Singapore looking for more opportunities to invest in Bengal

Singapore looking for more opportunities to invest in Bengal

Posted on June 15, 2015 | by admin2 | Leave a Comment

GIC Singapore, the sovereign wealth fund of the island nation, is trying to scout for more opportunities in West Bengal.

“After investing USD 32.5 million in Kolkata Riverside, a 262-acre township, the fund is looking for more opportunities here,” Bengal Finance Minister Amit Mitra said.

The GIC-invested PE fund, sponsored by HDFC Property and domiciled in Singapore, had signed a USD 32.5 million (Rs 200 crore) agreement with Hiland Group during the Bengal Global Business Summit in January this year for Kolkata Riverside development.

Dr Mitra said GIC, owner of one of the world’s largest funds, was very enthusiastic about development of the state and is keen to participate more actively. “They have indicated that they were negotiating with a few others for further investment,” he said.

Hinduja praises WB CM’s industry initiatives

Posted on June 9, 2015 | by admin2 | Leave a Comment

Gopichand Hinduja has heaped praise on West Bengal Chief Minister Ms Mamata Banerjee for her determination to attract industry in Bengal.

In an interview to a popular daily, he said WB CM “is trying hard to attract industry and investment to her state.”

“She is a good leader and has a clean image. I am certain she will become Chief Minister again after this term ends. Her intentions are clear – she wants to attract industry into Bengal,” he added.

Hinduja, who has a strong foothold in Bengal with the presence of Ashok Leyland, Hinduja Leyland finance and IndusInd Bank, had encouraging words for finance minister Dr Amit Mitra as well. “The finance minister knows how reforms can benefit the state,” he said.

“Mamata Banerjee is one of India’s prominent political leaders. Prime Minister David Cameron must meet her,” he added.

In fact, WB CM could become the first high level politician from India to meet David Cameron after his recent reelection as Britain’s PM.

WB CM will be in UK from July 26-30. This will be her second foreign visit as the chief minister of Bengal.

West Bengal’s debt repayment burden to multiply: Amit Mitra

Posted on May 27, 2015 | by admin2 | Leave a Comment

West Bengal’s annual debt repayment burden would grow sharply in coming years as maturity dates of the loans taken by the previous Left Front government were drawing closer, state Finance Minister Amit Mitra said.

Replying during the Question Hour in the Assembly, Mitra said during 2015-16, the debt repayment amount would be Rs 8,877 crore, which is set to rise to Rs 9,781 crore in the next financial year.

In 2017-18, the amount would multiply to reach Rs 18,359 crore which, he said, would be a great burden on the state, Mitra said. According to him, this will happen as ten, 12 and 15 years loan were going to mature.

Mitra said that the state government was making provisions towards this and also by sticking to fiscal and revenue discipline. He said that one silver lining was that the state GDP was rising at a rapid pace while the debt/GSDP ratio was falling.

Attacking the Left Front, Mitra said that the loan burden as on March, 2015 as per revised estimates was Rs 2.74 lakh crore. When the Trinamool Congress came to power in May, 2011, the inherited debt was close to Rs 2 lakh crore.

In the first four years of TMC rule, the debt increased by Rs 82,946 crore, out of which Rs 76,346 crore were spent towards interest and principal repayment.

During the four years from 2011, the ruling government had borrowed only Rs 6,617 crore which was used for its own spending, Mitra said.

Pointing out that West Bengal was caught in a debt trap, Mitra said that he and the chief minister have discussed the matter with the UPA government and the present NDA government for amortisation of the debt repayment schedule, but there was no positive outcome from either of them.

The UPA government offered $10 billion to the IMF for tackling the Eurozone crisis, but ignored the cry of a federal state which was in deep distress, he regretted. He also accused the Left Front of breaching the borrowing limit under FRBM Act.

This is a Govt of headline management not fiscal management: Derek

Posted on May 7, 2015 | by admin2 | Leave a Comment

Leader of the All India Trinamool Congress Parliamentary Party in Rajya Sabha, Derek O’Brien today slammed the Centre by calling it a government that focuses on headline management rather than fiscal management.

Criticising the government for taking several schemes like BRGF, Sarva Siksha Abhiyan, mid-day meal scheme, ICDS, modernisation of police forces among others out of central funding, Derek asked the Centre to follow operative federalism instead of cooperative federalism.

He also called the bluff of the Centre on its claims of greater devolution to States. He said there was only a meagre increase from 61.88 paise to the rupee to 62 paise to the rupee. He slammed the government for the huge reduction in social sector budget.

Talking about the Centre’s much-publicised flagship scheme Jan Dhan Yojana, he asked the Finance Minister how many bank accounts have even Re 1 as balance. He criticised him for no mention of electoral reforms either in the Budget or the President’s Address.

Derek O’Brien concluded his speech by quipping two lines in Hindi:

Phool aur poude se hai maali ka kaam,

Jo kaante se darr jaye woh hoga nakaam.

Click here for the full transcript of his speech

West Bengal Govt proposes to reduce Stamp Duty on properties

Posted on March 6, 2015 | by admin2 | Leave a Comment

The West Bengal Government has proposed to reduce Stamp Duty on properties. At present 1% additional Stamp Duty is charged on properties whose market value exceeds Rs. 30 lakhs. It has been proposed to raise the threshold from Rs. 30 lakhs to Rs. 40 lakhs with immediate effect. As a result, the property owners will have to pay reduced Stamp Duty of 6% instead of 7% on properties with market value up to Rs. 40 lakhs.

Dr Amit Mitra spoke at the Assembly after laying the West Bengal Finance Bill 2015 for next year.

The Finance Minister further said that Budget had allocated total outlay to the social sector like health and education. Replying to a member’s question on whether the Government was tweaking the sales tax on gold, Dr Mitra replied in negative. The Government, he said, plans to make the State a future destination for gold and jewellery industry for which it had created 2.5 lakh square feet of vertical space at Domjur in Howrah.

The West Bengal Appropriation Bill 2015 was also passed on the last day of the Budget Session 2015-16.

Corporates hail ‘positive’ West Bengal Budget 2015-16

Posted on February 28, 2015 | by admin2 | Leave a Comment

The Bengal Inc has hailed the budget of West Bengal Finance Minister Dr Amit Mitra and termed it as a forward-looking and positive one.

The industry bodies, including the Indian Chamber of Commerce, MCC Chamber of Commerce and Industry, Bengal Chamber of Commerce and Industry, Bharat Chamber of Commerce, CII and Bengal National Chamber of Commerce (BNCCI), have hailed the budget.

ICC director general Rajiv Singh pointed out that despite the huge debt burden, which will go up to Rs 2.99 lakh crore, the Finance Minister has been able to make fund allotments to almost all growth sectors of the state’s economy. It was commendable that the state GDP growth rate was much higher at 10.48% compared to the all India figure of 7.5%. “Over the last three years, the state has been able to double the plan expenditure which was a record increase,” he added.

Bengal Chamber of Commerce director general P Roy feels that it is a forward-looking and people-oriented budget with focus on social sectors.

Bharat Chamber president Sajjan Bhajanka congratulated Mitra for presenting a fairly-balanced budget which he feels aims at generating new infrastructure, preserving the existing infrastructure, boosting agricultural productivity of the state, giving greater emphasis on employment generation and ensuring transparent governance.

MCC Chamber president Arun K Saraf hailed the budget for simplicity and reform in tax system. “Assessment procedure has been simplified and tax refund has been made speedier and time bound,” he added.

Chairman of Universal Success, Prasoon Mukherjee, congratulated Dr Mitra for the thrust on green energy and tourism. “He has declared VAT concessions for green energy generation which is a prudent initiative. The budget has also put stress on new tourism circuit which is good for Bengal. We can present the state as an attractive tourism destination,” he added.

Patton MD Sanjay Budhia said that Dr Mitra has unleashed major tax reforms which will boost industrialization in Bengal. Chairman of Sarda Group, G Sarda, said that the Finance Minister has ensured thrust on employment and also tried to direct the state economy towards development.

Bengal to lose Rs 8200 crore after GST roll out: Amit Mitra

Posted on December 19, 2014 | by admin2 | Leave a Comment

Bengal stands to lose Rs 8200 crore in revenues in the first year if the draft Constitutional amendment bill on goods and services tax (GST) is passed in Parliament in its current form, said Finance Minister Amit Mitra. The amount is almost 20% of its own revenue generation of Rs 40000 crore and 29% of the debt repayment of Rs 28000 crore. Of this, just capital repayment is Rs 9000 crore, almost equal to the revenue loss.

Alarmed at the haste of the Central government in getting the bill tabled in Parliament, Amit Mitra has written to the Chairman of the Empowered Committee, A R Rather, demanding an urgent discussion.

Bypassing States

In the last empowered committee meeting in Delhi on December 11, Bengal had vehemently opposed the proposal to bring petrol and petroleum products under GST, and the plan to do away with states’ power to levy taxes on select items or “declared goods” as provided under Article 286 of the Constitution. As many as 29 states had supported Bengal.

“The chairman of the empowered committee had told me that the draft bill would be discussed in the committee before submission to the Cabinet. But to our surprise it was cleared by the Cabinet on Wednesday undermining the empowered committee and the federal structure,” Mitra said.

Petroleum products

Elaborating the tax implications for Bengal, Mitra said that if petrol and petroleum products were brought under GST, the state would lose up to Rs 2350 crore annually. Petroleum products and tobacco are revenue earners for Bengal.

The sales tax on diesel in Bengal is 17% while that is on motor spirit (petrol) is 25%. There is also a cess of Rs 1 on both diesel and petrol along with some ad valorem surcharges.

The total revenue on this account is Rs 3000 crore. Besides petrol and tobacco, the draft GST bill also proposes to subsume entry tax and keeps CST out of the divisible pool.

Revenue loss

According to Dr Mitra, the state would lose between Rs 1200 crore and Rs 1500 crore on account of entry tax while the loss from tobacco will be Rs 350 crore.

“The major blow will be CST. At present, the total dues of all states from the divisive pool is Rs 78000 crore while our due is Rs 4500 crore from 2010. Under the GST bill, the Centre will offer only Rs 11000 crore to the states of which our share will be Rs 400 crore. The perpetual loss every year on this account will be Rs 2600 crore from the second year of GST rollout,” he said.