The message from the month-old Trinamool Congress (TMC) government in West Bengal under Chief Minister Mamata Banerjee is clear — it will not tolerate delay in implementation of big ticket industrial projects.
During her investors’ meet on Saturday, Banerjee almost came down heavily on the delay in implementation of the Rs 35,000-crore JSW Steel Salboni project in this context. She said, the fact that of the 4,000-odd investment proposals in Bengal since 1991, only 1,500 had borne fruit was thoroughly unacceptable to ‘this’ government.
“Land is there with certain industrial groups, but they are not doing it. Sajjan Jindal Group Salboni industrial...,” Banerjee said, while she was stopped in between by the state industry and commerce minister, Partha Chatterjee. She toned it down to, “I know they need time also. Raghunathpur (a Jai Balaji steel plant project) is also pending. Chart out your problems, you have to do it fast,” she said.
JSW Steel’s 10-million-tonne-capacity project was running behind schedule. The company has started work on its township, while construction for the steel plant is expected to be taken up after the monsoon.
Chatterjee clarified to mediapersons after the interaction that the government had asked for a status report.
“I want to know the exact status of the project. There are only 1,310 projects being implemented out of 4,710 proposed since 1991. First of all, we will check whether or not land that has been asked for is even required in all such projects. A lot of dust has settled, we have to clear it,” he said.
In a two-hour interaction with industry chieftains, Banerjee reiterated the government's stance that it would not assist the industry in acquiring land, while stating that the focus of her government's industrialisation drive would be through information technology (IT) and tourism projects.
"We do not have unlimited land, so we will make do with available resources and industries like IT and tourism. No huge land is required for this and can be developed through hubs. Industry, if it wants to acquire land, can do it on its own," she said.
To facilitate the investment process in the state, she also announced the formation of a 23-member core committee with members from industry bodies, ministers and representatives from major departments. "There are bodies at the Centre also, like the Prime Minister's advisory council, it hardly meets. I know how it works. But this core committee will meet once in every 15 days," beamed the state finance minister, Amit Mitra, appearing to be all praise for the body. Banerjee's stance on land acquisition, however, appeared to have disappointed industry, which had in the past found it difficult to acquire land for large projects on its own. The sentiments were voiced by ITC chairman Y C Deveshwar.
"Land had been promised to us five years back and now we have been told to go and buy it ourselves. It is possible to buy small amount of land but one cannot buy large tracts. It will be difficult for investors to come if they find procurement of land is a problem," he said.
Banerjee disregarded openly the problems faced by industry in acquiring land. When a businessman voiced problems with middlemen and unwanted elements, she said: "Middlemen are there; they will always be there. You have to work with them," she said. Adi Godrej, who said he had investments worth Rs 2,000 crore in Bengal already, was one of the few big-ticket national industry faces present at the event. He said, Banerjee should consider repealing the Urban Land Ceiling Act (ULCA).
"I think the key to Bengal's growth will be the housing industry. For this the state has to amend the ULCA, a redundant act. That aside, we are very interested in investing further in the state," he said.
The meet saw paltry participation from national industry bigwigs. Anand Mahindra received an invitation yesterday and was unable to make it due to prior commitments, but sent his representative.
The meet, which was the first of its kind in Bengal, saw paltry commitment to investment. One such intent came from Shivinder Mohan Singh, MD, Fortis Healthcare.
"We have a 500-bed facility worth Rs 300 crore in Bengal, which we want to double soon," he said. Banerjee, who rode to victory on her Ma Mati Manush stance appeared more interested in healthcare infrastructure than in investment. "You do your business. That is fine. If you have any pro-poor proposal, then tell us," she said. The chief minister also claimed US and Japan had evinced interest in the state and asked for proposals FDI from Bengal.
