Till the late forties, West Bengal
enjoyed a pre-eminent position in the field of industrial development.
Well over six lakhs of people were employed in various industries in the
organised sector in 1948 - a figure being equal to that of the present
Maharashtra and Gujarat put together. The partition followed by large influx
of refugees placed a major strain on the resources of the State. But this
was not adequately taken care of by the Government of India.
Nevertheless number of central public
sector establishments like the Durgapur Steel plant, Alloy Steel Plant,
Mining & Allied Machinery Corporation, Chittaranjan Locomotive works,
Hindustan Fertilizer Corporation etc, were established during the fifties
in the State. This led to a process of ancillarisation.
Since industry is in the union list
and financial institutions are under the central Government, industrialisation
in any state is crucially dependent on the policies at the national level.
Over several years in the past, there has been serious discrimination at
the national level against the state and also the entire eastern region
in the granting of industrial licenses. The deliberate policy of selective
freight equalisation has also robbed the state of its comparative locational
advantage in terms of important industrial raw materials, such as steel
and coal. Similarly, the credit deposit ratio of the nationalised commercial
banks in West Bengal has been unreasonably kept depressed at around 46.5
percent, below the national average of 60 percent. There has also been
a palpable discrimination in the direct investment of the central Government
in the State. For instance, while in 1981, the share of West Bengal in
total Central investment in the country had been at 8.2 percent and that
of the comparable State Maharashtra at 8.6 percent, in 1991-92 the share
of Maharashtra increased to 16.3 percent but that of West Bengal came down
to 7 percent. Even this discriminatory policy in the sphere of banking
and central investment persists.
Thus, the natural advantage that
the state had was lost leading to flight of capital from the state of areas
which were benefited by freight equalisation and the licensing policy and
in some measure due to location of Headquarters of major financial institutions.
The sixties witnessed a countrywide recession and its deleterious effects
obviously hit West Bengal. This coupled with the other factors referred
to, inevitably resulted in political instability and strained industrial
relations. The effect on industrial growth was adverse and this was manifest
in the lack of new investments, growing sickness and stagnation.
But the new economic policy followed
by the changed industrial scenario in the country as also the West Bengal
Government's own proposals for an alternative economic policy call for
a Statement of policy by the Government of West Bengal on the vital issues
of industrial development, rehabilitation of sick units and generation
of employment under scoring the strategy addressed to promotion of new
investments, creation of employment opportunities and protection of the
legitimate interest of the labour.
At the same time, considering the
importance of potential for generating employment and income all over State
by harnessing local resources and skill, a conscious policy for promotion
of cottage and small-scale industries on an extensive scale was evolved.
Simultaneously, policy initiatives
were taken to promote the establishment of electronics industry in the
State. Unfortunately, the efforts to the State Government in involving
the Government of India in this process did not succeed. To facilitate
promotion of modern industries and ensure downstream employment, the petro-chemical
project at Haldia was conceived. Simultaneously, with the process of promoting
new industries in the large, medium and small scale sectors, concerted
efforts were made for the rehabilitation of a large number of sick units
abandoned by the private sector. It was thus possible to protect productive
employment of a very large number of workmen in Jute, Textile, Engineering
and pharmaceutical industries both through the Government of India as well
as directly by the State Government.
As a result of the new economic
policy, indigenous technology and Indian industries are exposed to the
rigors of global competition. Development of indigenous technology may
as a result be thwarted and local products rendered less competitive. The
State Government's policy, therefore, is oriented promotion of employment
and productivity, rehabilitation of sick industries through a process of
reconstruction, modernisation and/or diversification and protection of
the legitimate interests of the workforce keeping in view the overall health
and productivity of industry.
Apart from the presence of large
Indian industrial houses functioning in the State, a number of multi-national
corporations have long been successfully operating in the State and to
name a few, they are Philips, GEC, Hindustan Lever, ICI, Siemens, Bata
etc. A welcome development is that a good number of Non-resident Indians,
multi-national corporations directly or through foreign Governments and
Indian industrial houses have, in the recent past, shown special interest
in coming to West Bengal either for setting up new industries or for expansion
of existing industrial units.
So, the State Government welcome
foreign technology and investment, as may be appropriate, or mutually advantageous.
While the State Government considers the Government and public sector as
an important vehicle for ensuring social justice and balance growth, it
recognises the importance and key role of the private sector in providing
accelerated growth. Alongwith the public and private Sectors, the State
Government looks upon the joint and assisted sectors as effective instruments
for mobilising necessary resources and expertise in important areas of
economic activity. At the same time, improvement and upgradation of industrial
infrastructure is indispensible for accelerated growth of industries. In
the field of power, the State is already self sufficient with a generation
capacity of over 3000 MW. It has also been planned to provide for an additional
capacity of 5000 MW in the public, joint and private sectors over next
10 years. Other thrust areas are improvement in roads, communications and
developments of Growth centres. These programmes would, no doubt, require
massive investments and it is therefore, proposed to undertake projects
for development of industrial infrastructure through the Government or
through the private and joint sectors, wherever feasible, Government has
already taken the initiative in substantially improving the social infrastructure
facilities.
Based upon the available opportunities
and the potential of this region, the State Government has identified certain
segments of industries, among others, as thrust areas for special attention.
THESE ARE :-
Petrochemicals and Downstream
Industries
The efforts of the Government have
led to the finalisation of the project parameters of the Haldia Petrochemicals
complex. Planning for "downstream growth zones" has been initiated. In
this process, dispersal of activities to cover all possible areas of the
State will be given priority. It is the desire of the Government to encourage
to development of downstream industries in the State along with the Haldia
petrochemicals Limited. So, that most of the units are ready by the time
of commissioning of the mother unit.
Electronics and Information
Technology
The Government is encouraging proposals
for setting up large complexes in the "information technology" segments
in the private sector, joint sector and public sector.
Iron and Steel, Metallurgical
and Engineering
The efforts of the Government are
addressed to developing these sectors optimally so that the State is able
to establish its primacy in this sphere. With easy availability of raw
materials, stable power and skilled man-power, a significant growth is
expected. Ship-breaking activities are being promoted to make available
scrap at reasonable rates to the downstream units. Due attention is being
given to Ferro Alloys.
Textiles
The State occupied an important
position earlier in the textile Sector. It is proposed to formulate a new
strategy for development especially in the areas of hosiery, knit-wear,
ready made garments etc. In the silk and silk weaving sector, the Government
is committed to encourage processing and value addition activities. Emphasis
will be given an expansion of areas under sericulture.
Leather and Leather Products
This sector has a very high potential
for growth due to easy availability of raw materials like hides and skins.
Availability of skilled manpower for such activities has been the strength
of this area. Export oriented units will be benefited through the setting
up of the "Integrated Leather Complex" near Calcutta. Both for the external
and internal markets, the proposed integrated leather complex on 1000 acres
of land will be of immense help.
Food Processing, Edible
Oil, Vegetable Processing and Aqua-culture.
The Government will continue to
give priority to these segments on account of the fact that development
of these segments will further strengthen the agricultural base and increase
employment opportunities in the unorganised sector. The State will help
in establishing appropriate linkages between growers and processing units.
Aquaculture, particularly brackish water shrimp culture in the estuarine
areas will be given priority. Floriculture, tissue culture and horticulture
will be encouraged.
Medical Plants, Rubber,
Palm Oil and Tea
The Government will provide necessary
support for development in these areas.
Manufacture of Basic Drugs,
Chemicals & Pharmaceuticals
Considering the tradition the strength
of West Bengal in these segments, an action plan is being formulated to
attract higher investment in this area.
Optimal Utilisation of
Minerals and Development of Mine-based indutries
Mining of dolomite, granite, china
clay, limestone, apatite and fireclay is being encouraged. In the coal
sector, high temperature coal carbonisation will be encouraged.
Gems and Jewellery
It is proposed to avail of the sophisticated
skills available in the state for promotion of jewellery making.
Promotion of Tourism and
Tourism Related Activities
In view of the high employment potential
in this sector, the Government is formulating a separate policy for development
of tourism.
At the same time, efforts will be
made to rehabilitate and reopened the sick and closed units appropriately.
In the field of industrial relations, the state government has over the
years evolved a system of tripartite negotiations and understanding both
at the unit and industry level and such long term agreements have been
successfully implemented in the industries like engineering, Jute, tea,
textiles etc. It is the considered view of the State Government that the
workers/ units have to be informed of the problems and prospects of the
concerned industrial units and there should be a constant dialogue between
the management and the labour to ensure harmonious industrial relations.
In the face fierce competition, industry is required to maintain efficiency,
standards and quality. It is also necessary for the existing units to modernise
to make its products competitive. At the same time it is necessary for
the management to ensure that the statutory obligations are complied with
and all the legitimate interests of the workmen looked after. It is necessary
for the workers to study the industry in which they are engaged and take
interest in production and productivity whilst protecting their rights
and privileges.
So the State Government is committed
to the objectives of income and employment generation through a process
of rehabilitation and revival of existing industries and co-ordinated and
accelerated development of new industries in the state. But in this effort,
the dedicated co-operation of the investors, industrial and financial institutions,
labours, bureaucracy and the people at large is of utmost importance.
Projects in Progress
-
Calcutta Leather Complex
-
World Trade Centre
-
Export Processing Industrial Park
-
Bengal NRF Complex
-
Satellite Township
-
Infinity (Infotech Infrastructure)
-
Asia Gateway (Information Technology
and software)
-
Peerless Abasan
-
Bengal Ambuja (Housing)
-
Polypark at Haldia
-
Food park at Dankuni
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