Global business summit: Investors wary of betting big on Mamata's Bengal

Kolkata: ‘Fata-Fati’ (fantastic in Bangla) is how West Bengal Chief Minister Mamata Banerjee describes Bengal Global Business Summit which concluded on January 8. She claims the state has received investment proposals worth Rs 2,43 lakh crore.

of the Rs 93,000 crore of investment proposal received on Day 1 of the summit, proposals worth Rs 78,700 crore came from the Centre. These are in crucial areas of port, steel, road and waterways sectors. But why don’t these fat numbers give much reason for industrialists to cheer? Despite the change in government – from the Left Front to the Trinamool Congress (TMC) – they don’t find much real shift in the approach to industrialisation and growth. Once the top most industrialised state in the country, it languishes close to the bottom now.

Bengal’s Finance and Industries Minister, Amit Mitra reeled off statistics on the state’s economic growth, particularly on the industries front during the summit’s inaugural ceremony. However, Union Finance Minister, Arun Jaitley was quick to remind the state government that, “We must not lose the sight of the reality that the share of manufacturing in the state’s growth is still on a very narrow base.” Many of the potential investors say they are wary of making any big financial commitment.

Why is that? The Singur incident – the ouster of Tata’s Nano car-manufacturing project from West Bengal to Gujarat - is still fresh in the minds of the people of the state. This was a big loss when it comes to manufacturing. Mamata was at the lead in the ouster of Tata back then. In fact, it gave her power in the state controlled by the Left for 34 years.

“Mamata Banerjee is against the land and tax reform policies. The state lacks industrial-friendly atmosphere and a proper support system for setting up of industries. Infrastructure is not in place and there’s much resistance from within the government in clearances,” BJP’s West Bengal in-charge Sidharth Nath Singh told Firstpost.

“Out of Rs 93,000 crore investment proposal, Rs 78,700 crore belongs to the Centre. This summit should have been named as ‘Centre-aid summit’, rather than Bengal summit,” he added.

A large number of investors are still ambiguous about the state’s land policy. During the summit, Mamata didn’t say anything on Bengal’s land policy or whether any amendment would be initiated to make land acquisition easier.

“There are certain things inherently wrong with the state, when it comes to industrialisation. Whether it was the CPI (M) or the TMC, nothing has changed for the betterment of  industries. The state government should have come up with a clear land acquisition policy, rather than keeping it vague. If getting a piece of land is so difficult in Bengal, who’ll make investment,” said an industrialist on condition of anonymity.

Though, the state government during the summit has assured of providing land through ‘land bank’,  the investors are yet to accept it at face value.

“Mere assurances and telling that the state has land bank won’t help the government to woo investors. Why anyone would invest, if there is no land? Where is the land?” questioned a local entrepreneur, who too participated in the Summit.

The chairperson of the UK India Business Council, Patricia Hewitt, who was in Kolkata for the summit, reportedly said, “Bengal for a long time was not very investment-friendly. The exit of Nano from Bengal aggravated that perception. Now it has to first build an investment-friendly image.”

Besides land and other issues, Bengal industries are also suffering from industrial disturbance due to unrest, extortion racket and illegal activities of local ‘syndicates’. “Syndicates are run by local goons and extortionists. These syndicates have fingers in everything – from supplying of labourers, technicians, materials to getting tenders. Despite complaining to the government, no action has seriously been taken. It’s becoming a menace for all the industrial units, as these syndicates are backed by political parties,” complained a senior executive of an upcoming IT company near the Special Economic Zone in Rajarhat, on condition of anonymity.

“Law and order system is West Bengal has deteriorated. There is absolute anarchy in the state and it has become a terror hub. Under such a condition, industrial development can’t be expected. During the Left Front government, Mamata forced Nano plant to move out of the state, but in her tenure, she has failed to create an industrial-friendly atmosphere,” remarked CPI (M), Central Committee member, Badal Saroj.