West Bengal Chief Minister Mamata Banerjee’s populist draft Bill on the state’s land policy is causing jitters not just among the Indian industrialists but also among diplomats and foreign direct investors.
Days after the Singapore High Commissioner sent a strong message to the state government regarding the investment hurdles in the Andal airport project, in which Changi has a stake, it is the turn of a Japanese diplomat now.
Speaking firmly against the state’s new draft land bill — which says the state will not acquire land for private or public-private-partnership projects — Mitsuo Kawaguchi, consulate general of Japan, said, “In case of other states like Gujarat and Tamil Nadu, as far as I know, state governments acquire the land and help in other infrastructure developments. It provides more comfort. Because for the foraying companies, if they have to acquire land, they may hesitate from investments.”
Till 2010, out of the nearly 725 Japanese companies operating in India, only 67 are present in West Bengal. At the same time, the share of West Bengal in total Japanese investment is just about two per cent. “Few years back Mitsubishi Chemicals in Haldia, was the largest Japanese investment in this country. I hope another major company will come here and some are showing interest, but I cannot expose their name now. The region has huge potential, but they should provide more information to the outside world, regarding investment opportunities in West Bengal,” he said. Mitsubishi investment ranges about $780 million, which is the largest FDI in the state.
Kawaguchi’s observation comes days after the Singapore High Commissioner Karen Tan indicated to the chief minister and commerce and industry minister Partha Chatterjee that the future of Singapore investments in the state will depend on the success of the Andal project. Singapore’s Changi Airports International owns a 26 per cent stake in Bengal Aerotropolis Projects (BAPL), which is executing the Rs 10,000 crore project. The announcement by Banerjee that another airport will be developed at Asansol, which is just 40 km away, and land acquisition problem has put the project in limbo raising doubts in the minds of investors.
During his visit to the state recently, Akitaka Saiki, Japanese ambassador to India had said the number of Japanese businesses should increase and it will happen when the new government is very serious about getting FDI to the state. According to Kawaguchi, Japan has already submitted a proposal to the state to send a business delegation to Japan. “The response from them was positive. Industries minister and the finance minister have shown interest to take it forward,” he said.
Though he showed his concerns over the land policy, Kawaguchi hoped that things may turn better. “Under the Left rule, not only Japanese companies, but also business class had a negative impression. But now the government has changed, and the industrialists are expecting a change,” he added.
The diplomatic worries surfaced after Indian industrialists showed their discomfort on the state’s new land policy draft. The populist Trinamool Congress government came to power through the public wave created by the land acquisition struggles in Singur and Nandigram.
