World Bank ranking a shot in arm for Banerjee

Ranked at 11 higher than TN and Punjab, the report is a reflection of small ticket reforms state has been undertaking

World Bank’s rankings of states on the basis of ease of doing business had triggered controversy even before its release. For one, the Centre shied away from taking ownership, fearing the lower-ranked states might accuse it of playing politics ahead of the Bihar elections. However, these rankings turned out to be a pleasant surprise for the Mamata Banerjee government in West Bengal, which has been trying hard to improve its image among the business community.

Ranked at 11, higher than Tamil Nadu and Punjab, the report is a reflection of the small-ticket reforms the state has been undertaking in order to attract investment. When the industry lobby in the state was contacted by Business Standard, many of them acknowledged that of late, the state government has been eager to change what they term as “perception problem.”

“The state had always carried a baggage of the past. The current government in its initial days did little to change it, but now we feel there is an impetus,” said an industrialist.

According to a Group of Ministers (GoM) constituted to identify and reclaim the land acquired by closed industrial units, 49,000 acres of land are under such units, out of which 7,500 acres are not marred by litigations. On Tuesday, a day after the report was published, the state government announced the 285 acres of land currently held by Cycle Corporation of India would be reclaimed.

Land allotment has been one of the most contentious issues between the state government and the industry lobby. Finance minister Amit Mitra had been questioned on this issue in all his roadshows which were organized to attract investment to the state. Banerjee who rode to power on the Singur land acquisition protests had promised her stand clear against forcible land acquisition and special economic zone.

"Land will not be a problem in West Bengal. West Bengal Industrial Development Corporation (WBIDC) has 4,400 acres of ready land under its possession for industrial development. This is apart from the land for 6 townships in the state. Another 4,000 acres of land will be made available soon," Amit Mitra said on Monday at a roadshow in Mumbai.

Bengal though lags many steps behind the states like Gujarat, Maharashtra, Rajasthan who have been able to form a comprehensive land bank. The World Bank report states the importance of a land bank.

"A necessary step would be to first list the number of land banks available in the State for industrial use, along with their respective areas. The list should be as comprehensive as possible, and should cover all the available land banks in the State," it states.

 

Another reform undertaken by the government has been the creation of a single window clearance which is also a parameter for the rankings. At a meeting with the industrialists in June, the chief minister declared the opening of a single window at WBIDC.

The report specially mentions the steps of the state government in streamlining the facility of e taxation. Results are showing albeit slowly. On Monday, labour minister Moloy Ghatak announced a Rs 500 crore investment from FMCG firm Pepsico which develop a manufacturing unit.

Faced with an election in 2016, Mamata Banerjee is eager to paint a different image of herself and Bengal.