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PCS ParikshanWest Bengal Switch to Hindi
Revocation of West Bengal Incentive Schemes
Why in News?
The West Bengal Industries Minister tabled the Revocation of State Incentive Schemes and Obligations in the Nature of Grants and Incentives Bill 2025 in the assembly.
Key Points
- Challenges with the Existing Scheme:
- The Chief Minister of State stated that the West Bengal Incentive Scheme dates back to 2001-02 and has become difficult to sustain.
- She highlighted the transformation in the state’s industrial scenario since 2000-2001.
- Earlier, IT and related industries were nearly non-existent, but now:
- Artificial Intelligence (AI) is a major industry.
- Tourism has expanded significantly.
- Green industries have gained prominence.
- The mining policy differs for coal and iron ore.
- New Policy Under Development:
- The government has set up a committee led by the Chief Secretary to consult stakeholders on the new scheme.
- The new scheme will be introduced keeping the state’s financial health in mind.
- State Fiscal Responsibility and Budget Management Bill 2025:
- The state government has introduced a bill in the assembly to increase the borrowing limit.
- The borrowing cap will rise by 0.5% of the Gross State Domestic Product (GSDP), from 3% to 3.5% for 2024-25.
- This additional borrowing flexibility aligns with the 15th Finance Commission’s roadmap and is linked to power sector reforms.
