Some time back in a TV program there was a talk on Bengal’s industrial revival and how some interested parties are making use of confusion at grassroots level to thwart it. A questioner on phone inquired why isn’t the government trying to re-open closed factories instead of going for large greenfield ventures.
The reply to that given by the TV panel (if I remember correctly, minister Manabendra Mukherjee fielded that question) has been apt. Which is that reopening of old factories is not the only answer to modern-day needs. Technology, economic scale of operation and removal of trade barrier have changed the scenario so immensely that there is just no alternative to setting up of large new industries to remain competitive and generate fresh employment opportunity.
But, Bengal’s old factories too are seeing light of the day. Pavan Ruia, the new savior with deep pockets, has not only turned around Jessop, the heavy-engineering jewel, he has also acquired Dunlop, the erstwhile tyre major, which has recommenced production from Jan 14 after a long gap of 7 years.
IISCO’s modernization (see this post, All steel’s week) is another feather in the cap. The project involves massive expansion of the facilities at Burnpur, and although some local people are obstructing acquisition of farmland for the purpose, political parties of all hues have taken it on themselves to convince the disgruntled for not doing so.
This indicates that people of the state are gradually veering round to accepting inevitability of large industries.
And now the grand old Bengal Chemicals too is on the path of revival. Large dose of central government fund to the tune of Rs.440 crore is proposed to let it come out of coma and a formal inauguration of the same is taking place today at the Maniktala factory premises.
Coming back to the oft-asked question as to whether the choice has to be between reopening old factories or establishing new ones, it is clear that the correct way would be to do both and not simply either of them. Which is what the present government in the state is doing in earnest. Let’s welcome that.
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