FDI most welcome in any
sector, from any country
- W. Bengal's Industry & Commerce Secretary Sabyasachi Sen
The industrial scenario of West Bengal has undergone positive changes, especially in the last few years. The state government's proactive policies facilitating investment, its openness to foreign direct investment (FDI), concentration on improving infrastructure and most importantly a constant endeavour to project West Bengal as an investor-friendly destination, have contributed to these changes. The negative perception of West Bengal as a Communist-run state has been erased. The State's Industry & Commerce Secretary, Sabyasachi Sen, who is involved in his government's policy decisions, spoke to Indo-US Business on a variety of issues related to industrial development in West Bengal. Foreign Direct Investment (FDI) is one area that has found much favour with the state government, which is welcoming it with open hands. Excerpts.

The industrial scenario of West Bengal has undergone radical changes within a very short span of time. How did it all happen? What, according to you are the key enablers?
This is a combination of several factors. First of all, there was a negative perception sticking to West Bengal, earlier. But the state has been able to shake off that perception and itself into an investor friendly destination. The approach of the government has undergone changes, especially in the last few years and it has been playing a very proactive role in facilitating investments. One instance of investment attracts other investors to set up units in the state.
There was talk about the labour problem in the state. But, this has also been sorted out to a large extent by the state government. Though, I think basically the tea and the jute industries were beset with the problem of labour unrest. As regards the manufacturing industry, there was no such problem. There are a number of manufacturing units that are doing well and they don't have any problem of this sort.
The abolition of the licensing system has also accelerated the process of investment in the state. These apart, the location advantage, a ready market, availability of power and good human resources are some of the key enablers making the state an investor friendly destination.

Is it possible that West Bengal will regain its past glory as the first industrial state of the country? If yes, what is the time frame you are looking at for that?
Our objective is not to be the first industrial state of the country. But definitely we want to be on the path of industrial growth. Every state is growing and we want to match that growth and definitely to do better than them. Our goal is to be a leading industrial state in the country.

The IT and the real estate sectors have received a lot of investment. The manufacturing sector has also started to turn around. But some traditional industries like jute and tea still remain ailing. What is the government's plan for pushing them up?
There is no denying the fact that we need more investment in the manufacturing sector and we are working towards that objective. But at the same time I do agree that the tea and jute industries need to do better since these are important sectors for the state.
The tea industry had gone through ups and down for a long time in the past. But it has started doing better especially in the last couple of years. The Union Government has taken up the issue and it has allocated a Rs. 100- crore package for re-plantation and rejuvenation of the tea gardens. I think this will give the tea industry a fillip.
Similarly the jute industry has been passing through a critical phase for a long time. The jute industry is losing ground to synthetic fibres. That's why food grains and sugar packaging have to be made compulsorily with jute bags and we have to continue the scheme for quite some time. At the same time we have to focus on diversification of jute products. We have to find out newer uses of jute.
Some policy initiatives have been taken up by the Central Government that include setting up of a 'Jute Technology Mission'. On our part, we are also concentrating on a superior quality of jute cultivation. So, there are constant initiatives from the state government and I think if the policy initiatives are there, we will be able to get over of the problem.

What is the present state of the public sector units?
It is very difficult for me to speak specifically about their status. Some are doing well and some are not. We are following a very clear policy as regards restructuring these state-owned units. In the cases where restructuring is not viable, we will close down the units. If a unit could be revamped with some investment, we will try to facilitate that with a private partner's equity participation or assistance from the state government. Private partners will have a maximum of 74 percent equity participation if the units are turned around through joint ventures.

What is the state government's stand on Foreign Direct Investment (FDI) in the retail sector?
Whether or not FDI should be allowed in the retail sector is an issue with the Central government. It does not fall within the ambit of the state government's policy. But, definitely, the state government will support the investments in this sector since it is a large employer.

As regards chasing FDI, will the state welcome FDI from any country in any sector? Or are there some restrictions?
We have not been able to attract foreign investment as much as we could have. Some other states have really gone ahead of us in this regard. So definitely we want more foreign investment. We don't have preference for any sector or any country. The state is open to FDI in any sector from any country. But definitely we are pushing the manufacturing sector up for more investment.

The industrial infrastructure of the state, allegedly, is still not up to the mark. What initiatives has the state government undertaken to upgrade it to the level of satisfaction?
Yes, I agree that the industrial infrastructure is still not very satisfactory. But the onus is not only on the state government. There are certain things that fall within the jurisdiction of the Central government. We are happy that the Centre has taken up some mega policy initiatives relating to upgradation of infrastructure in the state. The modernization of the Kolkata airport project will see the light of the day soon. This apart, setting up of some non-metro airports in West Bengal is also under consideration. The Centre has also agreed to conduct a feasibility study for the proposed deep-sea port in the state. The proposed dedicated freight corridor will connect Kolkata and Haldia. We are also happy with the performance of National Highway Development Authority.
On our side, we are trying to improve the power transmission system. The other area, where we lagged for some time, is that of setting up an integrated ready infrastructure for the industries. Now we are giving attention to this area. We need to continue to do this. Good infrastructure will bring more investment to the state.