Sarkari Yojana
Incentive Scheme for MSMEs in Powerloom Sector: State Capital Investment Subsidy
About Incentive Scheme for MSMEs in Powerloom Sector: State Capital Investment Subsidy
A sub-scheme under the “Incentive Scheme for MSMEs in Powerloom Sector,” the “State Capital Investment Subsidy” was launched on 1st January 2022 by West Bengal’s Department of Micro, Small & Medium Enterprises and Textiles and remains valid through 31st December 2024. > Objective of the “Incentive Scheme for MSMEs in Powerloom Sector”:
The parent scheme extends fiscal incentives to MSMEs in the textile sector for installing new-age shuttleless powerlooms, aiming to boost production of higher-quality fabric, build a sustainable MSME ecosystem, maximize resource utilization, generate employment, and help the State lead the country’s powerloom sector. > Objective of the “State Capital Investment Subsidy” Sub-scheme:
Under this incentive, any eligible micro, small, or medium powerloom enterprise—regardless of area or zone—can claim a Capital Investment Subsidy for its approved fixed capital investment in Plant and machinery (new-age shuttleless powerloom).
Scheme Overview
State Government
Business Entity
01 Jan 2022
Scheme Details
Eligibility Requirements
To qualify for Incentive Scheme for MSMEs in Powerloom Sector: State Capital Investment Subsidy, applicants must satisfy the following conditions:
The Scheme generally applies to all micro, small,…
The Scheme generally applies to all micro, small, and medium enterprises (MSMEs) in the powerloom sector.
Enterprises must have started production between 01.01.2022 and…
Enterprises must have started production between 01.01.2022 and 31.12.2024.
Enterprises must have executed a Four-party agreement with…
Enterprises must have executed a Four-party agreement with the Directorate of Textiles, the Financial Institution, and Tantuja.
Units must fall under the private sector, cooperative…
Units must fall under the private sector, cooperative sector, joint sector, or be a company/undertaking owned and managed by the State Government, including Industrial SHGs.
The project must be backed by a detailed…
The project must be backed by a detailed feasibility report/project report prepared for the purpose.
The project must be approved and sanctioned by…
The project must be approved and sanctioned by a Central Financial Institution, Commercial Bank, or State Financial Institution.
Benefits Provided
Incentive Scheme for MSMEs in Powerloom Sector: State Capital Investment Subsidy provides the following benefits to eligible applicants:
A subsidy equal to 20% of the…
A subsidy equal to 20% of the fixed capital invested in plant and machinery.
Documents Required
Applicants should keep the following documents ready before starting the application:
The Memorandum and Articles of Association, authenticated by…
The Memorandum and Articles of Association, authenticated by the Registrar of Companies, or the partnership deed, wherever applicable.
A statement listing the names and addresses of…
A statement listing the names and addresses of the enterprise's directors, partners, or owners, or the members of the cooperative/self-help group, as relevant.
The approved project report
The approved project report.
The loan sanction letter and disbursement letter from…
The loan sanction letter and disbursement letter from the financing bank or institution.
A copy of the relevant agreement
A copy of the relevant agreement.
Audited balance sheets covering the preceding two years,…
Audited balance sheets covering the preceding two years, wherever applicable.
A note on existing manufacturing operations in West…
A note on existing manufacturing operations in West Bengal, covering the items made, the approved annual capacity, and production (quantity and value in Rs. lakh) over the last three years, if applicable.
The land deed, wherever applicable (for rented or…
The land deed, wherever applicable (for rented or leasehold land/buildings, the rent agreement and receipt, or lease agreement, instead).
The mutation and conversion certificate for the land…
The mutation and conversion certificate for the land or building.
A valid consent-to-operate certificate from the WBPCB
A valid consent-to-operate certificate from the WBPCB.
Documents relating to SGST
Documents relating to SGST.
The trade licence
The trade licence.
The first electricity bill, wherever applicable
The first electricity bill, wherever applicable.
The acknowledgement of Udyam Registration
The acknowledgement of Udyam Registration.
SC/ST certificate, wherever applicable
SC/ST certificate, wherever applicable.
Any other statutory licences or certificates, as necessary
Any other statutory licences or certificates, as necessary.
A "self declaration" as required under para 7.1(vi)…
A "self declaration" as required under para 7.1(vi) of the Official Scheme Guidelines.
Self-certification of fixed assets, as per Annexure-I
Self-certification of fixed assets, as per Annexure-I.
2022-01-01
How to Apply
Offline Application
Applicants can apply for Incentive Scheme for MSMEs in Powerloom Sector: State Capital Investment Subsidy through the offline application process outlined below.
Application Process
A micro, small, or medium powerloom enterprise must apply in the prescribed Form-A1 to the Directorate of Textile before making any investment in Plant and machinery (new-age shuttleless loom). Time frame for submission of first Application: Within 12 months of commencing 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).
> **Note:******
The cost of plant and machinery as found installed at the approved location includes only the cost of Powerlooms purchased and installed as per technical specification mentioned in approved project. The cost of the following items shall be excluded while calculating the investment made in Plant & Machinery:
- Equipments such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores.
- Installation of Plant and Machinery.
- Research and development equipments and pollution control equipments.
- Power generation set and extra transformer installed by the enterprise as per the regulations of the Power utility.
- Bank charges and service charges paid to the National Small Industries Corporations or the State Small Industries Corporation.
- Procurement or installation of cables, wiring, bus bars, electrical control panels (not mounted on individual machines), oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the Plant and Machinery or for safety measures.
- Gas producer plant.
- Transportation charges for indigenous machinery from the place of their manufacture to the site of the enterprise.
- Charges paid for technical knowhow for erection of Plant and Machinery.
- Such storage tanks which store raw materials and finished products only and are not linked with the manufacturing process.
- Fire fighting equipments.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.