Incentive Scheme for MSMEs in Powerloom Sector: Interest Subsidy on Term Loan

by
West BengalEntrepreneurship Incentives Interest Subsidy Powerloom Reimbursement Subsidy Term Loan
  • Scheme For: Infra
  • Categories: Business & Entrepreneurship
  • Tags: Powerloom, Incentives, Interest Subsidy, Entrepreneurship, Subsidy, Reimbursement, Term Loan

“Interest Subsidy on Term Loan” incentives under the “Incentive Scheme for MSMEs in Powerloom Sector” scheme implemented by the Dept. of MSME & T, Government of West Bengal, aims to provide subsidy on annual interest liability on the Term Loan borrowed from a Bank to an approved project.

Incentive Scheme for MSMEs in Powerloom Sector: Interest Subsidy on Term Loan - Introduction

The scheme “Interest Subsidy on Term Loan” is a sub scheme under the “Incentive Scheme for MSMEs in Powerloom Sector”. It was launched on 1st January, 2022, by the Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal, and shall remain valid up to 31st December, 2024.

Objective of the "Incentive Scheme for MSMEs in Powerloom Sector”:

The objective of the Scheme is to extend fiscal incentives for installation of New Age shuttleless Powerlooms by MSMEs in Textile sector with a view to boost production of the improved quality fabrics and to create a sustainable ecosystem for MSMEs in Textile sector which can maximize the utilization of resource, generate new employment and widen the area of operation to make the State emerge as the leader in Powerloom sector in country.

Objective of the "Interest Subsidy on Term Loan" Sub-scheme:

Through this incentive, an eligible micro, small or medium enterprise in Powerloom sector will be entitled to Interest Subsidy on annual interest liability on the Term Loan borrowed from a Commercial Bank/ Cooperative Bank/ Scheduled Banks approved by RBI/ RRBs/ Financial Institution (Central and State) for implementation of the approved project.

Benefits

Micro & Small Enterprise:

  • Zone A & B: 55% of interest liability for 5 years.
  • Zone C, D & E: 70% of interest liability for 5 years

Medium Enterprise:

  • Zone B, C, D & E: 25% of total Term Loan interest paid by the enterprise for 5 years subject to a ceiling of ₹ 1,75,00,000/- per year.

Note: The interest subsidy will be payable annually subject to submission of a statement / certificate (in wbmsmet.gov.in) by the lending Bank /Financial Institution to substantiate that the unit has paid the due interest to the institution on the due dates and has not defaulted in payment of interest at any time during the period.

Eligibility

  • The Scheme shall be generally applicable to all micro, small, and medium enterprises (MSMEs) in the powerloom sector.
  • Enterprises must have started production from 01.01.2022 to 31.12.2024.
  • Enterprises should have executed a Four-party agreement with the Directorate of Textiles, Financial institution and Tantuja.
  • The units should be a private sector, cooperative sector and joint sector undertaking as also companies/undertakings owned and managed by the State Government and the Industrial SHGs.
  • The project should be covered by a detailed feasibility report/project prepared for the purpose.
  • The project should have been approved and sanctioned by a Central Financial Institution or Commercial Banks or State Financial Institutions.

Exclusions

  • 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).

Application Process

After commencement of production an eligible micro, small or medium enterprise in Powerloom segment claiming the subsidy, will submit an application as per prescribed format in Form-A2 with all the relevant documents to the Directorate of Textiles.

Time frame for submission of first Application: Within 12 months from the date of commencement 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

Definitions

Districts of Birbhum, Purulia, Bankura, Paschim Medinipur (excluding municipal corporation/ municipal areas), Uttar Dinajpur, Dakshin Dinajpur, Sundarban Areas of South and North 24 Parganas and Jhargram.