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Regular-article-logo Thursday, 30 October 2025

Business in Bengal time trap Study shows need for law

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Staff Reporter Published 23.06.08, 12:00 AM

Calcutta, June 23: Bengal’s Shilpa Bandhu needs a helping hand to unravel red tape.

The state takes the most number of days after Orissa to get business ventures off the ground, according to a comparison of six states that are considered to be competing among themselves for investments.

The data compiled by the Indian Chamber of Commerce (ICC) on the status of the single-window schemes for investment facilitation show that over 300 days are needed in Bengal to start a business. In sharp contrast, Karnataka needs less than half the number of days (113) to clear a project.

What does Karnataka have that Bengal doesn’t? Legal teeth.

Shilpa Bandhu, Bengal’s investment facilitation centre, does not have the support of a legislative act that sets deadlines for giving approvals. In states where such an act has been passed, approval is considered granted if a particular authority sits on a file beyond the prescribed time limit.

However, the contents of the study also suggest that where there is a will, there is no need for legal muscle. Gujarat, whose system is called “single point of contact”, does not have such a legislative shield. But the state beats others on many counts . If Gujarat has ended up as the runner-up and not the topper, it is because of the 30 days the state takes to grant pollution control clearance.

The Bengal government conceded that improvements could be made to the Shilpa Bandhu scheme. “The current system of Shilpa Bandhu under the West Bengal Industrial Development Corporation is primarily meant for hand-holding. It helps investors with the process of getting their projects started. It is not possible for one department to issue so many approvals. However, improvements could always be made,” Sabyasachi Sen, the Bengal commerce and industry secretary, said.

The ICC report recommends a separate act under which the single-window authority will be given autonomy and powers to integrate the processes related to approvals. The act should spell out the powers of the authority and specific time frames for approvals.

Reacting to the recommendation, Sen said the matter needed to be discussed in detail. The government could have a dialogue with the chamber and look at the legislation other states have, he added.

Property acquisition and registration is a big speed-breaker: Bengal takes 105 days. Gujarat? One day, according to the ICC report.

“It is a major hindrance for real estate development in Bengal. In states like Karnataka and Maharashtra, a certificate from architects entitles developers to overnight approvals. In Bengal, until and unless one visits the 30-odd agencies of various departments, the project cannot be started,” said Pradip Chopra, the managing director of PS Group, a realty group.

Power supply is no better. Bengal takes 45 days, compared to two in Gujarat and three in Karnataka.

Between 2000 and 2007, Gujarat has garnered proposals for investments worth Rs 320,831 crore and Bengal Rs 124,447 crore. The conversion rate from proposals to actual investments for Gujarat is 16 per cent while that of Bengal is 4 per cent.

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