Bengal’s newly-elected BJP government is considering restoring fiscal incentives for industry in a bid to revive investor interest, marking a shift from the previous administration’s strategy to prioritise spending on welfare measures over fiscal support for business.

“Incentives will be given; additionally, there will also be tax holidays (for industry),” BJP state president Samik Bhattacharya said on Monday after a meeting with a city-based business chamber.

Responding to a question from The Telegraph after an event organised by the Bharat Chamber of Commerce, the state BJP chief said the implementation of the scheme will be done by the chief minister Suvendu Adhikari-led administration in consultation with the central government.

Support from the BJP government at the Centre would be crucial to work out a fiscal incentive scheme on a par with other states, given the precarious fiscal condition of Bengal’s exchequer.

“(Union) finance minister (Nirmala) Sitharaman knows about the state of Bengal’s exchequer and that it has no resources is known to all,” the state BJP chief said, reminding that the party has promised not only to continue with the welfare schemes announced by the Mamata Banerjee government but to enhance the allocation in some areas.

Moreover, it has in principle approved the formation of the 7th Pay Commission, which will lead to higher wages for state employees, when implemented.

The state will have a debt burden of ₹7 lakh crore, up from ₹1.92 lakh crore it had inherited from the Left Front government in 2011.

During the interaction with members of the chamber, past president of BCC, N.G. Khaitan, observed that the previous government legally terminated all incentives payable from 1999, dealing a blow to the state’s image as an investor-friendly destination.

Khaitan also stressed the need for a land policy, which Bhattacharya promised would be ready within 100 days of the government.

“There is a need for a comprehensive land policy. Investors are waiting for a land policy; they are waiting for a data centre policy. Several players from the semiconductor industry have reached out to us and are ready to come,” Bhattacharya said.

He also said a law would be brought to protect industry from harassment by syndicates, a pet peeve of businessmen in the previous regime. The state administration will be evolved to ensure business can operate without political extortion, he suggested.

Bhattacharya also outlined that the state will look to increase revenues by monetising natural resources. Rare earth minerals available in Purulia can be auctioned, benefitting the state.

Likewise, when commercial production of hydrocarbon starts at Ashoknagar, state revenue can go up by ₹8,000 crore, he claimed.