The Hindu Business Line : Bengal exporters seek `public utility service' status

Exporters demand State needs more export parks and 100 pc EoUs for providing the necessary fillip. Some exporters wanted full VAT exemption on purchase of materials.

Kolkata , Dec. 12

West Bengal exporters, hamstrung by infrastructural deficiencies, have demanded that export industries be granted the status of `public utility service' so that they can be exempted from bandhs, strikes and vehicular movement restrictions in `no entry' zones.

An `Export Climate Study', with special focus on West Bengal, prepared by a team of the Indian Chamber of Commerce and released on Tuesday by the Zonal Director General of Foreign Trade, Mr Manoj Kumar, has suggested that West Bengal needs more export parks and 100 per cent export-oriented units for providing the necessary fillip to exports from the State.

Based on extensive feedback from exporters, who responded to exhaustive questionnaires from the Chamber, it is pointed out that land acquisition for industry or the process of purchase of adequate land for the SEZs must be smooth and transparent. Setting up of more SEZs, it is felt, would substantially increase exports from the State.

VAT exemption

It is felt that the proposed West Bengal Land Reforms (Amendment) Bill 2006 should encourage setting up of SEZs to give a leg up to exports from the region.

Some of the respondents felt that exporters should be given full VAT exemption on purchase of materials, instead of the VAT refund mechanism post exports, "which blocks the exporter's cash flow".

Some of the major exporters have stressed on the need for good, all-weather roads linking industrial and raw material centres of West Bengal to airports and sea ports. They pointed out that an all-weather road was urgently required to link the industrial areas of Kalyani-Naihati-Barrackpore-Khardah with Kolkata airport, port and Haldia port.

24/7 facility

Currently, only empty lorries with containers can ply between 8 p.m. and 8 a.m., though in other exporting countries, all export-import consignments are allowed free movement on a 24-hour format.

The study has stated that if India has to emerge as a major exporting country and West Bengal as a prominent regional export hub, restrictions on export trucks movement in the State have to go.

The study has pointed out that while the State Government has set up eight agri-export zones (AEZs) to promote agri-products of Bengal in a big way, cold storage infrastructure are found to be much below par.

Seeking proper processing and product development facilities, the climate study has sought for perishable commodities cargo complexes through private participation.

The industries/sectors having the potential to earn substantial foreign exchange for the State include food-processing and agro-based industries, marine products and floriculture, textiles, gems and jewellery, engineering goods, ferrous and non-ferrous items, leather products, chemicals and plastics and IT and IT-enabled services.

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