Advertisment

Fresh investments hit due to ban: Assocham

author-image
CIOL Bureau
Updated On
New Update

BANGALORE, INDIA: Extending the moratorium, imposed two years ago on setting up new industrial units in Haldia, Asansol and Howrah, is a huge setback to the industrialisation process in West Bengal, said the Associated Chamber of Commerce and Industry of India (Assocham) said on Tuesday.

Stressing the need for lifting the ban with a negative list of industry sectors, co-chairman of Assocham Eastern Region Development Council, Debmalya Banerjee, said the state government needs to set up industrial clusters for small and medium enterprises for rapid industrialization generating thousands of new jobs and promoting inclusive growth.

Advertisment

Incidentally, it has been learnt that the state government is nearing completion of action plan to address the pollution problem. “Extending the ban till March next year will make it difficult to attract investments in sectors closely identified with the two industrial towns,” he said.

The sectors that fall under the moratorium imposed by the Union Environment and Forest Ministry include oil and gas exploration, refineries, petrochemicals, power, coal washeries, mining, steel, metals, cement, etc.

The objective was to compel critically polluted areas to come up with plans to address the problem. The moratorium on new polluting industries was initially put in place from end-2009 to August 2010 but with a rider that it would be lifted only if the states drew up remedial blueprints.

Advertisment

The West Bengal government has submitted two plans and even started executing some of the features. Initial reports suggest there has been a marginal improvement in Haldia. Groundwater pollution and depletion were flagged as a critical concern. The state government feels that a surface water scheme in Geokhali will address this problem.

The Centre had imposed the ban on the basis of a comprehensive environmental pollution index (CEPI). The index was used as a tool to assess the condition of the air, groundwater and land in 88 industrial clusters across the country.

About 43 clusters with a CEPI score of 70 and above on a scale of 0 to 100 were declared critically polluted. Of the three sites in Bengal, Haldia was found to be the most polluting with a CEPI score of 75.43. Howrah came next (74.84), followed by Asansol (70.20).

Advertisment

The ban has been lifted in close to 50 per cent of the originally earmarked clusters elsewhere on the ground that some work was done on the submitted plans.

“West Bengal has the potential to emerge as one of the most attractive investment destinations in India. The state can act as a strategic gateway for exports to southeast Asia,” said Banerjee.

“The Assocham believes the new state government should rejuvenate agriculture and create manufacturing hubs for faster economic growth. Private sector can collaborate with the government in building roads, ports and power projects,” he said. “The high growth potential economic activities include information technology, petrochemicals and steel industry.”