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India's Preferred Investment Destination

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 &

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India's Preferred Investment Destination

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  1. India's Preferred Investment Destination

  2. 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

  3. Robust Economic Bottom Line… Average Annual Growth Rate of SDP(%), 1999-2000 to 2003-2004 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 2004-05 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

  4. and across the States… Average Annual Growth Rate of Per Capita Income(%) 1999-2000 to 2003-2004 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.

  5. 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’.

  6. Resource Advantage… • Abundant natural resources of minerals • 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 WB Mineral Map

  7. 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 North-eastern India

  8. 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

  9. 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

  10. 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)

  11. 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

  12. 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%, Central-42.8%, Private sector-17.6%)

  13. 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.

  14. 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 • 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

  15. 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

  16. 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

  17. 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)

  18. 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

  19. 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

  20. 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…

  21. 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

  22. 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

  23. Business Opportunities… Power Generation & Transmission • Projects worth US $2.75 bn already being • implemented • Opportunities for electrical equipment • manufacturers like- • Transformers • Cables • Switchgears

  24. 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

  25. 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

  26. 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).

  27. 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

  28. 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

  29. 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

  30. 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

  31. Category Area Capital Investment subsidy Interest subsidy 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. 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 General Incentives provided by the State (UNDER WBIS 2004) * Priority sectors include: IT (software, hardware), Electronics, Agro & Food Processing, HPL Downstream projects, Newspaper industry, Bio-Technology, Jute Diversification, Agricultural implements, Tourism & Hosiery.

  32. Category Area Waiver of Electricity duty Refund of Stamp Duty and Registration fee 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 General Incentives provided by the State (UNDER WBIS 2004) * Priority sectors include: IT (software, hardware), Electronics, Agro & Food Processing, HPL Downstream projects, Newspaper industry, Bio-Technology, Jute Diversification, Agricultural implements, Tourism & Hosiery.

  33. 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. General Incentives provided by the State (UNDER WBIS 2004)

  34. The State of Tranquility… • Safest State in India • NO religious , ethnic or sectarian violence • Political stability for last 29 years • Committed to Democratic Decentralisation

  35. West Bengal ...beckons A r e y o u l i s t e n i n g ?

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