West Bengal Facts

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West Bengal Facts
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WEST BENGAL THE REALITY

• 4th fastest growing state in the country (ahead
  of Maharashtra and A.P) in the post-reform years
• 4nd highest inflow of investments in recent years

Economy

• Fastest growing STP with 185 companies employing
  more than 15,000 IT professionals
• TCS, Cognizant, Wipro, IBM, CA, NIIT, AIG have
  centres

IT Industry

• Lowest cost of operations - Cheap power, lowest
  attrition, lowest cost of living
• Attractive fiscal incentives

Cost

• No case of labour trouble in IT
• Proactive stance of Government to work disruption

Labour
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THE STATES IT SECTOR HAS SEEN EXCELLENT GROWTH
Kolkata is the fastest growing STP of the country
Percent Growth rates of STPs in 2001-2003

• Kolkata

• Chennai

• Mumbai

• Hyderabad

• Bangalore

• All India

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KOLKATA IS AN IMPORTANT CENTRE FOR MANY COMPANIES

• 4th largest centre with 2,100 strength
• Plans to double strength by 2004

152 IT 33 ITeS companies operate in Kolkata

• Planned to be 2nd largest centre
• 1,500 professionals employed
• Will increase to 4,000 by 2004

• 2nd largest centre after Chennai
• Investing in new facility in Kolkata

• JV between TCG United Airlines
• Strength to double by 2004

• (12.5 6 )Acre campus under construction
• Including Spectraminds 4th centre
• Will employ 2500 professionals

• Satyam lands in Kolkata
• Satyam has been allotted 2.77 acres of land to
  start their operation initially. More land to be
  provided for their Campus.

Source Webel Company Interviews
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IMPRESSIVE LIST OF INTERNATIONAL COMPANIES ARE
SERVICED FROM KOLKATA
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The Advantage Bengal
HAS
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WEST BENGAL IS WELL POISED ON KEY ENABLERS
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WEST BENGAL IS WELL POISED ON KEY ENABLERS
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HUGE POOL OF QUALITY TALENT IN WEST BENGAL

• The Best are here

• IIT, Kharagpur
• IIM, Kolkata
• Indian Statistical Institute, Kolkata
• Presidency St.Xaviers (Ranked best in the
  Country)
• 16 Govt.University including one Central
  University
• 67 Engineering Colleges
• 450 Degree Colleges.

IIM Calcutta

• Huge annual intake of under-graduate students

• Over 545,000 enrol for graduate courses
  (including about 120,000 in commerce 330,000 in
  arts/ education) in 3 yrs
• 13,000 students enrol in engineering

IIT Kharagpur

• Good English language skills
• 30,000 pass out p.a. from English medium schools
• Has largest number of ICSE schools
• Hinterland of North-East provides access to
  talent

Presidency College
Source India Today, Manpower profile of India
Team analysis
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DOMAIN KNOWLEDGE EXISTS IS MANY AREAS

• 1,20,000 students enrol (across 3 years) for
  Ccommerce
• Countrys largest life insurer, LIC, runs largest
  operations
• One of the leading non-life insurer, NIC
  headquarter
• 15 foreign/private banks Located, HQs of 3 large
  banks

Banking, Finance Insurance
Engineering Design

• Traditional Manufacturing , Engineering and
  Mining Hub of India
• Domain Knowledge in Engineering Design

• Dedicated software units for airlines and
  shipping business
• One of the largest port complexes (Kolkata and
  Haldia)
• Acts as a transportation hub for 11 Indian states

Travel Logistics
Visual Arts

• Renowned Art Colleges in Kolkata,Shantiniketan
• Toonz Animation Academy in Kolkata

• Foreign Languages

• Over 2000 enrol for French and 1100 enrol for
  German every year

Source Manpower profile of India
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WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS

• Lowest cost of living
• Lowest attrition rates
• low power costs
• Attractive government incentives

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KOLKATA HAS LOWEST COSTS COMPARED TO OTHERS
as evident in lower salaries for fresh
graduates
One of the lowest CMIE consumer price indices
among metros
Chennai
Mumbai
110
140
Delhi
110
90
Bangalore
Bangalore
Hyderabad
84
108
Chennai
84
Delhi
105
Mumbai suburbs
Hyderabad
84
95
Kolkata
66
84
Kolkata
Estimates provided by a leading HR agency with
Nationwide footprint Urban non-manual workers
, June 2003 (CMIE) Source Manpower profile of
India Interviews with HR Consultants CMIE
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WEST BENGAL HAS LOWEST ATTRITION LEVELS

• Attrition rate of ITeS companies in metros

• Kolkata's strength is low attrition rate, which
  is embedded in the culture - people won't leave
  jobs
• for a Rs 500 p.m. increment

• Per cent

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Delhi
25
40
25
Mumbai

• Kiran Karnik, President

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Bangalore

• Low attrition rate is a characteristic of the
  culture here

Chennai
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15
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Hyderabad
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Kolkata
15
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• Lakshmi Naranyanan, COO

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WEST BENGAL NUMBER 1 STATE IN POWER

• Comparison of basic tariffs in major IT
  destinations
• Rs / Unit

NASSCOM Gartner have ranked the state No. 1 in
power availability quality
West Bengal is a surplus power state and net
exporter
Source C B Richard Ellis
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INCENTIVES OFFERED
Rs 2.1 CRORE ONE TIME INCENTIVES
Description
Financial impact

• Subsidy _at_15 of fixed capital investment (ceiling
  Rs.150 lakh)

FCI subsidy
Rs. 150 lakh
of value of land/property transfer
Stamp duty/ Registration Fee exemption

• Exemption from stamp duty and registration fee
  for purchase/ acquisition of land/buildings

Consumption (Entry) tax exemption

• Exemption from payment of consumption tax on
  material brought into state for initial
  construction

Rs. 60 lakh
Rs. 210 lakh
Total (excluding land subsidy)

• Subsidised land (around Salt Lake) for 1st few
  large ITeS anchor investors

• Land at 20-30 of market price

Land subsidy
RECURRING INCENTIVES OF Rs 1.5 CRORE
Financial impact
Description
Rs. 45 lakh

• 50 of ESI and EPF contribution for every
  employee

Employment generation subsidy

• Subsidy on interest payments (50 of interest
  liability) ceiling Rs. 100 lakh p.a.

Interest payment subsidy
Rs. 100 lakh

• Electricity duty waived for 1st 5 years

Electricity duty waiver
Rs. 7 lakh
Total annual operating cost subsidy
Rs. 152 lakh
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WEST BENGALS COST COMPETITIVENESS
Call centre Indexed cost/FTE (Mumbai suburb
100)
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100
100
97.8
91.9
89.7
88.4
Non Labour costs
Labour Related costs
Mumbai suburb
Bangalore
Delhi
Chennai
Kolkata
Hyderabad
Source India Today CMIE Index team analysis
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WEST BENGAL IS WELL POISED ON KEY ENABLERS

• Reliable telecom connectivity
• Walk-in physical infrastructure
• Best-in-class local transport
• Excellent social infrastructure
• International accessibility

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KOLKATA OFFERS INTERNATIONAL CONNECTIVITY THROUGH
BOTH SATELLITE AND CABLE

• VSNL uses BSNLOFC leased line
• 92 Mbps (29 E-1s, One 34 Mbps line) and provides
  SLA

Kolkata

• 580 Mbps
• 3 earth stations (VSNL and STPI) one of the
  best in the country

Mumbai
Submarinecable
Kochi
Chennai
Submarine cable
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AVAILABILITY OF CABLE-BASED CONNECTIVITY WILL SEE
A HUGE INCREASE SOON
More bandwidth and redundancy from BSNL

• Alternative national long distance loop from
  Reliance (by
• Apr 2004)

Kolkata

• 580 Mbps
• 3 earth stations (VSNL and STPI) one of the
  best in the country

Mumbai
Submarinecable
Kochi
Chennai
Submarine cable
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SALT LAKE IT HUB IS WORLD CLASS

• Spread across 150 acres of green, pollution-free
  land near the airport

• Over 185 IT and ITeS Companies with 15,000
  professionals

• Indias first fully integrated IT Complex in Salt
  lake City, Kolkata

• Excellent infrastructure like roads, ATMs, food
  joints

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LAND EARMARKED TO MEET 2010 IT VISION

• 200 acres available at Rajarhat New Town (3 km
  from Salt Lake) for IT and ITeS units

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• Existing IT hub in Salt Lake (Sector V)

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• Upcoming IT park (40 acres) at Sunrise City
  creating 3 million square feet space

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KOLKATA OFFERS BEST-IN-CLASS LOCAL TRANSPORT
OPTIONS
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KOLKATA OFFERS EXCELLENT SOCIAL INFRASTRUCTURE

• Best-in-class clubs, oldest golf course, rich
  cultural heritage tourist destinations,
  world-class hotels

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KOLKATA HAS DIRECT FLIGHTS TO KEY EUROPEAN AND
ASIAN HUBS
Amsterdam
London
Kolkata
G U L F Countries
Hyderabad
Bangalore
Bangkok
Cochin
Singapore
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WEST BENGAL IS WELL POISED ON FIVE KEY ENABLERS

• Strong policy measures
• Strong e-governance and IT literacy initiatives

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POLICY ISSUES RELATING TO IT OPERATIONS MADE
LIBERAL

• Public Utility Service status to the IT industry

• Permission for women to work at night and
  permission to run three shifts irrespective of
  national holidays

• Allow self-certification for specific enactments
  such as National Holidays Act, Contract Labour Act

• Relaxations in building and zoning laws (e.g.,
  ability to construct centre in residential areas)

• Provide IT units establishment status under Shops
  and Establishments Act

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E-GOVERNANCE INITIATIVES ARE BOOSTING IT AWARENESS

• West Bengal State-wide WAN (WBSWAN)
• 2 Mbps OFC network for data, voice and image
  communication
• Connecting Kolkata to all district headquarters
• To extend to 341 blocks and 3660 panchayats very
  soon

• Aggressive IT literacy program (schools/colleges)
  in partnership with companies like Microsoft,
  IBM, HCL, NIIT, Wipro and Tata Infotech

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WEBEL - SINGLE WINDOW SUPPORT CENTRE
Rental space availability

• Helps in obtaining space on rent/lease in
  buildings

Land procurement

• Allocates as and when available

Telecom infrastructure

• Interacts with BSNL to help procure last-mile
  connectivity

WEBEL
Power connections

• Interacts with POWER UTILITY to get power
  connections

Building approval

• Forwards building plans after preliminary check
  to local Municipality to expedite clearances

STPI registration

• Authorised to give STPI registration on behalf of
  STPI

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COMMITMENT OF THE STATE
The Government will do what it takes to get you
to the state
Buddhadeb Bhattacharjee
Chief Minister, West Bengal