Industrial Promotion and Economic Development in Kolkata
Connectivity by various means of transport is another important factor to generate the place for industrial development. Kolkata is fortunate to be well connected by rail, road and air with major parts of the country and abroad. The city has become an important industrial hub of the country providing enormous opportunities for the investors and job seekers. Kolkata has well equipped key facilities like power, water, road network and communication. The city’s growth in industrial sectors like Jute, Textile, Leather, IT, Electronics and medicines has drawn international attention. Various plans and projects are being carried out to revamp the industrial scenario of the city. A sudden flip was seen after the year 1991, when sectors like Information Technology and Business Process Outsourcing (BPO) made an entry due to economic liberalization . Also, the setting up of new harbor at Haldia opened new vistas of trade for the city of Kolkata.
Economy of Kolkata
In a report released by a leading consulting firm Price Waterhouse Coopers in the year 2009, Kolkata ranks third after the cities of Mumbai and Delhi and has a per capita GDP of 104 USD. The economic development is huge and the living expenses are very less. This makes it one of the major centers for world business.
Industrial Policy in West BengalThe salient features of the policy on industrial promotion and economic development are to welcome foreign technology and investment, private sector investment in power generation, improvement and up-gradation of industrial infrastructure etc. The thrust areas for special attention are the petrochemicals & downstream industries, electronics and information technology, Iron and steel, metallurgical & engineering, textile, leather & leather products, food processing, medical plants, edible oil, vegetable processing and aquaculture, rubber, tea etc. For the purpose of determination of types and quantum of incentive available under this Scheme for the approved projects, according to their location, the State shall be classified in the following groups:
Group - A: Kolkata Municipal Corporation.
Group - B: Hoogly, Howrah, North 24 Parganas, and South 24 Parganas, Districts excluding the area under the jurisdiction of the Calcutta Municipal Corporation;
Group - C: Murshidabad, Birbhum, Midnapore, Nadia and Burdwan Districts;
Group - D: Purulia, Bankura, Malda, Coochbehar, North Dinajpur, South Dinajpur, and Darjeeling Districts.
Incentives offered under Industrial Policy
- Capital Subsidy of 15% or Rs. 1.5 million whichever is less in Group-B, 20% or Rs. 2 million whichever is less in Group-C and 30% or Rs. 3 million whichever is less in Group-D
- Sales tax Deferment/Remission on sale of finished goods
- Sales tax exemption on raw materials for 5 years in group-B, 7 year in group-C & 9 years in group D for new units
- Sales tax deferment for approved new electronics and gems and jewelry units located in Kolkata Municipal Corporation for 7 years. Additional sales tax incentives to the tune of admissible capital investment subsidy for 2 years in Group-B, 3 years in Group-C & 4 years in Group-D area
- Entry tax/octroi exemption for the first three years of operations
- Subsidy of 25%, up to Rs. 1.25 million, on purchase and installation of generating sets
- Waiver of electricity duty for new and sick or closed units for 5 year
- Development subsidy for hotels, electronics and gems and jewelry units with fixed capital investment of up to Rs. 50 million
- Approved new projects or expansion projects shall be entitled to allotment of lands & 77% of land value shall be payable in equal annual installments over a period of 5 years in case of Group-B, 10 years in case of Group-C and 15 years in case of Group-D
- Subsidy of 75% of cost of feasibility report, up to Rs. 50,000 in most areas
Health Related Industries
Economic and Industrial Zones in Kolkata
Apart from these, there’s another SEZ for IT industry coming up in Rajarhat known as SP InfoTech, Rajarhat.The popular ‘Bengal Gem and Jewellery Park’ located in Salt Lake City. A leather complex has also been established at the export processing zone of Bantala in Falta. ‘Toy Park’ - the first of its kind park dedicated to the toy industry is also located in Kolkata. The park is now renamed as Shilpangan. Kolkata also houses a garment park ‘Paridhan’.
Industries in Kolkata are on the full bloom. Thanks to the efforts of the government agencies that have taken timely step to recover the looses faced by the industry since last few decades.Today Kolkata is one of the major industrial hub in eastern part of the country. Many national and multinational companies around the world buy their supplies from Kolkata based industries , and save heavily on the cost of setting up a separate manufacturing unit of their own. This not only helps to cut down the manufacturing cost of the required chemicals but also saves up on the workload of a company. It also reduces labor involvement, hence facilitating cost effectiveness.