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West Bengal – Facts

West Bengal – Facts. WEST BENGAL – THE REALITY. 4 th fastest growing state in the country (ahead of Maharashtra and A.P) in the post-reform years 4 nd highest inflow of investments in recent years. Economy. Fastest growing STP with 185 companies employing more than 15,000 IT professionals

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West Bengal – Facts

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  1. West Bengal – Facts

  2. WEST BENGAL – THE REALITY • 4th fastest growing state in the country (ahead of Maharashtra and A.P) in the post-reform years • 4nd highest inflow of investments in recent years Economy • Fastest growing STP with 185 companies employing more than 15,000 IT professionals • TCS, Cognizant, Wipro, IBM, CA, NIIT, AIG have centres IT Industry • Lowest cost of operations - Cheap power, lowest attrition, lowest cost of living • Attractive fiscal incentives Cost • No case of labour trouble in IT • Proactive stance of Government to work disruption Labour

  3. THE STATE’S IT SECTOR HAS SEEN EXCELLENT GROWTH Kolkata is the fastest growing STP of the country Percent; Growth rates of STPs in 2001-2003 • Kolkata • Chennai • Mumbai • Hyderabad • Bangalore • All India

  4. KOLKATA IS AN IMPORTANT CENTRE FOR MANY COMPANIES • 4th largest centre with 2,100 strength • Plans to double strength by 2004 152 IT & 33 ITeS companies operate in Kolkata • Planned to be 2nd largest centre • 1,500 professionals employed • Will increase to 4,000 by 2004 • 2nd largest centre after Chennai • Investing in new facility in Kolkata • JV between TCG & United Airlines • Strength to double by 2004 • (12.5 + 6 )Acre campus under construction • Including Spectramind’s 4th centre • Will employ 2500 professionals • Satyam lands in Kolkata: • Satyam has been allotted 2.77 acres of land to start their operation initially. More land to be provided for their Campus. Source: Webel; Company Interviews

  5. IMPRESSIVE LIST OF INTERNATIONAL COMPANIES ARE SERVICED FROM KOLKATA

  6. The Advantage Bengal HAS

  7. WEST BENGAL IS WELL POISED ON KEY ENABLERS Cost of operations Talent Investor support Infrastructure Policy

  8. Best educational institutes • Large pool of English speaking graduates • Excellent domain knowledge Talent Cost of operations Investor support Infra structure Policy WEST BENGAL IS WELL POISED ON KEY ENABLERS

  9. ONE OF THE HIGHEST PER CAPITA SPEND ON EDUCATION IN INDIA HUGE POOL OF QUALITY TALENT IN WEST BENGAL • The Best are here • IIT, Kharagpur • IIM, Kolkata • Indian Statistical Institute, Kolkata • Presidency & St.Xaviers (Ranked best in the Country) • 16 Govt.University including one Central University • 67 Engineering Colleges • 450 Degree Colleges. IIM Calcutta • Huge annual intake of under-graduate students • Over 545,000 enrol for graduate courses (including about 120,000 in commerce & 330,000 in arts/ education) in 3 yrs • 13,000 students enrol in engineering IIT Kharagpur • Good English language skills • 30,000 pass out p.a. from English medium schools • Has largest number of ICSE schools • Hinterland of North-East provides access to talent Presidency College Source: India Today, Manpower profile of India; Team analysis

  10. DOMAIN KNOWLEDGE EXISTS IS MANY AREAS • 1,20,000 students enrol (across 3 years) for Ccommerce • Country’s largest life insurer, LIC, runs largest operations • One of the leading non-life insurer, NIC headquarter • 15 foreign/private banks Located, HQs of 3 large banks Banking, Finance Insurance Engineering Design • Traditional Manufacturing , Engineering and Mining Hub of India • Domain Knowledge in Engineering Design • Dedicated software units for airlines and shipping business • One of the largest port complexes (Kolkata and Haldia) • Acts as a transportation hub for 11 Indian states Travel & Logistics Visual Arts • Renowned Art Colleges in Kolkata,Shantiniketan • Toonz Animation Academy in Kolkata Foreign Languages • Over 2000 enrol for French and 1100 enrol for German every year Source: Manpower profile of India

  11. WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS Cost of operations Talent Infra- structure Investor support Policy • Lowest cost of living • Lowest attrition rates • low power costs • Attractive government incentives

  12. … as evident in lower salaries* for fresh graduates One of the lowest CMIE consumer price indices** among metros KOLKATA HAS LOWEST COSTS COMPARED TO OTHERS Chennai Mumbai 110 140 Delhi 110 90 Bangalore Bangalore Hyderabad 84 108 Chennai Delhi 84 105 Mumbai suburbs Hyderabad 84 95 Kolkata 66 84 Kolkata * Estimates provided by a leading HR agency with Nationwide footprint ** Urban non-manual workers , June 2003 (CMIE) Source: Manpower profile of India; Interviews with HR Consultants; CMIE

  13. WEST BENGAL HAS LOWEST ATTRITION LEVELS • Attrition rate of ITeS companies in metros • Kolkata's strength is low attrition rate, which is embedded in the culture - people won't leave jobs for a Rs 500 p.m. increment • Per cent 40 Delhi 25 40 Mumbai 25 • Kiran Karnik, President 40 25 Bangalore • Low attrition rate is a characteristic of the culture here Chennai 30 15 15 Hyderabad 30 Kolkata 10 15 • Lakshmi Naranyanan, COO

  14. WEST BENGAL NUMBER 1 STATE IN POWER Chennai Gurgaon Chandigarh Hyderabad Bangalore Kolkata Mumbai/Pune • Comparison of basic tariffs in major IT destinations • Rs / Unit NASSCOM & Gartner have ranked the state No. 1 in power availability & quality West Bengal is a surplus power state and net exporter Source: C B Richard Ellis

  15. INCENTIVES OFFERED Rs 2.1 CRORE ONE TIME INCENTIVES Description Financial impact • Subsidy @15% of fixed capital investment (ceiling Rs.150 lakh) FCI subsidy Rs. 150 lakh % of value of land/property transfer Stamp duty/ Registration Fee exemption • Exemption from stamp duty and registration fee for purchase/ acquisition of land/buildings Consumption (Entry) tax exemption • Exemption from payment of consumption tax on material brought into state for initial construction Rs. 60 lakh Rs. 210 lakh Total (excluding land subsidy) Land subsidy • Subsidised land (around Salt Lake) for 1st few large ITeS anchor investors • Land at 20-30% of market price RECURRING INCENTIVES OF ~ Rs 1.5 CRORE Financial impact Description Rs. 45 lakh Employment generation subsidy • 50% of ESI and EPF contribution for every employee • Subsidy on interest payments (50% of interest liability) – ceiling Rs. 100 lakh p.a. Interest payment subsidy Rs. 100 lakh Electricity duty waiver • Electricity duty waived for 1st 5 years Rs. 7 lakh Total annual operating cost subsidy Rs. 152 lakh

  16. WEST BENGAL’S COST COMPETITIVENESS Call centre – Indexed cost/FTE (Mumbai suburb = 100) 12% 100 100 97.8 91.9 89.7 88.4 Non Labour costs Labour Related costs Mumbai suburb Delhi Bangalore Chennai Hyderabad Kolkata Source: India Today; CMIE Index; team analysis

  17. WEST BENGAL IS WELL POISED ON KEY ENABLERS Infra structure Cost of operations Talent Investor support Policy • Reliable telecom connectivity • ‘Walk-in’ physical infrastructure • Best-in-class local transport • Excellent social infrastructure • International accessibility

  18. KOLKATA OFFERS INTERNATIONAL CONNECTIVITY THROUGH BOTH SATELLITE AND CABLE • VSNL uses BSNLOFC leased line • 92 Mbps (29 E-1s, One 34 Mbps line) and provides SLA Kolkata • 580 Mbps • 3 earth stations (VSNL and STPI) – one of the best in the country Mumbai Submarinecable Kochi Chennai Submarine cable

  19. AVAILABILITY OF CABLE-BASED CONNECTIVITY WILL SEE A HUGE INCREASE SOON More bandwidth and redundancy from BSNL • Alternative national long distance loop from Reliance (by • Apr 2004) Kolkata • 580 Mbps • 3 earth stations (VSNL and STPI) – one of the best in the country Mumbai Submarinecable Kochi Chennai Submarine cable

  20. SALT LAKE IT HUB IS WORLD CLASS • Spread across 150 acres of green, pollution-free land near the airport • Over 185 IT and ITeS Companies with 15,000 professionals • India’s first fully integrated IT Complex in Salt lake City, Kolkata • Excellent infrastructure like roads, ATMs, food joints

  21. LAND EARMARKED TO MEET 2010 IT VISION • 200 acres available at Rajarhat – New Town (3 km from Salt Lake) for IT and ITeS units 1 1 2 • Existing IT hub in Salt Lake (Sector V) 2 3 • Upcoming IT park (40 acres) at Sunrise City creating 3 million square feet space 3

  22. KOLKATA OFFERS BEST-IN-CLASS LOCAL TRANSPORT OPTIONS • Only State with fully functional underground train network • Plans to connect Salt Lake Area • Multiple modes of local transport exist like underground trains, buses, taxis, trams, circular railway • State has strengthen road network further • AJC Bose Flyover, largest urban flyover (2.5 Km) commissioned in record time of 368 days • New road to Airport from Salt Lake (IT hub) • To be commissioned by Mar 2004 • Will decrease commute time from airport to 20 mins from IT hub

  23. KOLKATA OFFERS EXCELLENT SOCIAL INFRASTRUCTURE • Best-in-class clubs, oldest golf course, rich cultural heritage & tourist destinations, world-class hotels

  24. Origin Destination x (y.z) x flights a week (flight time y hrs z min) 1 (12.25) 3 (10.40) 2( 7.25 ) 5 (4.05) 10 (2.25) KOLKATA HAS DIRECT FLIGHTS TO KEY EUROPEAN AND ASIAN HUBS Amsterdam London Kolkata G U L F Countries Hyderabad Bangalore Bangkok Cochin Singapore

  25. WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS Cost of operations Talent Investor support Infra- structure Policy • Strong policy measures • Strong e-governance and IT literacy initiatives

  26. POLICY ISSUES RELATING TO IT OPERATIONS MADE LIBERAL • Public Utility Service status to the IT industry • Permission for women to work at night and permission to run three shifts irrespective of national holidays • Allow self-certification for specific enactments such as National Holidays Act, Contract Labour Act • Relaxations in building and zoning laws (e.g., ability to construct centre in residential areas) • Provide IT units establishment status under Shops and Establishments Act

  27. E-GOVERNANCE INITIATIVES ARE BOOSTING IT AWARENESS • Application Service Provider (ASP) model to provide public interface to government information • Geographical Information Systems for Municipalities • Computerisation of government departments (including land records) • Telemedicine Projects to serve the rural people. • West Bengal State-wide WAN (WBSWAN) • 2 Mbps OFC network for data, voice and image communication • Connecting Kolkata to all district headquarters • To extend to 341 blocks and 3660 panchayats very soon • Aggressive IT literacy program (schools/colleges) in partnership with companies like Microsoft, IBM, HCL, NIIT, Wipro and Tata Infotech

  28. WEBEL - SINGLE WINDOW SUPPORT CENTRE Rental space availability • Helps in obtaining space on rent/lease in buildings Land procurement • Allocates as and when available Telecom infrastructure • Interacts with BSNL to help procure last-mile connectivity WEBEL Powerconnections • Interacts with POWER UTILITY to get power connections Building approval • Forwards building plans after preliminary check to local Municipality to expedite clearances STPI registration • Authorised to give STPI registration on behalf of STPI

  29. COMMITMENT OF THE STATE “The Government will do what it takes to get you to the state” Buddhadeb Bhattacharjee Chief Minister, West Bengal

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