Survey questions WB's 'power surplus' claim

A survey by the eastern region chapter of Confederation of Indian Industry (CII) has questioned the popular belief that West Bengal is a power surplus state.

The survey which was conducted among 450 members of CII (ER) coming from industries like manufacturing, IT, retail, iron and steel, cement, identified power as the second biggest infrastructural constraints, after road.

Even though the Business Perception Survey painted a rosy picture of the state saying that it was going through a steady process of industrial resurgence, 38 per cent of the respondents pointed out infrastructure as the greatest bottleneck limiting the growth of industry.

West Bengal has power generating capacity of around 2000 mega watt. The government always maintained that West Bengal is a power surplus state which makes it an attractive destination for investors.

"Even though there is availability of power, it is the quality of power which is being put in question. It is not the generation part but the transmission and distribution system which is creating problem for the industry," an expert said.

The survey also lists out other factors hindering growth. They are as follows: 24 per cent says labour and industrial relation, 22 per cent feels negative perception about West Bengal, 13 per cent identifies bureaucracy and red tapism.

However, the good news is that 55 per cent of the respondent still believe resurgence is on and identified IT and ITeS, agri business, food processing, retail, housing, iron and steel, healthcare as top six sectors with bright future.

Thirty-six per cent say lower cost of living while 26 per cent say cheap labour are the greatest advantage of doing business in West Bengal.

In fact, 88 per cent of the respondents felt their sales/operating profit will increase this fiscal. Sixty-three per cent say they will go for new recruitment, which is good news as far as employment generation is concern.

CII members has urged the state government to encourage industries like automobiles and electronics so that downstream ancillary units can also come up. It also called for more attractive industrial/fiscal incentive for new investors, especially foreign investors.