West Bengal's Scrapped Incentives Put Major Companies at Risk

The West Bengal government's recent move to revoke industrial subsidy schemes has cast uncertainty over Rs 430 crore in promised incentives due to companies Dalmia Bharat Ltd and Birla Corporation. The state's decision, concerning schemes launched between 1993 and 2013, has affected two major corporations amidst plans for a new, modern incentive policy.

A Dalmia Cement (Bharat) Ltd official revealed their expected Rs 236.32 crore payout under the revoked 'WB State Support for Industries Scheme 2013' is now uncertain. Simultaneously, Birla Corporation's receipt of Rs 55.66 crore in sanctioned Industrial Promotion Assistance is also in jeopardy, with an additional outstanding claim of Rs 138.58 crore hanging in the balance.

Officials from both companies are meticulously reviewing the legislation's legal implications and the retrospective nature of the act, contemplating court challenges to protect their rights. Meanwhile, West Bengal's Chief Minister Mamata Banerjee has justified the withdrawal, highlighting the changed economic landscape over the past decades and promising a new policy considering modern innovations like AI.

(With inputs from agencies.)