As compared to the Railway Budget, which contained very little for West Bengal, the Central Budget announced on Thursday did contain some proposals which could generate revenue for the State government and create job opportunities, but there were no glad tidings for some of the city –based companies.
Many of them said that they would face a double whammy.
The assurance on reviewing mineral royalty rates holds promise for West Bengal, as it could enhance revenues of the debt-stressed State. The Finance Minister said the rate of royalty on minerals could be revised once every three years and the last one was done in 2009. “Another revision is due and we will take it up”, he said.
This apart, the proposal on the industrial corridor between Amritsar and Kolkata is expected to benefit West Bengal. The setting up of smart industrial cities along the route will also promote investment.
The Budget has also proposed a Rs. 4,200-crore Inland Waterways I project on River Ganga from Allahabad in Uttar Pradesh to Haldia in West Bengal. The project Jal Marg Vikas would cover 1,620 km with a completion target of six years.
A few research units are proposed to be set up in the city. Mr Jaitley has allotted Rs. 500 crore for four more AIIMS-like hospitals, saying that West Bengal was under consideration as a possible location.
On the culture side, he mentioned the Satyajit Ray Film and Television Institute in the city which would be accorded the status of Centre of Excellence.
A few West Bengal companies like Tata Metaliks in their initial reaction said the budget had dealt them a double whammy. The company felt that mineral-based industries like Tata Metaliks would face a run on its input cost with increase in customs duties of inputs. An increase in royalty rate would also increase input cost for mineral-based companies, he said.
The State’s largest private sector company ITC Ltd is also set to be hit hard by the decision on excise duty hike on tobacco and related products.
