In a move that’s sent shockwaves through India’s business community, the West Bengal government has revoked decades-old industrial incentive schemes, prompting major companies to explore legal options. The controversial Revocation of West Bengal Incentive Schemes and Obligations Act, 2025, aims to redirect funds toward social welfare, but has left billions in receivables at risk.
🔴 Key Highlights:
- The Act retrospectively cancels all grants and incentives promised under schemes dating back to 1993.
- Companies like Dalmia Bharat, Birla Corp, and Nuvoco Vistas face potential losses exceeding ₹2,000 crore.
- Dalmia Bharat alone was expecting ₹236 crore, while Birla Corp has ₹194 crore in sanctioned and pending claims.
- Legal experts argue the Act violates principles of promissory estoppel, as firms made investments based on state commitments.
📢 Industry Reactions:
- Affected companies are reviewing the Act’s constitutional validity, especially its retrospective enforcement.
- Trade bodies warn of eroding investor confidence, calling the move a “policy betrayal”.
⚠️ Strategic Impact:
- The Act could deter future industrial investments in Bengal, as firms seek policy stability and legal safeguards.
- The state defends the move, citing the need to prioritize marginalized communities and long-term welfare spending.
👉 What do you think? Should states be allowed to revoke past industrial promises? Drop your thoughts in the comments!
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