The West Bengal government is developing a comprehensive industrial promotion policy that combines budgetary allocations with innovative off-balance-sheet incentive mechanisms, according to finance minister Swapan Dasgupta. As reported by The Economic Times, this strategic approach aims to attract industrial investments while maintaining fiscal discipline amid the state's debt obligations.
The government is exploring off-balance-sheet incentives such as soft loans to reduce the weightage on budget-dependent industrial promotion, Dasgupta stated. According to The Economic Times, these mechanisms are designed to provide financial support without directly impacting the state's budgetary commitments. The policy framework also includes concessions on power tariff as part of the comprehensive incentive package.
On the budgetary side, the state is considering a combination of capital subsidies and tax reimbursements to enhance industrial attractiveness, as reported by The Economic Times. Despite these incentives, the state's ₹8 lakh crore outstanding debt continues to strain its finances, creating a balance between investment promotion and fiscal responsibility.
