West Bengal Govt To Rework Industry Incentive Schemes Due To Fiscal Challenges

2025-03-20 02:08:10

(MENAFN- KNN India) Kolkata, Mar 20 (KNN) The West Bengal government is set to discontinue the existing incentive schemes and introduce a new, relevant policy in due course.

State Industries Minister Shashi Panja tabled the Revocation of West Bengal Incentive Schemes and Obligations in the Nature of Grants and Incentives Bill 2025 at the assembly on Wednesday.

Chief Minister Mamata Banerjee stated that the current scheme, introduced in 2001-02 during the Left Front government's tenure, has become difficult to sustain.

She pointed out that the state is still bearing financial commitments made earlier, including compensation for land acquired during the previous regime.“A lot of incentives were promised without considering the position of the exchequer,” Banerjee said.

Highlighting the changing industrial landscape, the CM noted that sectors like artificial intelligence, tourism, and green industries have grown significantly, making the existing scheme outdated.

She also emphasized that coal mining policies differ from iron ore regulations, affecting industrial opportunities.

Banerjee assured that a new policy is being formulated with a committee led by the chief secretary engaging stakeholders.“We will introduce a scheme keeping our financial health in mind,” she added.

Industries Minister Panja echoed this sentiment, stating that Bengal has seen a stable industrial environment since 2011, with no strikes or power cuts.

The proposed changes have been welcomed by business chambers. Rajeev Singh, Director General of the Indian Chamber of Commerce, stated that the revised scheme could boost new-age industries.

Amit Saraogi, President of MCCI, expressed hope that the new policy would be attractive to businesses.

In a related development, the government tabled the West Bengal Fiscal Responsibility and Budget Management Bill 2025, raising the borrowing limit from 3 per cent to 3.5 per cent of the GSDP for 2024-25.

This additional 0.5 per cent flexibility is linked to power sector reforms under the 15th Finance Commission roadmap.

(KNN Bureau)

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