The West Bengal government presented an INR 3.21 lakh crore budget in March 2022. Below are a few key facets of the budget that are likely to have a wide-ranging impact on the industry:

• Extension of the exemption of 2% rebate on stamp duty and 10% rebate on circle rates - the exemption was to end by 31 March 2022, but will now last until 30 September 2022.
• Exemption of registration fees and road tax for the next two years from FY2022-2023, which is applicable for all types of CNG vehicles as well.
• Allocation of approximately INR 3,800 crore, INR 1,788 crore, INR 1,160 crore and INR 271 crore to the Irrigation & Waterways, Transport, MSME and Housing departments, respectively.

West Bengal Data Centre Policy, 2021
Notified in September 2021, the policy lists several fiscal and non-fiscal incentives for the data centre (DC) segment with the aim of enhancing the capacity of the state’s DC industry to 400 MW by 2025 and attract investment worth INR 20,000 crore to support this growth. As part of the policy, the government plans to set up three DC parks across the state. Below are a few incentives that the policy provides to the DC players in the state:

• Allows 3.0+1.0 (purchasable) FAR for DC buildings. This does not cover basement parking, storage and space used for DG set installation. Further, up to 60% ground coverage allowed to every DC construction.
• 100% stamp duty and registration fee exemption for setting up a DC facility.
• Electricity duty waiver for five years.
• Dual power grid networks, ‘industrial status’ to electricity supplied to DCs, power and internet facilities to edge DCs.
• 24x7 uninterrupted power and water supply as well as internet connectivity.
• Single-window approvals and permits for companies willing to establish captive firms.

West Bengal Electric Vehicle Policy, 2021 
Notified in June 2021, the policy aims to bring West Bengal among the top three states in terms of electric mobility penetration by end-2022. It would be effective for a period of five years. Below are its key tenets:

• Enhance the state’s electric vehicle (EV) fleet to 10 lakh across all segments.
• Develop 1 lakh public, semi-public charging stations and achieve EV-public charge. point ratio of 8 during the policy implementation period.
• Establish an EV Accelerator Cell that would act as a nodal body for implementing the electric mobility programme in the state.

Boost to industrial sector

• Amendment of Scheme for Approved Industrial Park (SAIP), 2020
  In September 2021, the West Bengal government amended the SAIP, 2020, which was originally introduced in 2014 for setting up private industrial parks. Below are its salient features:
  • Minimum area requirement for setting up an approved industrial park in Kolkata, Howrah, and North and South 24 Parganas relaxed from 20 acres previously to 5 acres.
  • Monetary incentives on offer to be split into tranches of 20% and 30% during different stages of the development of the park; remaining 50% to be provided once the park is operational. This is a shift from the previous provision of providing the entire incentive in one go following the park’s completion.
  • Scheme coverage enhanced to include activities related to warehousing, logistics, poultry, cold storage and fisheries.
  • Provision for single-window system for clearances / licences from bodies related to pollution, fire & emergency services, etc.
     
• Tajpur port
  The proposed deep sea Tajpur port, once developed, would be a key integration point for port-rail-road infrastructure in the east. More than 1,000 acres of land has been identified for the project, which is located around 200 km from Kolkata. According to government estimates, the first phase of the project is likely to commence operations in the next 3-4 years. During the bidding process, Adani Ports and SEZ (APSEZ) Ltd emerged as the highest bidder for this greenfield port project.
   
• Jangal Sundari Karmanagari cluster
  The West Bengal Industrial Development Corporation (WBIDC) is developing an integrated manufacturing cluster (IMC) on an industrial township model at Raghunathpur in Purulia district. Named Jangal Sundari Karmanagari (JSK) cluster, the project was launched in February 2021 with an aim to attract investments worth INR 63,000 crore. Spanning 2,483 acres, the project would be a part of the Amritsar-Kolkata Industrial Corridor (AKIC). The government expects the park to attract players from industries such as cement, auto components, engineering, ceramics and electricals.

Impact Analysis: CBRE View
The West Bengal government’s policy, infrastructure and budgetary initiatives are expected to provide impetus to the infrastructure and real estate segments across the region. The formulation of forward-looking policies on upcoming segments such as DCs and EVs are an indication of its awareness of the segments that need impetus in a time-bound manner. The state is already attracting investors, as is evident from the fact that Adani Enterprises has recently committed to setting up a hyperscale DC on a 51.75-acre land parcel in the Bengal Silicon Valley project. This project, a 200-acre tech hub located in Kolkata’s Rajarhat-Newtown area, is another key growth frontier for the state and has attracted interest from prominent tech occupiers. Meanwhile, initiatives such as the amendment to the industrial policy, Tajpur port and the JSK cluster are expected to enhance industrial infrastructure in the state and garner investor interest, thereby creating employment opportunities and supporting the real estate development of West Bengal.