“State Capital Investment Subsidy” incentives under “Incentive Scheme for MSMEs in Powerloom Sector” scheme implemented by the Dept. of MSME & T, Government of West Bengal, aims to provide subsidy of the fixed capital investment made for its approved project.
Incentive Scheme for MSMEs in Powerloom Sector: State Capital Investment Subsidy - Introduction
The scheme “State Capital Investment Subsidy” 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 the Textile sector with a view to boost production of improved quality fabrics and to create a sustainable ecosystem for MSMEs in the Textile sector which can maximize the utilization of resources, generate new employment and widen the area of operation to make the State emerge as the leader in the Powerloom sector in the country.
Objective of the "State Capital Investment Subsidy" Sub-scheme:
Through this incentive, an eligible micro or small or medium enterprise in the Powerloom sector irrespective of area/ zone will be entitled to Capital Investment Subsidy for its approved project of fixed capital investment on Plant and Machinery (New Age Shuttle Less Powerloom).
Benefits
- 20% of Fixed Capital Investment on Plant and machinery.
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).
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.
Application Process
A micro, small or medium enterprise in the Powerloom segment shall duly apply in the prescribed form to the Directorate of Textiles via wbmsmet.gov.in before any investment in Plant and machinery (new age shuttle less loom).
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