Is West Bengal a ‘dead city’ for tech investments? Speaking to EFY’s Nijhum Rudra, WEBEL MD Sanjay Kumar Das (WBCS) counters negative views, highlighting the state’s commitment to electronics and IT growth.
Q. When and why WEBEL was formed?
A. WEBEL was formed on the 4th of February 1974, and we have now completed 50 years. In this journey, WEBEL has evolved and adapted to changing times, transitioning from focusing on the electronics industry to embracing information technology/ information technology-enabled services (IT/ITeS) and now making a resurgence in electronics, semiconductor industry and related sectors. Our mission and vision has remained to promote emerging technologies in the public service delivery ecosystem, fostering growth in the electronics and IT sectors while integrating innovation to enhance public services. This encapsulates WEBEL’s commitment to leveraging both electronics and IT to improve public services and support technological growth in the region.
Q. Can you elaborate on the current scenario of West Bengal’s electronics and IT industry ecosystem?
A. West Bengal has developed a robust ecosystem for its electronics and IT industries, with 22 IT parks, 11 IT buildings, a hardware park, a software park, and two electronics manufacturing clusters, among other facilities. The sector focuses on a circular economy integrating production, operation management, and a vast replacement and repair services network. This holistic approach ensures sustainable practices across the industry. Moreover, Bengal is unique in that it has a dedicated corporation or company that provides structured and advanced infrastructure tailored for industry setup. More vacant lands could be transformed into additional IT infrastructure, including more hardware and software parks, demonstrating its capacity for future expansion in the sector.
Q. How large is your electronics and IT ecosystem, and why are you claiming it to be so unique?
A. We have India’s largest modern warehouse in Haringhata, only 50 kilometres away from Kolkata, boasting state-of-the-art supply chain management automation. The presence of 33 commercial buildings dedicated to IT/ITeS and additional parks for industries to take up space and develop as per their needs creates flexibility and scalability for businesses entering or expanding within the ecosystem. One of the region’s standout features is its immense talent pool from prestigious institutions such as IIT Kharagpur, Indian Statistical Institute (ISI) Kolkata, Indian Institute of Engineering Science and Technology (IIEST), Shibpur, National Institute of Technology (NIT) Durgapur, Indian Institute of Information Technology (IIIT) Kalyani, Calcutta University, Jadavpur University and scores of cities and colleges and private institutions. The prominent uniqueness is along with vast chunks of talent, the lower cost of retaining the said talent, the affordability, the lowest attrition rate in the country, and smooth traffic flow, unlike Hyderabad, Mumbai, and Bengaluru.
Q. What are the challenges that growing companies face in Bengal’s IT and electronics manufacturing ecosystem?
A. Employee attrition is a challenge for many organisations, especially startups. While in West Bengal, the corporations give competitive salaries, the employee attrition rate is the lowest in the country. Startups are small in numbers too. However, despite these obstacles, the industry has a conducive growing environment. Startups receive immense support from the government. The state data centre has offered many startups free hosting infrastructure provided they fulfil the security prerequisites. Opportunities to collaborate with the government are given too, which provides a steady source of work and builds their confidence. This also helps mitigate the fear of failure, a common concern for startups.
Q. How are you planning to develop the electronics and semiconductor industry in the state?
A. Iskraemeco, the second-largest smart metre manufacturer globally, has established its India headquarters in WEBEL IT Park in Sector-V, Saltlake. They are also setting up a plant in the Bengal Silicon Valley at Newtown, further strengthening the area’s electronics manufacturing capabilities. The government actively supports the electronics industry, promoting the semiconductor and VLSI (very large-scale integration) sectors. A GCC policy and a semiconductor policy are set to be introduced soon. These initiatives aim to support the industry and startups in the semiconductor and VLSI, encouraging comprehensive growth.
Q. How are you planning to bridge the skill gap? What initiatives have you taken so far?
A. We have undertaken an important initiative to address the skill gap faced by freshers or entry-level workers in the IT/ITeS sectors. The ‘finishing school’ concept is designed to assess and bridge the gap between academic learning and the skills needed in the industry.
Our most considerable success was the ‘Karmo Bhumi’ initiative launched during the pandemic. It aimed to tap into the knowledge and expertise of the repatriated IT/ITeS workers and leverage their skills for the local industry. The programme saw a significant number of people (around 65,000) registering, with approximately 11,000-12,000 successfully absorbed into the local IT industry.
The programme aims to provide practical exposure that helps students align their academic knowledge with real-world industry requirements by working with schools, colleges, and universities. We have identified specific areas where students or job seekers need improvement. After identifying the skill gap, participants are trained to meet international benchmarks, with certifications from national and international organisations. These certifications ensure that the candidates are globally competitive and industry-ready.
Q. West Bengal is still working in accordance with the 2012 IT/ITeS policy. Why is the 2018 drafted policy yet to be approved?
A. The 2018 policy was notified on 13 August in the same year. It is valid till 2030. When the policy was drafted, we had done a lot of due diligence and decided to come up with amendments from time to time. Currently, another round of amendments is undergoing. Even then, the policy has brilliant incentive schemes benefiting the industry. The current and the upcoming IT buildings and parks are given a 50 percent property-tax exemption during the currency of the policy period, along with an electricity duty waiver, registration & stamp duty waiver for the IT/ITeS industries.
Q. How many technology parks have you set up, and how many are in the pipeline?
A. The industry is silently growing in the West Bengal. Apart from Kolkata, the state has four major regions: Siliguri, Kalyani, Durgapur, and Asansol, where technology, IT parks, R&D centres, skilling institutions, and manufacturing clusters are being developed massively. The North Bengal region’s Siliguri and Jalpaiguri have witnessed remarkable IT/ITeS development. IT clusters are also being formed around IIT Kalyani and NIT Durgapur. Most importantly, a massive IT park in Kurseong within Darjeeling district is coming up fast, having a panoramic view of the Kanchenjunga range of the Himalayas.
Q. Is your current development focus only limited to the IT ecosystem? What initiatives are you undertaking to boost electronics hardware and semiconductor manufacturing?
A. As I told you, Iskraemeco is already setting up a smart meter manufacturing plant, reflecting a push towards advanced electronics. West Bengal has several electronics packaging units that are starting operations. The state focuses on integrating small, medium, and large electronics industries, especially semiconductors. It is also one of the leaders in sustainability. Bengal is the first state to launch an e-waste recycling plant that can recycle six metric tonnes of e-waste daily. Now, Bengal’s Data Centre Policy 2021 has triggered significant investments in this sector, with scores of data centres set up in the Bengal Silicon Valley hub and in the other corners of the state.
Q. Are you developing any additional ports or routes besides Kidderpore Dockyard to enhance the logistics department?
A. It is clear that West Bengal is undergoing significant infrastructural development, especially in logistics and connectivity. There has been a massive development of inland and oceanic waterways for the smooth transportation of goods, and there are more efforts. Still, the projects can only be completed with support from the central government. Aside from Haldia and Kidderpore, new ports are being developed to bolster West Bengal’s maritime logistics capabilities. We have even connected Kharagpur and Haldia to Kolkata, which ensures the efficient movement of goods and services across the state. In fact, the establishment of Flipkart’s largest warehouse in the northern fringes of Kolkata is a testament to our growing prominence in logistics and e-commerce.
Q. Are you looking for any media and industry body engagements to boost investments in the state?
A. Numerous projects and initiatives are already in progress, with more in the pipeline for future development. Once these projects are completed, exploring further engagements, partnerships, or collaborations makes sense. It will be exciting to see how these developments unfold, and I am sure that West Bengal will attract even more investment and opportunities once the current initiatives are completed.
Q. How would you describe your level of collaboration with the central government, and what is your projected investment in the state over the next few years?
A. There is a strong collaboration between the West Bengal government and the central government, particularly through the Ministry of Electronics and Information Technology (MeitY). This mutual assistance and cooperation are evident in the growth of the state’s existing centres of excellence. The vision is to scale it up to match the large-scale innovation witnessed in other parts of the world.
Q. Are there any other innovative progress of the state? Please highlight.
A. I would like to mention about three of our achievements. Our recent partnership with BSNL, connecting over 60,000 public service delivery units across the state of Bengal with 100 Mbps internet connectivity, has been applauded by many. This connectivity enables better access to critical services such as health centres (including Anganwadi centres) and other public facilities.
Besides, our ANUMATI Portal is a major achievement in simplifying the process for internet service providers (ISPs), telecom service providers (TSPs), and telecom infrastructure service providers (TISPs) to set up essential infrastructure such as mobile towers and optical fibre cables (OFCs). By reducing human intervention and creating a seamless application process, the portal has saved both time and money for service providers, promoting faster, more efficient infrastructure development.
But the feather to our cap is the ushering in of ‘SUVIDHA’- the online portal to wipe off the waiting time of all commercial vehicles going into our neighbouring countries through our state’s eight international land ports. It is one of the most critical steps the state government takes in the IT department. Now, businessmen can log into the portal, book a slot, and seamlessly pass through border controls without any waiting time, provided they are genuine. While the United Nations hailed this initiative, the ‘SUVIDHA’ intervention won the nation’s best eGovernance initiative award in 2023.
