West Bengal’s Big Industrial Move: Gujarat Model To Attract Major Companies And Investments

Kolkata: To promote industrial investment in West Bengal, the BJP government of the state is working on a new model by moving away from the old method of acquiring land. The government is preparing to implement a modified land pooling system on the lines of Gujarat, Haryana and Andhra Pradesh. Under the proposal, private companies can buy land directly from landowners at market rates and along with the payment, the farmers who give the land can also be given company shares in the related project. The government believes that this can provide a source of income to farmers in future instead of lump sum compensation.

Why is the method of land acquisition being changed in Bengal?

The question of land for big industries in West Bengal has been sensitive for a long time. After the movements of Singur and Nandigram, the issue of land acquisition became very important in the politics of the state. The new government now wants to create such a system in which, along with providing large plots of land to industries, the consent and interests of the land owners can also be taken into account. For this reason, options like land pooling and purchasing land directly at market rates are being considered.

How will farmers get shares in the company in exchange for land?

In the proposed system, the private company will purchase the land from the land owner at market price. Additionally, depending on the project concerned, the farmer selling the land may be given a certain portion of the company's stock. The government's argument is that with this the farmer will not be limited to just selling the land and taking the money once, but there will be a possibility of income from his share as the project progresses. However, due to limited information about stock market and corporate stake in rural areas, it is not considered easy to implement this system on the ground.

What is different in Gujarat's model?

In some industrial and development projects in Gujarat, a system of giving stake in the project along with cash payment to the land owners has been worked out. On the other hand, some land pooling models used in Gujarat and Andhra Pradesh also have a provision to give back part of the developed land to the farmers. Farmers benefited from the increase in land prices after the development of facilities like roads, electricity and drainage. The model proposed in Bengal will be different from this, because here the emphasis is on the system of buying land and giving shares by private companies at market rates.

What is the biggest difficulty facing this model in Bengal?

Land ownership is quite dispersed in the state. Due to small land plots, it can be challenging to acquire enough land for a large industry at once. The example of Singur indicates this, where about 14 thousand land owners had to be contacted to acquire about 997 acres of land. Apart from this, the question of the interests of sharecroppers and people dependent on agriculture will also be important.

What steps is the government taking for big investments?

Along with the new land policy, the Bengal government is also working on a new industrial policy. This includes issues like incentives to attract investment, single-window clearance, availability of land, logistics and ease of doing business. State Industries Minister Tapas Rai has appealed to big industries to invest in Bengal. The government is also looking for investment in sectors like semiconductors, data centres, defence, drones, aviation and logistics along with traditional sectors.

How much preparation is there to bring back big industries?

According to the state government, investment proposals worth more than Rs 28 thousand crore have been received in the last three months. Talks are also going on with Tata Group regarding new investment in Bengal. Apart from this, Adani Group has announced plans for a health city in Kolkata with an initial investment of Rs 2,500 crore, while Adventz Group has announced an investment of Rs 1,700 crore for logistics, warehousing and tanker manufacturing.

Will this change the industrial picture in Bengal?

The government's efforts are not limited to just calling companies. Through the new industrial policy, a target has been set to increase investment, employment and manufacturing activities. However, the success of the land pooling model will depend on how the government builds trust between farmers, sharecroppers and companies. The more transparent and practical the process of providing land is, the easier it will be for big industries to be established in Bengal.