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The process of industrialization
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The process of industrialization in the state of West Bengal
West Bengal has witnessed the last few years as a reckoning period for resurgence and rejuvenation of the industrial scenario, availing full advantage of the liberalization policies though with ideological reservations in some areas. The State has received overwhelming response both from domestic investors and overseas investors in various areas. The attitude and gesture of the Government have allured foreign investors in large numbers.
The State already received delegations from different countries. West Bengal and the Government functionaries have had very meaning full discussions with the delegates. Quite a good number of memorandum of understanding were also signed both with domestic and overseas investors. Some of the projects have already been grounded and many projects are under advanced stage of implementation.
There has been question and many critics were skeptical about the actual industrial process in the state. In this context, it would be necessary to give a brief outline of the major projects under implementation and in the pipeline.
Haldia Petrochemicals Limited is a reality now. The mega Petrochemicals project in Eastern India and the country's third largest integrated grassroots petrochemicals plant will start commercial production of over a million tonnes per annum of Polymers and liquid co-products in the new millennium. This apart, the prestigious project, Mitsubishi chemicals corporation, Japan's PTA project has also entered into the construction phase at Haldia. It is expected that this unit will be going into commercial production by this year.
The construction of the Calcutta Leather Complex, Stated to be one of the biggest of such complexes in the world, has also entered in the implementation phase. This BOT Project is likely to give a substantial boost to the Leather Industry in this region.
PET RESIN Project by Elque polyester Limited at Falta, Cotton Spinning Mills by Pacific cotspin Limited at Falta, casting  unit by Datre corporation at Falta,Aluminium Foil Unit by India Foils Limited in North Calcutta, Silk yarn making unit by J J Spectrum Limited near Bishnupur, I V Fluid making unit at Sonarpur, expansion project by Electro Steel casting at Khardah, Tourism and Entertainment facility by Ganapati Greenfield at Raichak are some of the units which have been completed recently.
Improvement of urban amenities and increasing of housing stock have been given due priority by our Government. The efforts of the Calcutta Corporation to improve civic facilities have been welcomed by the people and have been approached by outsiders. A satellite city is being set up at Rajarhat adjoining Salt Lake. ‘Infinity’ for information technology and world Trade Centre’ for business information are making satisfactory progress. The ‘Asia Gateway’ project near the Kasba Industrial complex is in the planning stage. An exclusive NRI Complex in the eastern fringe of the city is expected to go into implementation phase soon. New schools, hotels, hospitals and financial centres are in various stages of planning. The proposal for setting up of a satellite Township for Siliguri have also cleared and for setting up a Minor port at Kulpi necessary action has been taken.
There are many more projects are coming up in the state soon. So the allegations made about non-implementation or very slow pace of industrialisation are not tenable. One may like to know that the all India average of implementation of MOUS is 9-10 percent in West Bengal. However, we have been able to cross the national average and the process of implementation has been successful in the order of 10-12 percent.
With the completion of financial tie-ups of Haldia Petrochemicals, we have been receiving series of queries both from domestic and overseas entrepreneurs who are evincing tremendous interest for setting up ancillary and downstream Industries in Haldia. The Mitsubishi Corporation Limited of Japan, NISSHO IWAI of Japan are the major players in chemcial industries of the world. The basic raw materials for the manufacture of PVC Resin Viz, Ethalene and Ethalene Di Chloride and the raw materials for PTA Viz. Paraxylen and Acetic acid are not abundantly available in the country. We are expecting surplus Ethalene after the Naphtha Cracker plant is commissioned. The companies desirous to set up chemical industries are contemplating in terms of importing these raw materials from USA
and other countries.
In different seminars and fora, we talk about the availability of various inputs,land etc. for setting up different industrial projects. The development of agriculture is very closely linked with the industrial development specially in the consumer goods sector. There have been studies and survey by various reputed organisation for ascertaining the opportunities of industrial venture in the context of the increasing purchasing power of the peasantry. We all know that industrial consumer goods have now entered the remote villages of the state
even the electronic sets are now common in rural areas. This has been possible because of the increasing purchasing power of the rural population for tremendous development of agriculture.
The State Government is aware of the fact that availability of quality physical and social infrastructure will be a major factor in attracting new investments. The Public Works Department has prepared a scheme for upgradation of State Highways. The Megacity plan for Calcutta, which is under implementation by the CMDA, envisages improvement of many roads in the urban agglomeration. The Government have also set up a state level Infrastructure Development Finance Corporation to supplement these efforts. With a view to providing some relief to the pedestrians, WBIDC in collaboration with ICICI, Transport and PW Department, Government of West Bengal have conceived of elevated pedestrians plaza over few busy corridors in the city. The State Government has recently constituted a ‘National Task Force’ which is chaired by the chief minister and has representation from the industry. This has been done to facilitate drawing up of a concrete action plan for rapid industrialisation, in consultation with the industry.
West Bengal have had the tradition for Engineering Industries, Hosiery, Garments, Food Processing Industries and the skilled labour force in the state is an additional asset. The power situation at present in West Bengal is worth mentioning and the state at this moment has surplus power. With the commissioning of Bakreshwar Thermal Power Project the situation has further improved. The requirement of power though expected to increase with further industrialisation of the state, the additional production of power will definitely be able to meet the requirement.
The State of West Bengal has had a distinguished position in the industrial scenario of the country since pre-independence days. During the last 5 decades the state had witnessed major changes in its socio-economic structure, industrial policies, mostly based on political ideologies both in the areas of domestic economy and global economy. It goes without saying that the growth of industries in the state is largely dependent on the attitude of the Government at the central and state level with regard to policies of licensing, incentive, export and import taxing structure on plant and machinery and on  transactions of industrial products, labour laws and above all the congenial environment created through political goodwill. Such policies may differ widely for large, medium and small scale industries and it is desirable that the policies must be directed towards fulfillment of the objectives of balanced growth in these sectors, unless adequate measures are taken to protect the interests of the entrepreneurs in all these sectors while framing the policies, industrial growth can not take place in a balanced and diversified manner which is required for overall development of all sections of the society.
Contributed by
Sangeeta Sengupta
Assistant Editor
Shilpa Bichitra
The process of industrialization
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