West Bengal 060710

WEST BENGALApril 2010

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WEST BENGAL April 2010

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

Investment climate of a state

Resources/Inputs

Incentives to industry Physical and social infrastructure

Regulatory framework

• Skilled and cost-effective labour• Labour market flexibility• Labour relations• Availability of raw materials and natural

resources

• Tax incentives and exemptions• Investment subsidies and other incentives• Availability of finance at cost-effective terms• Incentives for foreign direct investment (FDI)• Profitability of the industry

• Procedures for entry and exit of firms• Industrial regulation, labour regulation, other

government regulations• Certainty about rules and regulations• Security, law and order situation

• Condition of physical infrastructure such as power, water, roads, etc.

• Information infrastructure such as telecom, IT, etc.

• Social infrastructure such as educational and medical facilities

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Advantage West Bengal

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in West Bengal

Contents


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West Bengal – State profile

• Covering an area of 88,752 sq km, West Bengal is situated in eastern India. The state shares international borders with Bangladesh, Bhutan and Nepal.

• West Bengal has 19 administrative districts. Kolkata is the state capital city. Siliguri, Asansol, Durgapur, Raniganj, Haldia, Kharaghpur, Darjeeling, Malda, Midnapore, Cooch Behar and Howrah are the other key cities in the state.

• The Ganges (and its main distributary, Hoogly) is the main river flowing through the state. The other important rivers in the state include Damodar, Ajay, Kangsabati, Teesta, Torsa, Jaldhaka and Mahananda.

• West Bengal's climate varies from tropical savannah in the southern portions to humid subtropical in the north.

• Bengali is the official language of the state, though English and Hindi are also widely used. Nepali is spoken primarily in the Darjeeling district.

• West Bengal has a rich culture and literature. The festivals celebrated in the state are Durga Puja, Saraswati Puja and Kali Puja.

Source: Maps of India

ADVANTAGE WEST BENGAL West Bengal April 2010

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Competitive cost of operationKolkata, which is a metropolitan city, has a comparatively lowercost of operating a business as compared to the other cities suchas New Delhi, Bangalore, Chennai, Hyderabad and Mumbai.

Advantage West Bengal … (1/2)

Endowed with natural resourcesWest Bengal has abundant natural resources of minerals andsuitable agro-climatic conditions for agriculture, horticulture andfisheries. West Bengal also has a prosperous hinterland of somemineral rich states like Jharkhand, Bihar and Orissa.

Geographical advantageBecause of its location, West Bengal offers definite advantage asthe traditional domestic market in eastern India, the Northeastand the land-locked countries of Nepal and Bhutan, which areeasily accessible. The state is also an entry point to markets inSoutheast Asia, via the northeastern states.



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Educational infrastructureThe state is home to a number of renowned educationalinstitutions and higher learning centres. There are 18universities in the state along with sizeable researchinstitutes.

Large English speaking populationKnowledge of English is an advantage of the workforce ofWest Bengal, especially in Kolkata, which is one of the fourmetropolitan cities of India.

Excellent connectivityWest Bengal offers excellent connectivity to the rest ofIndia in terms of railways, roadways, ports and airports.Major stretches of the golden quadrilateral project also passthrough the northern districts of the state.


ADVANTAGE WEST BENGAL

Advantage West Bengal … (2/2)

West Bengal April 2010

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West Bengal in figures … (1/2)

Parameter West Bengal All-states Source

Economy

GSDP as a percentage of all states’ GSDP 8.0 100.0 CMIE, 2006-07, current prices

Average GSDP growth rate (%) 12.7 7.5 CMIE, 1999-2000 to 2007-08, current prices

Per capita GSDP (US$) 871.8 998.1 CMIE, 2007-08

Physical infrastructure

Installed power capacity (MW) 6,890.1 98,996.4 Central Electricity Authority, as of March 2009

GSM cellular subscribers (No) 17,415,303* 367,328,179 Cellular Operators Association of India, as of November 2009

Broadband subscribers (No) 246,896 4,981,976 As of October 2008

National highway length (km) 2,578 70,548 Ministry of Road Transport & Highways, 2007-08

Major and minor ports (No) 1 + 1 12 + 187 Ministry of Shipping

Airports (No) 2 133 Industry sources

Social indicators

Literacy rate (%) 68.6 64.8 Census of India, 2001

Birth rate (per 1,000 population) 17.9 23.3 Central Bureau of Health Intelligence, 2007

*Includes Andaman & Nicobar Islands


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Parameter West Bengal All-states Source

Ease of doing business

FDI inflows (US$ billion) 1.3** 102.1 Department of Industrial Policy and Promotion, April 2000 to October 2009

Outstanding investments (US$ billion)

142 1,709.7 CMIE, as of December 2008

PPP projects (No) 5 460 www.pppindiadatabase.com

SEZ (No) 11 98 Functional as of August, 2009, www.sezindia.com

Parameter West Bengal government

Policy support

Sectors with specific policies Industry, IT, SEZ, exports, biotechnology

Availability of labour Adequate skilled labour available

** FDI inflows for RBIs Kolkata region, which includes West Bengal, Sikkim, Andaman & Nicobar IslandsPPP: public-private partnership, SEZ: special economic zone


West Bengal in figures … (2/2)


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Key industries with policy thrust and factor advantages

Medium HighLow

Medium

HighIndustry attractiveness matrix

*Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital

IT

Biotechnology

Jute products

Agriculture and horticulture

Leather and leather products

Livestock and dairy products

Iron and steel

LocomotivesPisciculture and

aquaculture

Tea


Polic

y th

rust

Factor advantage


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Contents


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Socio-economic snapshot of West Bengal

Parameters West Bengal

Capital Kolkata

Geographical area (sq km) 88,752

Administrative districts (No) 19

Population density (persons per sq km) 904

Total population (million)* 80.2

Male population (million) 41.5

Female population (million) 38.7

Population growth rate 1991-2001 (%) 17.8

Sex ratio (females per 1,000 males)* 934

Literacy rate (%)* 68.6

Male (%) 77.0

Female (%) 59.6

*Census 2001Source: Economic Survey of West Bengal, 2007-08, Directorate of Economics and Statistics

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE West Bengal April 2010

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West Bengal’s GSDP

• At current prices, the Gross State Domestic Product (GSDP) of West Bengal was about US$ 75.5 billion in 2007-08.

• The average annual GSDP growth rate from 1999-2000 to 2007-08, was about 12.7 per cent.

West Bengal’s GSDP(US$ billion)

Source: CMIE

29.1

29.8

32.7

36.8

43.3

46.3

51.1

63.4

75.5

0.0 20.0 40.0 60.0 80.0

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

CAGR:12.7%


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• At current prices, the Net State Domestic Product (NSDP) of West Bengal was about US$ 68.4 billion in 2007-08.

• The average annual NSDP growth rate from 1999-2000 to 2007-08, was about 12.4 per cent.

West Bengal’s NSDP(US$ billion)

26.9

27.4

30.0

33.7

39.6

42.1

46.3

57.3

68.4

0 20 40 60 80

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

CAGR:12.4%


West Bengal’s NSDP

Source: CMIE


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The tertiary sector has an increasing share in West Bengal’s economy

• In 2007-08, the tertiary sector contributed 61.2 per cent to the state’s GSDP at current prices, followed by primary sector (26.8 per cent).

• The share of the secondary sector in GSDP was 12.0 per cent in 2007-08 vis-à-vis 10.7 per cent in 1999-2000, its growth being driven by registered and un-registered manufacturing.

• Manufacturing registered the highest growth of 11.5 per cent between 1999-2000 and 2007-08. It was followed by the mining and quarrying at 11.3 per cent.

Percentage distribution of GSDP

Source: CMIE


33.6 26.8

10.712.0

55.7 61.2

0

20

40

60

80

100

1999-00 2007-08

Primary Sector Secondary Sector

Tertiary Sector

CAGR

6.9%

11.5%

11.3%


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Per capita GSDP

• The state’s per capita GSDP in 2007-08 was US$ 871.8.

• The per capita GSDP increased at a CAGR of 11.4 per cent between 1999-2000 and 2007-08.

• West Bengal has registered an increase in the per capita income owing to investments in sectors such as steel, real estate, power, retail and IT.

Source: CMIE

Per capita GSDP

368.4 372.7 405.2449.7

522.2 552.3602.2

739.4

871.8

0.0100.0200.0300.0400.0500.0600.0700.0800.0900.0

1,000.0

1999

-200

0

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08


US$


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Socio-economic profile of key cities

• Kolkata, Siliguri, Asansol, Durgapur, Raniganj, Haldia, Kharaghpur, Darjeeling, Malda, Midnapore, Cooch Behar and Howrah are the key cities and towns in the state.

• Kolkata is the capital and the largest city in West Bengal. It is the third-largest urban agglomeration and fourth-largest city in terms of area in India. It is the main business, commercial and financial hub of eastern India and the northeastern states.

• Siliguri is the commercial nerve centre of North Bengal. It is also the transit point for air, road and rail traffic to the neighbouring countries of Nepal, Bhutan and Bangladesh.

• Asansol, a coal mining and industrial metropolis and one of the busiest commercial centres in India, is the second largest city in West Bengal, after Kolkata.

• Durgapur is an industrial city and is West Bengal’s third-largest city after Kolkata and Asansol. The city houses a number of power plants, chemical and engineering industries.

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

• Darjeeling is internationally famous for its tea industry and the Darjeeling Himalayan Railway is a UNESCO world heritage site.

• Cooch Behar is a planned town in North Bengal region with remnants of royal heritage; it is a tourist destination.

STATE ECONOMY AND SOCIO-ECONOMIC PROFILEWest Bengal April 2010

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Key industries in West Bengal

Key industries in West Bengal

• Tea• Petroleum and petrochemicals • Leather• Iron and steel• IT• Mineral resources• Automobile and auto components• Biotechnology• Fisheries• Agriculture and horticulture• Livestock and dairy products• Chemicals • Textiles• Jute products• Vegetable oils• Electronics• Engineering goods

• The natural resources, policy incentives and infrastructure in the state support investments in major sectors such as iron and steel, biotechnology, coal, leather, jute products, tea, IT, and gems and jewellery.

• Climatic conditions suitable for cultivation of tea and jute have made West Bengal a major centre for these products and related industries.

• West Bengal occupies a predominant position in the development of micro- and small-scale enterprises. As of 2007, there were 900,419 small scale enterprises, accounting for 7 per cent of total such units in the country.

• The index of industrial production (IIP) in the state stood at 206.9 in May 2009, registering a growth of 1.7 per cent over May 2008. Source: West Bengal Government website


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District Key industries

Burdwan Iron and steel, fertiliser, mining, equipment manufacturing and cement.

North 24-Parganas Printing and bookbinding, cement, oilseed milling and general electrical works.

South 24-Parganas Cement, agro-based industry, chemicals and equipment manufacturing.

Hooghly Rice mills, rubber and chemicals.

Howrah Foundry, re-rolling mills, basic metal and products, electrical and electronics, transport equipment and spares, and moulded rubber goods.

Bardhaman Rice and oilseed mills, cutlery, tool manufacturing, iron and steel, fertilisers, mining, equipment manufacturing and cement.

Darjeeling Tea and tourism.

Bankura Food processing, textiles, plywood, veneer mills, paper and particle board.

Nadia Food processing, jute, pipes and tubes, electronics and computer peripherals.

North Dinajpur Food products, hosiery, garments, chemicals, engineering and fabrication.

Purulia Sponge iron and non-metallic products.

Cooch Behar Fertiliser, jute, electrical casing, mustard-oil mill and food processing.

South Dinajpur Agro and food-based units, mineral and forest-based industry, chemicals, handicrafts, engineering and IT.

District-wise key industries


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Rice, vegetables, sugarcane and wheat are the key agricultural products of West Bengal

Crop Annual production (‘ooo tonnes)

Rice 14,719.5

Eggplant 2,734.9

Cabbages 2,016.1

Cauliflower 1,682.1

Sugarcane 1,349.0

Tomatoes 956.7

Wheat 917.3

Bananas 892.3

Mango 623.4

Rapeseed 378.0

• Agriculture is the chief occupation of the people of West Bengal. It contributed 26.4 per cent to the state’s GSDP in 2006-07.

• Rice, eggplant, cabbage, cauliflower and sugarcane are the top five crops of the state. In 2007-08, the total production of these major crops was over 26.3 million tonnes, accounting for over 82 per cent of the total crop production of the state.

• Rice is the principal food crop of West Bengal. West Bengal is the largest producer of rice in India with an annual output of 14.7 million tonnes.

• Other major food crops include maize, pulses, oil seeds, wheat, barley and vegetables.

• The state supplies nearly 66 per cent of the jute requirements of India and stands first in the country in jute production. The districts of Jalpaiguri and Cooch Behar are the key production centres of jute.

• Tea is another important cash crop. Tea gardens in the state are located in Darjeeling and Jalpaiguri, the two northern districts of West Bengal.

Source: CMIE


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West Bengal’s exports trends

• West Bengal is one of the country’s leading exporter of finished leather goods. In 2008-09, the state accounted for around 15.7 per cent of the country’s exports of leather and leather products.

• West Bengal is also the country’s leading exporter of flowers. The state accounted for around 70 per cent of India’s dried flower exports in 2008.

• Flower exports of the state amounted to US$ 14 million in 2008-09 (April to February), as against US$ 10 million in 2007-08.

• The state has the country’s largest brackish-water resources for shrimp farming and has been a leading exporter of shrimps from India, which is the largest exporter of shrimps in the world.

• West Bengal is also a leading tea exporter.

Exports of Leather and Leather products (US$ million)

4.9

35.1

2.8

9.5

287.9

145.3

0.0 100.0 200.0 300.0 400.0

Leather footwear

Finished leather

Footwear components

Leather garments

Leather goods

Leather gloves

2008-09 2007-08

Source: CMIE


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• According to the Reserve Bank of India (RBI), FDI inflows from April 2000 to October 2009 amounted to US$ 1.3 billion*.

• As of December 2008, outstanding investment in the state was US$ 142 billion.

• Manufacturing and electricity sectors accounted for about 69 per cent of the state’s total outstanding investments.

Investments and FDI inflows

Break-up of investments by sector

* FDI inflows for RBI’s Kolkata region, which includes WestBengal, Sikkim, and Andaman and Nicobar Islands.

As of December 31, 2008

Source: CMIE

39.6%

0.7%29.5%

18.2%

0.2%11.8% Manufacturing

Mining

Electricity

Services

Irrigation

Construction


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Contents


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Road network … (1/2)

• West Bengal has a total road length of over 92,023 km, with a road density of 1.04 km per sq km. There are 14 national highways running through the state and covering 2,578 km.

• The golden quadrilateral (GQ) project undertaken by the National Highway Authority of India (NHAI) passes through major districts in North Bengal. As of December 2009, four-laning of Dhankuni-Kolaghat(54.4 km) Kolaghat-Kharagpur (60.5 km) and Kharagpur-Laxmanath (65.8 km) sections had been completed. Almost 40 per cent of the GQ’s Kolkata-Chennai link and 96 per cent of the Delhi-Kolkata link had also been completed.

Road type Road length (km)

Total road length 92,023

National highways 2,578

State highways 3,533

Source: Ministry of Road Transport & Highways

INFRASTRUCTURE STATUSWest Bengal April 2010

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Road network … (2/2)

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

• Two new underpasses are being planned - one near the Bidhannagar rail station to connect Ghaznavi bridge with Kazi Nazrul Avenue in north-east Kolkata and another to the south of New Canal.


INFRASTRUCTURE STATUS West Bengal April 2010

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Railways

• West Bengal is well connected through the railway network. The railway route length in the state is around 4,500 km.

• Howrah, Asansol, Sealdah, Bandel, Bardhaman, Kharagpur and New Jalpaiguri are the main junctions in West Bengal.

• The Indian Railways has an electric locomotive production unit – Chittaranjan Locomotive Works (LCW) located on the West Bengal-Jharkhand border, with a production capacity of 230 engines.

• Indian Railways has also proposed to set up an electric locomotive assembly and ancillary unit at Dankuni, West Bengal.



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Airports

International airport

Domestic airport

• West Bengal has a domestic and an international airport.

• The Netaji Subhash Chandra Bose International Airport is located in Dum Dum, 18 km from Kolkata, the domestic airport is at Bagdogra (Siliguri).

• In 2008-09, the total commercial traffic at Kolkata airport included about 7 million passengers and 88,040 tonnes of freight.

• The Government of India has sanctioned US$ 680,000 to set up a perishable cargo complex at the Bagdogra airport.

• The Kolkata airport is being modernised at a cost of US$ 435 million, the project is expected to be complete by August 2011. It will include a new terminal, modern taxiways and extension of a runway. The upgrade will raise the airport’s handling capacity to around 20 million passengers, annually, from the 5 million as of 2009.

• Bengal Aerotropolis Projects Limited (BAPL) is developing India’s first set of airport cities – ‘Aerotropolis’ near the Durgapur-Asansol region at the cost of US$ 2.2 billion.

Kolkata

Bagdogra


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Ports

• West Bengal has two modern ports located at Kolkata and Haldia, Kolkata is a major port.

• In 2007-08, the combined volume of goods handled by both the ports was over 53.3 million tonnes.

• The West Bengal government plans to construct a US$ 265 million container port at Kulpi and a small port at the mouth of the Hooghly river.

Inland waterways

• Government of India has declared the entire stretch of the Ganges between Haldia and Allahabad as National Waterway-1 (NW-1).

• The 560 km Haldia-Farakka stretch of NW-1 has been developed as a part of the multi-modal system for cargo tariff from Nepal, Bhutan, North Bengal and the north-eastern states.

• The State Government has initiated plans to reclaim the 43 km the north-canal system that stretches from the river Hoogly to river Raimangal on the Bangladesh border.

Kolkata

Haldia


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Power

Installed power capacity

(MW)

Source: Central Electricity Authority

• As of March 2009, West Bengal had a total installed power generation capacity of 6,890.1 MW, which comprised 5,808.7 MW under state utilities and 1,081.4 MW under the private sector.

• As of March 2009, West Bengal had 5,768.4 MW of thermal power, 1,022.0 MW of hydro power and 99.7 MW of renewable energy sources.

• The State Government is encouraging setting up of renewable energy-based power plants.

• West Bengal State Electricity Distribution Company Limited (WBSEDCL) has come into effect from 01.04.2007 after restructuring of erstwhile West Bengal State Electricity Board. WBSEDCL is a major power utility of the state with consumer strength over 7.4 million, five zones, 17 circles, 52 distribution divisions and 478 electric supply offices.

4,784.4 4,784.4 4,782.5 4,787.8 4,726.9 4,599.1

6,590.1 6,890.1

-

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

7,000.0

8,000.0


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Telecom

• According to estimates by the Telecom Regulatory Authority of India, there were 12.1 million wireless connections and 1.1 million wire-line subscribers in West Bengal as of September 2008.

• Kolkata offers about 580 Mbps of international satellite connectivity through Tata-owned VideshSanchar Nigam Limited (VSNL) and Software Technology Parks of India (STPI).

• The state has two satellite earth stations at Kharagpur and Durgapur. The Department of Telecommunications has selected Digha in the East Midnapore district as the cable-landing station for the submarine-cable laying project connecting India and South-East Asia.

Telecom infrastructure*

GSM cellular subscribers : 17,415,303**

Internet/broadband subscribers: 246,896

Post offices: 9,028

Telecom operators in West Bengal

• Dishnet Wireless

• Bharti Airtel

• BSNL

• IDEA Cellular

• Reliance Telecom

• Vodafone Essar

• Tata Docomo

*As of 2009**Includes Andaman and Nicobar Islands

Source: Cellular Operators Association of India


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• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 43 projects costing US$ 849 million have been sanctioned for West Bengal. The projects have been sanctioned for completion between 2006-07 and 2009-10. Key areas of development are water supply, sewerage, solid-waste management, construction of flyovers and water treatment.

• Under the JNNURM, the schemes for all urban areas of the state, except the Kolkata Metropolitan Area and Asansol Urban Area, have been included the schemes of Urban Infrastructure Development Scheme for Small & Medium Towns (UIDSSMT) and Integrated Housing & Slum Development Programme (IHSDP).

• Under the UIDSSMT scheme, projects for 19 small and medium towns have been sanctioned at an estimated cost of US$ 57 million. Under the IHSDP scheme, projects for 56 towns have been sanctioned at the cost of US$ 112 million.

• Externally aided programmes are as follows:

Urban infrastructure … (1/2)


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Project Description

Kolkata Urban Services for the Poor (KUSP)

Programme for 40 urban-local bodies (ULBs) within Kolkata Metropolitan Area, excluding Kolkata Municipal Corporation, at the cost of US$ 155 million.

Kolkata Environment Improvement Project (KEIP)

Project with the assistance from the Asian Development Bank and the Department for International Development (DFID), at a cost of US$ 1.7 billion.

Italian Assisted Solid Waste Management & Water Supply Projects

Project for water supply and solid-waste management in selected towns of West Bengal at the cost of US$ 34 million.

INFRASTRUCTURE STATUS

Urban infrastructure … (2/2)


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Project name Sector PPP typeProject cost

(US$ million)Stage

Berth 4A (Haldia) project Ports BOT-Toll 43.4 In operation

Kolkata-Durgapur expressway Roads BOT-annuity 93.9 In operation

Palsit-Dankuni Roads BOT-annuity 93.9 In operation

Panagarh-Palsit Roads BOT-annuity 76.1 In operation

Vivekananda bridge and approach Roads BOT-Toll 140.0 Pipeline

Source: pppindiadatabases.comBOT: Build-operate-transfer

Key public-private partnership projects


33

Literacy rates (%)

Literacy rate 68.6

Male literacy 77.0

Female literacy 59.6

• According to Census 2001, West Bengal’s literacy rate was 68.6 per cent, the male literacy rate was 77.0 per cent and the female literacy rate was 59.6 per cent.

• As of 2008-09, the state had 49,893 primary schools, 980 upper primary schools, 4,582 secondary schools and 9,659 high and higher secondary schools.

West Bengal’s education statistics*

Number of schools

Primary: 49,893Upper primary: 980Secondary: 4,582High and higher secondary: 9,659

Pupil-teacher ratio All schools: 47Primary: 44Upper primary: 57

Net enrolment ratio

Primary: 84.5Upper primary: 54.6

Number of teachers

272,923

Education sector … (1/2)

* As of 2008-09Source: West Bengal District Information System For Education (DISE), 2008-09

Source: Census of India, 2001


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Educational infrastructure*

• Universities: 13• Engineering colleges: 67• Degree colleges: 450• Polytechnics: 43• Industrial training institutes and industrial training centres:

50• Management institutes: 29• Medical colleges: 9

Premier institutions in West Bengal

• University of Calcutta• Jadavpur University• National Institute of Technology• Rabindra Bharati University• Vidyasagar University• Burdwan University• West Bengal University of Health Sciences• Indian Statistical Institute• Indian Institute of Technology• Indian Institute of Management• Bengal Engineering & Science University• Indian Institute of Foreign Trade• Indian Association for Cultivation of Science• Indian Institute of Chemical Biology

* As of 2007-08Source: Economic Survey of West Bengal, 2007-08

• West Bengal has 18 universities, 53 engineering colleges, 450 degree colleges, 43 polytechnics, 50 industrial training institutes, 29 management institutes and nine medical colleges.

• The West Bengal government merit-cum-means scholarship scheme has been instituted for providing financial assistance to the poor and meritorious students of the state for pursuing higher education. The scholarship amount varies from US$ 10 to US$ 33 per month.


Education sector … (2/2)


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Health infrastructure … (1/2)

Health infrastructure ^

• 2,081 Hospitals: 2,081• Beds: 82,160 • Health centres: 1,269• Sub-centres: 10,356

Health indicators

Birth rate (per 1,000 persons)* 17.9

Death rate (per 1,000 persons)** 6.3

Infant mortality rate (per 1,000 live births)**

37.0

*As of 2007**As of 2008Sources: RHS Bulletin, Ministry of Health and Family Welfare, March 2008

• The health infrastructure of West Bengal comprised 2,081 hospitals, 1,269 health centres and 10,356 sub-centres, as of 2007-08.

• Bardhaman health city, the first health project in West Bengal is being set up near the Durgapur Expressway at a cost of US$ 217 million.

• The health city, which is expected to be ready by 2012, will have facilities such as medical colleges, blood banks, ambulance pool, pharmacy and others.

^As of 2007-08Source: West Bengal Economic Survey, 2007-08


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• The state has launched the Antoyadaya Anna Yojana (AAY) scheme to ensure that families get food grains, 200,000 family cards for getting food grains have been given under the AAY scheme, which targets 320,000 people.

• The mid-day-meal programme is being run in various urban local bodies, 4,582 primary schools including Swayam Shikshan Prayog (SSP) centres are running the programme with 800,000 beneficiary students.

• The Sishu Shiksha Prakalpa centres have been constituted to bring all children of 5-9 years in the municipal areas under primary education. These centres are funded by the State Government. As of 2009, there were1,032 Sishu Shiksha Prakalpa centres in the state.

• The community-based primary healthcare service has been formulated with the objective of bringing an overall improvement in the urban health scenario in West Bengal, 62 urban local bodies have completed training of honorary health workers. The programme budget for three years (2006-07 to 2008-09) was US$ 12.7 million.


Health infrastructure … (2/2)


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Cultural infrastructure

• Cricket and football (soccer) are popular sports in the state. Kolkata is one of the major centres for football in India and is home to top national clubs such as East Bengal, Mohun Bagan and Mohammedan Sporting Club.

• Eden Gardens, Salt Lake Stadium and Netaji Indoor Stadium are some of the well-known sports stadiums in the state. West Bengal is known for its premier sports clubs viz., Royal Calcutta Golf Club, Tollygunge Club, Royal Calcutta Turf Club, Calcutta Rowing Club and Calcutta Cricket and Football Club.

• Bengal had been the harbinger of modernism in fine arts. Birla Academy of Art And Culture Museum, Rashtriya Lalit Kala Academy, Academy of Fine Arts, Asiatic Society and Ashutosh Museum of Indian Arts are some of the art establishments in the state.

• West Bengal has a rich culture and literature. Music forms in West Bengal include RabindraSangeet, Nazrul Geeti, Adhunik, Shyamashangeet, Jibonmukhi, Baul, Gombhira and Bhawaiya,

• Dance forms include Gouriyo Nrityo, Rabindra Nritya, Chhau, Raibense dance, Jhumar and AdhunikNritya. Jatra is the traditional theatre form of Bengal.


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Industrial infrastructure … (1/5)

• West Bengal has 12 growth centres for medium and large scale industries, set up by the West Bengal Industrial Development Corporation (WBIDC) there are exclusive growth centres for electronics, software technology, export processing and export processing.

• The Naba Diganta Industrial Township was set up in January 2006, in the Kolkata’s Salt Lake township, to encourage IT and related industries.

• West Bengal’s major industrial areas are Haldia, Kolkata, Asansol-Durgapur region, and Kharghpur.

• WBIDC helps get clearances required for setting up industry. It also focuses on sector-specific infrastructure for industries such as food, apparel, biotechnology, IT and electronics.

Source: West Bengal Industrial Development Corporation

List of IT projects in Kolkata

Project name Location

Technopolis Sector V, Salt Lake City

Globsyn Crystals Sector V, Salt Lake City

Infinity-Benchmark Sector V, Salt Lake City

Infinity-Waterside Sector V, Salt Lake City

Millennium City Sector V, Salt Lake City

The Hub Sector V, Salt Lake City

Infinity (Tower-II) Sector V, Salt Lake City

Videocon-Salarpuria Sector V, Salt Lake City

Bengal Intelligent Park Sector V, Salt Lake City

Ascendas Rajarhat

Keepeland Rajarhat

DLF Rajarhat

Unitech Group Rajarhat

Sunrise City EM Bypass


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Notified SEZs in West Bengal

Burdwan: IT/ITeS Park, Non-conventional energy park

24 Parganas: IT/ITES Park, Electronic and hardware park

Durgapur: IT/ITeS Park

Uttarpara: IT/ITeS Park

Rajarhat, Kolkata: IT/ITeS Parks (3)




40

Howrah: Food Park Poly Park, Rubber Park, Apparel Export Park, Foundry Park

Borjora, Bankura district: Plasto Steel Park (Phase - I & II)

Kolkata: Garment Park, Shilpangan(Light Engineering Park)

West Midnaporedistrict: Biotech Park, Iron & Steel Parks (2)

Industrial parks in West Bengal




41

Products / services Location

Food Park (Phase I & II ) Food processing Sankrail, (Howrah district)

Poly Park Polymer products Sankrail, (Howrah district)

Rubber Park Rubber footwear, hoses, tubes, automotive rubber products

Sankrail, (Howrah district)

Biotech Park Biotechnology projects Dewanmara (West Midnapore district)

Plasto Steel Park (Phase - I & II) Iron and steel and plastic products Borjora (Bankurna district)

Iron & Steel Park Steel products Kharagpur (West Midnapore district)

Iron & Steel Park Steel products Jhargram ( West Midnapore district)

Foundry Park Castings, forge and foundry products HowrahApparel Export Park Garments, buttons, accessories, washing/

processingUluberia, (Howrah district)

Garment Park Garments KolkataShilpangan (Light Engineering Park)

Light Engineering Products Kolkata

Industrial parks in West Bengal

Source: West Bengal Industrial Development Corporation



Name


42

Source: sezindia.nic.in

Industry Locations No of SEZs

IT/ITeS Rajarhat , Bhangor, Kassipore and Kharamba (24 Paraganas), Shanthiniketan, Asansol, Dabgram(Jalpaiguri)

8

Electronic hardware and software

Barsat (North 24 Paraganas)

1

Leather products Bantola (Kolkata) 1

Bio-technology Panargarh (Burdwan) 1

Steel and allied products

West Medinipur 1

Free trade warehousing zone

Haldia 1

Industry Locations No of SEZs

IT/ITeS Siliguri 1

Electronic hardware and software

Mouza Karaidangaand Bhatipouta (24 Paraganas)

4

Engineering Howrah, North 24 Paragnas, Kharagpur

3

Chemicals Medinipur 1

Biotechnology Siliguri 1

Iron and steel Durgapur, Howrah 2

Textiles Dankuni township 1

Multi-products Haldia, Purba Medinipur,Kalyanbill (North 24 Paraganas), Amta,

4

Formally approved SEZs* SEZs with in-principal approval

*As of October 2009




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Major investments in the infrastructure sector

Infrastructure type Investments (US$ million)

Power* 12,602.2

Railways 3,219.7

Shipping 881.6

Roads 699.5

Airport 152.6

• As of December 2008, over US$ 54.3 billion worth of investments have been made in ramping up West Bengal’s infrastructure.

• About 23 per cent of the investments made in infrastructure have been in the area of power generation and distribution.

• Railways and shipping are the other key infrastructure sectors attracting investments. *Generation and distribution

As of December 31, 2008Source: CMIE

INFRASTRUCTURE STATUSWest Bengal April 2010

44







Contents


45

The West Bengal incentive scheme for micro- and small-scale enterprises (MSE), 2007

Aim: To provide incentives to the micro and small enterprises in the state.

• Applicable for all MSEs set up in the manufacturing sectors and also the expansion projects of existing units/enterprises, on or after April 1, 2007.

• The units may be in the private sector, cooperative sector, joint sector as also companies/undertakings owned and managed by the State Government and industrial self-help groups.

• This scheme is applicable from April 1, 2007 for a period of five years, i.e., ending on March 31, 2012.

Incentives and concessions:

• State capital-investment subsidy, ranging from 15 per cent to 35 per cent of fixed capital investment.

• Interest subsidy to the extent of 30 per cent of the annual interest liability on the term loan borrowed from a commercial bank or financial institution for implementation of the approved project.

• Waiver of electricity duty on the electricity consumed for the production and/or operation, for a period of five years from the date of commercial production or operation.

• Reimbursement of 80 per cent expenditure incurred by enterprise for paying its contribution towards employees state insurance and employees provident fund, depending on the location of the unit.

Sector-specific policies … (1/11)

STATE POLICIES AND INCENTIVES West Bengal April 2010

46

The West Bengal incentive scheme for micro- and small-scale enterprises (MSE), 2007


• Refund of stamp duty and registration fee paid for the purpose of registration of documents within the state, relating to purchase and/or acquisition of land and buildings for setting up of the approved project.

• An eligible MSE of women or person belonging to the scheduled castes (SC) or scheduled tribes (ST) entrepreneur or self-help group will be entitled to 10 per cent additional incentives.

• An existing leather MSE, which relocates to the Kolkata Leather Complex, will be entitled to fixed capital investment subsidy if the relocation is accompanied by modernisation. The quantum of subsidy will be 25 per cent of fresh investment in plant and machinery.

• Reimbursement of expenditure for modernisation up to 75 per cent for micro units and 50 per cent for small scale units, subject to a cap of US$ 10,000.


STATE POLICIES AND INCENTIVES West Bengal April 2010

47

IT Policy of West Bengal, 2003

Aim: To utilise the potential benefits offered by IT for the development of the state.

Key initiatives:

• Procedures under existing labour laws simplified to ensure smooth operations. In IT, where human resource inputs are highly flexible and mobile, the Government of West Bengal has committed to move from a regulated administration framework to a promotional framework to facilitate smooth functioning of the business.

• The government permits self-certification to IT companies on various acts such as Payment of Wages Act, Minimum Wages Act, Contract Labour (Regulations & Abolition Act), Workmen’s Compensation Act, Payment of Gratuity Act, Maternity Benefits Act, Employees State Insurance Act and Water and Air Pollution Act.

• IT companies are awarded special status under various acts to improve infrastructure availability, enabling:

• Automatic clearances under the West Bengal Pollution Control Act.

• Exemption from statutory power cuts.

• Exemption from zoning regulations on application of company.

STATE POLICIES AND INCENTIVES



48



Fiscal incentives:

• Exemption from consumption tax on computer hardware, computer peripherals and other capital goods including captive power generation sets, during the implementation stage.

• Five per cent price preference for all West Bengal government e-governance projects for an IT company with office in West Bengal and employing a minimum of 20 per cent of its total workforce in its West Bengal operations.

• For mega-projects that require investments exceeding US$ 5 million and employ more than 750 people in their first year of operation, the government may consider a special package of incentives on a case-to-case basis.

• Exemptions from stamp duty and registration fee.

• Exemptions from all state and local taxes on transaction with the SEZs, this also applies to supply from domestic tariff areas to the SEZ.




49



Other incentives:

• State Government will assist IT companies in obtaining any academic/R&D support they require from the appropriate institutions.

• The State Government has set up a regulatory authority to ensure enforcement, declare penalties (for violation, etc.) to help IT and ITeS companies provide additional comfort to their customers.

• IT companies in the small scale sector will be reimbursed 50 per cent of the expenditure incurred by them to obtain ISO/ ISO 9000 certificate or SEI-CMM Level 5 or COPC-2000 or eSCM level 3 with a ceiling of US$ 0.01 million.




50

Special Economic Zone Act (SEZ), 2003

Aim: To develop the export potential of the state

Key initiatives:

• SEZ units are permitted to take job work abroad and export goods from there, while continuing to be eligible for the benefits entitled to an SEZ.

• SEZ units will have access to international finance at international rates through offshore banking units (OBU) to be set up within the SEZ.

• Exemption from customs duty on import of capital goods, raw material, consumables and spares.

• Entitlement of duty-free imports of samples upto US$ 6,000.




51

West Bengal Export Policy, 2003

Aim: To make exports a priority area, recognising the enormous export potential of the state.

Key initiatives:

• The State Government has constituted three export awards viz., Best Exporter Award, Award for Quality and Best Small Scale Industry Exporter Award.

• A commerce cell has been set up in the Directorate of Industries to look after all aspects of export promotion.

• A state export promotion council has been set up in the Directorate of Industries, with the participation of commodity boards and export promotion councils located in Kolkata and the chambers of commerce and industry, in order to provide a forum for exchange of views, information sharing and removing hindrances and obstacles faced by exporters.

• Round-the-clock movement of export cargo within Kolkata will be allowed on some specified roads, in relaxation of existing orders prohibiting movement of trucks within the city during daytime.

• The State Government will take steps to set up inland container depots and/or dry port facilities at the export centres to prevent difficulties in cargo storage, customs clearance and container availability at these locations.

• The State Government will support and facilitate the setting up of export parks for various products, so that all the necessary infrastructure facilities are available at one place and regular monitoring is possible.




52

West Bengal Export Policy, 2003

Aim: To make exports a priority area, recognising the enormous export potential of the state.


• Exemption from sales tax on proceeds from transfer of licenses, such as exim-scrip, replenishment license, advance license and duty entitlement passbook (DEPB) license.




53

West Bengal Biotech Policy, 2008

Aim: To facilitate the growth of biotech industries and the development of clean biotechnologies.

Key initiatives:

• Conserving bio-diversity through mapping and sustainable use of bio-resources.

• Spreading general awareness for optimum utilisation of biotechnology in the agriculture sector.

• Creating a ‘Centre of Excellence for Biotechnology’ as a high quality support service to the biotech industry.

• Facilitating the flow of venture capital funds and bank credit to biotech companies.

• Creating research and development institutions of expertise and manpower quality in the state.




54

West Bengal Biotech Policy, 2008

Aim: To facilitate the growth of biotech industries and the development of clean biotechnologies.


• State capital investment subsidy at 15 per cent of the fixed capital investment, subject to a limit of US$ 300,000.

• Interest subsidy to the extent of 50 per cent of the annual interest liability on the loan borrowed from a commercial bank/financial institution/non-banking financial corporation approved by Reserve Bank of India, for implementation of an approved project, subject to a limit of US$ 200,000 per year.

• Government will create opportunities for starting new biotechnology-based businesses by entrepreneurs and stimulate technological innovations. The government will aim to increase product commercialisation in public-private sector acquired from government-funded R&D.

• Other incentives as per the West Bengal Incentive Scheme for micro and small scale enterprises, 2007.




55

Industrial Policy of West Bengal, 1994

Aim: To generate industrial promotion and economic development in the state

Key objectives:

• To attract foreign technology and investment, as may be appropriate.

• To encourage private sector to accelerate growth.

• To improve and upgrade industrial infrastructure, which is indispensable for accelerated growth of industries.

• To improve social infrastructure facilities such as development of satellite township, housing, healthcare, education, water supply, hotels, etc.

• To look at the joint and assisted sectors as effective instrument for mobilising necessary resources and expertise in important areas of economic activities.




56







Contents

Logos used in this section are registered trademarks of the respective companies


57

Tea

• West Bengal is the second-largest tea growing state in India, after Assam, and accounts for around 24 per cent of the total tea produced in India.

• As of 2007, 115,095 hectares of land was under tea cultivation.

• The total annual production of tea was 226.8 million kg (mkg), as of 2008.

• Tea gardens in the state are located in Darjeeling and Jalpaiguri, the two northern districts of West Bengal.

• Darjeeling tea has a Geographical Indicator (GI).

Key players

• Tata Tea• Goodricke Group Limited • Mcleod Russel• Bagaria Group• Andrew Yule Group• Teesta Valley Tea• Duncans Tea Limited• Williamson Magor Group• T&I Global Limited • Diana Tea Company Limited• Hanuman Tea Company Limited• Kamala Tea Company• Norban Tea & Exports Limited

BUSINESS OPPORTUNITIES West Bengal April 2010

58

Tea – company profiles … (1/5)

Tata Tea • Tata Tea is the largest brand of tea in India. It acquired the UK-based Tetley Group in 2000.

• The company has five major brands in the Indian market , viz.,Tata Tea, Tetley, Kannan Devan, Chakra Gold and Gemini.

• It has its headquarters and six tea estates in West Bengal.

Goodricke Group Limited (GGL)

• GGL, a part of Camellia plc. UK, is engaged in the cultivation, manufacture, and sale of tea in India.

• It has 17 gardens, including three gardens in Darjeeling, two in Assam and 12 in Jalpaiguri.

• Its turnover in 2008 stood at US$ 73.2 million on a total crop production of 21.5 million kg.

• It plans to launch cold tea and enter the ready-to-drink products market by December 2009.

Mcleod Russel • Mcleod Russel produces around 80 million kg of tea every year from tea estates in Assam, West Bengal and Vietnam, employing 80,000 people.

• The company has its registered office in Kolkata.

• The six tea estates in Jalpaiguri district produce 6.5 million kg of tea, annually.

Bagaria Group • The Bagaria Group has operations in steel product manufacturing, tea estates and wind farms, with a group turnover of about US$ 110 million.

• The group has three tea estates in West Bengal. The Gyabaree and Millikthong tea estate is one of the biggest tea estates in Darjeeling with an annual production of 280,000 kg.

• There are two other tea estates in Phuguri and Orange Valley in Darjeeling with a combined production of 300,000 kg.


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T&I Global Limited (TIGL)

• TIGL is among the leading manufacturers and exporters of tea processing machinery in the world, headquartered in Kolkata.

• It is a government recognised export house, with a global market share of over 40 per cent. The company has a full-fledged manufacturing unit at Kolkata.

• TIGL has set up a1,000 acre Mainak Hills Tea Estate and Green Tea factory in North Bengal. Mainak is currently producing over 800,000 kg of tea per annum.

Williamson Magor Group

• Williamson Magor Group, established in 1868, produces around 35 million kg of tea every year.

• The Group has 28 tea estates, in Assam and West Bengal, including six tea estates in Dooars.

Andrew Yule Group • Andrew Yule Group, headquartered in Kolkata, is a US$ 124 million multi-product, multi-unit conglomerate.

• The group has 15 tea gardens in Darjeeling, Dooars and Assam, producing around 10 million kg of tea, annually.

Teesta Valley Tea Exports

• Teesta Valley Tea Exports, established in 1841, has tea estates in Darjeeling, Assam and Dooars. The Group has two tea estates in Darjeeling.

• The group exports tea to Japan, Russia, Germany, Holland, France, UK, USA, Singapore, Hawaii and other East European countries.

BUSINESS OPPORTUNITIES



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60

Duncans Tea Limited • Duncans Tea Limited, headquartered in Kolkata, is a part of the diversified Duncan-GoenkaGroup, established in 1859.

• The company has 13 tea estates, located in the Doors, Terai and Darjeeling.

• The company markets tea under the brands - Runglee Rungliot, Double Diamond, Super, Shakthi, Sargam, No1, Kings Cup and Aag.

T&I Global Limited (TIGL)

• TIGL is among the leading manufacturers and exporters of tea processing machinery in the world, headquartered in Kolkata.

• It is a government recognised export house, with a global market share of over 40 per cent. The company has a full-fledged manufacturing unit at Kolkata.

• TIGL has set up a1,000 acre Mainak Hills Tea Estate and Green Tea factory in North Bengal. Mainak is currently producing over 800,000 kg of tea per annum.

Williamson Magor Group

• Williamson Magor Group, established in 1868, produces around 35 million kg of tea every year.

• The Group has 28 tea estates, in Assam and West Bengal, including six tea estates in Dooars.




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Diana Tea Company Limited

• Diana Tea is a tea-producing company, which was promoted by Late Radheshyam Singhania in 1976. The company is among top five producers of tea in the Dooars region.

• It has four tea garden viz., namely Baintgoorie tea estate, Goodhope tea estate, Ambari tea estate and Diana tea estate, all located in Jalpaiguri. The total capacity of the company is 5 million kg of tea per annum.

• The company has entered the packed tea segment to be sold throughout North India through its distributor network. It has also entered the dipping-tea bag segment and has installed vending machines in corporate houses of Kolkata.

Hanuman tea Company Limited

• The company incorporated in 1961, is mainly engaged in the cultivation, production and sale of tea and power generation.

• The company has its tea gardens and processing unit at Sonitpur in Assam and Jalpaiguri in West Bengal. The registered office is located at Kolkata.




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Kamala Tea Company • Kamala Tea Company was incorporated in 1914.

• The company owns the Kamala Tea Estate with a grant area of around 750 hectares located in the Terai region in the Darjeeling district of West Bengal.

Norban Tea & Exports Limited

• Norben Tea & Exports Limited was originally incorporated as Daga Plantations Limited in the early 1990s.

• Norben has established new tea plantations and a new factory in Berubari in Jalpaiguri District of West Bengal, to manufacture tea with an installed capacity of 1.2 million kg of processed tea per annum.

• The company has three divisions, namely Berubari, Pareshnagar and Sakati.




63

Petroleum and petrochemicals

• West Bengal accounts for around 4 per cent of the country’s production of petroleum products and 13 per cent of polymer production.

• Haldia Petrochemicals Limited is one of India’s largest integrated petrochemical complexex.

• Mitsubishi Chemicals and Corporation, Japan’s major chemical firm has invested in a Purified TerepthalicAcid (PTA) plant at Haldia at an estimated cost of US$ 355 million.

Key players

• Indian Oil Corporation Limited (IOCL)

• Oil India Limited (OIL)

• Oil and Natural Gas Corporation Limited

(ONGC)

• Haldia Petrochemicals Limited (HPL)


64

Petroleum and petrochemicals – company profiles … (1/2)

Indian Oil Corporation Limited (IOCL)

• IOCL is India's largest company by sales, with a turnover of US$ 62 billion in 2008-09. It is the 18th-largest petroleum company in the world.

• It owns and operates 10 of India’s 19 refineries, as of 2008-09, the company had a refining capacity of 60.2 MTPA (1.3 million barrels per day).

• It has a refinery at Haldia, with an installed capacity of 6 MTPA.

• IOCL has invested US$ 623.7 million for improvement of diesel quality and distillate yield (hydrocracker) at Haldia, and for capacity expansion of the refinery from 6 MTPA to 7.5 MTPA, the project was commissioned in December 2009.

• IOCL has signed a memorandum of agreement (MoA) with the WBIDC for setting up a chemical hub in Haldia, at an investment of around US$ 3.2 billion.

Oil and Natural Gas Corporation Limited (ONGC)

• ONGC is India’s leading oil and gas exploration and production company. • The company has 240 onshore production installations, 70 drilling rigs and 15,800 km

pipeline network. • ONGC has acquired five onshore blocks, spreading over 16,500 sq km in West Bengal for

US$ 2 billion, as of September 2008.


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65

Oil India Limited (OIL)

• OIL, established in 1959, is primarily engaged in exploration, development, production and transportation of crude oil and natural gas in India.

• OIL owns 10 crude-oil pumping stations and 17 repeater stations spread across Assam, West Bengal and Bihar.

• The company also owns and operates a 660 km petroleum product pipeline, connecting Numaligarh Refinery Limited in Assam to Siliguri in West Bengal.

HaldiaPetrochemicals Limited (HPL)

• HPL is a modern, naphtha-based petrochemical complex located at Haldia, 125 km from Kolkata

• It is a joint venture project of the government of West Bengal with The Chatterjee Group, the TATA group and IOC as major stakeholders.

• It has a total capacity of 520,000 tonnes per annum of ethylene.

• The company is expanding capacity by about 30 per cent, which will take ethylene production capacity to 670 kilo tonnes per annum (KTPA) from the current level of 520 KTPA.


Petroleum and petrochemicals – company profiles … (2/2)


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Leather

• West Bengal is one of the leading exporters of finished leather goods, accounting for almost 15.7 per cent of the country's leather exports.

• As of 2008, the state has around 538 manufacturing units producing leather goods.

• West Bengal Leather Industrial Development Corporation provides market facilities for the leather products manufactured by small-scale industries located in the state.

• The Government of West Bengal has set up an integrated leather complex on the eastern fringe of Kolkata and spread over 1,100 acres.

Key players

• Khadim’s

• Bata India Limited

• Singhvi International

• Balmer Lawrie and Company Limited


67

Leather – company profiles

Khadim’s • The Khadim group has a significant presence in the footwear segment, especially in the east and south of India.

• It has a manufacturing unit at Kasba Industrial Estate, Kolkata.

• The company has multi-brand retail outlets in 21 states and has more than 470 exclusive retail outlets across the country.

• Its sales stood at US$ 49.4 million in 2007-08.

Bata India Limited • Bata India Limited, incorporated in Kolkata, is the largest shoe manufacturer in India.

• The company has 35 per cent share of the organised footwear market and its retail footprint spans more than 1,250 stores, it sells over 45 million pairs, annually.

• Bata has a manufacturing unit in West Bengal.

• The company plans to open 240 stores in a span of three years, with an investment of US$ 87 million.

Singhvi International • Singhvi International, established in 1974, is engaged in the export of leather hand gloves and safety garments world-wide.

• The company had a turnover of US$ 8 million in 2008-09.

• It has its registered office in Kolkata.

Balmer Lawrie and Company Limited

• Balmer Lawrie is a Government of India enterprise and headquartered at Kolkata.

• The company manufactures leather chemicals.

• It has manufacturing operations at Kolkata, Mumbai, Chennai, Mathura, Silvassa and offices at many locations in India.


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Iron and steel

• With more than US$ 22.2 billion worth of investments in pipeline, West Bengal has emerged as a favoured destination for the steel industry.

• Its deposits of iron ore have helped attract new projects. The Chotanagpur plateau bordering West Bengal is the nerve-centre of this industry.

• The Joint Plant Committee (JPC) for steel has been constituted by the Government of India for formulating the guidelines for production and distribution of steel materials in the country. Headquartered in Kolkata, it has regional offices in New Delhi, Mumbai, Chennai, Kanpur and Hyderabad.

Key players

• JSW Steel Limited

• SAIL

• Shyam Steel

• Jai Balaji Industries

• Bhushan Steel

• Arcelor Mittal

• UIC Udyog Limited

• Gonterman-Peipers (India) Limited

• Super Forgings & Steel Limited (SFSL)


69

JSW Steel Limited (JSL)

• JSW Steel Limited is among the largest private steel companies in India, with a capacity of 7.8 million tonnes per annum (MTPA).

• The company is setting up a 10 million MTPA steel plant at Salboni in West Bengal.

Steel Authority of India (SAIL)

• SAIL is the leading steel maker in India, with a turnover of US$ 1.1 billion in 2007-08.

• Indian Iron & Steel Company (IISCO), which was a 100 per cent subsidiary of SAIL, has been amalgamated with the parent company.

• The company has an integrated steel plant in Durgapur.

Shyam Steel • Shyam Steel, established in 1953 in Howrah, is a leading manufacturer of steel re-bars and structures.

• The company achieved a turnover of over US$ 217 million in 2008-09.

• It has a plant at Durgapur comprising steel melting furnace, billet casting plant and rolling mill.

Jai Balaji Group • Jai Balaji Group is among the leading manufacturers of steel in eastern India, it is headquartered in Kolkata.

• The company has integrated steel production facilities in nine manufacturing units, spread across the states of West Bengal, (three plants), Chhattisgarh, Orissa and Jharkhand.

• The company is setting up a 5 million tonne steel plant in West Bengal’s Purulia district,

Iron and steel – company profiles … (1/3)


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Bhushan Power and Steel Limited

• Bhushan Power and Steel is a fully integrated 1.5 MTPA steel making company, with a turnover of US$ 950 million in 2008.

• The company has seven plants, in Chandigarh, Derabassi, Kolkata and Orissa.

• The company is planning to set up a 2 MTPA capacity integrated steel plant with a captive power plant in Burdwan district of West Bengal.

• It has also planned a 6 MTPA plant in Asansol, West Bengal. The first phase is scheduled to have a 3 MTPA and a 1,000-MW power plant.

Arcelor Mittal • Arcelor Mittal is world's number one steel company, with operations in more than 60 countries.

• The company has its design and engineering centre in Kolkata.

• The facility, which started operations in May 2008, serves the entire design needs of ArcelorMittal, globally. The headcount at the centre is expected to go up to 250 over the next 3-5 years from over 60 as of 2007-08.

• The company has approached the West Bengal government for setting up a steel unit in the state.




71

UIC Udyog Limited • UIC is an ISO: 9001:2000 certified business house in steel wire industry, it was incorporated in 1999.

• In West Bengal, a multi-product plant is at Kalyani, wire division is located at Nadia Industrial Growth Centre and the pin division is located at Hooghly.

• The company had a revenue of US$ 70 million during 2008-09.

Gonterman-Peipers (India) Limited

• An ISO 9001: 2000 company, promoted in collaboration with Gontermann-Peipers Siegen, Germany, a leading European manufacturer of rolling mill rolls since 1825.

• In 1981, the company was taken over by the ISPAT Group.

• Products include cast rolls and forged rolls, registered office is in Kolkata.

Super Forgings & Steel Limited (SFSL)

• Incorporated in 1968, SFSL manufactures and processes value added mild steel.

• The company was initially a trading unit in alloy steels, started in 1960.

• The product line of SFSL includes tools steels, stainless steel (including corrosion resistant steel), high value alloy steel and carbon steel.

• The products find applications in defence, general engineering, power generating industries, automobiles, aeronautics etc.

• A multilocational company, SFSL has four units in West Bengal - three in Howrah and one in Dankuni.




72

• Around 500 IT and ITeS companies are operating in the state, employing more than 60,000 professionals.

• In 2007, the total export earnings of IT companies located in Software Technology Parks of India (STPI) was US$ 754.5 million.

• The IT and ITeS sector is projected to contribute 15-20 per cent to the state’s economy by 2010.

• West Bengal has 14 IT parks. A 16-acre SEZ by Tata Consultancy Services has been granted formal approval and is expected to be operational by 2011.

Key players

• Genpact

• Cognizant Technology Solutions

• Patni Computers

• HCL

• Microtech Software

• Tata Consultancy Services

• CMC Limited

• IBM Global Services

• Siemens Information Systems Limited

• Wipro

• ITC Infotech

• Diadem Technologies

Information technology


73

IT – company profiles … (1/3)

Genpact • Genpact is a global remote processing operations company that services clients across the world with its IT-enabled services.

• It has an 80,000 sq ft facility in Kolkata and another new facility is being constructed on a three acre area at Salt Lake, which would employ up to 1,500 people.

• It has also signed to acquire 700,000 sq ft at InfoSpace, an IT/ITeS SEZ developed by UnitechHitech Structures,which will house 7,000 professionals.

• The company has approached the West Bengal government to set up an IT-SEZ in Kolkata with an investment of over US$ 22.2 million.

Cognizant Technology Solutions(CTS)

• Cognizant Technology Solutions is a global e-business and application development company.

• Cognizant, Kolkata services several large clients from the banking, hospitality (restaurant), healthcare, financial, airline and information-driven sectors of the global market.

• It has signed a memorandum of understanding with Calcutta University, wherein the university will provide management and software training to a batch of 400 professionals hired by Cognizant, Kolkata.

• The company is investing around US$ 46 million to expand its facility at Kolkata.

Patni Computers • Patni Computers is one of the leading global providers of IT services and business solutions.

• Patni has 28 international offices across the Americas, Europe and Asia-Pacific, and 23 Global Delivery Centres in strategic locations across the world.

• Of the total 23 global delivery centres, one is located in Kolkata.


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HCL • Incorporated in 1976, HCL is a leading global technology and IT enterprise with annual revenues of US$ 5 billion. The company’s operations span across 26 countries. It has delivery facilities in the US, UK, Finland, Poland, Puerto Rico, Brazil, China, Malaysia, Singapore, Australia, Czech and India.

• In India, the company has offices in 170 cities and 500 points of presence reaching 4,000 towns. In West Bengal, HCL has two offices in Salt Lake City, Kolkata.

Microtech Software

• Microtech Software, headquartered at Kolkata, started its operations in1992.

• The company is in the business of integrating different parts of IT operations.

• It is a Microsoft Gold Certified Partner and a Microsoft Small Business Specialist.

Tata Consultancy Services (TCS)

• A company of the TATA group, TCS is a well recognised global service provider for a wide range of IT solutions, consulting, BPO, engineering services and IT infrastructure.

• The company has offices across the world at more than 40 countries, including 78 locations in India.

• It has two offices in Kolkata.

CMCLimited

• CMC Limited, an IT solutions company and a subsidiary of TCS, was incorporated in 1975.

• The company’s service offerings include enterprise resource planning (ERP), data warehousing, networking, embedded product development services, systems study and systems integration.

• It has 18 offices worldwide, including one office in Kolkata.

IBM Global Services

• IBM is a leading global IT services and solution provider with offices across the world, including India.

• IBM has been present in India since 1992. The company’s Indian operations offers software, storage, systems and servers, semiconductors, etc.

• Since inception, IBM India has expanded its operations considerably with regional headquarters in Bangalore and offices in 14 cities including a global delivery centre in Kolkata.




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Siemens Information Systems Limited (SISL)

• SISL is a leading systems integrator and total solutions provider offering high-end consultancy in areas such as healthcare, telecommunications, manufacturing, utilities, public sector and government.

• The company’s services include enterprise solutions, management consulting, security solutions and operation related services.

• Its registered office is located at Mumbai, the company also has one office at Kolkata.

Wipro • Wipro is a global IT services company providing consulting, business process outsourcing, business technology services, enterprise application services, infrastructure management, testing, product engineering, engineering design and product support.

• The company is headquartered at Bangalore, is has one office at Kolkata.

ITC Infotech • ITC Infotech, a global IT services company, is a fully-owned subsidiary of ITC Limited, the US$ 5 billion diversified conglomerate.

• Headquartered in Bangalore with wholly-owned subsidiaries in UK and USA, ITC Infotech provides comprehensive solutions through development centres, offices, and delivery centres in North America, Europe and Asia Pacific, in addition to two delivery hubs in Bangalore and Kolkata.

Diadem Technologies

• Diadem Technologies started operations in 1998.

• The company is a web services provider offering web hosting, reseller hosting and domain services.

• It is headquartered at Kolkata.




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Mineral resources

• The Raniganj coal belt accounts for over 30,147 million metric tonnes of quality coal. Reserves of coal bed methane (CBM), an alternative source of natural gas, in West Bengal is estimated as 1.64 million cu. ft.

• Rock phosphates deposits are found in Beldhi, Chirugora and Kutni regions of Purulia districts. Deposits of granite and kaolinite are found in Purulia, Bankura and the Birbhum districts.

• Good quality pegmetallic-quartz is available at Mirmi in the Purulia district, deposits of basalt-trap rocks used for preparing road metals are available in the Birbhum district.

Automobile and auto components• The automobile industry in West Bengal is dominated by original equipment manufacturers (OEM).

• The auto-components industry comprises units manufacturing a range of products from simple nuts and bolts to complex items such as shafts, radiators and axles.

• Hindustan Motors is a leading player in West Bengal. The company is engaged in the manufacturing of passenger cars (Ambassador and Contessa) and multi utility vehicles (Trekker, Porter and Pushpak) in the state. The company is developing 314 acres of land near its Uttarpara plant to set up a township with a residential complex, an IT park and an auto-ancillary park.


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Biotechnology

• West Bengal has many attributes that favour development of biotechnology industry. It has rich natural resources based on a diversity of flora and fauna.

• A wide variety of commercial crops are cultivated which can be improved by biotechnology interventions. Examples of such interventions are application of bio-fertilisers for soil fertility, bio-pesticides for environment friendly integrated pest management, genetic modification to produce golden rice, tissue culture for horticulture, floriculture and medicinal plants.

• Research institutes such as Bose Institute, Indian Institute of Chemical Biology, Indian Association for the Cultivation of Science, National Institute of Cholera and Enteric Diseases, Jadavpur University and Indian Institute of Technology, Kharaghpur are engaged in high quality research in various areas of biotechnology.

• A 30 acre biotechnology park is being set up at Baruipur, Kolkata to be known as Kolkata Biotech Park. The park is a joint venture with the University of Calcutta and Strategic Global Management (India) Private Limited.


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• The state has a long coastline of over 150 km and innumerable water bodies, which generate a huge potential for inland fishing and give it a prominent position in fish cultivation.

• West Bengal ranks first in freshwater fish production and second in shrimp aquaculture. The export market have increased manifold, over the years, for shrimps, prawns and processed fish produced in the state.

Fishery


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Agriculture and horticulture

• West Bengal comprises of six agro-climatic zones and offers a diverse variety of environs for agriculture and horticulture produce. It produces 250,000 tonnes of fruits and over 10 million tonnes of vegetables.

• The state ranks third in India in flower production after Karnataka and Tamil Nadu with an annual turnover of US$ 14 million. West Bengal accounts for 70 per cent of India’s dried-flower exports.

• There is good potential for exporting flowers like gladioli, gerbera, tuberose, rose and orchids to countries in the Netherlands, Middle-East, U.K and Japan.

• Indoor plants and foliages such as asparagus, palms, cycads and ferns are also grown in the state.

Livestock and dairy products

• The state has a favourable climate for poultry breeding and is considered as one of the most attractive poultry markets in India. It has enormous export potential in poultry and duck meat.

• West Bengal has the second-highest indigenous cattle population in the country and the second-highest poultry population in the country.

• The state is one of the leading producers of meat. The total production of meat in 2007-08 was 500,000 tonnes.


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Major projects being implemented

Name of the project Promoter Cost (US$ million)

Industry Project ownership

Assam border-Gairkatta NH-31C road project

National Highways Authority of India

46.7 Roadways Central Government

Coal mining Satgram UG project

Eastern Coalfields Limited 46.1 Coal Central Government

Cement (Murshidabad) project

Century Textiles & Industries Limited

43.5 Cement Birla BK Group

Material handling equipment (West Bengal) project

TIL Limited 43.4 Material handling equipment

Private (Indian)

Commercial complex (Kolkata)

Kolkata Metropolitan Development Authority

43.4 Commercial complexes

State Government

Cement (Durgapur) project expansion

Birla Corporation Limited 42.1 Cement Birla MP Group

Bandel-Naihati river bridge project

Eastern Railway 41.3 Railways Central Government

Paper (Ballavpur Ranigunj) project

Ballavpur Paper Manufacturing Limited

41.3 Paper and paper products

Private (Indian)

Source: projectstoday.com


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Key projects being planned

Project name Promoter Cost (US$ million)

Industry Project ownership

Vegetable oils (Haldia) project

Suman Agritech Private Limited

43.4 Vegetable oils Private (Indian)

Consumer electronics (Siliguri) project

Videocon International Limited

43.4 Consumer electronics Videocon Group

Integrated steel (Durgapur) project

Jagdamba Fiscal Services Private Limited

43.4 Primary steel Private (Indian)

Integrated educational complex (Debrupayan Nagar)

JIS Group 43.4 Other community services

Private (Indian)

Fabrication (Madhavpur) project

Bansal Poles & Towers Limited

40.2 Iron and steel products

Private (Indian)

Rammam hydro-power project Stage-I

West Bengal State Electricity Board

38.4 Hydel based power State Government

Hospital (Kolkata) project Global Sunrise 38.0 Hospitals Private (Indian)

Cement grinding (Sagardighi) project

Century Textiles & Industries Limited

38.0 Cement BK Birla Group

Source: projectstoday.com


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Contents


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Key approvals required

List of approvals and clearances required Department

Incorporation of company Registrar of companies

Registration, IEM, industrial licensesDepartment of industries, West Bengal State Government

Permission for land use

Allotment of land

West Bengal Industrial Development Corporation Limited (WBIDC), West Bengal Industrial Infrastructure Development Corporation, West Bengal Small Scale Industries Development Corporation

Site environmental approval

West Bengal Pollution Control Board (WBPCB)No objection certificate and consent under Water and Pollution Control Act

Registration under States Sales Tax Act and Central and State Excise Act Excise department, Government of West Bengal

Commercial taxes

Sanction of power West Bengal State Electricity Board, Kolkata Electric Supply Corporation, Damodar Valley Corporation, Durgapur Projects Limited, Dishegarh Power Supply Company Limited, according to area demarcated.

Power feasibility

Power connection

Approval for construction activity and building planPublic works department, Government of West Bengal, State Water Investigation DepartmentWater and sewerage clearance

Water connection

DOING BUSINESS IN WEST BENGAL West Bengal April 2010

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Cost of doing business in West Bengal

Labour cost in West Bengal

Industry Category of workers Minimum wages (US$/per day)

Agriculture - 1.8

Construction of roads and building Un-skilled 2.5Skilled 2.8

Transport Un-skilled 1.8Skilled 2.8

Industries Un-skilled 3.0Skilled 3.3

Cost parameter Cost estimates Source

Cost of land (per sq ft) US$ 4 to US$ 100 Industry sources

Hotel room cost (per night) US$ 108 to US$ 152 Indian hotel survey

Cost of office space (rent per sq ft)

US$ 4 to US$ 12 Industry sources

Cost of residential space(rent per sq ft)

US$ 2.6 to US$ 6.3 Industry sources

Power Commercial: 22 cents per kWhIndustrial: 33 cents per kWh

West Bengal State Electricity Distribution Company Limited

Water Commercial and industrial: US$ 11 to US$ 15 per month

Kolkata Municipal Corporation

Source: Labour Department, Government of West Bengal


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Single-window approval mechanism

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

SIFC offers assistance in the following areas: • Approvals from the Secretariat for Industrial Assistance and Foreign Investment Promotional Board. • Registration by Directorate of Industries. • Clearance from the Pollution Control Board. • All clearances related to power. • Identification, allotment, mutation/conversion of land and other infrastructural facilities. • Guidance to entrepreneurs on investment prospects in over 200 ready projects developed by WBIDC.

District Industry Centre (DIC) is the district-level committee for single-window clearance that provides sanctions and clearances for setting up small scale industrial (SSI) units in the state.

The committee is convened by the General Manager, District Industries Centre and includes the Environmental Engineer of the West Bengal Pollution Control Board, Superintending Engineer/Executive Engineer of PSEB, District Officer of Housing and Urban Development Authority and the Assistant Director of Factories.


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Key nodal agencies in West Bengal

West Bengal Industrial Development Corporation (WBIDC)

• The WBIDC focuses on financing of medium and large scale industries.

• It provides assistance service and facilitates investment proposal through “ShilpaBandhu”.

West Bengal Industrial Infrastructure Development Corporation (WBIIDC)

• The WBIIDC is responsible for balanced and well-planned industrial development in the state.

• It promotes joint sector and assisted sector units in important industry segments.

West Bengal Small Industries Development Corporation Ltd (WBSIDC)

• Set up in 1961, WBSIDC is the promotional agency for growth and development of industries and commercial activities in the small and medium sector in the state.

• WBSIDC has developed 35 industrial and commercial estates all over the state.

West Bengal Electronics Industry Development Corporation Limited (WEBEL)

• WEBEL is responsible for the development of IT/ITeS industries in the state.

• It assists investors in obtaining all necessary approvals for new projects and facilitates setting up of IT and electronics industry.

West Bengal Finance Corporation (WBFC)

• WBFC provides loans to small- and medium-scale industries.

• It focuses on the development of export oriented units.

• It has special schemes such as the National Equity Fund scheme for setting up of nursing homes and for acquisition of electro-medical equipment.


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Contact list

Key agency Contact information

West Bengal Industrial Development Corporation (WBIDC)

5, Council House StreetKolkata - 700001Phone: 91-33- 210 5361-65Fax: 91-33-2248 3737

West Bengal Industrial Infrastructure Development Corporation (WBIIDC)

5, Council House Street, 3rd FloorKolkata - 700001Phone: 91-33-2230 5804-08

West Bengal Small Industries Development Corporation Limited (WBSIDC)

Shilpa Bhawan, 31, Black Burn Lane, 2nd floorKolkata - 700 012, Phone: 91-33-2237 3895 Fax: 91- 33-2234 6057

West Bengal Electronics Industry Development Corporation Limited (WEBEL)

Webel Bhavan, Block - EP & GP, Sector - V, Salt LakeKolkata - 700091 Phone: 91- 033-2357 1704/06Fax : 91-33-2357 1708 /23571739

West Bengal Finance Corporation (WBFC) 12A, Netaji Subhas Road, 3rd and 4th Floor,Kolkata - 700001 Phone: 91-33-2230 0055/3259/4954/3083Fax: 91-33-2230 1250


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Annexure

Year INR equivalent of one US$

2000 46.602001 48.302002 48.042003 45.602004 43.702005 45.202006 45.002007 42.002008 40.202009 46.00

Exchange rates

Average for the year

West Bengal April 2010DOING BUSINESS IN WEST BENGAL

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India Brand Equity Foundation (“IBEF”) engagedICRA Management Consulting Services Limited (IMaCS) to prepare this presentation and the same has been prepared by IMaCS in consultation with IBEF.

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of this

presentation to ensure that the information is accurateto the best of IMaCS’s and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.

IMaCS and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.

Neither IMaCS nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.

DISCLAIMER


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