratala crossing. It has been completed in February, 2006.

5.59 The PW (Roads) department has the main responsibility for construction of roads and bridges in the state. Under RIDF-VII PW (Roads) department took up six road schemes, of these 5 schemes are complete. In the remaining scheme, of the 5 bridges to be constructed, 2 have been completed and the others are expected to be completed in 2005-06.

5.60 Under RIDF-VIII, PW (Roads) department took up work on 5 roads and 5 bridges. Except for one road, all the others are complete. Work on the bridges are continuing. All the schemes are expected to be completed in 2005-06.

5.61 The one road scheme taken up under RIDF-IX by PW (Roads) department has been completed.

5.62 Under RIDF-X, 13 road schemes and 10 schemes for construction of bridges were taken up. Also 547.81 km. of rural roads were to be improved. Most of the work on rural roads is complete. All the road schemes and 2 bridges are expected to be completed by the end of 2005-06.

5.63 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, work on the other 7 schemes is progressing. The following schemes have recently been sanctioned under Central Road Fund :

Widening and strengthening of Palita – Ramjibanpur Road (0.00 to 10.50 km.) of SH7 in Burdwan

Improvement of Salpatta – Sonakania Road (30.50 km. to 36.70 km.) in Paschim Midnapur

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Improvement of decentralized portion of NH2 from 582 to 611 km. in the districts of Burdwan and Hooghly

Widening and strengthening of Saptagram – Tribeni – Kalna – Katwa road from 0 km. to 34 km. in Hooghly

Widening and strengthening of Saptagram – Tribeni – Kalna – Katwa road from 0 km. to 102.26 km. in Burdwan

Widening and strengthening of Barakar – Purulia road from 6.65 km. to 74.00 km. in Purulia.

5.64 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 of National Highway (NH) and State Highway (SH) sections. Civil work for SH10 started in January, 2004, and is expected to be completed by January, 2007. Award for civil work for SH1 has been completed and work has commenced.

5.65 The NH component of the project is being implemented by the National Highway Authority of India, a Central Government agency.

Industrial Infrastructure

5.66 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, Kharagpur.

5.67 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.

5.68 In the Jalpaiguri new growth centre, possession has been taken of 105 acres of land. Land acquisition process for 96 acres is on. Development work is being carried out in the already acquired land. Expenditure till 31st March, 2005 was Rs. 599.80 lakh.

5.69 In the Malda growth centre (Phase-II), 52 acres of land have been acquired and development work has started.

5.70 Possession has been taken of 80 acres of land out of the proposed 260 acres in the Falta Growth Centre (Phase-II). Development work is progressing. At the end of

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March, 2005, expenditure for the development of the growth center has been Rs. 238.08 lakh.

5.71 In the Bolpur New Growth Centre, 131 acres land has been acquired. Land acquisition process is on for further 70 acres of land. Expenditure till the end of March, 2005, was Rs. 417.85 lakh.

5.72 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 infrastructure for the industry sector. 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.

5.73 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.

5.74 As already noted, 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.

5.75 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.

5.76 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 and is expected to be completed in June, 2006. Already 50% of the space to be constructed in the 2nd Phase has been booked.

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5.77 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.

5.78 The project will be implemented in phases. In the 1st phase total 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 construction contractor has been selected through a tendering process.

5.79 WBIDC has already set up a Food Park at Sankrail, Howrah. In this Park, 98 acres of land have been allotted to sixteen units. Four units have commenced project work and two units have started commercial operation. In the 1st phase total investment made by the units was Rs. 110 crore. Another Rs. 250 crore of investment is expected.

5.80 The second phase of Food Park is for both Food Park and Poly Park. 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 Rs. 100 crore and that for Poly Park is Rs. 200 crore.

5.81 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 which have already commenced project work is 14. Total investment already made is Rs. 132 crore. Estimated further investment is Rs. 300 crore. Damodar Valley Corporation has completed installation of a power substation in the growth centre at an investment of Rs. 44 crore.

5.82 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

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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.

5.83 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 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.

5.84 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.

5.85 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. 42.39 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. Abount 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.

5.86 Indian Chemical Merchants' and Manufacturing Association (ICMMA) is setting up a Chemical Park at Mouzas – Islampur, Shyamchak and Majukhetra in

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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.

5.87 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.

5.88 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 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.

5.89 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 relocating 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.

5.90 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.

5.91 A Central Government scheme "Assistance to the States for Infrastructure and Other Development for Exports" (ASIDE) devised mainly for development of infrastructure for exports is being implemented in the state. In 2003-04 and 2004-05, Rs. 35.41 crore was allotted to the state under ASIDE. Out of this, Rs. 30.62 crore have

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been released for different schemes. Some of the important schemes under ASIDE are as follows :

Name of the Scheme Executing Agency

Proposal for Contribution from ASIDE

Fund (Rs. Crore)

Amount released

so far (Rs. Crore)

i) 2.00 i) 1.00

Widening of river ring road i) 2 lane carriage wide

ii) 4 lane carriage wide

Haldia Development Authority ii) 2.00 ii) 2.00

Improvement of infrastructural facilities in and around the International Check Post at Hilli in Dakshin Dinajpur district

DM, Dakshin Dinajpur 2.43 1.20

Mohadipur Land Customs Check Post in the district of Malda DM, Malda 5.45 0.20

2.50 Improvement of Sarishaghat-Nainan Road and Bhaduria-Saharahat Road in 24-Pgs. (S)

Chief Engineer, PW Roads

4.943 1.9851

Development of infrastructure link road between National Highway (Delhi Road) and factory location of Indian Rayon & Industries Ltd.

CEO, KMDA 1.788857 1.788857

Providing drainage facility and protection by construction of embankment and slope pitching to protect Sector I & II of FSEZ.

Chief Engineer-II, Irrigation & Waterways Department

2.0619 2.0619

Infrastructure development for promotion of export at Jaigaon in Jalpaiguri district

DM, Jalpaiguri 4.00 2.00

Truck terminals at Changrabandha LCS in Coochbehar district

DM, Coochbehar 2.10 1.50

5.92 It is expected that a sum of Rs. 10.05 crore will be received for ASIDE scheme for the financial year 2005-06.

5.93 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 aimes to develop high quality infrastructure to attract export related industries. The industries intending to set up units of production in this complex will

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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

5.94 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).

5.95 In 2004-05, WBIDC sanctioned Rs. 17879 lakh of loans against Rs. 9460 lakh sanctioned in 2003-04. Actual disbursement of loans in 2004-05 was Rs. 8732 lakh against Rs. 8108 lakh in 2003-04. In 2005-06 (up to 31st December, 2005), the amount of loan sanctioned was Rs. 13804 lakh, and disbursement was Rs. 6609 lakh.

5.96 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 2004-05, it disbursed Rs. 1069 lakh as incentives. Disbursement during 2005-06 (up to December, 2005) amounted to Rs. 2400 lakh.

5.97 WBIDC's financial performance is improving. Recovery of loans with interest increased to Rs. 8315 lakh in 2004-05 from Rs. 5561 lakh in 2002-03. In 2005-06 (up to December, 2005) recovery was Rs.6971 lakh.

5.98 WBIDC's net non performing assets (NPA) has declined progressively from Rs. 61.20 crore in 2002-03 to Rs. 47.78 crore in 2003-04 and to Rs. 37.15 crore in 2004-05.

5.99 WBIDC achieved net profit of Rs. 907 lakh in 2004-05 against a net profit of Rs. 834 lakh in 2003-04. In 2005-06 (up to December, 2005), net profit is estimated to be Rs. 820 lakh.

5.100 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

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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.

5.101 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.

5.102 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.

5.103 The IT Department of the State Government is the prime agency for promoting IT industry in the state. Within a short time, the IT industry has achieved significant growth. At present total export earning of IT companies located in Software Technology Park (STP) is Rs. 2000 crore. Presently, 180 IT and 55 ITeS companies are operating in Kolkata providing employment to 35000 professionals.

5.104 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.

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5.105 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.

5.106 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.

5.107 Software Technology Parks are also being developed at Siliguri and Haldia. These are expected to be operational by March, 2006. Software Technology Parks have already been set up in Durgapur and Kharagpur.

5.108 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.

5.109 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. The total cost for this would be Rs. 4.96 crore. The extension programme of SWAN is expected to be completed by 31st March, 2006.

5.110 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.

5.111 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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5.112 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.

5.113 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.

5.114 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.

5.115 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.

5.116 The Food Processing Industries and Horticulture Department of the State Government promotes food processing industries in the state. Most of the programmes of the department were discussed in chapter 3. The department, to reiterate, sets up food parks, perishible goods cargo complexes, quality control laboratories, etc.

5.117 The department has been trying to motivate small entrepremeurs 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 in 2004-05. All five proposals were approved by the Central Government.

5.118 As a result of these efforts of the department (discussed in more detail in chapter 3), in 2004-05, 204 proposals with a total investment of Rs. 524 crore for investment in the food processing industry sector were approved by the department. In 2003-04, the number of such proposals approved were 155 with a total investment of Rs. 327 crore. In 2005-06, up to November, 2005, 55 investment proposals with a total investment of Rs. 200.58 crore were approved.

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5.119 The West Bengal Pharmaceutical and Phytochemical Development Corporation (WBPPDC) of the State Government has three production units – one at Jalpaiguri, another at Kalyani and the third at Behala.

5.120 The Jalpaiguri unit produces Phytonol a plant growth regulator. The Kalyani unit produces mainly Glycerol Monostearate (GMS), used in bakery and biscuit industry. The Behala unit produces household utility products like phytofresh (a herbal floor cleaner), Phytospray (herbal room freshner), Phytomos (herbal mosquito repellant). WBPPDC also has a drug testing laboratory at Behala.

5.121 The sale of GMS increased to Rs. 31.96 lakh in 2005-06 (up to November, 2005) against Rs. 21.58 lakh in the same period of 2004-05. In the Behala unit, the sale of household products increased to Rs. 33.79 lakh in 2005-06 (up to November, 2005) against Rs. 27.89 lakh during the same period of 2004-05. The sale of Phytonol has increased by 24.43% during 2005-06 (up to November, 2005) over that in the same period of 2004-05. WBPPDC has achieved a turnover of Rs. 127.53 lakh in 2005-06 (up to November, 2005) against a turnover of Rs. 91.54 lakh in the same period of 2004-05. WEBCON has prepared a report on the viability of WBPPDC. The State Government is examining the report.

Industrial Production

5.122 The general index of industrial production (Base 1993-94 = 100) increased to 164 in 2004-05 from 154.8 in 2003-04, thereby registering a growth of 5.9%.

5.123 The index of industrial production for the manufacturing sector moved up to 160.2 in 2004-05 from 151.4 in 2003-04, registering a growth of 5.8%.

5.124 The index of production for the electricity sector increased by 5.6% to reach 212.5 in 2004-05 from 201.2 in 2003-04.

5.125 The index of production for the mining sector increased to 140.7 in 2004-05 from 127.5 in 2003-04, thus registering a growth of 10.4%.

5.126 In 2005-06, April to September, 2005, the general index of industrial production increased by 5.2% over the same period of 2004-05. The index of production for the manufacturing sector registered an increase of 4.8% in the same period of 2005-06. The index production of the electricity sector increased by 7.5% and that of the mining sector by 4.7% in the same period of 2005-06 over that in 2004-05.

5.127 It might not be prudent to predict the growth in industrial production in 2005-06 on the basis of growth in the index of production in the period April to

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September, 2005, specially in the manufacturing sector. Since in September, 2005, the index of production for the manufacturing sector registered a growth of 8.2% and the general index of production increased by 8.4% over the same month of 2004. The growth in industrial production in September, 2005 could be the beginning of an upturn in industrial production in the state.

5.128 One of the problem of the 1993-94 based index of production is that it fails to give proper weightage to the fast expanding industries in the state. The index gives undue weight to declining industries. The current exercise in shifting the base of the index to 1999-2000 would hopefully redress this problem.

5.129 A better understanding of the performance of the industry sector in the state can be provided by an analysis of the performance of the major industries in 2004-05 and in 2005-06. In Table 5.5, the production in major industries in the state in 2003-04, 2004-05 and in 2005-06, up to September, 2005, is given.

Table 5.5 Production in Important Industries in West Bengal

April - September Industry Unit 2003-04 2004-05 2004-05 2005-06 Jute '000 MT 1333 1367 627 624 Cotton Textiles Yarn '000 Kg. 36630 36022 17751 15532 Cloth '000 Metres 2395 3040 1229 2102

April - November Tea '000 Kg. 199896 (P) 187180 (P) 161512 170488 April - September Finished Steel '000 MT 1611 1655 797 795

Source : Bureau of Applied Economics and Statistics, Government of West Bengal.

Jute Industry

5.130 The production of jute goods increased marginally from 13.33 lakh tonnes in 2003-04 to 13.67 lakh tonnes in 2004-05. In the first six months of 2005-06, production of jute goods was almost the same as in the corresponding period of 2004-05.

5.131 The situation in the jute industry continued to be discouraging. 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. However, the Central Government has continued to dilute the provisions of JPA. 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 jute.

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5.132 The jute industry is therefore, faced with a stagnant and even declining domestic demand. The Commission of Agriculture Costs and Prices (Government of India) had in its report on raw jute in 2004-05, as was reported in the previous Economic Review, criticised the Central Government 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. This contradictory policy of the Central Government has largely been responsible for the present state of the jute industry.

Cotton Textile

5.133 The production of cotton yarn declined slightly to 360.22 lakh kg. in 2004-05 from 366.30 lakh kg. in 2003-04. In the first six months of 2005-06 the production of cotton yarn was 155.32 lakh kg. which was lower than the production of 177.51 lakh kg. in the same period of 2004-05.

5.134 The production of cotton cloth increased to 30.40 lakh metres in 2004-05 from 23.95 lakh metres in 2003-04. In the first six months of 2005-06, production of cotton cloth increased to 21.02 lakh metres from 12.29 lakh metres of cotton cloth produced in the same period of 2004-05.

5.135 Although it is encouraging to note the rising cotton cloth production from 2004-05, the state of the cotton textile industry in West Bengal is dismal. According to Eastern India Textile Mills' Association, out of the 19 textile mills in the private sector, only 7 mills are operating. However, in the country as a whole, the number of closed textile mills increased to 475 on March, 2005 from 468 mills lying closed on March, 2004. Thus 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 uncompetitive compared to the decentralised sector, specially the powerloom sector. Industry sources concede that the expected increase in capacity in the country to meet post quota rise in export demand has not materialised. This in spite of the concessions given to the organised textile industry in the 2004-05 budget of the Central Government.

5.136 According to discerning experts with intimate knowledge of the textile industry in West Bengal, the state has certain inherent strength like competitive base for manufacturing of garments for the domestic market, pioneer status in hosiery sector, creative designing capabilities, availability of technical and ancillary manpower, etc.

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5.137 The State Government in order to reap the benefits of these positives, is rapidly developing the infrastructure for the textile industry. It is setting up a Garment Park, an Apparel Park and is exploring various measures for the resurgence of the industry in the state.

Tea

5.138 The production of tea declined to 187.18 million kg. in 2004-05 from 199.89 million kg. produced in 2003-04. In the first 8 months of 2005-06 (i.e. April to November, 2005) production of tea increased to 170.49 million kg. from 161.51 million kg. in the same period of 2004-05.

5.139 The basic problem of the tea industry in the state is over - production as was noted in the previous Economic Review. 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 around 21-22 million kg. each year. The small sector with little or no overheads undersell the tea estates in the organised sector. The increased supply and unequal price competition have considerably eroded the viability of many tea estates. The tea estates most affected are primarily those which had 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.

5.140 In 2005, rising tea production in India and declining exports increased the availability of tea in the domestic tea market. This was exactly the opposite to the all India trend of rising exports and falling tea production in 2004. As a result of these development in the tea industry in the country in 2005, tea prices in India as well as in West Bengal registered sharp decline in 2005.

5.141 It can be seen from Table 5.6 that tea prices in all the three major tea producing areas of Dooars, Terai and Darjeeling in the state declined in 2005.

Table 5.6 Movement 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 62.15 Terai 70.68 57.67 60.48 53.11 51.71 61.97 54.55 Darjeeling 167.00 154.00 144.00 128.05 148.80 154.32 146.76 R = Revised P = Provisional Source : Tea Board.

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5.142 The decline in tea prices has created new problems for the tea industry in the state. This is not a desirable development, specially as 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 impact on the tea industry.

5.143 In 2004, 27 closed tea gardens had reopened. In 2005, 7 more tea closed gardens have opened. The list of tea gardens that have opened are shown below :

Since January, 2004 the following gardens have reopened :

2004

1. Mission Hill T.E. w.e.f. 01.01.2004.

2. M/s Chongtong T.E. w.e.f. 02.01.2004.

3. M/s Kohinoor T.E. w.e.f. 07.01.2004.

4. M/s Majherdabri T.E. w.e.f. 16.01.2004.

5. M/s Fagu (Lower Fagu) T.E. w.e.f. 16.01.2004, but was again placed under Suspension of work from 08.10.2004.

6. M/s Ambiok T.E. w.e.f. 03.02.2004.

7. M/s Glenburn T.E. w.e.f. 09.02.2004.

8. M/s Sachindrachandra T.E. w.e.f. 26.02.2004.

9. M/s Raja T.E. w.e.f. 11.03.2004.

10. M/s Satali T.E. w.e.f. 17.03.2004.

11. M/s Samsing T.E. w.e.f. 19.03.2004.

12. M/s Nischintapur T.E. w.e.f. 29.03.2004.

13. M/s Shikarpur Bhandarpur T.E. w.e.f. 29.03.2004.

14. M/s Dima T.E. w.e.f. 02.04.2004.

15. M/s Kalchini T.E. w.e.f. 03.05.2004.

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16. M/s Raimatang T.E. w.e.f. 03.05.2004. 17. M/s Rahimabad T.E. w.e.f. 04.05.2004. 18. M/s Singbuli T.E. w.e.f. 08.06.2004. 19. M/s Baradighi T.E. w.e.f. 14.06.2004. 20. M/s Bamandanga Toondoo T.E. w.e.f. 17.06.2004. 21. M/s Chinchula T.E. w.e.f. 28.06.2004. 22. M/S New Glenco T.E. w.e.f. 07.07.2004. 23. M/s New Chumta T.E. w.e.f. 15.07.2004. 24. M/s Ging T.E. w.e.f. 31.07.2004. 25. M/s Matidhar T.E. which was locked out w.e.f. 17.08.2004 has been functioning

w.e.f. 22.08.2004 on the basis of bipartite agreement dated 21.08.2004. 26. M/s Sayedabad T.E. (635) which remained abandoned since 22.09.2003 has

started functioning w.e.f. 22.09.2004 on the basis of a bipartite agreement reached on 21.09.2004.

27. M/s. Mujnai Tea Estate which remained abandoned since 25.04.2002 has started functioning from 11.10.2004 following a bipartite understanding.

28. M/s. Tukdah T.E. which was locked out w.e.f. 09.10.2004 has been functioning w.e.f. 01.11.2004 following a bipartite discussion.

2005 M/s. Srinathpur Tea Estate having 227 workers was placed under suspension of work from 31.10.2002. It reopened from 10.01.2005 following a tripartite settlement. 29. M/s. Chengmari Tea Estate employing 2672 workmen was under suspension of

work from 19.01.2005 was reopened on 17.02.2005 following a tripartite settlement.

30. M/s. Madhu Tea Estate employing 952 workers were placed under suspension of work from 01.02.2005, reopened on 04.03.2005.

31. M/s. Raipur Tea Estate, Dist. Jalpaiguri Lock out was declared in the garden employing 640 workers from 17.10.2003. The garden opened from 10.03.2005.

32. M/s. Fagu Tea Estate, Gorubathan District Darjeeling. The Garden employing 446 regular and 100 temporary workers was placed under suspension of work from 08.10.2004. The garden reopened from 06.05.2005.

33. M/s. Jogesh Chandra Tea Estate employing 1000 workers was locked out from 22.04.2003. The garden is reportedly reopened on 03.02.2005.

34. M/s. Dheklapara Tea Estate employing 607 workers was locked out from 21.06.2002, the garden reopened from 04.07.2005.

5.144 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 selami for renewal of lease deed in respect of those tea gardens which have been transferred (other than by inheritance) from level of Rs.

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15000 per hectare to Rs. 9000 per hectare. In respect of sick gardens 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 in Industries scheme; (4) the State Government has started distribution of special GR/Cash 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.

5.145 In Table 5.7, relief provided to workers in closed and abandoned tea gardens are shown.

Table 5.7 Status of Rural Development (SGRY)/Relief Works/Supplementary Nutrition

Programme/Sinking of Tubewells in Closed/Abandoned Tea Gardens, as on 04/01/2006 (with effect from 15/12/2005)

Food for Work Programme Special GR (Cash Distribution) SI.

No.

Name of Tea Garden

Present status of

the Garden

No. of man days

created

Cash Distributed

(in Rs.)

Foodgrains distributed

(in kgs)

No. of Beneficiaries

Amount (Rs.)

1. Kathalguri Closed 8500 117200 68920 0 0

2. Surendranagar Abandoned 1458 15600 12456 0 0

3. Chamurchi Abandoned 6276 85020 50682 0 0

4. Red Bank Abandoned 4375 60500 35125 0 0

5. Raipur Abandoned 3543 71596 24745 200 12000

6. Ramjhora Closed 5515 176480 27575 0 0

7. Samsing Closed 6572 231440 39432 1705 102300

8. Bamandanga & Tondoo Closed 4100 82000 28700 0 0

Total 40339 839836 287635 1905 114300

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SI. No.

Name of Tea Garden

No. of New Tubewells

sinking completed

No. of Children

served under ICDS, SNP 6 months to 6 yrs. (Daily

Basis)

Normal SNP for

PM& LM

Pilot project for nutrition to PM,

LM& adolescent girls

(Distribution of rice)

Cooked mid day meal scheme started

Number of schools

1. Kathalguri 0 3266 487 No 1

2. Surendranagar 0 3893 441 No 1 3. Chamurchi 0 1867 264 No 2

4. Red Bank 0 1400 109 No 1 5. Raipur 4 4510 770 No 1

6. Ramjhora 0 6270 1122 No 2 7. Samsing 0 1492 364 No 8

8. Bamandanga & Tondoo 0 4946 585 Yes 3

Total 4 27644 4142 0 19

Distribution of foodgrains under Spl. AAY in November, 2005 SI. No.

Name of Tea Garden

No. of family I-cards issued

Adult member

Minor member

Rice distribution in Quintals

Wheat distribution in Quintals

1. Kathalguri 6500 5616 2368 238.00 238.00 2. Surendranagar 1458 711 205 28.47 28.47

3. Chamurchi 6276 3949 410 145.39 145.39 4. Red Bank 4375 2264 715 91.75 91.75

5. Raipur 3543 1170 350 47.07 47.07 6. Ramjhora 5515 3277 1217 135.69 135.69

7. Samsing 6572 3505 1417 170.40 170.40

8. Bamandanga & Tondoo 1150 1393 1496 115.00 115.00

Total 35389 21885 8178 971.77 971.77

Health Care Sl.

No. Name of Tea Garden No. of days mobile medical unit visited the garden

No. of patients treated with medicines

1. Kathalguri 5 218 2. Surendranagar 3 27 3. Chamurchi 5 146

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4. Red Bank 3 121 5. Raipur 16 384 6. Ramjhora 5 210 7. Samsing 2 286 8. Bamandanga & Tondoo 2 88

Total 41 1480

AAY = Antyodaya Anna Yojana Source: Department of Commerce and Industries, Government of West Bengal.

Steel

5.146 The production of finished steel increased marginally to 16.55 lakh tonnes in 2004-05 from 16.11 lakh tonnes in 2003-04. 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.

5.147 The production in the steel industry in the country increased for most categories of steel in the period April to October, 2005. In October, finished steel production in the country increased by 8.9% according to CMIE. Thus production of finished steel in the state might have picked up from October, 2005.

Coal and Other Minerals

5.148 The production of coal increased to 23.17 million tonnes in 2004 from 19.45 million tonnes in 2003. In the first seven months of 2005, production of coal increased to 14.26 million tonnes from 13.66 million tonnes of coal produced in the same period of 2004. The production of coal and other minerals in West Bengal is shown in Table 5.8.

5.149 The production of china clay declined sharply to 67.48 thousand tonnes in 2004 from 95.87 thousand tones in 2003. However, the decline in the production of china clay has been reversed in the first seven months of 2005. In this period (January to July) production of china clay increased to 40.82 thousand tonnes from 40.36 thousand tonnes in 2004.

5.150 The production of fire clay increased significantly to 69.77 thousand tonnes in 2004 from 38.17 thousand tonnes in 2003. However, in the first seven months of 2005 production of fire clay declined to 42.74 thousand tonnes from 47.31 thousand tonnes in the same period of 2004.

5.151 In 2004, the production of apatite declined (see Table 5.8), however in the first seven months of 2005, the production of apatite increased to 5.24 thousand tonnes from 4.28 thousand tonnes in the same period of 2004.

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Table 5.8 Mineral Production in West Bengal

Production January - July Item Unit

2003 2004 2004 2005

China Clay (Kaolin) Tonnes 95870 67477 40363 40817 Coal '000 Tonnes 19447 23172 13655 14260 Fire Clay Tonnes 38165 69767 47311 42742 Apatite Tonnes 6206 5256 4278 5236 Sources : (1) Monthly Bulletin of Mineral Statistics and Information. (2) Monthly Statistics of Mineral Production. 5.152 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 dereservation 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.

5.153 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.

Ports

5.154 The total export cargo handled by the Kolkata Dock System (KDS) increased to 17.15 lakh tonnes in 2004-05 from 10.70 lakh tonnes in 2003-04. The total import cargo handled by KDS also increased from 75.03 lakh tonnes in 2003-04 to 81.83 lakh tonnes in 2004-05.

5.155 The total export cargo handled by the Haldia Dock Complex (HDC) increased in 2004-05 to 112.20 lakh tonnes from 98 lakh tonnes in 2003-04. The total import cargo handled by Haldia Dock increased from 225.59 lakh tonnes in 2003-04 to 250.05 lakh tonnes in 2004-05.

5.156 In the first eight months of 2005-06, export cargo from KDS increased to 13.44 lakh tonnes from 10.18 lakh tonnes in the same period of 2004-05. The import cargo in the same period of 2005-06 also increased to 40.47 lakh tonnes from 38.18 lakh tonnes in the same period of 2004-05.

5.157 In the same period of 2005-06 (i.e. April to November, 2005) export cargo from the Haldia Dock increased to 93.29 lakh tonnes from 66.08 lakh tonnes in the

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same period of 2004-05. Import cargo from the Haldia Dock in the period April to November, 2005-06, also increased to 181.85 lakh tonnes from 166.58 lakh tonnes in the same period of 2004-05.

5.158 The growth in traffic from both KDS and Haldia Dock therefore registered significant increase in 2004-05 and in the first eight months of 2005-06.

5.159 According to CMIE, in the first eight months of 2005-06, the growth in traffic of the Kolkata – Haldia port complex registered the sharpest increase of 17.1% among the major ports in India. In fact the growth in traffic of Haldia port alone in the first eight months of 2005-06 was 18.3%. In this period iron ore traffic handled by Haldia Port increased by 72.3% to reach 5.3 million tonnes, accounting for 68% of the cargo movement in the Kolkata – Haldia Dock Complex. The traffic in major ports in the first eight months of 2005-06 is shown in Table 5.9.

Table 5.9 Port-Wise Traffic in April – November, 2005-06

Traffic (‘000 MT)

% Change over the same period of 2004-05

% Share

Visakhapatnam 35540 11.2 13.2 Chennai 31256 11.5 11.6 Kandla 29827 10.1 11.1 Haldia 27514 18.3 10.2 Mumbai 26114 14.7 9.7 Jawaharlal Nehru 24696 13.7 9.2 New Mangalore 23169 8.2 8.6 Paradip 21643 12.0 8.0 Mormugao 17512 6.1 6.5 Tuticorin 11508 9.5 4.3 Cochin 8883 -6.5 3.3 Ennore 6330 0.3 2.3 Kolkata 5429 11.7 2.0 Total 269421 10.8 100.0

Source : Monthly Review of the Indian Economy, January, 2006, CMIE.

Wagons Loaded in West Bengal 5.160 The total number of wagons loaded by Eastern Railway in the state increased to 18.78 lakh in 2005 from 17.36 lakh in 2004. As can be seen from Table 5.10, this increase was primarily because the number of wagons loaded with coke and coal increased from 12.55 lakh in 2004 to 13.89 lakh in 2005. The number of wagons loaded with foodgrains however declined to 5452 in 2005 from 10991 in 2004. The number of wagons loaded with miscellaneous commodities increased to 4.02 lakh in 2005 from 3.90 lakh in 2004. In the case of other commodities the change in the

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number of wagons loaded in these two years was only marginally different (Table 5.10).

Table 5.10 Number of Wagons Loaded by Eastern Railway and South Eastern Railway

Eastern Railway

Year Total Coke & Coal Foodgrains Jute (Raw & Mfg.)

Iron & Steel Misc.

2003 1520214 1075151 4122 9545 65414 365982 2004 1736036 1254692 10991 11233 69337 389783 2005 1878225 1388836 5452 12635 68995 402307

South Eastern Railway

Year Total Coke & Coal Foodgrains Other Misc. (including Jute & Tea) Misc.

2003 1006888 684897 3494 248250 2004 978342 644176 2930 77979 253257 2005 1046225 685639 2264 84820 273502

70247

Source: Eastern Railway & South Eastern Railway. 5.161 The total number of wagons loaded by South Eastern Railway in the state in 2005 increased to 10.46 lakh from 9.78 lakh in 2004. In this case also the number of wagons loaded with coke and coal increased (see Table 5.10). The number of wagons loaded with other miscellaneous commodities increased to 84820 in 2005 from 77959 in 2004. The number of wagons loaded with miscellaneous commodities also increased to 2.74 lakh in 2005 from 2.53 lakh in 2004. 5.162 The increase in the total number of wagons loaded with different commodities in 2005 indicate the rising production activity in the state in 2005. The relative decline in the number of wagons loaded with foodgrains is not significant as most of the foodgrains are carried by road transport. Movement of Share Prices 5.163 The monthly averages of the Sensitive 40 share price index (the index of the most active 40 scripts in Kolkata Stock Exchange with base 31.03.96 = 100) in 2005 show that the index moved up from January to March and after slight dip in the following three months (April, May and June) started rising sharply from July to reach a peak in September (see Table 5.11). After a decline in October, average of the index started rising again from November to reach 4501.30 in December. Thus the index moved up from 3874.09 in January and ended the year as indicated earlier.

5.164 The share market at Kolkata was therefore fairly buoyant in 2005.

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Table 5.11 Movement of Share prices in Kolkata Stock Exchange, January to December, 2005

(Average of Sensitive 40 Share Price Index, Base 31.03.96 = 100)* Month Monthly Average

of Share Price Index

Month Monthly Average of Share Price

Index January 3874.09 July 4370.04 February 4078.02 August 4387.57 March 4132.34 September 4646.39 April 3945.96 October 4190.79 May 3918.82 November 4301.92 June 4119.76 December 4501.30

* Compiled by Bureau of Applied Economics and Statistics, Government of West Bengal.

Public Enterprise

5.165 The Public Enterprise department of the State Government had control over 23 enterprises (PSUs) and one departmental undertaking. Most of these units were taken over sick private units. 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.

5.166 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.

5.167 It was in this perspective that 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. Further, some other loss making units under IT department, Tourism department, Commerce and Industries department and Cottage and Small Scale Industries department were brought under the Pilot Project.

5.168 The Pilot Project was taken up to gather experience in the complexities of restructuring 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.

5.169 The State Government had decided on the basis of expert advise that the `restructuring’ process would involve

(a) the closure of unviable PSUs

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(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.

5.170 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 of medical and accident/disability coverage for employees and their spouses and a programme for counselling and reskilling for alternative livelihood have also been included under a Social Safety Net Programme (SSNP).

5.171 The present status of the Pilot Project for restructuring is that 2 PSUs under the Public Enterprise department and 5 Webel subsidiaries have been closed down. This has saved Rs. 15.7 crore of recurrent annual expenditure for the State Government. The 1150 employees of these units were paid full compensation amounting to a total of Rs. 36.9 crore within a week of the dates of their retirement in 2004. The social component of the early retirement scheme became operative for these employees immediately on retirement.

5.172 Further, closure of one PSU under Commerce and Industry (C and I) department and 6 PSUs under Cottage and Small Scale Industries (C and SSI) department is envisaged. Of these 7 PSUs, all employees of one PSU of C & I department and one PSU of C and SSI department have accepted ERS in September – October, 2005. Moreover, employees of one unit of West Bengal Agro-Textile Corporation Ltd. under Public Enterprise (PE) department have also accepted ERS in September, 2005.

5.173 The four PSUs under PE department that are being restructured under the continued ownership of the State Government are : Durgapur Chemicals Ltd., Westinghouse Saxby Farmer Ltd., Gluconate Health Ltd., Britannia Engineering Ltd. These units, as a part of their restructuring process, offered ERS to their employees. A total of 1113 employees of these 4 PSUs applied for early retirement in 2004 and were given their full compensation of Rs. 48.36 crore within a week of their retirement and the social security component of ERS became operative immediately. Three of these 4 PSUs have required no budgetary support since March/April, 2004. Measures to further improve the operational efficiency of these units are continuing.

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5.174 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.

5.175 No bids were received for 5 PSUs. The State Government has decided to close down one of these. A second attempt to generate bids for the other 4 PSUs is underway.

Closed and Sick Industries 5.176 The number of sick industrial units from the state registered with the Board for Industrial and Financial Reconstruction (BIFR) was 307. 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. 5.177 Out of the 33 cases of sanctioned revival packages by BIFR, 13 private sector units have attained viability. In the case of CPSUs, 9 cases were sanctioned revival schemes and so far one unit has been revived. At present revival packages are being implemented in 20 private sector units and in 8 CPSUs. The list of companies which has received BIFR approved rehabilitation packages and their present status are shown below :

Private Sector Units Physical Progress of Revival Employees ABB ABL Limited Revived. Ceased to be sick 3100 Anantapur Textiles Ltd. Scheme failed. Winding up

recommended. Appeal pending. 1100

Asiatic Oxygen Ltd. Revived. Ceased to be sick 400 Badrinarain Alloys & Steels Ltd. Scheme under implementation

and the unit is rehabilitated successfully

200

Bengal Ingot Co. Ltd. Revised Scheme under implementation

300

Bengal Paper Mills Ltd. Being reopened as a new venture 2000 Budgebudge Refineries Ltd. Revived. Ceased to be sick 200 Calcutta Chemicals Ltd. Revived. Ceased to be sick 1000

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Century Extrusions Ltd. Scheme under implementation 300 Calcutta Silk Mfg. Co. Ltd. Sanctioned Scheme is under

implementation 200

Damoder Cement & Slags Ltd. Scheme under implementation 200 Everest Paper Mills Ltd. Revived. Ceased to be sick 500 Genelec India Ltd. Scheme under implementation 1000 Gramophone Co. of India Ltd. Revived. Ceased to be sick 1200 Graphitech India Ltd. Sanctioned by AAIFR-Scheme

under implementation 200

Gulmohar Papers Ltd. Revived. Ceased to be sick 100 GKW Ltd. Scheme under implementation 700 Hada Textiles Industries Ltd. Scheme under implementation 800 India Hard Metals Ltd. Scheme under implementation 400 Jay Engineering Works Ltd. Revised Scheme under

implementation 1100

Kanchan Oil Industries Ltd. Revived. Ceased to be sick 400 Khaitan Agro Complex Ltd. Revived. Ceased to be sick 1200 Kolmack Chemicals Ltd. Ceased to be sick. Scheme under

implementation 200

Light Metal Industries Revived. Ceased to be sick 200 Manas Flour Mills Ltd. Revived. Ceased to be sick 200 Standard Pharmaceuticals Ltd. Revival Scheme is under

implementation 700

Shankar Gas Industries Ltd. Revived. Ceased to be sick 250 Small 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

Texmaco Ltd. Scheme under implementation 1700 Universal Paper Mills Ltd. Scheme failed. Change of

management. Revised Scheme under formulation

550

Vegetable Products Ltd. Scheme under implementation 250 WEBFIL Ltd. Scheme under implementation.

Deregistered from BIFR. 400

33 units 23050 Central Sector

Bengal Chemicals & Pharma Ltd.

Scheme under implementation. Revision suggested

800

Biecco Lawrie Ltd. Revived. Ceased to be sick 500 Braithwaite & Co. Ltd. Scheme under implementation 3400

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Burn Standard & Co. Ltd. Being rehabilitated 2500 Eastern Coal Fields Ltd. Scheme under implementation 110000 Indian Iron & Steel Co. Ltd. SAIL-scheme of Rs. 1081 crore-

package is under implementation 21000

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 prospective revival

700

National Textile Corporation (WBABO) Ltd.

Sanctioned Scheme is under implementation

2000

9 units 146900 42 units 169950

Source : Department of Industrial Reconstruction, Government of West Bengal.

5.178 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. Moreover, proposals for assistance under WBIRS have been mostly for bridge loans on soft terms to retire high cost loans. During the 10th plan up to September, 2005, a total of Rs. 1892.90 lakh has been provided as loan to 9 units under WBIRS. The details are shown below :

Sick/Weak/Closed (after reopening) Rs. in lakh Employees Status

of revival Pacific Cotspin Ltd. (Non-BIFG/weak) 238.90 900 Being revived Calcutta Silk Mfg. Co. Ltd. (BIFR) 333 200 Being revived Standard Pharmaceuticals Ltd. (BIFR) 200 350 Being revived Hindusthan Cooking Coal Ltd. (SSI) 7 35 Being revived Badrinarayan Alloys & Steels Ltd. (BIFR) 100 200 Being revived Bengal Metrographs Ltd. (SSI) 14 30 Being revived NICCO Corporation Ltd. (Non-BIFR) 300 750 Being revived Century Extrusion Ltd. (BIFR) 500 300 Being revived Hada Textiles Ltd. (BIFR) 200 800 Being revived Total (9 units) 1892.90 3565

5.179 The State Government has granted "Waiver of Electricity Duty" amounting to Rs. 2535 lakh to 13 sick/weak units till September, 2005.

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5.180 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.

5.181 Capital investment subsidy amounting to Rs. 290 lakh has been granted to 3 units till 30.09.2005 as per list below :

Sick/Weak Rs. in lakh Employees Status of revival Bally Jute Mills 100 2000 Being revived Brand Alloys Ltd. 40 35 Being revived Kusum Products Ltd. 150 450 Being revived Total (3 units) 290 2485

5.182 The State Government in order to provide time for sick units to explore ways/measures for revival, 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. During the period April, 2002 to September, 2005, 16 sick units have been declared 'relief undertakings'. These units are shown below :

Companies Employees Status of revival Annapurna Cotton Mills Ltd. (Non-BIFR)

700 Being revived under implementation of a rehabilitation scheme

Ganges 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 -

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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 - Universal Paper Mills Ltd. (BIFR) 500 - Do - Caledoniun Jute & Industries Ltd. (BIFR) 4700 - Do - Total 16 units 36500

5.183 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.