The Positive effect in the state economy by the Private Equity deals

Kolkata is again seeing the confidence of Private Equity player with Yatra Capital (A Private Equity firm) scheduled to invest 4.4 million euros in an upcoming Taj hotel in Calcutta.The hotel will cater to the needs of IT and ITeS companies located in Sector V of Salt Lake, Rajarhat and New Town.

The economic situation of the state will have definitely a positive impact once there is such kind of Private Equity deal flow in reasonable projects. However,It is also true that in present scenario , it is important to look after also the social impact and the environmental friendliness of any project, whatsoever it is, that economic progress is not in direct collision with social development and environmental friendly agenda.Otherwise , the project will face problems in achieving its long term goal . A strong legal framework will be added help , which can ensure the solution of the problem , before it arise.

Kolkata experiencing a rise of Foriegn Private Equity deals

There is some light in the end of the tunnel. The investment scenario of kolkata, looks better with new experience of rising Foreign Private Equity deals.Mostly they are on the real estates.In addition over past 18 months, several large PE transactions have been concluded, including to an enterprise level hospitality exposure by Credit Suisse, in Park Hotels.

The inflow of organized private equity began with New Vernon taking exposure in an IT building project developed by Sureka Group in association with Bikram Dasgupta's Globsyn. UK REIT then invested a significant amount in residential projects being developed by the Eden group.

The largest private equity exposure in terms of project size came from Starwood Capital and Walton Street into a 150 acre mixed use project being developed by the Sriram group in Hindustan Motors near Uttarpara. Both have pumped $50 million each into the development. The PE funds have started operation for quite some time. Now,they are concluding transactions and deploying money into projects.

Factors which has gone in favor of kolkata on the rise of P.E deals

1. Educated population and qualified workforce
2. Good Infrastructure
3. Stable Government
4. Bright Future with abundant talent pool

2008, will witness the conclusion of 10 more private equity investments in Kolkata, taking the total investments from PE funds into projects in Kolkata to over Rs 1,000 crore.

However , there has to be some mechanism also developed that the enemy of Bengals, are somewhat managed in a proper way,that the friction free growth of private equity continues. One of the most significant enemy, for the investment situation Bengal , is the propensity of calling strike on any and every occasions and paralyzing the investment prospect of the state.

Bengal deadly needs an Entreprenuerial Ecosystem

Another successful Strike. The tradition of strikes, are showing signs of long term stability.Much like the State Government . Though the frequency of strike, has lowered in comparison to what was happening, on the early part of these year. Still the tradition continues.

In a democratic society, strikes are one important element on the overall political activism process . However administration of strike could be instrumented, in a better fashion by shortening it into few hours rather than a 24 hours program. There has to some kind of innovation, implemented that the strike remains as a effective political activism tool, and the development agenda of the state is not also compromised.

These are the some of the important reasons, that Bengal deadly needs an Entrepreneurial Ecosystem, to successfully encounter both its internal and external threats on its development agenda by effectively innovating in all levels.