JOR BANGLA TEMPLE IN BISHNUPUR, CULTURALLY ARTISTIC December 2018
Table of Content Executive Summary......3 Introduction.....4 Economic Snapshot.........9 Physical Infrastructure....15 Social Infrastructure. 24 Industrial Infrastructure...27 Key Sectors.....29 Key Policies and Procedures........38 Annexure.....46
EXECUTIVE SUMMARY One of the largest state economies West Bengal, India s sixth largest state in terms of economic size, had a Gross State Domestic Product (GSDP) of US$ 158.40 billion in 2017-18. The state s GSDP grew at a CAGR of 11.88 per cent from 2011-12 to 2017-18. Kolkata as the next IT hub Twelve IT parks have been established in the state while 13 others are in the process of being set up. Major producer of potato In 2017-18, West Bengal remains second largest producer of potato in India, accounting for about 26.07 per cent of the country s potato output. The state s potato production stood at 12.65 million tonnes in 2017-18*. Largest rice producer West Bengal is the largest producer of rice in India. Rice production in the state stood at 14.99 million tonnes in 2017-18*. Coal rich state West Bengal is the ninth largest state in India in term of mineral production, accounting for about 16 per cent of total mineral production. Coal accounts for 97 per cent of extracted minerals. Note: *As per second advance estimates Source: Statistics of West Bengal, Government of West Bengal 3
INTRODUCTION
ADVANTAGE: Geographic and cost advantage Rich labour pool Location advantage makes the state a traditional market for eastern India, the Northeast, Nepal and Bhutan. It is also a strategic entry point for markets in South-East Asia. Cost of operating a business is lower in Kolkata than in other metropolitan cities. There are 29 universities and sizeable research institutes in West Bengal. It is host to top-notch institutes like IIT Kharagpur and NIT-Durgapur. Knowledge of English is an advantage for the workforce of West Bengal, especially in Kolkata. Scope for industrial Progress Advantage West Bengal Excellent connectivity West Bengal has abundant natural resources of minerals and suitable agro-climatic conditions for agriculture, horticulture and fisheries. It is in the vicinity of mineral rich states like Jharkhand, Bihar and Odisha. West Bengal offers excellent connectivity to the rest of India in terms of railways, roadways, ports and airports. Major stretches of the golden quadrilateral project also pass through the northern districts of the state. The contribution of the textile industry to the state s GSDP is targeted to rise to 10 per cent by 2022-23. Note: T Target Source: West Bengal Vision 2022-23, News articles 5
VISION 2022 Development of sanitation and hygiene infrastructure, supporting urban development. Ensuring fresh water supply and clean drinking water in rural areas. Red tapism to be minimised or removed and encouraging transparency in governance. Encouraging technological innovation in providing services and governance. Facilitating road connectivity throughout the state, upgrading air transportation, transformation of the state s port to world class facilities for container management and shipping. Providing appropriate transportation, irrigation and storage facilities. Training farmers to use scientific agri practices. Transportation infrastructure Agriculture Sanitation & hygiene Health Use of innovative crop production methods, research, new seed technologies. Implementation of social security schemes and enforcing various health & food policies. Improving medical infrastructure by improving quality of healthcare. Vision 2022 Governance Power generation Economic development Education The state to act as an exporter of power. Introducing reforms in sector to improve overall efficiency. Encouraging renewable energy power plants. Building niche for manufacturing and services sector in state. Providing funding support, infrastructure, land and logistics to high importance sectors. Ensuring primary education to all. Upgradation of capacity, infrastructure and teaching methods of higher educational institutes. Encouraging skill based education (vocational training). Note: HYV: High Yielding Variety Source: Confederation of Indian Industry 6
FACT FILE Parameters West Bengal Capital Kolkata Geographical area (lakh sq. km) 88,752 Administrative districts (No) 23 Source: Maps of India Population density (persons per sq. km) 1,028 West Bengal is situated in eastern India and shares its borders with Jharkhand, Bihar, Odisha, Sikkim and Assam. The state also shares international borders with Bangladesh, Bhutan and Nepal. The Bay of Bengal is in the south of the state. Bengali is the official language of the state, though English and Hindi are also widely used. Nepali is spoken primarily in Darjeeling district. Kolkata, Siliguri, Asansol, Durgapur, Raniganj, Kharagpur, Haldia, Darjeeling, Malda, Midnapore, Cooch Behar and Howrah are some of the key cities in the state. West Bengal's climate varies from tropical savannah in the southern portions to humid sub-tropical in the north. Total population (million) 91.3 Male population (million) 46.9 Female population (million) 44.4 Sex ratio (females per 1,000 males) 957 Literacy rate (%) 77.08 Source: West Bengal Industrial Development Corporation, Census 2011 7
IN FIGURES West Bengal s Contribution to Indian Economy (2017-18) Parameter West Bengal India GSDP as a percentage of all states GSDP 6.30 100.00 GSDP growth rate (%) 12.47 9.8 Per capita GSDP (US$) 1,681.49 1,975.05 Social Indicators Parameter West Bengal India Literacy rate (%) 77.08 74.04 Birth rate (per 1,000 population) 15.4 20.4 Physical Infrastructure in West Bengal Parameter West Bengal India Installed power capacity (MW) (as of November 2018) Wireless subscribers (No) (as of September 2018) Internet subscribers (Mn) (as of June 2018) National highway length (km) (as of February 2018) 10,518.24 346,619.37 58,475,483 1,169,291,183 20.77 512.26 3,004 122,432 Major and minor ports (No) 2 13+187 Airports (No) 3 125 Industrial Infrastructure Parameter West Bengal India Operational PPP projects (No) 14 720 Operational SEZs (No) 7 223 Investments (as of June 2018) Parameter West Bengal India Cumulative FDI equity inflows since April 2000 (US$ billion) 4.782 389.721 Note: GSDP, per capita GSDP figures are taken at current prices, exchange rates used is average of 2017-18 i.e. 64.45, For sources refer to Annexure, Including Sikkim and Andaman and Nicobar Islands 8
ECONOMIC SNAPSHOT
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 5.20 108.55 108.63 5.91 56,693 111.88 6.77 117.43 7.18 121.80 7.97 131.04 8.79 1,182 1,171 63,786 1,195 72,272 1,241 75,916 1,275 83,456 1,358 91,114 158.40 10.21 1,625 104,751 ECONOMIC SNAPSHOT GSDP GSDP of West Bengal at current prices GSDP per capita of West Bengal at current prices 180 160 140 CAGR (in Rs) 11.88% 12 10 1,800 1,600 1,400 CAGR (in Rs) 10.77% 120,000 100,000 120 8 1,200 80,000 100 80 6 1,000 800 60,000 60 4 600 40,000 40 20 2 400 200 20,000 0 0 0 0 US$ billion Rs trillion At current prices, gross state domestic product (GSDP) of West Bengal is estimated at Rs 10.21 trillion (US$ 158.40 billion) in 2017-18. The average annual GSDP growth rate from 2011-12 to 2017-18 was about 11.88 per cent. US$ The state s per capita GSDP^ in 2017-18 was Rs 104,751 (US$ 1,625) as compared to Rs 56,693 (US$ 1,182) in 2011-12. The per capita GSDP increased at a Compound Annual Growth Rate (CAGR) of 10.77 per cent between 2011-12 and 2017-18. Rs Note: Exchange rates used are average of each year - provided on page 48, Update for 2018-19 may be available in West Bengal Economic Review 2018-19 or through MOSPI Source: MOSPI 10
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 4.73 51,543 58,195 98.69 99.10 5.40 65,932 102.06 6.17 68,876 106.54 6.51 110.91 7.26 119.55 8.02 1,075 1,069 1,090 1,126 1,161 75,992 1,239 83,126 95,562 144.50 9.31 1,483 ECONOMIC SNAPSHOT NSDP NSDP of West Bengal at current prices NSDP per capita of West Bengal at current prices 160 CAGR (in Rs) 11.95% 10 1,600 CAGR (in Rs) 10.84% 120,000 140 120 100 9 8 7 6 1,400 1,200 1,000 100,000 80,000 80 5 800 60,000 60 40 20 4 3 2 1 600 400 200 40,000 20,000 0 0 0 0 US$ billion Rs trillion At current prices, net state domestic product (NSDP) of West Bengal was estimated at Rs 9.31 trillion (US$ 144.50 billion) in 2017-18. The average annual NSDP growth rate from 2011-12 to 2017-18 was 11.95 per cent. US$ The state s per capita NSDP in 2017-18 was Rs 95,562 (US$1,483) as compared to Rs 51,543 (US$ 1,075) in 2011-12. The per capita NSDP increased at a CAGR of 10.84 per cent between 2011-12 and 2017-18. Rs Note: Exchange rates used are average of each year - provided on page 48, Update for 2018-19 may be available in West Bengal Economic Review 2018-19 or through MOSPI Source: MOSPI 11
ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSVA In 2017-18, the tertiary sector contributed 54.00 per cent of the state s GSVA at basic prices, followed by the primary sector (24.36 per cent) and secondary sector (21.64 per cent). At a CAGR of 12.99 per cent, the tertiary sector has been the fastest growing among the three sectors from 2011-12 to 2017-18. 100% 90% 80% GSVA composition by sector 49.92% CAGR* 54.00% 12.99% The primary sector grew at a CAGR of 11.08 per cent, followed by 70% secondary sector at a CAGR of 8.78 per cent, between 2011-12 and 60% 2017-18. 50% 40% 30% 25.13% 8.78% 21.64% 20% 10% 0% 24.95% 24.36% 11.08% 2011-12 2017-18 Primary Secondary Tertiary Note: *in Rs terms, Update for 2018-19 may be available in West Bengal Economic Review 2018-19 or through MOSPI Source: MOSPI 12
FY01-FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19^ FY01-FY19^ ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS According to the Department of Industrial Policy & Promotion (DIPP), FDI inflows in West Bengal, along with Sikkim and Andaman & Nicobar Islands, during April 2000 to June 2018, totalled US$ 4,782 million. West Bengal contributes around 1 per cent of the total FDI inflows of the country. The state has the potential to become a logistics hub and attract over Rs 50 billion (US$ 0.71 billion) in investments in logistics by 2020. 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 FDI Inflows in West Bengal in April 2000-June 2018 1 1,488 394 424 (US$ million) 436 239 955 50 218 579 4,782 Note: 1 Includes West Bengal, Sikkim and Andaman & Nicobar Islands, ^up to June 2018 Source: Department of Industrial Policy & Promotion (DIPP) 13
4,949.31 7,470.30 8,236.25 9,088.00 9,148.22 ECONOMIC SNAPSHOT S EXPORT TRENDS Export Trend (US$ million) Composition of Major Item Exported (2017-18) 10,000 9,000 12.38% 8,000 7,000 6,000 41.06% 8.54% 7.78% 5,000 7.66% 4,000 6.63% 3,000 2,000 4.16% 5.21% 6.57% 1,000 0 2014-15 2015-16 2016-17 2017-18 2018-19* Iron and Steel Petroleum Products Marine Products Rice (Other then Basmati) Others Gold and Other Precious Metals Leather Goods Products of Iron and Steel Plastic Raw Materials Total exports from the state stood at US$ 9,148.22 million during 2017-18. Exports during April-September 2018 stood at US$ 4,949.31 million. Major items exported from West Bengal are Iron and Steel and Petroleum Product etc. During 2017-18, total exports of Iron and Steel from West Bengal stood at US$ 1,132.69 million which was 12.38 per cent of the total exports. Note: *up to September 2018 Source: Directorate General of Commercial Intelligence and Statistics 14
PHYSICAL INFRASTRUCTURE
2014-15 2015-16 2016-17 2017-18*^ 138.00 46.45 202.90 163.07 124.04 150.02 385.80 182.32 PHYSICAL INFRASTRUCTURE ROADS West Bengal has a total road length of around 316,730 km #. The national highways running through the state cover approximately 3,004 km, as of February 2018. In the state budget 2018-19, the Government of West Bengal allocated US$ 773.53 million to Public Works (Roads) Department. Expenditure incurred for development of National Highways in the state reached US$ 150.02 million during 2017-18*. As of August 2018, 14,380 habitations were eligible under Pradhan Mantri Gram Sadak Yojana (PMGSY), out of which 13,416 were cleared and further 12,630 habitations were connected. Road Network in West Bengal (as of February 2018) Road type Length (in km) Total road length 316,730 # National highways 3,004 State highways 4,505 # Development of National highways in West Bengal 450 400 350 300 250 200 150 100 50 0 200 180 160 140 120 100 80 60 40 20 0 National Highways constructed (in km) Funds Released for development of national highways (in US$ million) Note: # As of 2016-17, 2017-18* - Funds released are up to February 2018, 2017-18^ - National Highways constructed are up to December, Updated road network data may be available in West Bengal Economic Review 2018-19 Source: Ministry of Road Transport & Highways, Budget 2016-17 16
PHYSICAL INFRASTRUCTURE RAILWAYS West Bengal is well connected through the railway network. The length of railways was around 4,135 km as of March 2017. Howrah, Asansol, Sealdah, Bandel, Bardhaman, Kharagpur and New Jalpaiguri are the main junctions in West Bengal. Indian Railways has an electric locomotive production unit, Chittaranjan Locomotive Works (CLW), located on the West Bengal- Jharkhand border, with a production capacity of 230 engines. It manufactured 292 BG 3-phase HHP electric locomotives in 2016-17. Rail Vikas Nigam Limited (RVNL) is going to undertake construction of a 4.38 km stretch of metro rail from Noapara to Dakshineshwar. The work is expected to be completed by May 2019. It is estimated that nearly 55,000 people will be travelling on this section by 2030. The government is planning to introduce driverless metro trains by 2018, with GoA3 and GoA4 automation systems being used. Source: Maps of India Ministry of Railways, Government of India 17
PHYSICAL INFRASTRUCTURE AIRPORTS (1/2) West Bengal has five operational airports including Bagdogra, Behala, Cooch-Behar, Durgapur and Kolkata in which three are domestic airports, one is an international airport and one is a private airport. Bagdogra The Netaji Subhash Chandra Bose International Airport located in Kolkata is the largest airport in the state. A domestic airport, located at Bagdogra, is maintained as a civil enclave and is operated by Indian Air Force. The Kolkata airport was modernised at a estimated cost of US$ 360 million. The modernisation included modern taxiways, a new terminal & extension of a runway. Passenger handling capacity of Kolkata airport is around 26 million passengers per annum (mppa)*. Behala Durgapur Kolkata Behala International airport Domestic airport Note: *as per AAI s National Register 2017 Source: Airports Authority of India, Ministry of Civil Aviation Source: Airports Authority of India 18
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19* 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19* 8.05 9.63 10.30 10.07 10.10 10.92 85,696 94,375 99,843 93,605 92,871 97,128 102,485 93,072 12.42 12.49 15.81 124,154 19.89 148,802 PHYSICAL INFRASTRUCTURE AIRPORTS (2/2) Kolkata Aircraft Movement (nos.) Kolkata Passenger Traffic (million) 160,000 140,000 120,000 25.00 20.00 100,000 15.00 80,000 60,000 10.00 40,000 20,000-5.00 0.00 Aircraft movement at Kolkata airport increased from 85,696 in 2009-10 to 148,802 in 2017-18. Aircraft movement during 2018-19* stood at 93,072. Passenger traffic handled at Kolkata airport increased from 8.05 million in 2009-10 to 19.89 million in 2017-18. Passenger traffic during 2018-19* stood at 12.49 million. Freight traffic at Kolkata airport increased from 110,256 MT in 2009-10 to 163,323 in 2017-18. In 2018-19*, Kolkata airport handled 95,491 MT of freight. Note: 2018-19* - up to October 2018, MT - Metric Tonnes Source: Airports Authority of India, 19
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19* 12,875 15,283 16,782 16,173 17,390 28,511 31,010 11,603 33,507 34,141 28,629 40,496 PHYSICAL INFRASTRUCTURE PORTS AND INLAND WATERWAYS Commodity-Wise traffic handled at major ports in 2018* ( 000 tonnes) T Commodity Kolkata Dock System Haldia Dock Complex P.O.L 529 5,483 Other Liquids 376 3,304 Iron Ore (Incl pellets) 7 277 Fertilizers (finished + raw) 125 432 Coal 1,584 11,032 Containers 7,101 2,151 Others (Misc. Cargo) 2,323 5,069 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Traffic handled at major ports ( 000 tonnes) Kolkata Dock System Haldia Dock Complex West Bengal has two major ports located at Kolkata and Haldia. In 2017-18, the combined volume of goods handled by both the ports of Kolkata and Haldia, was 57.89 million tonnes. Port traffic at Kolkata and Haldia docks stood at 11,603 thousand tonnes and 28,629 thousand tonnes, respectively, in 2018-19*. In light of capacity expansion plans of existing industries near Haldia dock, Kolkata Port Trust has announced plans to upgrade Haldia dock s cargo handling capacity by constructing riverine jetties. Traffic at the riverine jetty at outer terminal -1 is expected to be 3.90 MTPA in 2018-19 and is forecasted to grow to 5.00 MTPA by 2025-26. Government of India has declared the entire stretch of the Ganges between Haldia and Allahabad as National Waterway-1 (NW-1). NW-1 spans across a distance of 1,620 km. The 560-km Haldia-Farakka stretch of NW-1 has been developed as part of the multi-modal system for cargo from Nepal, Bhutan, north Bengal and the northeastern states. In October 2018, PepsiCo transported the country s first container movement on an inland vessel from Kolkata to Varanasi. Note: * as of April to November 2018, T - Tentative Source: Ministry of Shipping, Government of India, Indian Port Association 20
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19* 8,316.89 8,567.29 8,616.29 9,224.82 9,842.04 10,258.40 10,382.78 10,637.59 10,518.24 PHYSICAL INFRASTRUCTURE POWER As of November 2018, West Bengal had a total installed power generation capacity of 10,518.24 MW, of which 6,577.95 MW was under state utilities, 2,769.52 MW was under the private sector and 1,170.77 MW was under central utilities. 12,000 Installed power capacity (MW) Of the total installed power capacity, 8,685.77 MW was contributed 10,000 by thermal power, 1,396.00 MW by hydropower and 436.47 MW by renewable power. 8,000 Length of transmission lines in the state has increased from 11,095 CKM in March 2011 to 13,392 CKM in December 2017. During the 6,000 same period, capacity of transmission lines increased from 19,236 MVA to 30,271 MVA. 4,000 As of November 2018, the state government has approved setting up of a 1,000 MW power project at a total cost of Rs 6,922 crore 2,000 (US$ 986.32 million). The West Bengal State Electricity Distribution Company is going to avail a Rs 5,000 crore (US$ 712.45 million) loan from Japan Industrial Cooperation Agency (JICA) for the 0 project. The project is scheduled to be completed by 2027 with issuance of letters for consultancy by January 2019. Note: *As of November 2018 Source: Central Electricity Authority, West Bengal Economic Survey 2017-18 21
PHYSICAL INFRASTRUCTURE TELECOM Performance status of Bharat Net project (as of December 2018) Telecom Infrastructure (As of September 2018) Total GPs 3,354 Wireless subscribers 58,475,483 GPs connected^ 2,073 Wire-line subscribers 253,530 Cable laid (kms.) 7,602 Internet subscribers (Mn)* 20.77 GPs for which cable laid 2,248 Tele-density (in%) 89.15 Service ready GPs # 2,020 Mobile Number Portability requests (Mn) 20.54 According to Telecom Regulatory Authority of India (TRAI), there were around 58.48 million wireless subscribers and 0.25 million wireline subscribers in West Bengal, as of September 2018. By the end of September 2018, 20.54 million subscribers had submitted requests for mobile number portability in West Bengal. At Bengal Global Business Summit 2018, Reliance Industries Ltd (RIL) announced that it will be investing Rs 5,000 crores (US$ 772.32 million) in West Bengal to support telecom arm Reliance Jio Infocomm s operations, its digital ecosystem, and the group s retail and fuel retail businesses. * Note: ^As of March 11, 2018, *As of June 2018, # As of July 2018 Source: TRAI 22
PHYSICAL INFRASTRUCTURE URBAN As of April 2018, one smart city has been short listed in the state of West Bengal to be developed as a smart city. Classification of AMRUT Cities in West Bengal on the basis of population 60 cities in the state were identified under Atal Mission for Rejuvenation and Urban Transformation (AMRUT) as of April 2018. In 2017-18, 2,260 urban beautification schemes for Green Space Development Projects were undertaken under the Green City Mission at an estimated cost of Rs 1,180.18 crore (US$ 183.12 million). Number of AMRUT cities with population less than 1 million Number of AMRUT cities with population in the range of 1 10 million 53 2 As per the state s Economic Survey 2017-18, few of the accomplishments of 2017-18 were: Number of AMRUT cities with population greater than 10 million 0 Seven flyovers and elevated corridors were constructed at an estimated cost of Rs 1,909 crore (US$ 296.20 million) Total number of AMRUT cities 55 108 water supply projects were implemented with an investment of Rs 10,447 crore (US$ 1,620.95 million) Seven storm water drainage projects were undertaken at an estimated cost of Rs 229 crore (US$ 35.53 million) 23
SOCIAL INFRASTRUCTURE
SOCIAL INFRASTRUCTURE EDUCATION West Bengal s education statistics Literacy rates (%) (Census 2011) Number of schools Primary only: 76,514 Upper primary with secondary/higher secondary: 6,850 Literacy rate 77.08 Male literacy 82.67 Pupil-teacher ratio All schools: 26.8:1 Female literacy 71.16 Enrolment of students in schools (all schools) Number of teachers (all schools) Government schools: 12,972,344 Private schools: 996,723 Government teachers: 512,714 Private teachers: 65,589 Funds released under education schemes for West Bengal US$ million Scheme 2014-15 2015-16 2016-17 2017-18* SSA Scheme 159.25 129.36 122.50 138.49 MDM scheme 166.80 117.31 170.41 102.76 West Bengal has a literacy rate of 77.08 per cent; the male literacy rate is 82.67 per cent and the female literacy rate is 71.16 per cent. As of 2017, West Bengal has 43 universities and 1,341 colleges. As per state budget 2018-19, the Government of West Bengal allocated US$ 3,818.64 million for school education, US$ 548.54 million for higher education and US$ 156.04 million for technical education and training in the state. In 2017-18, the state government constructed 37 primary schools buildings and 202 upper primary school buildings. The government also undertook construction of 1,235 additional classrooms. Note: 2017-18* - up to February 28, 2018, ^as of 2016-17, 2017-18* - up to December 31, 2017; ^ up to September 30, 2017 Source: National Rural Health Mission, Census 2011, Ministry of Human Resource Development, Wsst Bengal Economic Survey 2017-18, State Report Card 25
SOCIAL INFRASTRUCTURE HEALTH Funds allocated and released and expenditure under National Rural Health Mission (NRHM)- US$ million Health indicators (2016) Birth rate 1 15.4 Year Funds Allocated Funds Released Expenditure Death rate 1 5.8 2014-15 160.90 161.72 182.83 2015-16 134.97 104.52 113.49 2016-17 122.23 110.60 259.94 2017-18* 134.21 145.49 91.16^ Infant mortality rate 2 25 Health infrastructure (As of December 18, 2018) Sub-centres 10,426 Primary health centres 1,455 Community health centres 512 Sub-district hospitals 98 District hospitals 77 The active health infrastructure of West Bengal comprises of 98 sub district hospitals, 77 district hospitals, 1,455 primary health centres, 512 community health centres and 10,426 sub-centres as of December 18, 2018. As per state budget 2018-19, US$ 1,354.67 million was allocated to the Health and Family Welfare department. 38 Critical Care Units (CCUs) and 22 High Dependency Units (HDUs) are functional in the state, as per the state s Economic Survey 2017-18. The state was allocated US$ 134.21 million worth of funds under National Rural Health Mission (NRHM), up to December 2017. Out of the allocation the state has incurred expenditure of US$ 91.16 million under the scheme, up to September 2017. Note: 1 Per thousand persons, 2 Per thousand live births, 2017-18* - up to December 31, 2017; ^ up to September 30, 2017 Source: West Bengal Budget 2016-17, Department of Finance, Government of West Bengal 26
INDUSTRIAL INFRASTRUCTURE
INDUSTRIAL INFRASTRUCTURE West Bengal has 12 growth centres for medium and large scale industries, set up by the West Bengal Industrial Development Corporation (WBIDC). There are exclusive growth centres for electronics, software technology and export processing. As of July 2018, West Bengal had 21 SEZs; of which, 7 are operational, 5 are notified, 7 are formally approved and 2 have inprinciple approval. West Bengal s major industrial areas are Haldia, Kolkata, Asansol- Durgapur region, and Kharagpur. In state budget 2018-19, an amount of Rs 123 crores (US$ 18.1 million) has been extended to develop and modernize the Industrial Parks and Growth Centers to attract entrepreneurs. Some of the industrial parks in West Bengal Project name Food Park (Phase-I & II ) Poly Park Rubber Park Kolkata Biotech Park Plasto Steel Park (Phase-I & II) Vidyasagar Industrial Park Shalboni Industrial Park Panagarh Industrial Park Raghunathpur Steel & Allied Industrial Park Industry Food processing Polymer products Rubber footwear, hoses, tubes, automotive rubber products Biotechnology products Iron and steel and plastic products Engineering and manufacturing Iron & steel Engineering and manufacturing Iron & steel, cement and power Foundry Park (Phase-I & II ) Rishi Bankim Industrial Park Garment Park Shilpangan (Light Engineer. Park) Castings, forge and foundry products Multi-product Garments Light engineering products Source: West Bengal Industrial Development Corporation, State Budget 2018-19 28
KEY SECTORS Tea Petroleum and Petrochemicals Information Technology Agriculture and Allied Industries Tourism
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19* 236.78 223.33 228.31 269.43 287.32 312.10 324.26 329.70 289.32 357.39 387.86 KEY SECTORS TEA (1/2) West Bengal is the second-largest tea growing state in India. Production of tea (in million kg) Total tea production in West Bengal stood at 387.86 million kgs in 450.00 2017-18, accounting for 29.27 per cent share of India s total 400.00 production. Tea production between April-October 2018 reached 289.32 million kgs. 350.00 300.00 250.00 Tea gardens in the state are located in Darjeeling and Jalpaiguri, the two northern districts of West Bengal. 200.00 150.00 100.00 Darjeeling tea has a geographical indication (GI) status that is 50.00 recognised globally. It is regarded by connoisseurs as the 0.00 Champagne of Teas. Some of the key players Tata Global Beverages Goodricke Group Ltd Mcleod Russel India Ltd Duncans Industries Ltd Note: 2018-19*- From April to October 2018 Source: Tea Board of India 30
KEY SECTORS TEA (2/2) Tata Global Beverages, formerly known as Tata Tea, is the largest brand of tea in India. It acquired the Earth Rules, an Australian company under the MAP brand, in 2014. Tata Global Beverages is the second largest tea player across the globe. Tata Global Beverages The company has six major brands in the Indian market: Tata Tea, Tetley, Kannan Devan, Chakra Gold, Agni and Gemini. It has its headquarters and tea estates in West Bengal. Mcleod Russel is the largest tea producer in the world with over 100 million kg of tea every year from tea estates in Assam, West Bengal, Vietnam, Uganda and Rwanda, employing 90,000 people. It is also India s largest tea exporter. The company has its registered office in Kolkata. Mcleod Russel India Ltd The five tea estates in Jalpaiguri district produce 6.27 million kg of tea annually. The total estimated crop production is 6,275 tonnes. Goodricke Group Ltd (GGL) GGL, a part of Camellia plc. UK, is engaged in the cultivation, manufacture, and sale of tea in India. The company launched cold tea and has entered the ready-to-drink products market in 2009. It has 17 gardens, including three gardens in Darjeeling, two in Assam and 12 in Jalpaiguri. Duncans Industries Ltd, headquartered in Kolkata, is a part of the diversified Duncan-Goenka Group, established in 1859. Duncans Industries Ltd The company has 12 tea estates, located in the Doors, Terai and Darjeeling. The company markets tea under the Runglee Rungliot, Double Diamond, Shakti, Sargam and No1 brands. Source: Company Websites, News Articles 31
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19*^ 2015-16 2016-17 2017-18 2018-19** 156.49 223.68 310.93 178.19 135.66 375.05 104.67 389.42 410.30 210.66 561.58 555.07 531.07 711.92 KEY SECTORS PETROLEUM AND PETROCHEMICALS (1/2) Production of natural gas in West Bengal (million cubic meters) Exports of select items from West Bengal (US$ million) 600.00 800.00 500.00 700.00 600.00 400.00 500.00 300.00 400.00 300.00 200.00 200.00 100.00 100.00 0.00 0.00 Petroleum Products Organic Chemicals West Bengal is a key producer of petroleum and petrochemicals. Production of natural gas in the state^ reached 410.30 million cubic metres in 2018-19*. Indian Oil Corporation is going to invest Rs 10,000 crore in its Haldia refinery over a period of four years to comply with Bharat Stage VI. In the first phase of investment, the company is going to set up a hydro cracker unit which will increase its production capacity to 8 MTPA from 7.5 MTPA. Mitsubishi Chemicals and Corporation, a Japan based chemicals major, has invested US$ 780 million in a Purified Terepthalic Acid (PTA) plant at Haldia. As of November 2018, Great Eastern Energy Corporation Limited (GEECL) is going to invest up to US$ 2 billion over the next decade for extracting shale gas from its Raniganj (South) block in West Bengal. Note: 2018-19* - up to October 2018, ^Including Madhya Pradesh and Jharkhand, 2018-19** - up to September 2018 Source: Petroleum Planning and Analysis Cell, PNG Statistics 2016-17 32
KEY SECTORS PETROLEUM AND PETROCHEMICALS (2/2) IOCL is India's largest company by sales and the twentieth largest petroleum company in the world. Indian Oil Corp Ltd (IOCL) It owns and operates 10 of India's 22 refineries with a combined refining capacity of 65.7 MMTPA (1.30 million barrels per day). It has a refinery at Haldia, with an installed capacity of 7.5 MTPA, which has grown from 2.5 MTPA in 1975. OIL, established in 1959, is primarily engaged in exploration, development, production and transportation of crude oil and natural gas in India. OIL owns 10 crude oil pumping stations and 17 repeater stations spread across Assam, West Bengal and Bihar. Oil India Ltd (OIL) The state-of-the-art pipeline has the capacity to transport 8 MTPA of crude and feed four public sector refineries in north-east India. The company also owns and operates a 654-km petroleum product pipeline connecting Numaligarh Refinery Limited in Assam to Siliguri in West Bengal. HPL is a modern, naphtha-based petrochemical complex located at Haldia, 125 km from Kolkata. It is a joint venture project of the Government of West Bengal, with the Chatterjee Group, the Tata Group and IOCL as major stakeholders. Haldia Petrochemicals Ltd (HPL) It has the capacity to produce 700,000 tonnes of ethylene per annum and process over 3,50,000 tonnes per annum of polymers. Source: Company Websites, News Articles 33
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 1.86 2.06 2.07 2.19 2.24 2.29 2.83 KEY SECTORS INFORMATION TECHNOLOGY (1/2) As of March 2018, West Bengal had 5 operational IT/ITeS SEZs. A IT Exports from West Bengal (US$ billion) number of towns such as Durgapur, Siliguri and Haldia are also emerging as suitable IT destinations with appropriate infrastructure in 3.00 the form of software technology parks (STP). 2.50 West Bengal plans to raise its share in the country s IT exports to 25 per cent by 2030. Total export from IT sector of the state is estimated 2.00 to have crossed Rs 19,000 crores (US$ 2.83 billion) in 2016-17. As per state budget 2018-19, the Government of West Bengal 1.50 allocated US$ 28.06 million for the development of the IT & Electronics department in West Bengal. 1.00 In August 2018, the state government has launched the Silicon 0.50 Valley IT hub project to attract investments in IT/ITeS/ICT and create state-of-the-art ecosystem for new technologies and innovation. 0.00 Further, buoyed by positive response from IT companies, including four global IT majors, the state government decided to add another 100 acre to the Silicon Valley hub in November 2018. Note: Exchange rates used are average for the year Source: State Budget 2018-19, State Economic Survey 2017-18 34
KEY SECTORS INFORMATION TECHNOLOGY (2/2) Genpact is a global remote processing operations company that provides IT-enabled services to clients across the world. Genpact It has an 80,000 sq ft facility in Kolkata and inaugurated the second operations centre in the city. This 0.2 million sq ft SEZ facility has the capacity to accommodate more than 3,000 employees when fully operational. CTS is a global e-business and application development company. CTS services several large clients from the banking, hospitality (restaurant), healthcare, financial and informationdriven sectors of the global market. Cognizant Technology Solutions (CTS) The company has started work on the second phase of expansion at its Bantala campus, near Kolkata, at an estimated cost of US$ 41.7 million. HCL Technologies is the largest hardware, system integration, networking solutions and distribution company in India. HCL s operations span 31 countries. It has delivery facilities in US, UK, Finland, Poland, Puerto Rico, Brazil, China, Malaysia, Singapore and India. HCL In India, the company has offices in 170 cities and 505 service centres reaching 4,000 towns. In West Bengal, HCL has two offices in Salt Lake City, Kolkata and one in New Town Rajarhat. A Tata Group company, TCS is a well recognised global services provider for a wide range of IT solutions, consulting, BPO, engineering services and IT infrastructure. Tata Consultancy Services (TCS) The company has offices in more than 46 countries and around 80 locations in India. It has ten offices in Kolkata. Source: Company Websites, News Articles 35
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18* 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18E 2018-19A 14,340.70 13,045.90 14,605.80 15,023.70 15,370.70 14,677.20 15,953.90 15,302.50 14,990.00 1.47 1.49 1.58 1.62 1.67 1.70 1.74 1.85 KEY SECTORS AGRICULTURE AND ALLIED INDUSTRIES West Bengal s rice production (in 000 tonnes) West Bengal s fish production (in million tonnes) 20000 15000 10000 5000 0 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 West Bengal has six agro-climatic zones & offers a diverse variety of environments for agriculture and horticulture production. The state has a long coastline (over 150 km) & innumerable water bodies, reflecting the huge potential for inland fishing and fish cultivation. Fish production in the state has increased from 1.47 million tonnes in 2011-12 to 1.74 million tonnes in 2017-18E. The state is anticipating 1.85 million tonnes of production in 2018-19. Also, the state is the largest producer of rice in India. Rice is the principal food crop of West Bengal. In 2017-18*, rice production in the state reached 14.99 million tonnes. Further, the state is also the country s second largest potato producer. Note: *As per second advance estimates, E Estimate, A - Anticipated Source: Department of Animal Husbandry, Dairying & Fisheries, Department of agriculture cooperation and farmers welfare, News Articles 36
2010 2011 2012 2013 2014 2015 2016 2017 P 22.3 23.5 23.9 26.7 50.4 71.7 76.0 81.3 KEY SECTORS TOURISM West Bengal s diversity in flora and fauna makes it an attractive destination for tourism. 90.00 West Bengal s tourist inflows (in millions) The state has good infrastructure for encouraging tourists. Netaji Subhash Chandra Bose Airport in Kolkata is an international airport. Tourist destinations are accessible due to a wide network of national 80.00 70.00 and state highways. Howrah, Sealdah & New Jalpaiguri are major 60.00 railway hubs. In 2017 (P), domestic tourist arrivals in the state were 79.69 million and foreign tourist arrivals had crossed over 1.57 million. 50.00 40.00 As per state budget 2018-19, Government of West Bengal allocated 30.00 US$ 57.18 million for the development of tourism sector in the state. 20.00 10.00 0.00 Note: P Provisional, Confirmed figures for 2017 and updated figures for a part of 2018 may be released in West Bengal Economic Review 2018-19 Source: Ministry of Tourism, Government of India 37
KEY PROCEDURES & POLICIES
SINGLE-WINDOW APPROVAL MECHANISM Shilpa Bandhu or the State Investment Facilitation Centre (SIFC) is the state-level nodal agency for single-window clearances in West Bengal. The purpose of Shilpa Bandhu is to provide guidance and information to investors about policies and programmes of the state. The agency is monitored by an empowered committee. SIFC offers assistance in the following areas: Approvals from the Secretariat for Industrial Assistance and Foreign Investment Promotional Board. Registration by Directorate of Industries. Clearance from the Pollution Control Board. All clearances related to power. Identification, allotment, mutation/conversion of land and other infrastructural facilities. Guidance to entrepreneurs on investment prospects in over 200 ready projects developed by WBIDC. District Industry Centre (DIC) is the district-level committee for single-window clearance that provides sanctions and clearances for setting up small scale industrial units in the state. The committee is convened by the General Manager, District Industries Centre and includes the Environmental Engineer of the West Bengal Pollution Control Board, Superintendent Engineer/Executive Engineer of West Bengal State Electricity Board, District Officer of Housing and Urban Development Authority and the Assistant Director of Factories. 39
KEY INVESTMENT PROMOTION OFFICES Agency Description West Bengal Industrial Development Corporation Limited (WBIDC) WBIDC focuses on financing medium and large scale industries. It provides assistance service and facilitates investment proposal through Shilpa Bandhu. It promotes joint sector and assisted sector units in important industry segments. West Bengal Industrial Infrastructure Development Corporation (WBIIDC) WBIIDC is responsible for balanced and well-planned industrial development in the state. West Bengal Small Industries Development Corporation Ltd (WBSIDC) Set up in 1961, WBSIDC is the promotional agency for growth and development of industries and commercial activities in the small and medium sector in the state. WBSIDC has developed 38 industrial and commercial estates all over the state. West Bengal Electronics Industry Development Corporation Limited (WEBEL) WEBEL is responsible for development of the electronics and IT/ITeS industries in the state. It assists investors in obtaining all necessary approvals for new projects and facilitates setting up of IT and electronics industry. West Bengal Finance Corporation (WBFC) WBFC is a state level financial institution to help the small, medium and tiny sector enterprises to implement their new/expansion/modernisation or technological upgradation schemes. 40
CONTACT LIST Agency Description West Bengal Industrial Development Corporation Limited(WBIDC) "Protiti", 23, Abanindranath Tagore Sarani, (Camac Street) Kolkata - 700017, Phone: 91 33 2255 3700-705 Fax: 91-33-2255 3737 Email: wbidc@wbidc.com Website: http://www.wbidc.com/ West Bengal Industrial Infrastructure Development Corporation (WBIIDC) 5-Council House Street, Third floor, Kolkata 700011 Phone: 22305804-08 Email: tridibb@wbiidc.org West Bengal Small Industries Development Corporation Limited (WBSIDC) Shilpa Bhawan, 31 Black Burn Lane, Kolkata-700 012, Phone: 91-033-2237 3895 Email: md@wbsidcl.com West Bengal Electronics Industry Development Corporation Limited (WEBEL) Webel Bhavan, Block-EP & GP, Sector-V, Salt Lake Kolkata-700 091 Phone: 91-33- 2357 1704/06 Fax: 91-33-2357 1708 /2357 1739 Email: contact@webel-india.com West Bengal Finance Corporation (WBFC) 12A, Netaji Subhas Road, 3rd and 4th floor, Kolkata-700 001 Phone: 91-33-2230 0055/3259/4954/3083 Fax: 91-33-2230 1250, 2230 3259 E-mail: administraton@wbfconline.org Website: www.wbfconline.org 41
KEY APPROVALS REQUIRED List of approvals and clearances required Incorporation of company Registration, Industrial Entrepreneurs Memorandum (IEM), industrial licenses Permission for land use Allotment of land Site environmental approval No-Objection Certificate and consent under Water and Pollution Control Act Registration under States Sales Tax Act and Central and State Excise Act Commercial taxes Sanction of power Power feasibility Power connection Approval for construction activity and building plan Water and sewerage clearance Water connection Department Registrar of Companies Department of Industries, West Bengal State Government West Bengal Industrial Development Corporation (WBIDC), West Bengal Industrial Infrastructure Development Corporation, West Bengal Small Scale Industries Development Corporation West Bengal Pollution Control Board (WBPCB) Excise Department, Government of West Bengal West Bengal State Electricity Distribution Company Limited (WBSEDCL), Kolkata Electric Supply Corporation, Damodar Valley Corporation, Durgapur Projects Limited, Dishegarh Power Supply Company Limited, according to area demarcated Public Works Department, Government of West Bengal, State Water Investigation Department, Public Health Engineering Department, Government of West Bengal 42
COST OF DOING BUSINESS IN Cost parameter Cost estimate Source Cost of land (per sq ft) US$ 4 to US$ 100 Industry sources Hotel room cost (per night) 2015-16 US$ 80 Indian hotel survey Office space (rent per sq ft per month) US$ 1.0 to US$ 3.0 Industry sources Residential space (rent per sq ft per month) US$ 0.3 to US$ 1.2 Industry sources Labour cost (minimum wages per day) US$ 2.5 to US$ 4.4 Ministry of Labour and Employment, Government of India 43
STATE ACTS & POLICIES (1/2) Objectives West Bengal Start Up Policy, 2016-21 The policy was drafted aiming to brace up the culture of start-ups in West Bengal by acknowledging various auspicious start-ups and promoting them socially. Read more To boost the establishment of various business incubators in association with the private sector across the state. West Bengal Information Technology and Electronics Policy 2018 To become one of the leading states in India in the IT, ITeS, ICT and ESDM sectors To transform into a knowledge-driven, technologically-enabled welfare society with extensive use of IT/ITeS, thereby increasing employment opportunities and promoting the state as a preferred investment destination. Read more Micro, Small and Medium Enterprises Policy 2013 To create a sustainable ecosystem in the MSME sector, which can maximise the utilisation of resources and widen the area of operation to make the state emerge as the MSME leader in the country in the next ten years. Read more Investment Industrial Policy West Bengal 2013 To eliminate systemic bottlenecks in the process of Industrialisation in the state. To improve the ease of doing business. Read more West Bengal Biotechnology Policy 2013 To bring in related industries and services of this growth industry, geared to revenue streams and payback, and appropriate business model. To map, conserve and sustainably use bio-resources, particularly those which are unique to the state. Read more West Bengal ICT Incentive Scheme 2012 To promote IT/ITeS projects of large, medium, small, and micro units to be set up in the state. Read more 44
STATE ACTS & POLICIES (2/2) Objectives To achieve growth in excess of 10 per cent in tourist arrivals over the next five years. West Bengal Tourism Policy 2016 To increase availability of branded hotel accommodation rooms in the state to 100,000 by 2020. To make tourism more sustainable and abide by the basic tenets of environment, social and economic sustainability. Read more Special Economic Zone Act (SEZ) 2003 To facilitate the development, operation, maintenance, management, administration and regulation of special economic zones in the state. Read more 45
ANNEXURE
ANNEXURE (1/2) - SOURCES Data Sources GSDP (state) Per capita GSDP figures GSDP (India) MOSPI MOSPI MOSPI Installed power capacity (MW) Central Electricity Authority, as of November 2018 Wireless subscribers (No) Telecom Regulatory Authority of India, as of September 2018 Internet subscribers (Mn) Telecom Regulatory Authority of India as of June 2018 National highway length (km) Airports (No) NHAI, Roads and Building Department - Government of India Airports Authority of India Literacy rate (%) Census 2011 Birth rate (per 1,000 population) SRS Bulletin September 2017 Cumulative FDI equity inflows (US$ billion) Department of Industrial Policy & Promotion, April 2000 to June 2018 Operational PPP projects (No) DEA, Ministry of Finance, Government of India Operational SEZs (No) Ministry of Commerce & Industry, Department of Commerce, July 2018 47
ANNEXURE (2/2) - EXCHANGE RATES Exchange Rates (Fiscal Year) Year INR INR Equivalent of one US$ 2004 05 44.95 2005 06 44.28 2006 07 45.29 2007 08 40.24 2008 09 45.91 2009 10 47.42 2010 11 45.58 2011 12 47.95 2012 13 54.45 2013 14 60.50 2014-15 61.15 2015-16 65.46 2016-17 67.09 2017-18 64.45 Q1 2018-19 67.04 Q2 2018-19 70.18 Exchange Rates (Calendar Year) Year INR Equivalent of one US$ 2005 44.11 2006 45.33 2007 41.29 2008 43.42 2009 48.35 2010 45.74 2011 46.67 2012 53.49 2013 58.63 2014 61.03 2015 64.15 2016 67.21 2017 65.12 Source: Reserve Bank of India, Average for the year 48
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