1 week ago
West Bengal Considers Repealing Incentive Act to Attract Investment
West Bengal wants to bring more factories and businesses to the state.
The government is thinking about cancelling a law that removed older promises of help for industries.
Business groups had been unhappy when those incentives were withdrawn.
The state budget set aside ₹5,000 crore for new industry support.
However, companies still do not have the detailed rules for using that money.
Minister Tapas Roy said a new policy is almost ready.
It must first be approved by a group of ministers and the state cabinet.
At an industry meeting, steel producers also asked for a dependable supply of coal.
A business analyst said India’s steel use may grow by 7 per cent this year.
The West Bengal government is considering repealing a 2025 act that cancelled earlier industrial incentives.
The act, passed by the Bengal Assembly in March 2025, took effect after receiving the governor’s approval later that year.
The state budget announced ₹5,000 crore in industrial incentives, but detailed eligibility rules have not yet been issued.
Commerce and Industry Minister Tapas Roy said a new framework policy is nearly ready and requires approval from ministers and the state cabinet.
Industry representatives also sought long-term coal supplies, while BigMint projected India’s steel consumption growth would slow to 7 per cent this year.
- Who
- The West Bengal government, Commerce and Industry Minister Tapas Roy, and industry representatives including Vivek Adukia and Dhruv Goel.
- What
- The government is considering repealing a 2025 law that withdrew industrial incentives and preparing a new investment-support policy.
- Where
- West Bengal, with industry discussions held at a BigMint conference.
- When
- The act was passed in March 2025 and took effect later in 2025; the budget was presented in June.
- Why
- To provide fresh fiscal support and attract new industrial investment.
Key facts
- Act under consideration
- The Revocation of West Bengal Incentive Schemes and Obligations in the Nature of Grants & Incentives Act, 2025.
- Assembly passage
- The act was passed by the Bengal Assembly in March 2025.
- Effective date
- It came into force after receiving the governor’s approval later in 2025.
- Budget allocation
- The state budget promised ₹5,000 crore in incentives for industry.
- Policy status
- A new framework policy is awaiting approval from the group of ministers on industry and the state cabinet.
- Steel demand forecast
- BigMint CEO Dhruv Goel said India’s steel consumption is expected to grow by 7 per cent this year.
- Industry request
- The Steel Re-Rolling Mills Association of India sought long-term coal linkage from Sonepur Bazari collieries of Eastern Coalfield.
Quotes
Dhruv Goel
CEO of BigMint
“Steel consumption is likely to grow by 7 per cent in India this year, moderating from 8-9 per cent in the previous year due to geopolitical constraints”
telegraphindia.com
“We may have to repeal the act that the previous government had passed before that”
telegraphindia.com
Sources
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