The recent International Finance Corporation and World Bank report, Doing Business in India 2009, couldn?t have come at a worse time, for West Bengal, that is. Already in the news for all the wrong reasons, think Nano?s exit from the state, the LF drubbing at the polls, the Maoist violence at Lalgarh, the state will now have to work extra hard to lure investors back to the state. It has already fought this battle once before, in the 70s, to be precise, when after the Naxal violence and large-scale labour problems, industry fled the state.
Things appear to be back to square one, despite the fact that Bengal has had two years (2006-2008) which were good for investment. The June 30, 2009 report says Kolkata is the toughest, among 17 cities surveyed, to start and operate a business. And, though government officers are crying hoarse that it is a question of ?perception? and that ?Bengal?s image has slipped, the reality is different?. The point is the World Bank survey has some tough figures from the ground, which are real, not perceived.
Consider this: To obtain construction-related permits and clearances, if cities like Bengaluru, Chennai and Hyderabad need 15 procedures, in Kolkata, you will need more than 30. For property registration, Kolkata is second from the bottom out of the 17 cities surveyed, needing 107 days, while Jaipur is fastest needing just 24 days to register property. In enforcing contracts, Kolkata again is third from the bottom (1,183 days) while neighbour Guwahati tops with 600 days. Then again, it takes the longest to close business in Kolkata (10.8 years), while the fastest is in Ahmedabad (6.8 years).
Angry officers will throw facts like for example that in 2008, the state attracted investor interest of projects worth Rs 95,000 crore. That?s fantastic on paper?and for the future, if at least half the amount fructifies?but in reality 216 projects were implemented in 2008, with an investment of Rs 4,434 crore. The state government will have to do everything and more to clear the ?perception? about Bengal, and give industry a push like never before, but it?s getting increasingly harder with Trinamool Congress sniping at its heels and the lack of clarity on crucial issues like land acquisition.
sudipta.datta@expressindia.com