Jindal pledges to start coal mining

KOLKATA: Sajjan Jindal, chairman of the JSW Group, requested chief minister Mamata Banerjee on Monday to move the Centre to solve the “iron ore crisis” that has held up the proposed Rs 20,000 crore steel project at Salboni.

During her speech at ‘Bengal Leads 2012′, Mamata had pointedly asked Jindal about the status of the mega project. “We have cleared everything… When will you start work?” she asked the industrialist.

Later, Jindal indicated that the project would be delayed due to shortage of iron ore but the company would start the work for mining and other processes. The financial closure of the steel project too would not be possible without iron ore linkage, he said.

“The Salboni project has got stuck in the iron ore crisis. We have discussed the issue with the CM. She will take up the matter with the prime minister. There should be some sort of clause in the iron ore policy so that the state without iron ore reserve can have big steel industry,” he said.

Sources say that Mamata Banerjee has already instructed WBIDC managing director Nandini Chakraborty to write a letter to the Centre in this regard. JSW officials had earlier informally requested the state to help procure iron ore from the National Mineral Development Corporation’s mines in Orissa and Jharkhand.

Though JSW is still unsure about the time-line of the Salboni project, Jindal tried to assure that his firm would start mining. “We have already started enabling work and invested Rs 600 crore. JSW will invest additional Rs 2,000 crore for coal mining. This work will start now. The chief minister has told me that she would soon visit the site,” he said.

JSW Bengal has got three coal blocks in the state dispensation route – Kulti, Ichapur and Sitarampur in Ranniganj belt. The combined estimated reserve is over 600 million tonnes, say sources. This project also ran into a land hurdle but it was resolved through Mamata Banerjee’s intervention.

Didi Scores Big On Slow Pitch

KOLKATA: The inaugural session of Bengal Leads 2012 brought some fresh proposals for the investment-hungry state. There were new proposals as well as assurance for commissioning of one of the biggest manufacturing projects lined up in Bengal.

Punj Lloyd, one of the biggest construction companies in the country, has expressed interest to participate in infrastructure projects like roads, port and energy. Indonesia-based mining company PT Bumi Resources has expressed interest in investing in mining and energy sector while Tractors and Farm Equipment Chairman Mallika Srinivasan said her company would look forward to be a part of the state in agriculture and small farms. “We are interested in agro-processing and linkages,” she added.

DLF, the biggest real estate company in India, too, said it was interested in new infrastructure projects. As the proposals kept pouring in, vice-chairman of Matix N Y Kanoria assured that the much-talked-about proposed mega fertilizer project at Panagarh will be commissioned by the end of this year.

Chairman of Punj Lloyd, Atul Punj, told TOI that they have a meeting with state industries minister Partha Chatterjee on Monday. “We have submitted some proposals and are hoping that things will be decided over next 8 to 10 weeks,” he said. Punj indicated that they were willing to invest in equity in energy and port projects through consortium. It has been learnt that Punj Lloyd might join hands with Universal Success for port and energy projects in Bengal.

Bumi chairman N Rathod said they have entered into a coal supply agreement with Universal Success for the proposed power project in Nayachar. “We are ready to participate in other projects as well,” he added.

According to DLF vice-chairman Rajiv Singh, they are looking forward to more infrastructure projects here. “I shall come here again soon,” he assured. Singh had come to the city for the first time.

The Matix vice-chairman told TOI that they were confident that the fertilizer plant would start production by end of this year. “We are starting construction work soon,” he added. Two months back, the West Bengal Industrial Development Corporation (WBIDC) cleared hurdles for the Rs 4,900-crore fertilizer project of Matix Group. The proposed unit, with 1.5 million tonne capacity, will be the first private sector fertilizer unit in eastern India and the first greenfield fertilizer plant in the country after 15 years. WBIDC has already allotted 500 acres for the project. The plant will produce urea, a key agro input which is now imported.

Bengal is your dreamland too, CM tells industrialists

KOLKATA: Chief minister Mamata Banerjee wooed industrialists and investors with the state’s potential and infrastructure plans. Helicopter and small aircraft services were about to be introduced in the districts, the CM said, adding that the new Kolkata airport will be ready by March and the Behala Flying Club was “functional”.

“There is immense scope for you to invest in Darjeeling. Vast open lands are lying unused. It is up to you to nurture the Hills,” she said, adding that a land bank has been created and a policy framed to help investors tide over hurdles. “We shall take a case by case decision on land. If you are interested, come to us and we promise to cooperate with you. Remember, the government can’t do anything alone. Bengal is your dreamland, too. We are pro-industry,” she argued.

Her appeal soon took on a more authoritative tone. “I have requested you so many times…..,” said an agitated Mamata. “Some people are spreading rumours. You do business in the state and Bengal will give whatever it can. There have been financial problems, yes. We started off with a debt of Rs 2,03,000 crore. But we kept all our commitments and have delivered much more than we promised,” Mamata proclaimed. The meet will now be a regular affair, she later told industrialists.

Land Won’t Be A Hurdle, CM Tells Biz Biggies

KOLKATA: Top industrialists, consulate officers and multinational bosses were made to climb down from their exalted positions and turn into a bunch of compliant listeners by an aggressive Mamata Banerjee, who called out to them by name at a business meet on Monday and sought to know what was stopping them from investing in Bengal.

Delivering the inaugural speech at ‘Bengal Leads 2012′ – the year’s first business-do – at Milan Mela on Monday, the chief minister pointed out that since the decks have been cleared by her government for business to roll, it was now the industry’s turn to respond.

Mamata addressed industrialists like Sajjan Jindal, Sanjay Budhia and YC Deveshwar individually (even ribbing Budhia as ‘Mr Patton tank’), and asked them what plans they had for Bengal. It left them stumped and visibly embarrassed. While the industrialists raised their hands in compliance, Mamata reiterated she was proud of her government’s “phenomenal record” and her own “direct approach”. She was “batting for the industry” and expected it to play ball, she said. The business leaders were left with no option but to nod in agreement, promising her quick and substantial investment.

Mamata said her government has faced tough situations in the last seven months and “belled the cat”. “Some problems, like the availability of land, still exist but they won’t be a major hurdle. We have our Cabinet committee on infrastructure that will address the issue. If any of you want to set up a unit in the state, you simply need to apply and we will do the needful. The chambers of commerce had asked for quicker clearance of proposals and we have brought down the waiting period from 317 days to just 15, which, I believe is appreciable. The application formalities that would previously run into 99 pages has now been reduced to just seven. This, despite the fact, that we had a severe manpower crisis at all levels, including the bureaucracy and the IPS, when I took over. We are working very hard and are ready to work harder,” she said.

Mamata added she loved to “bat directly”. “There’s no match-fixing in my approach. I am ready to get bowled out batting for the industry,” she declared. What started off as an argument and a plea, soon turned into a firm invitation to invest in the state. Bengal has cheap labour, the right social infrastructure, natural resources, hills, the Ganges and forests, the CM reeled off. “There’s education, tea-tourism, health, infrastructure and transport. Take your pick. Bengal is the gateway to north-east India and south-east Asia. Investing here will not only benefit Bengal, but also help you. For instance, we plan to set up 35-40 super-speciality hospitals. Our state has the ideal infrastructure for agro-based industries. We shall also have a state highway authority that will build new roads like the golden quadrilateral,” she pointed out.

Bengal industry on firm ground

The ascent of the Trinamul Congress in Bengal politics was marked by its agitation over land acquisition for industry, making the investor community sceptical about how the new government will attract industrialists to set up base and create jobs. Seven months down the line, the new government under the leadership of chief minister Mamata Banerjee and industry minister Partha Chatterjee is all set to make its most unequivocal statement yet about its industrialisation drive at Bengal Leads, the state’s first-of-its-kind investor fair.

Chatterjee speaks to Sambit Saha and Pinak Ghosh of The Telegraph about what he did to dispel the doubts post-Nano and build confidence among investors, and the road ahead on the eve of the six-day fair beginning today at Milan Mela ground. An excerpt:

Q: The Trinamul Congress came to power cashing in on the agitation over land acquisition for industry. When you took charge of the commerce and industry department, did you have misgivings over whether the business community would back you?

A: No, I never had a doubt for once. When we started our andolon (at Singur and Nandigram), even then I was concerned that industry must not have a negative view about us. That is why before we came into power, I took Mamata Banerjee twice to the Bengal Chamber of Commerce.

Our whole fight was that fertile land should not be taken for setting up industries… eta Tata/Bata je keu hote pare. (It could be Tata or Bata or anyone).

I have not stopped attending any chamber events… aami onoshon monche jerom gechi, chamber eo gechi. (I have participated in stage protests as well chamber meetings).

I have categorically said that Singur is an isolated case. The low land on the other side could have been raised. Mamata wrote a letter to Buddhadeb Bhattacharjee from the stage not to make it an ego issue. Some alternative arrangement could have been done. But they did not listen to us. It came to my knowledge much later that the Tatas were actually shown a site at Kharagpur before Singur.

If you follow my Assembly addresses since my days as an MLA of 2001, our leader and now the chief minister always wanted a balance between industry and agriculture.

Q: But don’t you think it is still early days. How is the response from industry?

A: Numbers will speak for themselves. Within six months we have been able to achieve investments worth Rs 64,000 crore. And mind it, I have not included the Jindal Steel and Matix Fertilizer projects in this.

There are several local companies expanding or setting up projects such as Tractor India and Hindusthan National Glass. Many projects are coming up in the industrial parks, too. I think, we have been able to shed our anti-industry image so far.

Q: But industry wants land and your government is not going to acquire for them. How would the big industries come up then?

A: I can tell you that we have identified 3 lakh acres of land already! But this is fragmented and I think the survey has not been correctly looked into. Still, I believe that 44,000-45000 acres can be contiguous. We ourselves (the industry department) have got 8,000 acres in our hands.

The problem is that all investors want land near the highway to reduce their logistics cost.

Wherever there has been a big industry, smaller industries have come up near them and even townships have developed, such as Durgapur.

So, the need of the hour is setting up big industries and smaller industries can automatically grow near them. However, given the economic slump, it is very difficult to get a big industry now.

Q: But the Left Front says that you are only taking credit for the projects they have brought. What do you have to say?

A: The previous government has not even formed MoUs for some of the proposed projects. They had only decided that they want the project. But they overlooked as to how the companies could actually execute the project and in what time, what employment they could generate and what the state government could contribute. Work on the Jindal and Matix projects were in no position to begin. Thus, one of my major work since I assumed office was to get the paperwork (the MoUs and development agreements) done so that work on those projects that were promised to the people actually started.

Q: How do you plan to go about going forward… let’s say in the next six months?

A: We need to have more roadshows in different states. We have had made attempts overseas in the past but no industry has come. I doubt that any major player will be interested because globally there is downturn now.

Thus, our primary target is to create a positive image among domestic investors first. Also the economy is opening up more to the world and if we can set up a strong image then it will benefit us.

If we can highlight ourselves as a state where projects can be executed, then we can create confidence among the investors.

Q: What will be the big thrust?

A: We are giving more focus to the automobile and manufacturing sectors. We need to consider how Chennai transformed itself into an auto hub.

We have already brought TVS. We have tried with Hyundai and Maruti Suzuki. We are hoping to bring in GM as well.

We believe that there is a great potential in the auto space. Sales are rapidly growing even in the economically backward areas because people have access to loans from banks. I believe that there is future here for at least 30-35 years.

IT is another sector where I mean business. There is potential in the state. IT giants such as Infosys, TCS and Webel are interested in Bengal. All these sectors (auto, manufacturing, IT) have tremendous employment generating capabilities too.

If we can send a signal to the unemployed that there will be more employment opportunities, they will support us. If we can send a signal to entrepreneurs that they can set up and operate their business peacefully in the state, they will bring more investment. The end result will be the creation of more wealth for the state.

Q: What are your thoughts on reviving the traditional sectors

A: The backbone of our economy still remains engineering and textile, especially jute, besides agriculture. Thus, one of our focus areas is to bring investment in these sectors.

Already engineering equipment makers Telcon and TIL are in the process of setting up their factories and we have invited Mallika Srinivasan of TAFE (Tractors and Farm Equipment Ltd) to Bengal Leads as well.

In jute, we require diversification. For that, technology upgradation and modernisation are necessary. We are also thinking about setting up a jute park.

Q: Your final words on the land issue…

A: I have said several times that in Bengal land shall not be an issue. We have already cleared (Sanjay) Budhia’s project and 11 others (stuck in 14 Y clauses). We have also cleared the Jindal plan and settled the Nayachar issue. We are in the process of resolving the Haldia Petrochemicals case. Further, there has been Rs 5,000-crore investment in developing gas supply network. Thus, our success rate has been quite high despite all these issues.

TCS to soon start work on 40-acre Rajarhat plot

KOLKATA: The New Year seems to have begun with a bunch of goodies for the Bengal government, especially the IT department. A day after rubbing shoulders with Bhaskar Pramanik of Microsoft India and hotmail co-founder Sabeer Bhatia, IT minister Partha Chatterjee had a meeting with Tata Consultancy Services’ managing director and chief executive officer N Chandrasekaran on Wednesday.

The company, engaged in IT services, business solutions and outsourcing, is planning to start construction work in its Rajarhat plot soon, he said. “The company will generate 16,000 employment in the state once they start operation at the Rajarhat site. We have ensured them that we will provide them every facility needed to start its operations,” the minister told reporters after a half an hour meeting with the company officials.

TCS already employs around 15,000 people in the city across eight offices.

Chandrasekaran was accompanied by Ajoyendra Mukherjee, executive vice-president and global head, human resource development of the company. Asked when the construction work will begin and how much investment it will entail, Mukherjee bypassed those questions, saying: “Today’s visit was a courtesy call.”

TOI has learnt that the construction work for the biggest project of the company in the city will start soon. “The first phase is likely to entail an investment of Rs 500 crore and when completed, over the years the total investment could be in the range of Rs 1,000 crore,” Swarup Roy, state IT promotion cell head, told TOI.

TCS purchased the 40-acre plot in Rajarhat for Rs 1.5 crore per acre in December 2008. Land was handed over to the company in 2009. But the expansion project of the company got stuck due to delay in project plan sanction by Housing Infrastructure Development Corporation (HIDCO). It finally got the go ahead in July, 2011.

The minister said he was looking forward to creation of more high-end IT jobs in the state. “We have requested TCS, if they can extend their research and development facility in the state as well,” he said. Chatterjee has also sought the company’s opinion regarding extending operations in the districts of Bengal. “They told me commuting for foreigners will be difficult. But I told them that we (Trinamool Congress-run government) will look into such hurdles and solve it,” he said.

Talking about the IT incubation centres in the state, Chatterjee said the department has got 5 acres at Joypur block of Purulia for setting up one such centre.

The minister added that it is likely that by the end of the current week, HIDCO will handover 50-acres to Wipro Technologies for its second campus in Rajarhat. “We hope by January 7 we will be able to handover the land to the Wipro officials,” the minister said. Incidentally, Infosys Technologies was handed over its 50-acres in Rajarhat towards the end of 2011 for Rs 75 crore.

Tech bosses knock on Mamata door

Calcutta: Microsoft India chairman Bhaskar Pramanik and Hotmail co-founder Sabeer Bhatia today met Bengal chief minister Mamata Banerjee and IT minister Partha Chatterjee at Writers’ Buildings to discuss ways to bring in investments in information technology. Two key officials from Hewlett-Packard also met Chatterjee later in the day.

Both Pramanik and Bhatia expressed interest in working with the Bengal government.

Speaking after the meeting, Pramanik said his company would explore prospects of partnering the state in improving digital literacy in schools.

The company is also looking at introducing innovations in higher education and devise strategies to help generate employment for women in rural areas.

Sabeer Bhatia, CEO and co-founder of Jaxtr SMS, has proposed to set up channels of direct communication between the government and the citizens through the Jaxtr platform.

According to Bhatia, Jaxtr could be used to send texts on a large scale at three levels — between various departments of the state, from the citizens to various state agencies and from the government to the people.

“Jaxtr could also help the government in disaster management by formulating an SMS-based alert service,” Bhatia said.

“We have requested Bhatia to become an adviser to us in our initiative to set up an innovative centre in the state. The centre will propel the spirit of entrepreneurship. His proposal will help in our administrative work,” said IT minister Partha Chatterjee.

While Microsoft has already initiated similar projects in other states, Bengal will be the first to benefit from JaxtrSMS, which allows subscribers to send free text messages to people anywhere in the world.

Data connectivity on the phone is the only requirement for users to avail themselves of the service.

Plan for sub Rs 25-lakh Mercs

Calcutta: Mercedes Benz India is planning to launch B-Class, A-Class and GLC models in the next three years to take on rivals BMW and Audi. The company will price all the vehicles below Rs 25 lakh.

“Mercedes will grow ten-fold in the next 10 years. Of this, 50 per cent growth will come from the market and the rest from new products,” said Debasish Mitra, marketing director, Mercedes Benz India Limited.

BMW beat the luxury car maker in sales with the launch of its entry level X1 at a price of Rs 24 lakh. Mercedes has always sought to differentiate between the “traditional luxury vehicles that are priced above Rs 25 lakh and the premium vehicles priced below”.

“We still maintain our leadership in the traditional luxury segment,” said Mitra.

Mercedes’s cumulative sales figure stood at 6,191 units from January to October this year. BMW sold 8,042 units, while Audi’s sales stood at 4,716 units. BMW sold 2,585 units of the X1 and X3 — the two compact SUVs — during the period. Mercedes is likely to close the year with a sale of 7,400 units against 5,800 units in 2010, posting a growth of around 30 per cent.

The German marquee retains its leadership in the C-Class, S-Class and the M-Class segments. Mercedes sold 2,272 units of the C-Class compared with 1,951 units of BMW’s 3 series and 1,798 units of Audi’s A4 till October. However, it sold only 2,272 units of the E-Class compared with 2,788 units of BMW 5-series. Audi’s A6 sold 929 units during the period.

In the highest luxury sedan category, Mercedes sold 347 units of its S-Class, while the competing BMW 7-series sold 318 units and the Audi A8, 248 units.

To counter BMW’s X1 and Audi’s Q3, which will be launched in the upcoming auto expo, Mercedes will bring in its GLC-Class that will be globally launched in 2014. The B-Class will enter India in the later half of 2012 at a price of Rs 25 lakh and the A-Class — Mercedes’s entry-level vehicle — will come in 2013.

BK Babu wows employees

Calcutta: Around five hundred employees of the Basant Kumar Birla group got a pleasant surprise when the group chairman dropped in today afternoon along with his wife and daughter to meet them ahead of the New Year for an informal interaction.

Nonagenarian BK Babu (as he is affectionately called in the industry circle) spent over an hour with the employees, asking them about their work and family at the group’s headquarters in Birla Building.

He was accompanied by wife Sarala and daughter Manjushree Khaitan, who is on the board of Kesoram Industries Ltd, the flagship of the Rs 15,000-crore BK Birla group.

Sarala Birla did most of the talking, though, congratulating the employees for their work and support.

The interaction was the first in the history of the group, insiders said.

Sources said Khaitan and Sarala Birla were instrumental in organising the year-end get together with the employees.

According to observers, the event was a sign that the group was trying to come out of its old culture and become professional with time. Such events are usually seen in multinational and top Indian companies.

“Gone are those days when proximity to the Birla family was the biggest criteria to climb up the organisation ladder. A number of new professional executives are being brought into the group from other places to run different businesses,” they pointed out.

Some senior managers also joined the party. Kesoram company secretary Gautam Ganguly, chief financial officer U.S. Asopa and Birla Tyre CEO Arvind Singh attended the programme along with some executives of Century Textiles and representatives of various charitable trusts.