Incentive Scheme for MSMEs in Powerloom Sector: Work Force Welfare Assistance
By Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal
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Quick Answer
A West Bengal state scheme offering MSMEs in the powerloom sector reimbursement for ESI and EPF contributions, provided at least 50% of employees are recruited from the State's Employment Bank.
- Funding amount
- Varies
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- West Bengal
- Registrations needed
- Udyam registration
About this subsidy
The 'Incentive Scheme for MSMEs in Powerloom Sector' was launched on January 1, 2022, by the Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal, and is valid until December 31, 2024. Its overarching objective is to provide fiscal incentives for the installation of new-age shuttleless Powerlooms by MSMEs in the textile sector. This aims to boost the production of improved quality fabrics and cultivate a sustainable ecosystem for MSMEs, ultimately maximizing resource utilization, generating new employment, and widening the area of operation to establish West Bengal as a leader in the Powerloom sector.
The 'Work Force Welfare Assistance' is a sub-scheme designed to offer specific incentives. Through this program, an eligible micro, small, or medium enterprise in the powerloom sector will be entitled to reimbursement for expenditures incurred towards its contribution to Employees' State Insurance (ESI) and Employees' Provident Fund (EPF). A key condition for this reimbursement is that at least 50% of the employees in the enterprise must be recruited from persons registered with the Employment Bank of the State. This initiative directly supports MSMEs by alleviating employee welfare costs while also promoting local employment.
Eligibility
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Subsidy providers
Provider
Department of Micro, Small and Medium Enterprises and Textiles, Government of West BengalWest Bengal · India
Benefits & Funding
What You Get
The 'Work Force Welfare Assistance' sub-scheme offers significant financial relief to eligible MSMEs in the powerloom sector. Beneficiaries receive 100% reimbursement of their Employees State Insurance (ESI) and Employees Provident Fund (EPF) contributions in the first year. For subsequent years, 75% of these contributions are reimbursed. The duration of this benefit varies based on the geographical zone: 5 years for Zone B, 7 years for Zone C, and 9 years for Zones D & E. This support helps reduce operational costs for enterprises and promotes employee welfare, provided that at least 50% of the enterprise's workforce is recruited from persons registered with the State's Employment Bank. This long-term financial incentive aims to create a more stable and supportive environment for powerloom businesses in West Bengal.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Submit Application
The eligible enterprise submits the completed Form-A2 application to the Directorate of Textiles.
You - 2
- 3
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is the primary objective of this scheme?
The primary objective is to extend fiscal incentives for the installation of new-age shuttleless Powerlooms by MSMEs in the Textile sector, boosting quality fabric production, creating a sustainable ecosystem, generating employment, and expanding the state's leadership in the powerloom sector.
What specific benefits does the 'Work Force Welfare Assistance' sub-scheme offer?
Eligible MSMEs receive 100% reimbursement of their Employees State Insurance (ESI) and Employees Provident Fund (EPF) contributions in the first year. In subsequent years, 75% of these contributions are reimbursed for a period of 5, 7, or 9 years, depending on the zone.
What are the eligibility criteria for an enterprise?
The scheme is applicable to micro, small, and medium enterprises (MSMEs) in the powerloom sector that started production between January 1, 2022, and December 31, 2024. They must have executed a Four-party agreement, be a private, cooperative, or joint sector undertaking, have a detailed feasibility report, and their project must be approved by a financial institution. Additionally, at least 50% of employees must be from the State's Employment Bank.
How long can an enterprise receive these benefits?
The duration of benefits depends on the zone: 5 years for Zone B, 7 years for Zone C, and 9 years for Zones D & E.
What is the application process?
Applications must be submitted offline in the prescribed Form-A2 to the Directorate of Textiles. The first application must be submitted within 12 months from the date of commencement of commercial production, which must have occurred between January 1, 2022, and December 31, 2024.
Sources
Data on this page is compiled from official program and provider references.
