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Scenario of Chemical Industries in West Bengal
West Bengal is strategically located and is the gateway to Eastern Inia. It has an already developed industrial zone in Calcutta, Howrah, Hooghly, North and South 24-parganas, Durgapur, Asansol, Haldia, Kharagpur, Kalyani and Siliguri. The raw materials available are coal, iron and steel, agrowaste, marine products, hide and skins etc. Minerals like dolomite, apatite, limestone, lead, zinc ores, wolframite and granite are available in good quantity of water, a virgin country side sufficient and fast modernizing agricultural base, dedicated skilled workforce and congenial industrial climate are the positive aspect of the state. A relatively developed road, rail, airport and port network are distinct advantages of stable and adequate power supply.
Labour Situaton
The labour situation West Bengal is stable , healthy and positive. We have a large skilled workforce. We have an effective intervention mechanism to resolve labour dispute.
Business Sectors are Specially Favourable for Investors ?
Availability of natural and human resources, a vast improved power scenario, skilled workforce with aptitude to absorb modern technology, comparatively less costly wage structure and a good social infrastructure are the features which provide an ideal platform for accelerated growth in the industrial sector. The thrust areas, as identigied by the state Government are :-
  • Petrochemicals and Downstream Industries
  • Electronics and Software
  • Engineering and Machinery units 
  • Primary, Secondary and Tertiary sector industries in iron and steel
  • Textiles including cotton yarn, blended yarn and viscose staple fibre along with Hosiery, Knitwear and Garment units
  • Processing of Leather and Manufacture of high value Leather products
  • Shrimp culture, Food processing and Vegetable processing 
  • Expansion of areas under tea, cinchona and medical plants. Introduction of rubber and palm oil plantations
  • Sericulture and silk products
  • Floriculture and Tissue culture
  • Manufacture of basic drugs and pharmaceuticals.
  • Infrastructure projects like construction of mega growth centres, Industrial parks, Trade centres etc
  • Tourism in sub-Himalayan regions and the estuarine areas of sundarbans etc.
The state Government is committed to extend all necessary help to new projects. Proposals for joint sector, assisted sector and direct investment are receiving and will continue to receive topmost priority of the administration.
History of Chemical Industry in West Bengal
There was a steady growth upto the mid-sixties, but the decline started there after due to various factors. However, an uptrend has been noticeable in the recent years. This would be evident if one takes an overview, cogmentwise of the scenario of the chemical industry in the state.
Coal Chemicals
Development and production of coal chemicals in West Bengal could be traced back to the days of East India Company . It was in 1774 that East India Company started the first colleiry in India at Ranigunj, West Bengal. However, coal chemicals and crude coal tar (for downstream distillation) became available here only in 1930s, mainly from coke ovens of TISCO and IISCO. Subsequently, some crude coal tar distillation units for downstream process and production of a number of coal chemicals came up here. The efforts received a further stimulus with the implementation, in the fifties, of Durgapur Projects Limited (DPL) in the state sector . The present  availability of crude tar in this region for processing is likely to increase with the full implementation of Dankuni Coal Complex, the modernistion of IISCO and DSP and the reorientation of DPL. In the meantime, the demand – supply profile of crude tar in the country as a whole has undergone a sea change . This spurt in demand for crude tar is due to the growth of the coal chemical industries. The demand growth and the emerging global trade pattern have ushered in a great opportunity to this particular industrial segment. Reportedly, a number of companies in the developed countries have evinced interest in large-scale investment for setting up units here . Factors favouring such investment are:
Global demand rise, pollution hazards of coal chemical industries and abundance of coal in India suitable for low temperature carbonisation.
Acrylic Fibre-based Downstream Units
Due to an increasing pressure on land and the global awareness on environment and ecology, the availability of natural fibres like cotton and viscose rayon is likely to reduce in future. Evidently, both acrylic and polyester fibres are emerging as a major blend for the manufacture of dress materials. Few years ago the entire quantity of dyed acrylic hand Knitting yarn and dyed acrylic hosiery goods comes from Punjab. Obviously, acrylic fibre spinning an dyeing facilities could not be developed due to the absence of any acrylic fibre manufacturing units in this region. Now consolidated Fibres and Chemicals Limited’s Plant at Haldia cater to these needs. The State Government Departments and its agencies connected with the development of industries are very keen to assist interested entrepreneurs setting up of these units in the state.
Mineral Based Chemicals
Eastern India is endowed with large reserves of various minerals which can contribute to the industrial development of this region. The mineral related to chemical process industries are limestone, ilmenniterutile, pyrites, rock  phosphate and manganese ore.
Agro Based Chemicals
In predominantly agrobased economy of our country, the potential of various agrobased chemicals is quite natural. But unfortunately, the vast agricultural/ forest reserves have not been properly tapped so far, although ambitious plans are under way. Pulp and Paper industry is one of the major agro based industries, which has a very good growth potential. Vanaspati, Vegetable Oil, Sugar and alcohol are other major agro-based chemicals which need special attention for development in the eastern region as they are always in short supply and their demand increases progressively owing to the increasing population.
Petrochemical Industry
The petrochemical industry has become one of the most buoyant sectors of the economy and because of the versatility and easy processability of its products, it has poised to be an important tool for industrial growth which is reflected in the large expansion of the plastic processing units. The demand of plastic product continues to outstrip the indigenous availability and the scope of growth in this sector particularly in Eastern India is thus self evident. The advent of Haldia Petrochemicals Limited (HPL) shall reduce import dependency of these products and lead to substantial foreign exchange savings. Above all, it will cause considerable investment in the downstream industries that will crop up to consume the HPL products and subsequently generate large employment potential.
Paint and Allied Industries
West Bengal is the birth place of the organized sector of Paint Industry in the country. These units are performing well and some of them is earning foreign exchange. The paint industry needs various types of raw materials and Packaging, Viz, Paper, Cardboard, Plastics and metal containers.
Leather Chemicals
West Bengal has been functioning as a vast raw material resource base for the leather industry in the form of hides and skins. However, Indian leather export has undergone a transition from the export of raw hides and skins in the fifties to value added finished leather in the nineties. In the context, leather processing industries in the state needed a strong structural support and proposal was mooted for setting up an eco-friendly complex near Calcutta with modern technical and training facilities. In this full scale integrated leather complex, facilities for leather-finishing, computer-aided design centers, modern training center for upgradation are also being provided. This mega complex will also have manufacturing units to produce footwear uppers, finished footwears, leather goods and garments to catering to the expanding domestic and export markets. The availability of a wide range of cost effective leather chemicals with consistent quality is crucial for the success of such a mega complex. Entrepreneurs can set up manufacturing units in the mega complex for both tanning chemicals and posttanning chemical auxiliaries.
Lastly, I like to mention the message of our Chief Minister Shri Jyoti Basu to all the foreign investors - `please do visit us and share and share and exist in the process of economic resurgence of West Bengal.
Contributed by
D Dutt Gupta
Managing Director
East India Pharmaceutical Works Limited
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