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2 WEEKEND 31 JULY 2010 KOLKATA Business Standard SECTION III Nandini Chakravorty, IAS Chief Executive Officer, WBIIDC stated in an interactive session with Business Standard how the corporation is taking a pivotal role in the infrastructural development of the state. Excerpts: How does West Bengal compare in terms of availability of quality infrastructure vis a vis states like Gujarat and Maharashtra? What are the major bottle- necks that are faced by WBIIDC ? What is being done to overcome them? In terms of road and rail connectivity, West Bengal is favourably positioned.The State’s road density at 103.69 km per 100 sq km is higher than the national average. It also has the best rail network in the country with over 4041 route kms (broad gauge). The proposed eastern dedi- cated freight corridor connecting the state to Delhi will be a critical infrastructure in future. Upgradation of port and airport facilities are on the anvil. Development of ports, airport, power infrastructure through private investments are also being implemented. Yes, the availability of land for infrastruc- ture is an issue that needs to be dealt with in the right perspective. A larger part of the land i.e., more than 62% of land in West Bengal is agri- culturally productive and the barren land suit- able for industrial use is merely 0.40% as against 4.31% for India. The West Bengal Industrial Infrastructure Development Corporation has set up 15 industri- al parks across the state, many of which are located in agriculturally unproductive areas. The development of the industrial parks have been done with the intent to promote use of common infrastructure by industries and thereby optimis- ing the use of land. India’s tryst with her economic destiny will call for unprecedented investments in the infrastructure sector. What are West Bengal’s plans in this regard? What is being done? Like the rest of the country,significant invest- ments in all key infrastructure sectors such as roads, railways, power, ports, telecom, industrial parks/clusters and urban infrastructure is required to adequately utilise the huge skilled work force , entrepreneurial expertise ,natural resources and strategic location of West Bengal. As far as WBIIDC is concerned, we are look- ing at providing efficient and low cost infrastruc- ture in our industrial parks for medium and small scale enterprises. Our industrial parks presently house 450 industrial units. We expect to create appropriate infrastructure to increase this three- fold within the next 5 years. We are also looking at private participation in development of new industrial parks, upgradation and management of utilities in already developed parks. West Bengal is often referred to as a “quagmire of lost hopes”. While we have more or less held our own in agriculture, our successes in the field of industrialisa- tion so far is nothing to write home about. This situation is bound to change and one of the agents of this positive change will be WBIIDC. What do you feel? What are you doing to usher in this change? The work of WBIIDC like all organisations is con- tinually evolving. Earlier we were focused on acquisition of land and development of industri- al parks in various industrial and no-industry dis- tricts of the State with the help of our own tech- nical manpower. To cater to the huge demand from small and medium enterprises, we intend to move on, upgrade existing industrial parks and develop many more modern industrial parks in all districts of the state and we invite private participation to enable us to achieve this objective. We are also involved in the work of development or upgradation of infrastructure of various departments/organisations in the state government, providing technical advisory servic- es at a charge which keeps us financially viable. We are now contemplating of providing techni- cal consultancy services to Government organi- sations. We are looking at providing efficient and low-cost infrastructure in our industrial parks : Nandini Chakravorty E nnore Coke Limited (ECL) is one of the largest low ash metallurgical coke producers and sec- ond BSE listed Company in its domain. ECL has its own manufacturing facility at Haldia and another group subsidiary has its plant at Cuttck. Moreoever, ECL has conversion / contract manufacturing agree- ment with two plants in Orissa, one in Jamshedpur, two in the east coast of Asansol and one with the same arrangement in the West coast. Current situation in the coke market in India and abroad Currently in India the availability of coke has become a challenge rather than price. Coke prices in India are a little volatile due to iron ore prices. But looking at the coking coal prices which recently got settled for $ 225 per tonne FOB for the current quarter, coke price will remain in the same price range without any changes.Internationally coke is very much in demand and most of the international buyers are scouting in India for coke. Currently, low ash coke is being export- ed at a price of $ 510 per tonne FOB. Concerns of the industry The main problem of the industry is the price absorp- tion. In India it takes little more time as compared to the international market. Infrastructural facilities are not good in the eastern part of India. Ports like Haldia have not been dredged properly in the last few years and heavy waiting period in Paradip is creating prob- lems. Secondly, rake availability is also a big concern. As most of the iron ore mines in Orissa are closed, iron ore export movement has come to a halt. Consequently,no outward rake movement is affecting transportation of coal from the ports. Policy changes are required to improve the condition Currently Coke industry is catering to steel plants but doesn't enjoy the priority or core sector status in terms of rake allotment.The railway ministry has to change its policy in allotment or rakes and movement of empty rakes towards the port. Paradip port currently has a policy of allotting berth on first come first serve basis instead of priority berthing like other ports.The coal ministry should also change its policy on allot- ment of indigenous coking coal blocks or linkages for merchant coke plants according to their capacities. Metallurgical coke availability will be a challenge after September 2010: Ganesan Natarajan II Mr. Ganesan Natarajan, Whole Time Director, President & CEO, Ennore Coke Limited
Transcript

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Nandini Chakravorty, IAS Chief ExecutiveOfficer, WBIIDC stated in an interactivesession with Business Standard how thecorporation is taking a pivotal role in theinfrastructural development of the state.Excerpts:

How does West Bengal compare in termsof availability of quality infrastructurevis a vis states like Gujarat andMaharashtra? What are the major bottle-necks that are faced by WBIIDC ? What isbeing done to overcome them?

In terms of road and rail connectivity, WestBengal is favourably positioned. The State’s roaddensity at 103.69 km per 100 sq km is higherthan the national average. It also has the bestrail network in the country with over 4041 routekms (broad gauge). The proposed eastern dedi-cated freight corridor connecting the state toDelhi will be a critical infrastructure in future.Upgradation of port and airport facilities are onthe anvil. Development of ports, airport, power

infrastructure through private investments arealso being implemented.

Yes, the availability of land for infrastruc-ture is an issue that needs to be dealt with in theright perspective. A larger part of the land i.e.,more than 62% of land in West Bengal is agri-culturally productive and the barren land suit-able for industrial use is merely 0.40% as against4.31% for India.

The West Bengal Industrial InfrastructureDevelopment Corporation has set up 15 industri-al parks across the state, many of which arelocated in agriculturally unproductive areas. Thedevelopment of the industrial parks have beendone with the intent to promote use of commoninfrastructure by industries and thereby optimis-ing the use of land.

India’s tryst with her economic destinywill call for unprecedented investmentsin the infrastructure sector. What areWest Bengal’s plans in this regard? Whatis being done?

Like the rest of the country,significant invest-ments in all key infrastructure sectors such asroads, railways, power, ports, telecom, industrialparks/clusters and urban infrastructure isrequired to adequately utilise the huge skilledwork force , entrepreneurial expertise ,naturalresources and strategic location of West Bengal.

As far as WBIIDC is concerned, we are look-ing at providing efficient and low cost infrastruc-ture in our industrial parks for medium and smallscale enterprises. Our industrial parks presentlyhouse 450 industrial units. We expect to create

appropriate infrastructure to increase this three-fold within the next 5 years. We are also lookingat private participation in development of newindustrial parks, upgradation and managementof utilities in already developed parks.

West Bengal is often referred to as a“quagmire of lost hopes”. While we havemore or less held our own in agriculture,our successes in the field of industrialisa-tion so far is nothing to write homeabout. This situation is bound to changeand one of the agents of this positivechange will be WBIIDC. What do you feel?What are you doing to usher in thischange?

The work of WBIIDC like all organisations is con-tinually evolving. Earlier we were focused onacquisition of land and development of industri-al parks in various industrial and no-industry dis-tricts of the State with the help of our own tech-nical manpower. To cater to the huge demandfrom small and medium enterprises, we intendto move on, upgrade existing industrial parksand develop many more modern industrialparks in all districts of the state and we inviteprivate participation to enable us to achieve thisobjective. We are also involved in the work ofdevelopment or upgradation of infrastructure ofvarious departments/organisations in the stategovernment, providing technical advisory servic-es at a charge which keeps us financially viable.We are now contemplating of providing techni-cal consultancy services to Government organi-sations.

We are looking at providing efficient and low-cost infrastructure in our industrial parks :

Nandini Chakravorty

Ennore Coke Limited (ECL) is one of the largestlow ash metallurgical coke producers and sec-ond BSE listed Company in its domain. ECL has

its own manufacturing facility at Haldia and anothergroup subsidiary has its plant at Cuttck. Moreoever,ECL has conversion / contract manufacturing agree-ment with two plants in Orissa, one in Jamshedpur,two in the east coast of Asansol and one with thesame arrangement in the West coast.

Current situation in the coke market in Indiaand abroad Currently in India the availability of coke has becomea challenge rather than price. Coke prices in India area little volatile due to iron ore prices. But looking atthe coking coal prices which recently got settled for $225 per tonne FOB for the current quarter, coke pricewill remain in the same price range without anychanges.Internationally coke is very much in demandand most of the international buyers are scouting inIndia for coke. Currently, low ash coke is being export-ed at a price of $ 510 per tonne FOB.

Concerns of the industryThe main problem of the industry is the price absorp-tion. In India it takes little more time as compared tothe international market. Infrastructural facilities arenot good in the eastern part of India. Ports like Haldiahave not been dredged properly in the last few yearsand heavy waiting period in Paradip is creating prob-lems. Secondly, rake availability is also a big concern.As most of the iron ore mines in Orissa are closed, ironore export movement has come to a halt.Consequently, no outward rake movement is affectingtransportation of coal from the ports.

Policy changes are required to improve thecondition Currently Coke industry is catering to steel plants butdoesn't enjoy the priority or core sector status in termsof rake allotment. The railway ministry has to changeits policy in allotment or rakes and movement ofempty rakes towards the port. Paradip port currentlyhas a policy of allotting berth on first come first servebasis instead of priority berthing like other ports. Thecoal ministry should also change its policy on allot-ment of indigenous coking coal blocks or linkages formerchant coke plants according to their capacities.

Metallurgicalcoke availability

will be a challenge after

September 2010:Ganesan Natarajan

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