Asian Development Bank in association with The Bengal Chamber of Commerce & Industry and Deloitte India organized a workshop on East Coast Economic Corridor Study in West Bengal on 16 August, 2023 at ITC Hall, The Bengal Chamber premises from 10:30 am onwards.

The workshop started with the Welcome address by Mr S Hajara, Chairperson, Shipping and Logistics Committee, BCC&I followed by presentation by Mr. Soumya Chattopadhyay, Senior Programs Officer, India Resident Mission provided a brief overview on the importance of Economic Corridor development in India and how it is aligned to key Central Government initiatives like Sagarmala, thereby influencing port-led industrialization in the country. He informed that Asian Development Bank provided support to the Government of Andhra Pradesh for development of the first corridor project in the country in 2015 i.e., the Vizag-Chennai Industrial Corridor (VCIC) which was then followed by support to the Government of Tamil Nadu (GoTN) for development of the Chennai-Kanyakumari Industrial Corridor (CKIC). The focus of the East Coast Economic Corridor in West Bengal is to enable the industrial regions in West Bengal to capture the markets in South-Asia and South-East countries and it is in alignment with the Act East Policy by Government of India, connecting North-East India and the neighboring countries via Siliguri. The key objective of study is to strategize economic development of three focus nodes i.e. Haldia-Tajpur, Andal-Panagarh and Kharagpur-Goaltore-Salboni and growth centers like Siliguri, Dankuni and Kalyani, based on assessment of existing infrastructure/policies/institutional frameworks and proposing multi-sectoral interventions based on urban-industrial-logistics-skills-energy-social sector convergence.

Mr. Shubham Gupta, Partner, Deloitte India presented an overview of the key findings and emerging hypothesis for the focus nodes and growth centers based on discussions previously held by the study team with Government officials. Details for each node/ growth center were presented with focus on existing multi-modal connectivity infrastructure, existing industrial, exports and service sector base in the node, key policy interventions planned by Government of West Bengal including key connectivity projects that will impact future growth in these nodes and growth centers. The detailed feedbacks, suggestions and issues faced by the private sector stakeholders are highlighted below:

The Industry Stakeholder Workshop was attended by Senior Representatives from Shipping and Logistics Committee, BCC&I along with other senior members who were senior officials from multiple private sector industries from key sectors like logistics, mineral fuels, non-metallic minerals, water supply, food processing, namely from Century Plyboards, Ramco Cements, Haldia Waters- Swach Environment Pvt. Ltd., Adani Ports SEZ, Pristine Hindustan Infraprojects Ltd., Haldia Petrochemicals, Dalmia Cement, EmamiAgrotech Ltd., Balmer  Lawrie & Co. Ltd., Hiranandani Group, Swach Environment Pvt. Ltd. CTI Logistics Pvt. Ltd. Intueri Consulting, Apollo Multispeciality Hospitals, Adani Logistics, Indian Oil Corporation Limited, Warehousing Association of India, Tata Steel, DP World etc..

The discussion was crucial to understand the issues, challenges, barriers to business, demand and requirements across each sector, from key industry stakeholders for the growth of the businesses (both manufacturing and services) in each of the nodes. Inputs received from the industry players in each of the sessions were very valuable.

Inputs received from Industry Stakeholders were:

1. Logistics:  
   • Industry representatives highlighted the importance of a deep seaport in West Bengal, since the absence of the same is leading to movement of cargo from neighbouring countries like Nepal to ports like Vizag, Nhava Sheva instead of the Kolkata Port
   • There is need for smoother and efficient evacuation of EXIM Cargo from Haldia and Kolkata ports through improvement in handling capacity, addressing logistical challenges through improvement in last-mile connectivity, streamlining clearance procedures, and ensuring seamless connectivity between different modes of transportation like rail, road and sea. It was suggested by the representatives to take all these factors into account while preparing an evacuation plan of EXIM cargo for the development of the Tajpur port.
   • The lack of return load for trucks from seaports and non-availability of sufficient rakes (for companies which do not have rakes under General Purpose Wagon Investment Scheme) adds to the logistics cost of the company (the non-availability of sufficient rakes is adding to the cost of logistics to the cements sector in the region which is currently as high as 22-23% of the total cost). In this regard, the industry representatives suggested to propose a railhead movement with a special tariff design and haulage discount which will help the industry to reduce their cost.
   • The representatives suggested to assess the feasibility of cargo availability in terms of both domestic and EXIM cargo, while preparing plans for development of logistics hubs like Siliguri and Dankuni
   • The team was also requested to study and assess the efficiency of river routes under India-Bangladesh protocol 1 and 2 that would include container vessels and would also enable reduction of logistics cost of plastic granules transport from Haldia-Tajpur region (which is currently transited via road with additional customs cost).
   • The cost of procurement of cement clinkers via Haldia Port from Kakinada has gone up post covid due to which Cement manufacturing units (e.g. Ramco) have opted for rail movement.
2. Land availability:
   • The major concern with respect to development of Dankuni as a logistics hub is the availability of land and its acquisition. There are no contiguous land parcels available in Dankuni which can be procured by companies for development of logistics facilities/ parks in the region. It was suggested that alternate models/ options for land acquisition may be recommended by industries to the Government including options like land acquisition from closed/ sick public sector units, land pooling, identification of key parcels in adjoining regions of Singur, Haringhata, Kalyani, etc.
3. Infrastructure: 
   • It was suggested by industry representatives to provide a visibility on the expected timelines for completion of the planned connectivity and infrastructure projects (currently conceptualized or ongoing in the state) which will enable the private sector to make investment and business plans accordingly.
   • Development of Haldia-Tajpur node as a petrochemicals hub has been hindered owing to lack of development of specific utilities infrastructure. These infrastructure have to be developed as a set of common facilities made available centrally through a common service provider in order to ensure cost competitiveness
   • Block-wise demographic and economic study was suggested to be conducted for the State to project the expected demand from the industries and thereby address the issues and impediments to supply and availability of utilities such as water, electricity, connectivity etc.
4. Policy Support: 
   • The Warehousing Association of India is willing to associate with ADB for any assistance required for logistics policy formulation for the state of West Bengal. It was suggested to consider inputs from stakeholders in Bangladesh for setting up of logistics hubs in the state.

The discussion was critical to understand the issues, challenges, barriers to business, demand and requirements across each sector, from key industry stakeholders for the growth of the businesses (both manufacturing and services) in each of the nodes. Inputs received from the industry players in each of the sessions was very valuable.