Now Reading: West Bengal may pay Rs 10,000 crore industry dues in tranches
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West Bengal may pay Rs 10,000 crore industry dues in tranches
The West Bengal government is considering paying outstanding industrial incentives, withdrawn retrospectively by the previous Trinamool Congress regime, in instalments. Finance Minister Swapan Dasgupta said the total due is believed to exceed…
The West Bengal government is considering paying outstanding industrial incentives, withdrawn retrospectively by the previous Trinamool Congress regime, in instalments. Finance Minister Swapan Dasgupta said the total due is believed to exceed Rs 10,000 crore and cannot be cleared at once. Preference may be given to the MSME segment.
Speaking at a Bengal Business Council event in Kolkata on Saturday, Dasgupta said the retrospective revocation of incentives was legally untenable and a major problem for industry. The new BJP government has been urged by business leaders to reinstate the incentives to restore investor confidence and ensure policy certainty.
Dasgupta also announced that the state's new industrial policy is likely to be ready by September 15, delayed from an earlier target of August 15 due to underestimated challenges. The policy may include special incentives for companies with registered offices in the state, favouring 'son of the soil' enterprises.
Indian Opinion Analysis
The Rs 10,000-crore backlog stems from the previous government's 2016 decision to scrap a 2013 incentive scheme with retrospective effect, triggering years of litigation and arbitration. MSMEs, which account for a large share of Bengal's industrial units and employment, are the most exposed to delayed payments. The new policy's September deadline and the 'son of the soil' clause signal a bid to balance fiscal constraints with political messaging ahead of local elections. The key number to watch is the first tranche size and payment timeline once the policy is unveiled.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
