| West Bengal Chief Minister speaks | |
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The east Indian state of West Bengal, a laggard in the race for economic development, has had a change of political guard after a gap of 23 years. Many people are of the opinion that these 23 years have destroyed the work ethic in the state and caused flight of capital to more business-friendly states of India. There are others however who insist that the past 23 years have strengthened social justice in the rural areas of West Bengal. Be that as it may, change has just come in the form of a new Chief Minister in the person of Mr. Buddhadeb Bhattacharjee. The following is the full text of his speech at the Annual General Meeting of Bengal Chamber of Commerce and Industry on November 21, 2000. The speech gives an insight into the mind and plans of the new Chief Minister. "I am happy to address this august gathering on the occasion of the Annual General Meeting of the Bengal Chamber of Commerce and Industry. This year, a new situation has arisen owing to the retirement of Sri Jyoti Basu as the Chief Minister of West Bengal and assumption of this office by myself. I am fully conscious of the magnitude of my task and shall do my utmost to meet the aspirations of the people of West Bengal. Mr. Basu, by virtue of his vast experience, political wisdom and great quality of leadership has carved out a niche for himself in our national life. He steered the state administration with foresight and dynamism and made remarkable contribution to bring about significant development in different sectors of activity. The industrial policy announced by him in 1994 gave a fresh boost to industrialisation. The policies spearheaded by him will be pursued by our Government with zeal and determination. "It is gratifying to note that the proactive role of the State Government in accelerating the pace of the industrial development is being appreciated by large sections and reciprocated by the private sector in great measure. But the Central Government’s policy is detrimental to the cause of industrial and economic advance. The national economy, at the moment, is plagued by serious problems. The Centre’s penchant for unrestricted globalisation and policy of privatisation and disinvestments of public sector units have made the economic scenario dismal and created an atmosphere of uncertainty and insecurity for the large number of people. "The Central Government’s policy on the Public Sector is a cause of serious concern. The Government of India as the promoter of CPSUs abdicated its responsibility to provide financial and other forms of support to ensure revival of sick CPSUs through the BIFR route. As a result, CPSUs like Mining & Allied Machinery Corporation (MAMC), Cycle Corporation of India Limited (CCIL), Bharat Process and Mechanical Engineers (BPMEL), Weighbird India Limited (WIL), are about to be closed down, largely because of the lack of interest on the part of the Government of India in their revival. The decision to disinvest in PSUs like Jessop & Co., Reyrolle Barn Limited, Bharat Brakes & Valves Limited, even after BIFR had approved turnaround schemes, is totally arbitrary. What is alarming is that disinvestments are being planned to reduce budgetary deficits and not for creating new assets. The decision to close down 64 coalmines under the Eastern Coalfields Limited is bound to have disastrous consequences on the economy. For the Fertiliser sector, the Central Government’s policy is marked by ambivalence. Hindustan Fertiliser’s Haldia unit suffers congenitally from technological obsolescence. Hundreds of crores of rupees spent on this unit have gone down the drain. The government of India has so far done precious little to revive HFC’s Durgapur unit which produces Urea. "Our own experience in operating PSUs has shown encouraging results. With systematic care, the Government of West Bengal has been able to reduce losses in some loss-making units like Shalimar Works, Wastinghouse-Saxby Farmer, Bharat Jute Mill, Britannia Engineering etc. The State Government units such as Sree Saraswaty Press, West Bengal Electro-Medical & Allied Industries, Mackintosh Burn Ltd., Eastern Distilleries Ltd., and West Bengal State Warehousing Corporation have started making net profits. "It is important to mention that between 1991 and the early part of this year, a total of 2031 Industrial Approvals have been received for projected investment of Rs.47,393,93 crore. Out of this, 338 projects having a total investment of Rs.8,668.21 crore have already been implemented by February-March, 2000. According to the latest date i.e., figures up to 30th September 2000, we find that the number of Industrial Approvals has gone up by 323 and has now reached 2354. This means that there has been a 16% increase in just 6 months. In so far as investment is concerned, the figure has gone up form Rs.47,394 crore in March 2000 to Rs.54,406 crore-indicating a growth of almost 15%. "Regarding actual implementation of the medium and large industrial projects in West Bengal, it deserves to be noted that as against 338 projects implemented up to February – March 2000, our current figures, up to August 2000 comes to 393. These 55 projects cover an investment of Rs.8,138 crore in this short period. Our achievement, in financial terms, has therefore shot up from Rs.8,668 crore up to February – March 2000 to Rs.16,807 crore by August 2000. This is a tremendous increase of 94% in this half-year period of such a leap has perhaps never happened before in the industrial history of our state. "We are monitoring the progress of 138 projects under implementation, many of which are in the construction phase. These cover an investment of Rs.4,276 crores. As one of our mega projects Haldia Petrochemicals Ltd. has started commercial production since April, 2000, it is necessary to clarify the actual position relating to its Downstream Industries. Between April 1998,m and September 2000, 137 Downstream units have been installed and commissioned. I have been informed that 53 other projects are under active consideration. Through HPL commenced production only recently, it has been able to capture 10% of the all-India market share of polymer products. In the eastern part of India, HPL’s market share has crossed 20%. "The State Government is laying thrust on development of Agro-based industries, Food Processing and Floriculture Sectors. The Department of Food Processing Industry and Horticulture is soon going to set up an Export-oriented Floriculture Complex at Mungpoo in Darjeeling. For this project, 31.5 acres of land from our Cinchona plantation has been transferred. "The other sectors that are given special attention include Gems and Jewellery, Toy Manufacturing, Leather, Hosiery etc. We are taking initiative to rejuvenate the labor-intensive Gems and Jewellery sectors. Steps are being taken to set-up a Jewellery Export Park in West Bengal on 5 acres of land at Bidhannagar. Since there is immense potential for the toy-manufacturing industry, particularly after the establishment of the Haldia Petrochemicals Complex. We are coordinating efforts to develop this sector. We propose to set up a Toy Park at Bidhannagar. You are aware that the Calcutta Leather Complex Project is one of our priority areas. In the light of the latest orders of the Supreme Court, we have drawn up a strict time-bound programme to go ahead with necessary work on this project. "The Garment and Hosiery industry needs special care as a it suffers from problems like obsolete technology, low productivity, etc. The State Government is trying to improve the position by setting up one integrated hosiery complex. "As the industrial development depends a good deal on significant improvement in the infrastructure sector, we are placing thrust on consolidating and broad basing this area of activity. As a major effort, the State government is working closely with Asian Development bank to develop an ambitious North South Economic Corridor Project over a ten-year period. Although this is essentially a transport infrastructure project for creating a fast corridor from Haldia to Siliguri, the economic impact of this project is very significant. The basic strategy report prepared by an international consultant and funded by ADB is complete and the project is now moving to the implementation phase. "ADB has approved three more project preparatory grants and three projects are being planned for initial implementation. These include widening of NH-34 at a cost of Rs.960 crore by the Ministry of Surface Transport (MOST) with support from the State Government. The feasibility of creation of 59-km Dalkhola cutoff between Raigunj and Islampur on a BOT basis is being examined. A bett4er Calcutta-Haldia connectivity is also being planned. "IWIN has taken up the Bypass project at Amtola on Diamond Harbour Road. It is also developing an approach road to the Mitsubishi Factory in Haldia on a BOT basis. In Calcutta, 4 flyovers are being built by the Transport Department with financial assistance from Japan Bank of International Cooperation. The Public Works Department’s Baguihati Fly-over project on VIP Road is on the anvil. "The Housing Department, as part of the Rajarhat Township project, is constructing a four-lane road connecting VIP road near the airport with EM bypass near NICCO Park. "IWIN has been entrusted to develop a water supply project for Haldia on a BOT basis. IWIN has also been entrusted to help the state revive the North Canal System of Calcutta in collaboration with the British Water Ways. "With the signing of Mou between Bengal Port Ltd. and WBIDC, a major step has been taken towards setting up a minor port at Kulpi. In its hinterland, an special economic zone has been envisaged to accommodate a large number of export oriented units which will generate sizeable job opportunities. "I am happy that President of the Chamber, Mr. Bose has raised the issued of the Reports of the 6 Task Forces. You may be aware that based on the recommendations of the Task Force on IT, a new IT policy was announced in January 2000. You may also be aware that we have set up a separate Department of Information Technology and an Indian Institute of Information Technology. "The Information Technology policy has outlined the IT vision of the State and focused on a number of key goals which include, inter alia, building up on the State’s creative and intellectual wealth, transiting to an IT sector, setting up an integrated State-wide delivery backbone and promoting the setting up of IT venture fund companies. Action has already been initiated towards achievement of all these goals. A IIIT has already been set up in Calcutta in which the first under-graduate course has commenced with effect from 1st September, 2000. The Government is in the process of taking further steps to stimulate IT education in various Polytechnics, ITI schools and other institutions. Webel, in partnership with IBM, is in the process of launching a Distance learning Education Programme to produce "industry ready professionals". In the area of connectivity, a project for setting up a West Bengal State-wide Fibre optic Network is presently under consideration. Further, a major optical fibre cable backbone project using the overhead towers of WBSEB is under consideration for which ‘expressions of interest’ will be invited from private parties shortly. As you are award, an electronics and software complex has already been set up at Salt Lake in which nearly 160 companies have been located and about 11,500 people employed. Another IT-related complex will now be set up in an earmarked area in Mouza Nonadanda (under CMDA) which, as you know, has already been developed. With the support extended by the State government, the Software Technology Parks of India (STPE) will be shortly taking up the construction of another earth station with much larger band width than two existing ones near Calcutta. The State’s IT Industry exported Rs.700 crore in the year 1999-2000. Both global and large domestic players that are operating from Calcutta include Tata Consultancy Services, Price Water House Corporation, Cognizant Technology Solutions, R.S. software, Sema and some other important companies from the Silicon Valley of the U.S.A. With these developments and given the infrastructural facilities already existing near Calcutta, some big names from the IT area are contemplating making major investments in our State. We have already offered a land to Wipro for setting up an information technology unit. "As far as the remaining 5 task Forces are concerned, I would like to inform you that our government has taken up the issues raised therein , in right earnest. Each recommendation of these task forces has been sent to the Department concerned and we have obtained their feedback and suggestions, in quite a short time. The Cabinet’s Standing Committee on Industries has deliberated upon the issues raised and will now go in for detailed examination. Very soon we will be taking up the issues relating to 3 major areas, namely, Finance, Land & Land Reforms and Power for deliberations. "Wipro has confirmed that they will set up a State-of-the art Software Development Facility which will employ about 2,500 highly qualified engineers. "We firmly believe that industrial peace is an essential precondition for rapid industrial development. The employers should accommodate the legitimate demands of the workforce and maintain a harmonious relationship with them. The workers should also make a realistic study of the condition of each industrial unit and place their demands through constitutional and legal methods. It is necessary on their part to take interest in production, productivity and the quality of the products. Out Government is opposed to any from of irresponsible trade unionism that indulges tin violence and intimidation. In most cases, they now act in a responsible manner. "Ours is an investment-friendly Government. In the present economic system of the country, the Private Sector plays and important role. We urge the private sector to make more and more investments in our State. Let us all work together to build a prosperous West Bengal which has achieved distinction for its stability, communal harmony and cultural cohesion." |
