Transcript PBD-07 - West Bengal Industrial Development Corporation

India's Preferred Investment Destination
Advantage West Bengal…
 Gateway to South-East Asia
One of the fastest developing States in India
with over 7% growth rate
Abundant natural resource, large &
concentrated market, access to International
Markets & proximity to South-east Asian
countries
Superior connectivity through developed
physical, social & telecom infrastructure
Surplus electricity generation
Large talent pool of English speaking
population at low operating cost
Pro-active State Government committed to
rapid industrialisation and balanced economic
growth
Robust Economic Bottom Line…
Average Annual Growth Rate of SDP(%), 1999-2000 to 2003-2004
8
7.06
6.71
7
6
5.88
5.44
4.92
5
(%) 4
3.31
3
2
1
West
Bengal
Tamil Nadu
Maharashtra
Karnataka
Gujarat
Andhra
Pradesh
0
Source: West Bengal Economic Review, 2005-06
• One of the fastest growing economies in the country at over 7%
•Real NSDP of the State (2004-2005) stood at US $23 billion with
per capita income at US$273
•Real SDP of the State has registered a growth of 7.13% in 200405 following a 7.11% growth in real SDP in 2003-04
•The largest contributor to the State’s GDP is the service sector
with the share increasing from 42.79% in 1993-94 to 57.15% in
04-05
and across the States…
Average Annual Growth Rate of Per Capita Income(%)
1999-2000 to 2003-2004
5.66
6
5
4.42
4.4
4.53
4
3.16
(%) 3
2.35
2
1
West
Bengal
Tamil Nadu
Maharashtra
Karnataka
Gujarat
Andhra
Pradesh
0
Source: West Bengal Economic Review, 2005-06
• 2nd Highest CAGR (1993-94 to 2003-04) at 5.49% among
major Indian states, against a national average of 4.41%.
•Above National average for the last two years.
The Rural Transformation…
•Literacy rate of West Bengal is estimated over 69% well ahead
of National Average of 65%
•Rise in income, reduction in poverty... & Still a leader in poverty
alleviation
•Achieved through comprehensive rural land reforms and
social economic empowerment by devolution of power to local
self government
•Highest agricultural growth rate (4.6%) in past 10 years
through ‘intensive agriculture’.
Resource Advantage…
•Abundant natural resources of minerals
WB Mineral
Map
•Rich deposits of coal, rock phosphate, granite, manganese,
silica, fire clay, road metal, quartz, apatite, dolomite, limestone
etc.
•The Ranigunj Coal Belt alone accounting for more than 30,147
mmt of quality coal
•Coal Bed Methane (CBD) reserves in the State is estimated at
1.64 million cubic feet
•State has a prosperous hinterland of some of the extremely
mineral rich states like Jharkhand, Bihar & Orissa
•An increase in the State coal production by 5.11% in 05-06 to
24.79 mn tonnes
Size Matters…
•Caters to more than 10% of India’s total consumer market
•Key to a hinterland with 400 million people
•Flourishing retail and real estate market, largest in whole
of Eastern and North-Eastern states in India
•Most happening State in whole of Eastern and Northeastern India
Leap forward…
•Consistent level of investment in manufacturing of over
$450 mn. in each of the last 5 years
•A total investment of US $493 mn. in 2004 with 196 projects and
an investment of US $553 mn. in 2005 with 227 projects.
•Investments worth US $14.02 million in 1st 2 qtrs of 2005-06
•Excludes investment in mining, electricity, small scale industry
and services
•Key contributors: Chemicals & Petrochemicals, Metals
especially Iron & Steel, Textile, Food Processing
In Forefront of Connectivity…Roads
•Over 92,000 km of roads including 13 National
highways with one of the best road density of 1.04 km
per sq km against a national average of 0.75 km per
100 sq km
•Total national and state highways – 5400 km
•Key Initiatives:
•Major stretches of golden quadrilateral projects
undertaken by the National Highway Authority of
India will pass through major North Bengal districts
•NH2 connecting Kolkata and New Delhi is being
widened to 4 lanes. The Durgapur & Kona
Expressways are operational providing easy access
to Kolkata from NH2
•Eastern link expressway being developed from
Kolkata to link up Haldia through PPP
In Forefront of Connectivity…Rail
•Well connected by Railways of over 3931 route kms.
•One of the best rail networks in country
•2200 kms electrified tracks
•A dedicated Railway Freight Corridor connecting
Delhi and Kolkata on the anvil
(Source: Economic Review 05-06, GoWB)
Ports/Airways …
•Two modern ports – Kolkata & Haldia together
handling over 53.2 million tonnes of cargo per annum
– 2nd in India. Cargo volume increased by 74% (22.6
mn tonnes between 2002-03 and 2005-06)
•A new 3,000 acres Port cum SEZ coming up in Kulpi
in collaboration with P & O Ports Ltd.
•Feasibility study for a deep Sea Port near Kolkata
being undertaken
•Kolkata is well connected : NSCB International
Airport
•Another airport at Bagdogra in North Bengal
•A perishable cargo complex at Bagdogra Airport has
been sanctioned by GoI at a cost of US$0.68 mn
•A new Greenfield international airport planned near
Kolkata
Super power…
•NASSCOM – Gartner ranks West Bengal’s Power
Infrastructure the best in the country.
•Power surplus state with 7616 MW installed capacity
(supplying 100 MW ‘off-peak-power’ to its
neighbouring states) with another 2400 MW under
implementation.
•Lowest cost in India - $0.06 per unit for industrial use.
•No Power outages
•Several power supply utilities including private
suppliers at most competitive rates
•Electricity generation increased by 9.9% in 2005-06 at
44899.65 mn units (State’s sector share 39.5%, Central42.8%, Private sector-17.6%)
The Good Life…
•Land of mountains, oceans and forests.
•15% foreign tourists visiting India visit West Bengal.
•Largest number heritage clubs with all kinds of
recreational facilities.
•5 golf courses, including the world's oldest outside
UK.
•India's oldest race-course, still thriving, and a Turf
Club with the world's oldest continuously used polo
ground.
Idea factory…
•9 Medical Colleges
•16 Government Universities,
•53 Engineering & 450 Degree Colleges
23 Management Institutes
•Annually
160,000 enrolment in 16 Universities
More than 13,000 graduate engineers
•Cost advantage - Average graduate salaries 60% of
Mumbai & Bangalore
•Centres of Educational Excellence
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IIT, Kharagpur
IIM, Kolkata
National University of Juridical Sciences
Indian Statistical Institute
B.E.S. University
Jadavpur University
University of Calcutta
Institute of Information Technology
Centre of Excellence in Biotechnology
Presidency College
St. Xavier's College
Satyajit Ray Film Institute
Visva-Bharati University
Business Opportunities…
Agriculture & Food Processing
•Largest producer of rice & 2nd largest producer of potato in
India
•A produce of 0.25 mn tonnes of fruits & over 10 mn tonnes of
vegetable each year
•Largest producer of pineapple & 2nd largest producer of Lichi
•Substantial producer of spices, coconut, cashew nut, betel
vine & oil seeds
•Opportunities in processing and export of fruits
Business Opportunities…
Agriculture & Food Processing
•Variety of fruits and vegetables available round the year,
making multi-product plants viable
•Accounts for 10% of the country’s total edible oil
production
•6 Agri Export zones across the State
•40 hectares Food Park commissioned at Sankrail, Howrah
– only 25 kms from Kolkata
Business Opportunities…
Floriculture/Pisciculture
•3rd in flower production with a annual turnover of US $14
million
•Grows 145 different varieties of medicinal plants &
herbs,having exciting export opportunities
• indoor plants & foliages like Aspagarus, Palms, Cycads &
Ferns grow profusely in the State which has a enormous
export potential
•1st in fresh water fish production & 2nd in shrimp aquaculture
•Total fish production of 1215 thousand tonnes in 04-05
•Export market for shrimps & prawns growing exponentially
•Leading meat producer including poultry (475 th. Tonnes in
04-05)
Business Opportunities…
Chemicals & Petrochemicals
•Investments of over US $ 2.04 bn in the
last five years - highest amongst all sectors
•Key advantages include ready availability of
petrochemicals, availability of ready market for
end products and export facilities through Haldia port
•A petrochemical & Chemical
investment region (PCPIR)
including a 10,000 acres chemical SEZ coming up at Haldia
•Indian Oil Corporation is the anchor investor for PCPIR
•Major players already in the sector include Mitsubishi, Indian
Oil and Haldia Petrochemicals
Business Opportunities…
Iron and Steel
•1991-2004 – 234 new industries,
US $1.84 bn invested in this sector –
2nd highest amongst all sectors
•75 projects worth over US $ 990 mn in the pipeline
•Product range : Steel ingots, Ferro-alloys,
Sponge iron, Pig iron, Billets, Forgings,
Bars, Plates…
• Major investments in the steel sector on the anvil. Both
Jindal & Bhushan Group setting up large capacity steel
plants in the state
Business Opportunities…
Iron and Steel
Driven by
•Boom in demand – internal demand
driven by infrastructure growth,
international demand led by China
•Policy environment – repeal of the freight
equalization policy, allowing West Bengal
to leverage its locational strengths.
•Proximity to raw materials and power sources
•Opportunities for value added
products, engineering goods, machine &
tools, forging, automobile components…
Business Opportunities…
Auto Industry
•Boost in demand for automobiles thanks to
growing spending powers
•Phenomenal growth in 2-wheeler sales in
the East- 1.22 mn. units sold in ‘02 and 1.68 mn. in ’03
•Mahabharat Motorcycles Limited of Indonesia is setting up
a 2 wheeler - manufacturing unit at Uluberia, Howrah
•Global Automobiles Pvt. Limited, a joint venture company
between Xinitis Group and Guanzhou of China is also
coming up with a 2-wheeler unit in Hooghly District.
•Tata Motors Limited is setting up their Small Car project at
Singur in Hooghly District. The car project is of US $ 220 mn.
which will be spread over 405 Hectares of land.
Telcon, a subsidiary of Tata Motors will also set up a
US $55 mn. earth- moving equipment plant at Kharagpur
•Bharat Forge to set up a forging unit at Duegapur
•First mover advantage for ancillary units
Business Opportunities…
Auto Industry
•Ready land available in Kharagpur –
near the Indian Institute of Technology,
2 hrs. by train from Kolkata,connected by
4-lane highway, assured power and water
•Close proximity to a major port,major steel centres,
and ready availability of skilled manpower
•Land also available at Haldia and Durgapur
•Opportunities for 4-wheeler automobile plant
Business Opportunities…
Power Generation & Transmission
•Projects worth US $2.75 bn already being
•implemented
•Opportunities for electrical equipment
•manufacturers like•Transformers
•Cables
•Switchgears
Business Opportunities…
Leather, Gems & Jewellery
•Availability of best quality ‘blue’ goatskin and
skilled craftsmen; Exports of US $ 660 mn of
leather products, gems & jewellery, natural silk
yarn / fabrics during ‘04-05;
•Leather Park set up in
public private partnership (PPP)
•SEZ for gems & jewellery set up in
Kolkata and exports operational
Business Opportunities…
IT & IT enabled Services
•Leveraging - rich talent pool
- low-cost infrastructure
- world-class connectivity
•Low costs (real estate, employee salaries)
60% of Mumbai & Bangalore
•Rated
2nd most attractive IT / ITeS destination in India
Source: Hewitt Associates Study, 2004
Business Opportunities…
IT & IT enabled Services
•235 companies, 31,000 IT professionals operate from
•Salt Lake, Calcutta
•Export turnover of US $563mn during ‘04-’05
•14 Million Sq m. of new IT space being built in the state
•IT Services: IBM, Cognizant Technologies,PwC,TCS,Wipro
•IT enabled Services / BPO: Wipro BPO, GE Capital, HSBC
• Infosys, Tishman Spyers. ITC Infotech & Verseon setting up
facilities in the upcoming INFOcity
- a US $176 mn. IT Park in Salt Lake City and a
US $22 mn. LCD Television Set manufacturing unit at Taratalla,
about 7 kms from the Central Business District (CBD).
Business Opportunities…
Knowledge Industries
Bio-tech and Multi-media
• Skill pool available
• Centres of excellence
• Policy support
• Cost advantage for off-shoring
• Bio – tech Park coming up at Kharagpur in association
with IIT, Kharagpur
Business Opportunities…
Hospitality & Tourism
• Land of mountains, oceans and forests;
• Hill Station
• Sea Beaches
• Cultural Tourism
• Religion Tourism
• Heritage Tourism
• Accounting for around 15% of Total room stock in
5 star / deluxe categories with average occupancy of around
70% during 05-06
Business Opportunities…
Retail & Real Estate
• Key Players in organized retail Shoppers’ Stop, Pantaloons,Westside,RPG Group
•Metro of Germany setting up Cash & Carry business
•Key Players in real estate -- DLF, Unitech, Bengal Ambuja,
Bengal Peerless
• New international standard city at Rajarhat near Kolkata
• Several new private sector driven townships including
those with foreign investment in the offing
•West Kolkata Township by Salim Group of Indonesia is
coming up
•DLF to create a 4000 acre township under PPP
Incentives Galore…
On offer
• Subsidies on capital investment and interest payments
•Waiver of stamp duty, registration fees and electricity duty
•Employment generation incentives
•Subsidy on electricity for power intensive sectors
•Industrial Promotion Assistance for Mega Projects
•Incentives on Technology and quality upgradation
initiatives
•For mega and special category projects, provision to
extend tailor
General Incentives provided by the State (UNDER WBIS 2004)
Category
Area
Municipal
Capital Investment
subsidy
Interest subsidy
A
Kolkata
Corporation
New units in priority* sector located in Group A area shall be eligible to
same incentives normally admissible to a new unit located in Group ‘B’
area.
B
North 24 Parganas,
South 24 Parganas,
Howrah,
Hooghly,
Burdwan, Nadia, East
Midnapore Dist.
7.5 % of the fixed
capital investment after
1.04.04 subject to a limit
of Rs. 150 lakh (for
investment in plant and
machinery)
25% of annual interest liability on term
loan borrowed from Bank /FIs. Limit Rs.
100 lacs per year for 5 years
C
Murshidabad, Birbhum,
Purulia,
Bankura,
Malda
Coochbehar,
North Dinajpur, South
Dinajpur,
Jalpaiguri,
Darjeeling and West
Dinajpur Districts.
10 % of the fixed capital
investment subject to a
limit of Rs. 250 lakh (for
investment in plant and
machinery)
25% of annual interest liability on term
loan borrowed from Bank /FIs. Limit Rs.
100 lacs per year for 7 years
* Priority sectors include: IT (software, hardware), Electronics, Agro & Food Processing, HPL Downstream
projects, Newspaper industry, Bio-Technology, Jute Diversification, Agricultural implements, Tourism &
Hosiery.
General Incentives provided by the State (UNDER WBIS 2004)
Waiver of Electricity
duty
Refund of Stamp Duty and Registration
fee
Category
Area
A
Kolkata
Municipal
Corporation
New units in priority* sector located in Group A area shall be eligible to
same incentives normally admissible to a new unit located in Group ‘B’
area.
B
North 24 Parganas,
South 24 Parganas,
Howrah,
Hooghly,
Burdwan, Nadia, East
Midnapore Dist.
Waiver for 5 years from
the date of commercial
production/ operation
50% refund of stamp duty and
registration fee paid for (1) acquisition of
land and building for setting up of
approved projects within the State
(2) Setting up of industrial complexes
and centres with infrastructure
C
Murshidabad,
Birbhum,
Purulia,
Bankura,
Malda
Coochbehar,
North
Dinajpur,
South
Dinajpur,
Jalpaiguri,
Darjeeling and West
Dinajpur Districts.
Waiver for 5 years from
the date of commercial
production/ operation
50% refund of stamp duty and
registration fee paid for (1) acquisition of
land and building for setting up of
approved projects within the State
(2) Setting up of industrial complexes
and centres with infrastructure
* Priority sectors include: IT (software, hardware), Electronics, Agro & Food Processing, HPL Downstream projects,
Newspaper industry, Bio-Technology, Jute Diversification, Agricultural implements, Tourism & Hosiery.
General Incentives provided by the State (UNDER WBIS 2004)
Mega Projects incentives (with an investment exceeding Rs. 25 crores)
To all the benefits as provided in the West Bengal Incentive Scheme 2004 except interest subsidy. In lieu of
interest subsidy, industrial promotion assistance is provided @ 75 % of sales tax paid for a maximum period
of 15 years
Incentive to Special category project ( investments exceeding Rs.100 crores)
Government may also consider granting special package of incentives on case-by-case basis.
The State of Tranquility…
• Safest State in India
• NO religious , ethnic or sectarian violence
• Political stability for last 29 years
• Committed to Democratic Decentralisation
West Bengal
...beckons
Are you listening?