Incentive Scheme for MSMEs in Powerloom Sector: State Capital Investment Subsidy
At a Glance
Scheme Category
Business & Entrepreneurship,Setting up / start-up / entrepreneurship
Target Beneficiaries
Business Entity,Industries,Joint Liability Groups (JLGS),NGO,Registered Societies,Trust,Self Help Groups (SHGS)
Brief Description
“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.
Benefit Type
Cash
Eligibility Criteria
- 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.
Application Mode
Offline
Application Process
- A micro, small or medium enterprise in Powerloom segment shall duly apply in prescribed form to the Directorate of Textile in <nis:link nis:type=webUrl nis:id=slugId nis:text="Form-A1" nis:value=https://wbmsmet.gov.in/home/download/YzA0YzdiMjc0YjAwYjBiMDgwYTRjYmRkOTU1MDY1NGQyNTNjM2YyYWYxMDRhNTkyYjRiMWI1YmVkZDYyOTZlN2YwNDc3ZDgwMDM5YzgxYjhmZWZiMWY2ODI0ZTNjYTUzMjU4N2YwYjViMjJiZTllZjAzYmM3NTRiZTY4ZDk0MTVjVmtvdlJCcjA0ZlpLYjZkbTlPQ0hyUTBaNGRuVzZZOXpHTlpGRkJwcUlZaDNwNXF0S01rSU4rTE5ZS3JCd3VKVmp5c1drM3hEb29QaHlXNit1Vy9CQT09 nis:enabled=true/> 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, &39;B&39; Block, Kolkata 700001 Tel No. 033-2248 4537 / 2248 6271 (Ext. 215) Fax No. 033-2248 4537
Required Documents
- A copy of the Memorandum of Association and Articles of Association authenticated by the Registrar of Companies/ partnership deed (wherever applicable). A statement on the name and address of the Directors /Partners /Owners of the enterprise/ Members of Cooperative or Self Help Groups, as applicable. Copy of approved project report. A copy of loan sanctions letter and disbursement letter issued by financial institutions/ banks. Copy of agreement. A copy of the audited balance sheet for the last 2 years wherever applicable. Existing manufacturing activities in West Bengal stating items, annual approved capacity, annual production during the last three years (in quantity and value in Rs. Lakh), if applicable. Copy of the land deed (wherever applicable) (In case of rented /leasehold land / buildings, copy of rent agreement and receipt /lease agreement). Copy of mutation & conversion certificate of land/ building. Copy of valid consent to operate certificate from the WBPCB. Copies regarding SGST. Copy of Trade Licence. Copy of first electricity bill (wherever applicable). Copy of acknowledgement of Udyam Registration. Copy of SC /ST certificate wherever applicable. Copy of other statutory licenses/certificates, if necessary. “Self declaration” as per para 7.1(vi) of the Official Scheme Guidelines . Self certification on fixed assets as per Annexure-I .
FAQs
What is the primary eligibility criteria for incentives under the “Incentive Scheme for MSMEs in Powerloom Sector”?
The scheme shall generally be applicable to all micro, small and medium enterprises in the powerloom sector which have started production on or after 1st day of January, 2022 and have executed a Four-party agreement between the enterprise, Tantuja, Directorate of Textiles & Financial institution. Terms and conditions as a part of this agreement will be prescribed by the Department of MSME & T, WB in due course of implementation of the scheme.
How does the Directorate of Textile scrutinize and conduct physical inspection of the enterprise upon receiving its application for incentives?
On receipt of application for incentive from an enterprise the Directorate of Textile shall make, as expeditiously as possible and not later than 15 days, scrutiny of/ enquiry into particulars furnished by the enterprise and cause physical inspection of the enterprise through the Officers of the Directorate to ascertain Fixed Capital Investment proposed to be made in Plant and Machinery (new age shuttle less loom) by it.
How is the Capital Investment Subsidy released by the Directorate of Textiles to the Bank/FI, and what requisites are necessary for this process?
Capital Investment Subsidy will be released by Directorate of Textiles (DOT) to the Bank/FI in advance as per requisition placed by the bank against the invoice of the purchase order produced by the enterprise. Bank will place requisition as mentioned above as per format prescribed by the Directorate of Textile.
What is the procedure for claiming the Subsidy?
Enterprises need to apply for the subsidy along with the required documents to the designated authorities as per the guidelines provided by the concerned department or agency.
What is the significance of the classification of areas into different zones for the scheme?
The classification helps in determining the quantum of incentives available for projects based on their location, with higher incentives provided for projects in backward areas.
Would an eligible enterprise that has availed of incentives or subsidies under any other state government incentive scheme be eligible for benefits under the Incentive Scheme for MSMEs in the Powerloom Sector for other specified items?
Yes, an eligible enterprise which has availed of incentive/ subsidy in respect of any of the items specified under any other Incentive of State Govt. shall also be eligible to get the benefits of other items only under Incentive Scheme for MSMEs in Powerloom Sector subject to fulfillment of terms and conditions of the Scheme.
How does the Directorate of Textiles determine the eligibility of enterprises for projects financed from their own resources?
In case of projects with arrangement of finance from own resources, eligibility of the enterprise shall be considered by the Directorate of Textiles according to the declaration of the enterprise regarding source of finance supported by a certificate issued by a Chartered Accountant as per Annexure-VI provided the Directorate of Textiles is satisfied about the technical specification of the machineries installed and the arrangement of such finance.
What is the definition of "Fixed Capital Investment"?
"Fixed Capital Investment" means investment made in plant and machinery in an approved project of the eligible unit/enterprise on or after 1st January, 2021 subject to other conditions laid down in Clause No.-7 of the official scheme guideline.
What is an “Approved project”?
"Approved Project" means the industrial project of a unit/ an expansion unit in the Powerloom sector which should be approved before implementation of the project in two steps - the technical part of the project should be approved before implementation of the project by the Directorate of Textile under the Deptt. of Micro, Small & Medium Enterprises and Textiles, Govt. of West Bengal and subsequently should be approved for its financial part by any commercial Banks/ Financial Institution (Central and State)/ Cooperative Banks/ scheduled banks approved by RBI/ RRBs financing the project.
What measures are in place to prevent misuse of the subsidy scheme?
Strict guidelines, documentation requirements, and verification procedures are in place to ensure that subsidies are availed by eligible enterprises for genuine purposes only.
What action will the Directorate of Textile take if an application is determined to be ineligible for incentives under the Incentive Scheme for MSMEs in the Powerloom Sector?
If any application is found to be not eligible for incentives under the Incentive Scheme for MSMEs in Powerloom Sector, Directorate of Textile will issue a letter of rejection to the applicant enterprise.