News: Investment the buzzword in Buddha's Bengal

(EI 16/05/2006) Kolkata - “Investment” is clearly the buzz word here. It is, after all the key to glory the Left Front government in the state, wears like a halo today. If Buddhadeb Bhattacharjee greeted his victory with a “proposal” from Ratan Tata, can his party colleagues be far behind?

Ashok Bhattacharya, the Urban Development Minister in the outgoing State Cabinet was heard celebrating his victory at Siliguri with the announcement of a `famous’ corporate house looking for 400 acres for a project. When contacted by Indian Express, Bhattacharya would not name the investor. The proposal, he explained, is for a biotechnology and knowledge-based park.

“We have suggested three to four locations and asked them to return with a detailed project report,” he informed. When asked about the likely destination for the project, he said it might be located at Ghosapur near the North Bengal University at Siliguri. No indication is available on the likely size of the investment.

If one recalls the foundation-laying spree that preceded the elections, the efforts to reopen Dunlop, the controversial invitation to Indonesia’s Salim group, Buddhadeb’s visits to South East Asia and China, there can be no doubt that investment and industrialisation are the cornerstone of the West Bengal Government’s path ahead. Buddha himself has repeatedly committed to it several times over. This is indicated in the line-up of industrialists expected to attend the swearing in ceremony scheduled from Ratan Tata, Ambani, Jindal, Azim Premji and Narayan Murthy.

It has been a long war, Buddha and his team has fought to project Brand Bengal in a new light. There is still of lot of work ahead. Bandhs and trade unionism - spearheaded by CITU - are still seen as roadblocks to investment in the State. Ironically, surveys have shown that in this “power surplus State”, power connectivity or the protracted time-frame for getting connection is a thwarting factor. There is also the bureaucracy that is not seen keeping pace with Buddha’s reforms. The Chief Minister has also admitted that the percolation is taking time. Land pricing did turn into a sticky issue in information technology.

What is most critical is that the investments coming in were largely in the area of information technology and real estate. India Inc was waiting to see some action on the manufacturing front. But projects flagged off prior to the elections and the announcements that are taking place now show that Government is steering in the right direction after all. Ural, Tata Motors and the two-wheeler project by the Salim Group will revive the state stature in the automotive industry. Steel continues to dominate and fresh investments are also lined up in the sector. Between Haldia Petrochemicals and Mitsubishi, the state also crafting a place for itself in the petrochemical sector. Dedicated SEZs is the other route it is taking to boost investments. The State has been wooing the Reliance group and also Infosys to open shop here. There are hopes that these exercises will bear fruit in Buddha’s second innings.

As of date, the expanding smile of Buddha’s face shows that West Bengal’s industrial fortunes are indeed in the process of resurrection. Some of his colleagues certainly share his pride.