West Bengal chief minister Suvendu Adhikari has said the state is in talks with Ashok Leyland over Singur and will purchase land itself for industrial projects, signalling a possible shift in the government’s approach to one of Bengal’s most politically sensitive development sites.
Speaking at the unveiling of the state’s new investment promotion policy, Adhikari said the government would not use force to acquire land or involve the police in compulsory acquisition. He also said the government would not leave land procurement entirely to private companies, marking a position between the forcible acquisition model associated with the former Left Front government and the hands-off approach followed by the Mamata Banerjee administration.
“We will do something about Singur. Talks are on with Ashok Leyland,” Adhikari said in response to a question, according to the report. “We will purchase lands ourselves,” he added, saying discussions were under way with HUDCO, NABARD and the Asian Development Bank for funds to buy land for industrial use.
The 34-page West Bengal investment promotion policy, issued in three languages, does not contain a specific section on land. The issue has remained a major obstacle to industrial expansion in the state since the controversy surrounding the Tata Nano project in Singur and the anti-land-acquisition movement that preceded its relocation. The Singur and Nandigram episodes also contributed to investor concerns about land availability and acquisition in Bengal.
Adhikari said government officials were studying land purchase, pooling and development policies in Andhra Pradesh, Gujarat, Maharashtra and Uttar Pradesh. He said the state had handed over land during the past six months to 33 business groups, including Amul, Vedanta Group, Campa Cola and Reliance, for new plants or expansion of existing operations.
The government has also facilitated land arrangements for investment proposals involving the Sanjiv Goenka Group in Haldia, Adhikari said. It has recovered plots belonging to several closed industrial units in the Barrackpore industrial belt, according to the report. He said the state could facilitate investments worth around Rs 1 lakh crore over the next few months.
The announcement comes alongside the government’s claim that it is unable to clear industrial incentive dues estimated at Rs 50,000 crore because of its financial position. Adhikari said the previous government should have cleared between Rs 7,000 crore and Rs 8,000 crore annually to prevent the liability from accumulating. He said the dues could be considered for clearance only after Bengal becomes financially surplus.
The policy has implications beyond manufacturing. Sidharth Pansari, managing director of Primarc and a former president of CREDAI Bengal, said greater industrial activity could create demand for homes, offices, retail spaces and supporting infrastructure outside Kolkata. Ajay Jain, chairman of the IIM Calcutta Innovation Park board, said the policy’s provisions for research and development could strengthen links between academic research, start-ups and industrial applications.
The government’s immediate next steps are to continue discussions on Singur, examine land-pooling and purchase models, and pursue funding conversations with HUDCO, NABARD and the Asian Development Bank. The investment promotion policy does not specify a land framework, leaving the proposed mechanism for future industrial acquisitions to be established through subsequent government action.
