Bengal to revoke 2001 incentive schemes, plans new industry-focused policy
Times of India | 20 March 2025
Kolkata: State govt looks to discontinue the West Bengal Incentive Schemes, and in due course, a new scheme — relevant in the current context — will be introduced. State industries minister Shashi Panja on Wednesday tabled the Revocation of West Bengal Incentive Schemes and Obligations in the Nature of Grants and Incentives Bill 2025 at the assembly.
Speaking on the revocation, CM Mamata Banerjee said that the existing scheme was from 2001-02 and it was increasingly becoming a problem to fulfil the commitments of the Left Front-led govt's tenure. "Even in cases of land acquired during the CPM tenure, our govt is paying compensation. A lot of incentives had been promised without considering the position of the exchequer of the state," she added.
Speaking of the situation in 2000-2001, Banerjee said: "At that time, IT and related industries were almost non-existent here. But the situation is very different now. A lot of new things are coming... AI is big, tourism is very big, and there is green industry now." The CM also said that the mining policy was different for coal and iron ore. While industrialists from other states are using Bengal's coal, other states are regulating iron ore usage, Banerjee said.
Saying that a new policy was being planned, Banerjee said: "We have formed a committee under the leadership of the chief secretary to discuss the issue with all stakeholders. We will bring the new scheme with the our financial health in mind."
Saying that the existing scheme needed a relook, Panja added: "Since 2011, the state hasn't seen strikes or power cuts. There have been many new investments in Bengal as well."
The leading business chambers of the state welcome the decision. Indian Chamber of Commerce director general Rajeev Singh said the changed incentive scheme could give big boost to new-age industries. MCCI president Amit Saraogi said he hoped the new scheme would be attractive to the industry.
Bengal increases borrowing limit
State govt has tabled the West Bengal Fiscal Responsibility and Budget Management bill at the assembly to increase the borrowing limit by additional 0.5% of GSDP to 3.5% for 2024-25. As per FRBM norms, borrowing limit is 3%. The additional flexibility of 0.5% was attributed to the power sector reforms per 15th Finance Commission roadmap.