Industrialists have petitioned the Calcutta High Court against West Bengal’s revocation of industry incentives. Opposition leader Suvendu Adhikari termed the move “inevitable” and accused the Mamata Banerjee government of economic sabotage, warning it could turn Bengal into an “industrial graveyard.”
The political and industrial debate in West Bengal has intensified after a group of industrialists filed petitions in the Calcutta High Court challenging the state government’s decision to revoke a long-standing incentive scheme for industries. On Wednesday, Leader of the Opposition in the West Bengal Assembly, Suvendu Adhikari, said that the move by the industrialists was “inevitable” and accused the Trinamool Congress (TMC) government of pushing the state toward an “industrial graveyard.”
Background of the Incentive Scheme
The industry incentive scheme was first introduced in the financial year 2001–02 by the Left Front government, led by the late former Chief Minister Buddhadeb Bhattacharjee. Its primary aim was to encourage industrial investment in West Bengal, which had long struggled to attract large-scale industries compared to other Indian states. The scheme offered various incentives and grants, including tax concessions, subsidies, and financial support for infrastructure development.
For over two decades, the scheme provided a level of stability and confidence to industries operating in the state. Businesses that invested in West Bengal did so with the expectation that these incentives would remain in place as part of a long-term industrial policy.
The Revocation Bill of 2025
In March 2025, the state government passed the Revocation of West Bengal Incentive Schemes and Obligations in the Nature of Grants and Incentives Bill, 2025. This bill effectively scrapped all industry incentives that had been provided for years. Despite protests from the opposition benches, the ruling TMC, with its legislative majority, ensured the bill’s passage.
The decision sparked immediate outrage among business circles and political opponents. Industrialists argued that the revocation of incentives violated their legitimate expectations and undermined their investments. They claim that the move amounts to a breach of trust by the government, particularly since many companies had already structured their business plans around the promised incentives.
Industrialists Move to Court
Earlier this week, a group of industrialists formally approached the Calcutta High Court, challenging the government’s decision. They argued that the revocation was not only unfair but also unconstitutional. Multiple petitions have been filed, and the court has announced that all parallel petitions will be heard together in November.
Business leaders contend that retrospective withdrawal of incentives disrupts the industrial climate, discourages future investors, and weakens the state’s credibility as a reliable destination for industrial growth.
Suvendu Adhikari’s Reaction
Reacting to the development, Suvendu Adhikari said that the industrialists’ move to approach the judiciary was “bound to happen.” He recalled that when the bill was passed earlier this year, he had warned the government about its “disastrous” consequences.
“This draconian bill, despite fierce opposition from BJP MLAs, was bulldozed through in March 2025 because of TMC’s brute majority. Their arrogance prevailed, and they shamelessly scrapped all industry incentives,” Adhikari remarked.
He accused the Mamata Banerjee-led government of sabotaging West Bengal’s industrial future. “This is a miscalculated blunder to drive out the few remaining industries from West Bengal. Mamata Banerjee’s government is turning our state into an industrial graveyard, betraying businesses that trusted Bengal and created jobs for our people,” Adhikari said.
Adhikari further claimed that by revoking incentives with retrospective effect, the TMC government had sent a chilling signal to investors. “This is not governance, it is economic sabotage. They are ensuring our youth remain unemployed and our industries vanish,” he added.
A Brewing Legal and Political Battle
The legal battle in the Calcutta High Court is expected to shape the future of industrial policy in the state. If the industrialists succeed in their challenge, the government may be forced to reconsider its stance or reinstate certain incentives. If not, the ruling could embolden the state government to pursue other controversial reforms.
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Politically, the issue has given the opposition BJP fresh ammunition against the TMC government, particularly at a time when job creation and industrial development remain major public concerns. Adhikari’s statements suggest that the BJP will continue to highlight this controversy as evidence of the ruling party’s alleged mismanagement of the economy.
With the matter now before the judiciary, West Bengal’s industrialists, workers, and investors await the outcome that could significantly alter the state’s economic trajectory.
