The Government will provide fiscal and non-fiscal support to investors in order to achieve the aggressive that it has set for itself in IT.

FISCAL INCENTIVES: The state has already announced an attractive IT incentive scheme in November 2001 that is significantly more competitive than that offered by other states. It has further strengthened this proposition for investors by making this existing incentive scheme more flexible and has also updated some key elements (e.g. criteria for mega project status).

NON-FISCAL SUPPORT:An IT & ITeS policy has been crafted which is best of the breed in the country. Policy simplifies existing labour laws to ensure smooth operations for investors and consider ITES companies as 'Public Utility Service'(24 X 7) providers under the industrial disputes act 1947. Steps taken for investors promotion.

Since the SIPB review in February, the West Bengal Government - McKinsey joint team has had detailed interactions with 36 potential investors - 11 multi-national companies for ITeS centers, 12 IT service providers and 13 third-party ITeS providers. This has succeeded in putting the state on the investment horizon for several companies. These were short listed after contacting over 70 companies.

In line with current market realities, companies looking to make investments in ITES (rather than pure IT services) dominated the target list. Given their pioneering role in other cities, captive units of large MNCs, like GE, were specifically targeted.

CALL CENTERS: Leading call center companies like GE Capital (India), Spectramind and Nexgenix were contacted and detailed discussions held to place Kolkata on the investment horizon of these companies. Mr. Pramod Bhasin, President GE Capital (India), has said that Kolkata is the first choice amongst the cities being considered for their 5th center. Three call centers are already operational in Kolkata, while Nexgenixhas just announced a 100-seat call center.

BUSINESS PROCESS OUTSOURCING: IT companies moving into BPO services like TCS, Cognizant and PWC were also contacted. Mr. Ramodorai, CEO of TCS has reassured that a substantial part of the US$ 100 million GE Medical Services project will be done out of their center in Kolkata. Cognizant and PWC are expanding their operations here and will open BPO centers soon.

IMPACT OF THE INVESTOR PROMOTION ACTIVITIES.

INVESTMENT DECISIONS

Four call centers, including Nexgenix have been opened in Kolkata. TCS, Cognizant and PWC are expanding their operations in Kolkata and plan to open new centers for ITES. Compaq is setting up a center for e-governance along in Salt Lake.

The effort has succeeded in putting the State on the investment horizon for several of the leading companies and Kolkata now figures as the first or second choice for the next centers of many of the ITES companies.

PERCEPTION IMPROVEMENT.

Some of the heads of the leading IT companies in India and abroad have developed a very positive perception of West Bengal.

Mr Ramadorai, CEO of TCS, expressed his desire to partner the state in its efforts to become a leading investment destination for IT. He was very appreciate of the marketing document prepared by the state and praised it repeatedly. On the initiatives being taken by the state, he said, "In my opinion we are in right direction. The government is absolutely keen, the people who draft policies are in very positive frame of mind".

Mr. Pramod Bhasin, President of GE Capital (India) while clearly indicating that Kolkata is leading amongst other cities for their 5th center, had this to say about the responsiveness of the West Bengal government: "This is a very detailed proposal and addresses every concern raised by us. In fact, we have not been able to keep pace with that of your government".

Mr. Laxmi Narayanan, CEO of Cognizant, had this to say about the state and the initiatives being taken for IT:

"For us, Kolkata was an experiment …. it has now turned out to be our greatest success story … we are expanding our already large operations in Kolkata … … Kolkata is clearly an important part of our strategy .. and you can count me as a brand ambassador for West Bengal".

Mr. M. S. Banga, Chairman & CEO, Hindustan Lever Limited

"West Bengal already has most of the key enablers in place. All of those that are required to make it a very efficient and attractive destination for IT Industry, where it has something even more, from what I have seen today, it has a passionate and commited leadership, that is abosolutely determined to make it a very safe, a very secure, destination for IT-based Industries. I wish them all the very best in this endeavour. Thank You. ".

Mr. Kiran Karnik, President, NASSCOM,

"I'm sure that with all the enthusiasm and the inherent plus points you will translate Advantage Bengal into large investments and employment. Kolkata is re-inventing itself. As one-time resident, I find the new spelling a change, but the transformation is not just cosmetic or semantic. The very frame of discourse seems to have changed and a new Kolkata is emerging. ".

Mr. Harris N. Miller, President of ITAA        
(IT Association of America)

"The commitment of Calcutta and West Bengal to becoming an Information Technology Centre is extremely impressive. Clearly this area of India and this area of the world wants to be a global player in Information Technology.

This is a great time to become a global player because Information Technology is going to be spreading its wings in areas of the world which have a highly trained work force, which have excellent telecommunications and power infrastructure, which have a Government commited to make it sure that companies could be successful or can be the ones to win contracts.

From what I've seen of the commitment of the Industry here in Calcutta and the Government of West Bengal, this area is going to be a real player in the world economy in IT. ".