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Yet another bandh leaves Bengal at crossroads

IT retail was hit the hardest this time with nearly all IT retail outlets remaining closed all day

Author: Avishek Rakshit
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Yet another bandh leaves Bengal at crossroads
Thursday, August 28, 2008

Just when West Bengal had started boasting of industrial developments augmented by an emerging IT sector, life was brought to a standstill owing to yet another 24-hour bandh called by trade union major Center of Indian Trade Unions (CITU) on Aug 20.

Despite efforts by Buddhadeb Bhattacharya the Chief Minister of West Bengal, to keep Salt Lake IT hub out of the purview of the bandh by maintaining a strict vigil on the sector, CITU did not hesitate to assault employees on their way to Sector V.

Even then, braving the situation, there was a considerable presence of the workforce in Sector V with IT majors like Wipro, Genpact and Acclaris risking having their employees report to office. “The CM gave us his word that the IT sector would be treated specially. Today we saw that he kept his word. With some of our employees spending the night at office the previous day, around 60 percent of our workforce turned up for work,” said Kalyan Kar, MD, Acclaris (India).

Contrary to the IT service industry, IT retail was hit the hardest this time with nearly all IT retail outlets remaining closed all day. “No one dares to stand up against CITU and must abide by their decision. There has been a total shutdown in Siliguri and everywhere in north Bengal with the entire state remaining closed,” commented Gitesh Tibrewal, Logic Fusion (Siliguri).

However, it is Kolkata that is bearing the brunt of the bandh. With estimated loses crossing crores of rupees, trading across all sectors was halted.

Analyzing the situation in Kolkata, Nawaid Iqbal, Manager-Administration, SMB Solutions, Kolkata said, “Every now and then, Kolkata faces some bandh or the other which results in huge loses. Generally, during this time of the year major IT projects are undertaken, with the festive mood setting in. A major bandh at this point in time not only directly impacts the IT retail business, it also tarnishes the image of the state.”

“We have undertaken key projects in Bengal, some of which are still in bidding stage with tenders floating in the market now. Due to the bandh, not only has the bidding and tendering process been affected adversely, we have lost over Rs 2 crore of sales revenue,” he emphasized.

While major IT giants are looking to invest in the state, this situation threatens to spoil the party. Capgemini already announced plans to increase their employee base in its Kolkata facility to 2,000; HCL is planning to recruit another 1,200 engineering staff and Wipro and IBM are planning major investments in the upcoming SEZ in Rajarhat. If the bandhs keep up the CM's drive to industrialize Bengal may come to an end with some of the emerging companies particularly in the SMB segment deciding to withdraw their operations from Bengal.

Alkesh Agarwal, CEO, Re-feel Cartridge Engineering, a cartridge enterprise with its head-office in Kolkata said, “This bandh has tarnished the national image of Bengal. I have never seen a bandh like this in 10 years; every sector of the state came to a standstill and life was crippled. Being a company headquartered in Kolkata, our after-sales support and logistics chain came to a standstill, thereby angering our franchisees across India. Post the series of bandhs, many companies may either think of pulling out of Bengal or shifting their head-offices to some other state in India.”

Logistics support, one of the crucial elements for IT retail, has also suffered at the hands of CITU. In south Kolkata, about 50 bandh supporters allegedly ransacked a logistics support office damaging materials worth over Rs 70,000. This brought the entire logistic support industry in Kolkata to a halt. However, in western and extreme eastern parts of the state, IT logistics did not suffer as badly as it did in the heart of the state.


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