Sarkari Yojana
Incentive Scheme for MSMEs in Powerloom Sector: Interest Subsidy on Term Loan
About Incentive Scheme for MSMEs in Powerloom Sector: Interest Subsidy on Term Loan
“Interest Subsidy on Term Loan” is one of the sub schemes of the “Incentive Scheme for MSMEs in Powerloom Sector”. The Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal, launched it on 1st January, 2022, and it stays in force upto 31st December, 2024. > Objective of the “Incentive Scheme for MSMEs in Powerloom Sector”:
The Scheme offers fiscal incentives to textile-sector MSMEs that install New age shuttleless Powerlooms. It aims to raise output of better-quality fabrics and build a sustainable ecosystem for textile MSMEs that makes the most of resources, creates fresh jobs and expands operations, so that the State becomes the country’s leader in the Powerloom sector. > Objective of the “Interest Subsidy on Term Loan” Sub-scheme:
An eligible micro, small or medium Powerloom enterprise can claim an Interest Subsidy on the yearly interest it owes on a Term Loan taken to carry out its approved project from a Commercial Bank/ Cooperative Bank/ Scheduled Banks approved by RBI/ RRBs/ Financial Institution (Central and State).
Scheme Overview
State Government
Business Entity
01 Jan 2022
Scheme Details
Eligibility Requirements
To qualify for Incentive Scheme for MSMEs in Powerloom Sector: Interest Subsidy on Term Loan, applicants must satisfy the following conditions:
As a rule, every micro, small, and medium…
As a rule, every micro, small, and medium enterprise (MSME) in the powerloom sector is covered by the Scheme.
Production must have begun between 01.01.2022 to 31.12.2024
Production must have begun between 01.01.2022 to 31.12.2024.
A Four-party agreement must have been signed with…
A Four-party agreement must have been signed with the Directorate of Textiles, the Financial institution and Tantuja.
Eligible units include private sector, cooperative sector and…
Eligible units include private sector, cooperative sector and joint sector undertakings, companies/undertakings owned and run by the State Government, and Industrial SHGs.
A detailed feasibility report/project drawn up for the…
A detailed feasibility report/project drawn up for the purpose must cover the project.
The project needs approval and sanction from a…
The project needs approval and sanction from a Central Financial Institution, Commercial Banks or State Financial Institutions.
Benefits Provided
Incentive Scheme for MSMEs in Powerloom Sector: Interest Subsidy on Term Loan provides the following benefits to eligible applicants:
Micro & Small Enterprise:
Zone A & B:
For 5 years, 55% of the interest liability is subsidised.
Zone C, D & E: 70% of the interest liability is covered for 5 years
Medium Enterprise:
Zone B, C, D & E:
For 5 years, 25% of the total Term Loan interest paid by the enterprise is reimbursed, up to a ceiling of ₹ 1,75,00,000/- per year. Note: The subsidy is paid every year once the lending Bank /Financial Institution furnishes a statement / certificate (in Annexure-II) confirming that the unit paid its interest on the due dates and never defaulted on interest during the period.
Documents Required
Applicants should keep the following documents ready before starting the application:
Memorandum of Association and Articles of Association authenticated…
Memorandum of Association and Articles of Association authenticated by the Registrar of Companies, or the partnership deed (where relevant).
Statement giving names and addresses of the enterprise's…
Statement giving names and addresses of the enterprise's Directors /Partners /Owners, or of Members of the Cooperative or Self Help Group, as the case may be.
The approved project report (copy)
The approved project report (copy).
Loan sanction letter and disbursement letter from the…
Loan sanction letter and disbursement letter from the financial institutions/ banks.
The agreement (copy)
The agreement (copy).
Audited balance sheets of the last 2 years,…
Audited balance sheets of the last 2 years, where relevant.
Details of current manufacturing in West Bengal
Details of current manufacturing in West Bengal: items, annual approved capacity and annual production over the last three years (quantity and value in Rs. Lakh), if relevant.
Land deed copy (where relevant); for rented /leasehold…
Land deed copy (where relevant); for rented /leasehold land / buildings, the rent agreement and receipt /lease agreement.
Mutation & conversion certificate of the land/ building
Mutation & conversion certificate of the land/ building.
Valid consent to operate certificate issued by the…
Valid consent to operate certificate issued by the WBPCB.
SGST-related copies
SGST-related copies.
The trade licence
The trade licence.
The first electricity bill (where relevant)
The first electricity bill (where relevant)
Udyam Registration acknowledgement
Udyam Registration acknowledgement
SC / ST certificate, where relevant
SC / ST certificate, where relevant.
Any other statutory licences/certificates, if needed
Any other statutory licences/certificates, if needed.
“Self declaration” in line with para 7.1(vi) of…
“Self declaration” in line with para 7.1(vi) of the Official Scheme Guidelines .
Certificate issued by the Bank/FI in the format…
Certificate issued by the Bank/FI in the format of Annexure-II.
2022-01-01
How to Apply
Offline Application
Applicants can apply for Incentive Scheme for MSMEs in Powerloom Sector: Interest Subsidy on Term Loan through the offline application process outlined below.
Application Process
Once production has started, an eligible Powerloom micro, small or medium enterprise seeking the subsidy must send an application in the prescribed Form-A2 together with all relevant documents to the Directorate of Textiles. Time frame for submission of first Application: The first claim must be filed within 12 months of the start of commercial production (01.01.2022 to 31.12.2024). Address: Directorate of Textiles, Handlooms, Spinning Mills, Silk Weaving & Handloom Based Handicrafts Division New Secretariat Buildings, 1, K. S. Roy Road, 5th Floor, 'B' Block, Kolkata 700001. Tel No. 033-2248 4537 / 2248 6271 (Ext. 215) Fax No. 033-2248 4537
Exclusions / Who Is Not Eligible
- Enterprises registered and for which eligibility certificates have been issued/ incentives have been sanctioned and/ or disbursed under the respective Incentive Scheme of the State.
- Enterprises registered and for which eligibility certificate have been issued in terms of the respective Incentive Scheme of the State but no sanction or disbursement of incentive has been made.
- Enterprises commenced production before 31.12.2021 and applied for incentive under the respective Incentive Scheme of the State within the stipulated date (The claim will be governed by the respective Incentive Scheme of the State).
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.