Dalmia, Birla Corp fear Rs 430cr sops could be at risk

Kolkata: Two major companies, Dalmia Bharat Ltd and Birla Corporation, said that about Rs430 crore in promised state incentives may now be at risk after the West Bengal government scrapped several industrial subsidy schemes in 2025. An official of Dalmia Cement (Bharat) Ltd (DCBL), a wholly owned subsidiary of Dalmia Bharat, stated that it was supposed to receive Rs236.32 crore along with 8 per cent interest under the now-revoked 'WB State Support for Industries Scheme 2013'. Dalmia Bharat operates a cement plant with a capacity of four million tonnes in Paschim Midnapore district. Birla Corporation Ltd, another affected firm, disclosed that it was to receive Rs55.66 crore in Industrial Promotion Assistance (IPA), already sanctioned by the West Bengal State Industrial Development Corporation (WBSIDC).

Additionally, the company has an outstanding claim of Rs138.58 crore. Both companies fear that these incentive dues may be jeopardised due to the implementation of the Revocation Act. "This legislation is likely to adversely affect the order of the Hon'ble Calcutta High Court," a Dalmia Bharat official said, adding that the company is evaluating all legal options to protect its rights. Officials of both companies said they are reviewing the legal validity and retrospective nature of the Act and are considering all avenues, including court challenges. The West Bengal government had said in March that it had revoked eight incentive schemes for heavy industries', launched during the 1993-2013 period, and would formulate a modern scheme to encourage the setting up of industrial units.