West Bengal wooing S’pore investors

SINGAPORE — West Bengal is vying to become the next choice location for investments from Singapore companies, as top officials and business figures from the eastern Indian state continued their five-day visit to the Republic yesterday.

Singapore companies such as Changi Airports International (CAI) and Surbana, a Temasek-linked company, this week inked agreements for investment and venture projects with West Bengal’s public and private sector, a testament to the state’s appeal for foreign investment, West Bengal’s Finance Minister Amit Mitra told TODAY.

“West Bengal has everything that a company looks for. Our gross domestic product is growing at almost twice the rate of all of India, according to 2013 data. We’re a power-surplus state, with 2,500 megawatts more to be added in the next two to three years, and we have among the best human capital in India, with massive upskill projects at the grassroot level,” he said yesterday after a business conference in Singapore.

Mr Mitra and West Bengal’s Chief Minister Mamata Banerjee have been in the Republic since Monday, leading a delegation of about 50 major industrialists seeking business opportunities.

“This trip has already given us about US$200 million (S$250 million) to US$300 million worth of projects, and today, we signed 13 MOUs (memoranda of understanding) or letters of intent. For instance, GIC has agreed to collaborate with India’s HDFC Bank to invest US$32 million in a township development project in Kolkata,” Mr Mitra noted. “This is but the start — we’re looking for billions (worth) of investments pouring into West Bengal.”

Yesterday, CAI also increased its holding in Bengal Aerotropolis Projects from 26 per cent to 32.2 per cent. The joint venture is currently developing a mixed-use township in West Bengal’s Durgapur city that will comprise commercial, industrial and residential spaces as well as a neighbouring airport.

“The airport will be operational by the end of this year and we’re already offering helicopter chartering services there,” said CAI chief executive Lim Liang Song. “There is very strong political will from the (West Bengal) government to support investments and developments. That’s why the new airport will enjoy an aviation fuel tax waiver for three years.”

Also involved in the planning of the Durgapur project is urban solutions consultant Surbana, which inked three new deals this week, including one to develop a 121ha food park at Dankuni town in partnership with India’s Keventer Group.

“Like every developing economy, India faces issues with urban solutions and planning — this is where we can create value,” Surbana chief executive Pang Yee Ean said. “I don’t believe we’re active enough in West Bengal and, in fact, India. I believe we can do more as development picks up pace in the country’s changing political environment. This official trip shows their enthusiasm for that.”

Speaking at the business conference yesterday, Ms Banerjee — who is visiting Singapore for the first time — expects the Republic to play a pivotal role in West Bengal’s growth.

“My state is at the forefront of India’s Look East policy and Singapore is the preferred direction … Singapore is the gateway to ASEAN (Association of South-east Asian Nations) and can be the springboard for attracting investments and trade flows from 10 major countries,” she said, adding that pro-business policies are being put in place in West Bengal.

But Ms Banerjee’s trip to Singapore was also met with mixed reactions in India, with figures from the ruling Bharatiya Janata Party calling her visit here a fruitless holiday.

Mr Mitra shrugged off such comments, saying: “If we’re talking about results, we have major corporates across all sectors speaking at the summit today. Mitsubishi Chemical, Tata Hitachi and Changi (Airports International) all highlighted their investments in West Bengal. If this does not demonstrate the comfort level (of businesses), what more can I say?”