The Hindu Business Line : Left makes right moves for Bengal industry

AT the moment the overwhelming feeling among several sections of India Inc and stock market operators is that economic reformsmight come to a screeching halt.

This apprehension has emerged because the Left, with a significant block of representatives in the new Parliament, holds different views on several aspects of economic reforms.

What's the experience of West Bengal where the Left has been in power for a long time?

For decades the State was characterised by a high incidence of bandhs and strikes. However, few know that West Bengal has recorded the largest Japanese investment in India. No other State Government could sell itself so successfully to the Japanese than the Leftists of West Bengal.

The operations of Japanese companies are concentrated in and around the port town of Haldia, which has also developed into a major industrial zone of the State during the last few years.

Haldia remains insulated from all sorts of bandhs, even those called by the Left.

Mr C.K. Dhanuka, President of Indian Tea Association and chief of FICCI's eastern wing testifies to this fact. The Dhanukas set up the PET project of South Asia Petrochem in Haldia and it has been running smoothly from the very first day.

On bandh days, the IT entrepreneurs and professionals, who operate mostly from Salt Lake, get special State Government attention so that their activities are not affected.

Unlike other States, one does not see much hype about economic reforms in West Bengal because the State Government prefers to keep a low profile on it.

The Government is also choosy about investments from MNCs. For instance, the Left Front has categorically ruled out opening of any outlet of McDonald's, KFC or Pizza Hut in Kolkata. It is also against any sort of corporate farming.

However, the same Government has succeeded in convincing Pepsi to set up a potato food processing in the State because potato production has reached record heights recently and the farmers are suffering from unremunerative prices.

Gujarat Ambuja Cement set up a cement plant in West Bengal without any fuss and its director, Mr Harsh Neotia, recently announced that the company will soon embark on an expansion plan.

Mr Basant Agarwal, Chairman of the Manaksia group, feels that West Bengal is the "safest place" to set up any unit because he has never witnessed any sort of labour problem.

The West Bengal Government has also been pragmatic enough to close down ailing State PSUs that do not have any chance of a revival. The Government is taking approximately Rs 200 crore assistance from Department for International Development (DFID), UK to rehabilitate the workers of 14 sick units. Another 40 such units have been identified for private participation.

The industrialists of West Bengal believe that with time the approach and attitude of the Left in the Centre will also change. According to Mr Dhanuka, once they realise the practical advantages of economic reforms and liberalization, the Left will start supporting it.

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