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West Bengal

  • On the upswing

    The West Bengal Power Development Corporation's Bakreswar Thermal Power Project in Birbhum district. WEST BENGAL has emerged as one of the fastest-growing States in India and is the third largest economy in the country. So its growing reputation as a preferred investment destination should come as no surprise. The State has registered a high growth in real State domestic product (SDP) over the past eight years and is one of the top-ranking States of the country in terms of growth in per capita income. Despite being one of the most populous States in the country and the State with the highest population density, West Bengal achieved a growth in per capita income of 5.72 per cent in 2004-05, well above the national growth rate of per capita income in the same year, which was 5.2 per cent. In the period between 1991 and 2004, West Bengal's share of foreign direct investment (FDI) was $1,789.3 million. However, between 2004 and 2006 alone, the State attracted FDI worth $119 million, spread over 178 new industrial units that are being set up now. The State's exports also grew from $816.1 million in 1995-96 to $3,769.5 million in 2004-05. In fact, with respect to the volume of export, it has been found that West Bengal ranks seventh amongst all the States. According to different human development index indicators such as literacy rate and life expectancy at birth, the State has performed impressively. In the National Census 2001, West Bengal's literacy rate was estimated to be over 69 per cent as against the national average of 65 per cent. Urban market The sheer volume of the State's market is its primary attraction. With a population of around eight crore, according to the 2001 Census, and with steady economic growth in terms of the net State domestic product (NSDP) and per capita income, West Bengal has more people with greater disposable income than many other States. West Bengal is, in fact, the third largest State in terms of savings, with the commercial banks accounting for almost Rs.855 billion. Besides, West Bengal is ideally located, with a vast hinterland, comprising Bihar, Jharkhand, Orissa, Sikkim and the north-eastern States, that increases the market size by about another 180 million consumers. West Bengal is also one of the most urbanised States in the country, with an urban population, according to the 2001 Census, of 22.5 million persons, 60 per cent of whom are below 30 years of age. This, in the context of rising incomes and the general boom in urban renewal and economic activity, has resulted in an increasing demand for quality goods and services. Kolkata, the State capital, alone accounts for a consumer profile of around 10 million, and major towns such as Siliguri, Durgapur, Asansol and Malda are also on an upswing. Rural market SUSHANTA PATRONOBISH South City, a Rs.10-billion multi-use project in the heart of Kolkata. It is not just the urban market that is undergoing a paradigm shift; it is happening in the rural sector too. With the enormous potential that exists in agriculture and farm products and food processing and agro-based industries, the State government is looking into investment proposals of considerable value from corporates for the procurement and large-scale marketing of agro products. This is expected to facilitate an increase in rural purchasing power and consumption profile. Agro industries With six agro-climatic zones, West Bengal offers an extensive variety of environments for the development of temperate, sub-tropical and tropical agricultural and horticultural produce. Agriculture contributes 30 per cent of the SDP and employs 57 per cent of the workforce. In fact, the State accounts for 30 per cent of India's potato production, 27 per cent of its pineapple production, 12 per cent of its banana production and 16 per cent of its rice production. The State ranks number one in the country in meat production (including poultry) and is one of the largest producers of fish, satisfying nearly 80 per cent of the country's carp seed demand. West Bengal also accounts for around 10 per cent of India's edible oil production and is the second largest tea-growing State in the country, contributing around 21 per cent of the total production in the country. A study conducted by the Government of India estimates that the investment potential in the State's food processing industry is Rs.154.52 billion over the next 10 years if the processing level is increased from the existing 2 per cent to 10 per cent in the same period. West Bengal has certain intrinsic strengths that give it an advantage in the field of food processing: vast agro raw material resources, six agro-climatic zones, an abundant supply of water from the many rivers across the State, fertile alluvial soil, low-cost and skilled labour, self-sufficiency in power, a large domestic market, and easy access to markets in the Asia-Pacific region, Bangladesh, Nepal and Myanmar. In a recent conference on industries, Chief Minister Buddhadeb Bhattacharjee emphasised the need for a modern market mechanism in the agricultural sector in the State. "Even though agricultural production is increasing, there is no proper method of preservation. As a result 10 to 20 per cent of the vegetable produce perishes every year mainly because of the lack of a modern marketing mechanism. We want more companies investing in this sector, and that will also help the economy in rural areas grow,' he said. Floriculture, including ornamental plant production, is an emerging industry in West Bengal. The State produces around 58,000 tonnes of flowers every year and has more than 10,000 acres (1 acre is 0.4 hectares) of land devoted to that purpose. Flowers are mainly grown in Kalimpong, Panskura, Ranaghat, Thakurnagar, Bagnan and in regions around the State. The main flowers produced are tuberose, gladiolus, rose, gerbera, carnation and cockscomb, and the countries that import flowers from West Bengal include the Netherlands and the United Kingdom and West Asian states, mainly Sharjah. The State government has already set up a floriculture park at Mungpoo in north Bengal, and a mega flower mart is also coming up in Kolkata at a project cost of Rs.250 million. Apart from these, there is a multi-storied flower market at Panskura, and another floriculture park is being developed at Jagulia in Nadia district. The State government recently received a $33-million proposal for setting up an open-air floriculture park on 200 acres of land at Rajarhat in Kolkata. Iron and steel PTI Haldia Petrochemicals Ltd. is India's second largest integrated petrochemical complex. Apart from being one of the main priorities of the State government's industrial drive, the iron and steel sector is one of the oldest industries in the State. The establishment of the Bengal Iron Works at Kulti in Bardhaman district in 1870 ushered in the era of iron and steel in the State. The growth of the industry in the State is largely related to the proximity of raw materials, skilled manpower, port facilities and the vast market for iron and steel products. In the period 1991-2004, as many as 243 new iron and steel units were set up, involving a total investment of $1,856.8 million. In fact, between 2002 and 2004 alone, 108 iron and steel projects, with a total investment of $414.3 million, were implemented. According to the State government, the largest investment in 2007 also came in the steel sector. JSW Steel of the Sajjan Jindal Group is setting up the 10 million-tonne-capacity integrated steel plant

  • Crying fowl

    It is steadily getting worse and could easily spin out of control if it acquires a virulent form. The latest outbreak of the avian influenza sweeping West Bengal is the most serious India has ever faced

  • Poultry trade down with bird flu

    Poultry trade down with bird flu

    Bird flu has hit hard India's Rs 36,000-crore poultry industry, already smarting under a steep rise in essential feed prices. Although the flu is restricted to West Bengal, crashing wholesale prices

  • South Asia

    baglihar inspection: Pakistan has said that it will inspect the Baglihar dam before it becomes operational. Spokesperson of Pakistan's foreign office, Mohammad Sadiq, said on January 30 that the

  • Cockpit

    In early December 2007, the country prided itself on providing the world with a road map to check the highly pathogenic avian influenza virus H5NI. Containing the virus in Maharashtra in 2006 and in Manipur in 2007 gave health authorities sufficient caus

  • Panic at Ghatshila

    Bird deaths have been reported from Ghatshila in East Singhbhum division of Jharkhand. By February 3, 500 birds had perished. Jharkhand does not have enough laboratories to check blood samples of

  • Guests under surveillance

    With the bird flu assuming serious proportions, it seems that some regular guests to the country aren't very welcome. The needle of suspicion has pointed at migratory birds that visit India every

  • A bird flu over the commie nest

    ABHIJIT VINAYAK BANERJEE I was trying to think what I would do if I were a chicken-owner and it looked like the flu had arrived in the village. I would worry, of

  • Rainwater harvesting must in West Bengal

    Spurred by environmental concerns, the West Bengal Government is set to make it mandatory to have rainwater harvesting and solar power facilities in buildings. "Global warming and climate change are threatening us. We must, therefore, have greenhouse concepts like solar power and rainwater harvesting in new buildings. I am talking to my urban development minister to include these in the Municipal Act so that it becomes mandatory for all,' Chief Minister Buddhadeb Bhattacharjee said today. Inaugurating the 'Realty Expo 2008' of the Confederation of Real Estate Developers Association of India (CREDAI), he described paucity of housing as a national problem and said his government was stressing on construction of housing projects both by the government, private players and through public-private partnership (PPP). With the PPP model having been successfully implemented in the state's housing sector, the government now wanted the private players to take up construction of related infrastructure like roads, bridges and flyovers, he said. Pointing out that Rs 15 crore had been collected towards construction workers' welfare after the government made it mandatory for real estate developers to contribute to it, the Chief Minister appealed to private developers for greater contribution towards the welfare fund.

  • Freight corridor to link Nano factory but no funds yet

    Railway Minister Lalu Prasad Yadav's budget has good news for Tata Motors. The Railway Budget proposes a dedicated freight corridor from Ludhiana in Punjab to Dankuni, located near Tata Motor's small car project site at Singur. Needless to say, the dedicated corridor will connect the Tata factory with the rest of India. However, there's some bad news for the company as well. As the preliminary survey work for the project from Dhanbad to Dankuni remains incomplete, funds have not been allocated. With Nano expected to hit the roads by October-November this year, the dedicated freight corridor might be a long way away for the Tata Motors to reap its benefit, unless put on fast track. Apart from this, however, there is not much for West Bengal to be happy about. The state has got only four new trains. Moreover, long standing projects like development of Howrah and Sealdah stations, Shalimar terminal station, the Kolkata station in Chitpur and extension and improvement of the Metro have been ignored. "Continuing the trend of the past few years, the Railway Budget is hopeless for Bengal. The dedicated freight corridor will benefit the much talked about Singur project. The original corridor was from Ludhiana to Dhanbad, which has now been extended to Dankuni. But no funds have been allotted and even preliminary survey is incomplete. Therefore, it will take years to become operational,' said Bhaskar Chaudhuri, a retired chief commercial manager of Eastern Railways. Tata's small car project lies in Singur, which is close to both the Dankuni Expressway, part of the Golden Quadrilateral, and the proposed freight corridor. The four new trains for West Bengal state are

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