VZCZCXRO2965
PP RUEHAST RUEHBI RUEHDBU RUEHLH RUEHNEH RUEHPW
DE RUEHCI #0267 2791105
ZNR UUUUU ZZH
P 061105Z OCT 09
FM AMCONSUL KOLKATA
TO RUEHC/SECSTATE WASHDC PRIORITY 2469
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUEHCI/AMCONSUL KOLKATA 3066

UNCLAS KOLKATA 000267 
 
SENSITIVE 
SIPDIS 
 
PASS TO SCA/INS 
 
E.O. 12958: N/A 
TAGS: PGOV ECON IN
SUBJECT: LAND POLITICS CONTINUE IN WEST BENGAL; BUSINESSES NOW 
WORKING WITH EMBOLDENED TRINAMOOL 
 
REF: Kolkata 164 
 
¶1. (SBU) Summary: Recent statements from business leaders and 
politicians reinforced the idea that land acquisition will 
continue to be a political obstacle for businesses in West 
Bengal.  Business leaders have recently begun acknowledging the 
importance of working with both the government and the 
opposition to build political support for commercial projects. 
Comments by party officials further illustrated that the All 
India Trinamool Congress (AITC) is taking steps to prepare for 
its anticipated rise to power in West Bengal.  By contrast, the 
Communist Party of India - Marxist (CPI-M) does not seem to have 
a detectable strategy for reversing its streak of electoral 
losses. End summary. 
 
¶2. (SBU) During a September meeting with Acting Deputy Assistant 
Secretary (DAS) Michael Owen, several members of the American 
Chamber of Commerce (AmCham) concurred that business conditions 
in West Bengal will continue to be difficult for the next few 
years.  They cited challenges to land acquisition, 
infrastructure weaknesses and a failure by the Government of 
West Bengal to implement solutions to known problems.  Several 
commented that the state government appears today to be less 
supportive of investments than it was several years ago, perhaps 
a result of the recent high-profile failures to woo new 
investment. 
 
¶3. (SBU) Speaking about Tata's pullout from Singur, Partha 
Chatterjee, AITC General Secretary and Leader of Opposition in 
the state assembly, told DAS Owen that Tata did not consult AITC 
on the Nano manufacturing plant.  However, Chatterjee added that 
businesses are now approaching his party to discuss projects, 
which is consistent with remarks by AmCham members who told DAS 
that they are now engaging both CPI-M and the opposition. 
 
¶4. (SBU) Chatterjee expressed optimism about his party's chances 
in the Kolkata municipal elections in 2010 and the state 
elections in 2011.  He is confident of success, so long as the 
party "does not make any mistakes."  He described efforts, such 
as a youth rally planned for the end of October, to recruit new 
leaders and mobilize its base.  He indicated that the AITC plans 
to expand its political operation outside of West Bengal and 
contest elections in Arunachal Pradesh, Jharkhand, Bihar and 
Tripura. 
 
¶5. (SBU) Interactions with Biman Basu, CPI-M's party chairman, 
were less fruitful.  When asked about his party's strategy for 
the 2011 state assembly elections, Basu said it was too early to 
have a strategy.  He had the same response about the municipal 
elections in 2010. Similarly, Basu did not point to any specific 
efforts to recruit and groom new CPI-M leaders. 
 
¶6. (SBU) Comment: Post conversations confirm that the business 
community has shifted allegiance away from the CPI-M and towards 
the AITC.  Investment in the state will continue to be hampered 
with political uncertainty and a lack of political consensus on 
investments. 
 
TAYLOR