INDIAN STATES : WEST BENGAL

Policy Framework

Information Technology Policy 2003

The state has identified IT as a priority focus sector to be developed into a growth engine. It has developed the new IT policy keeping in mind the enhanced opportunities that IT will unleash over the next decade. These opportunities will allow corporates to create immense value, provide significant opportunities for talent development and employment, and enhance efficiencies in governance and social service. Therefore, the core objective of the new IT policy is to allow different constituents within the State to leverage this opportunity.

Full text of the policy

SEZ Policy

SEZs are specifically delineated duty free enclaves treated as a foreign territory for the purpose of industrial services and trade operations with exemption from customs duty and a more liberal regime in respect of other levies, foreign investment and other transactions. Domestic regulations, restrictions and infrastructure inadequacies are sought to be culminated in the SEZs for creating an internationally competitive environment.
In order to effectively utilise the local abundance of skill and craftsmanship for the Gems & Jewellery sector and considering the emerging opportunities of export in this sector, Govt. of West Bengal has decided to set up a Gems & Jewellery Park on a 5-acre plot of land at Salt Lake, Kolkata.

Full text of the policy (.pdf)

Mineral Policy

Minerals are valuable natural resources and constitute vital raw materials for many basic industries. Thus, the minerals are major resources for development. West Bengal, except Darjeeling district in the north and coalfields region in the West, is covered almost completely by either alluvium or deeply weathered rocks. The rocky terrain, as a whole ranging in age from oldest Archaean to the younger Tertiaries, covers about one fourth of the total surface area of the State, i.e. approximately 21000 sq. km.

The state of West Bengal has an important position in mineral production of the country. In terms of value, the state accounts for 3.8% of mineral production in India and occupies the seventh position. Various metallic and non-metallic mineral deposits have been located both in the Peninsular and Extra-peninsular parts of the state and some of them viz. coal, china clay, fire clay, apatite, dolomite, limestone, silica sand, base metals, wolframite have economic importance.

Biotechnology Policy

The implementation of rural land reform programme in West Bengal has unleashed an economic resurgence in the state, which is expected to propel its rapid stride into a highly industrialized state. The strengths of West Bengal lie in its highly successful agriculture sector. It also has untapped unique resources in the mangroves unlike any other part of the country. Focusing on these strengths, a biotechnology vision statement for West Bengal has been formulated to enhance and organize the existing strengths.

The mission of the state is to ensure scientific and technological empowerment of its human resources. The state aims at creating a strong infrastructure both for research and commercialization. Efforts are being made to launch well-directed effort for generation of products, processes and technologies to enhance the cost effectiveness and productivity of agriculture, modern medicine, pollution control, biodiversity conservation and bio-industrial development.

Export Policy

The Government of West Bengal sees exports as a priority area and in recognition of the state's enormous export potential the Government of West Bengal announces "West Bengal Export Policy". The policy will be in force upto 2007.

West Bengal has distinct advantages in its geographical location in terms of export potential. It is flanked by three of India's SAARC neighbours viz. Bangladesh, Nepal and Bhutan, and it is also close to Myanmar. Its potential is strengthened due to its proximity to the large markets of the South-East Asian countries. Bengal is a prospective gateway for India to expand trade with Bangladesh, Nepal and Bhutan and also with Myanmar through Assam and Manipur. The possibility of land trade with China through the Nathu La Pass in Sikkim offers new opportunities for export growth. Kolkata could serve as the main trading hub and Siliguri as the satellite for India's trade with these neighbours.

Investment Incentives

Investment Incentives as under the IT Policy

Supportive regulatory framework setup for investors

• Procedures under existing labour laws are simplified to ensure smooth operations.
  
• Self-certification allowed for IT companies on various acts.
  
• IT companies are awarded special status under various acts to improve infrastructure availability.
  
• Structural policy changes to boost the growth of IT in the state.

Fiscal Incentive for IT investors

• One time fiscal incentives
  • Exemption from consumption tax
    
  • Quality linked incentives
• Recurring incentives
  • Converting interest subsidy into training subsidy.
    
  • Preference to West Bengal units in award of e-governance projects.
    
  • Special incentives for mega projects.

Investment Incentives as under the SEZ Policy

• Exemptions from stamp duty and registration fees.
  
• Exemptions from all state and local taxes on transaction with the SEZs. This is also applicable with reference to supply from domestic tariff areas to the SEZ.
  
• Single window mechanism which deals with the grant of labour and environment related permits and approvals.
  
• Permissions to generate power for the SEZs own consumption.