Incentive Scheme for MSMEs in Powerloom Sector: Waiver of Electricity Duty
By Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal
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Quick Answer
This West Bengal government scheme offers a reimbursement of electricity duty for micro, small, and medium enterprises in the powerloom sector for 5 to 10 years, up to ₹50 lakh annually.
- Funding amount
- Up to ₹5Cr
- Funding type
- Subsidy
- Application deadline
- Closed
- Location
- West Bengal
- Registrations needed
- Udyam registration
Results & next round
Applications for this round closed on 31 December 2025. The organiser has not published a selection list that we can verify yet.
Selections for this programme are announced by Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal. Official links are listed under Sources below.
We update this page when results are published, and when the next round opens.
About this subsidy
The Incentive Scheme for MSMEs in the Powerloom Sector, launched on January 1st, 2022, by the Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal, aims to significantly boost the textile industry within the state. The overarching objective of this scheme is to extend crucial fiscal incentives to MSMEs involved in the installation of new-age shuttleless powerlooms. This initiative is designed to enhance the production of higher-quality fabrics, thereby fostering a sustainable and robust ecosystem for MSMEs in the textile sector. By maximizing resource utilization, generating new employment opportunities, and expanding the operational footprint of businesses, the scheme intends to position West Bengal as a national leader in the powerloom sector. The "Waiver of Electricity Duty" is a key sub-scheme under this broader incentive program. Through this specific incentive, eligible micro, small, or medium enterprises engaged in the powerloom sector that undertake approved projects will receive a direct reimbursement of the electricity duty. This reimbursement covers electricity consumed specifically for their manufacturing activities for a period of 5 to 10 years, starting from the date of commencement of commercial production. This financial relief is intended to reduce operational costs for powerloom units, making them more competitive and encouraging modernization within the industry. The scheme remains valid for new production commencements until December 31st, 2024.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Provider
Department of Micro, Small and Medium Enterprises and Textiles, Government of West BengalWest Bengal · India
Benefits & Funding
- Amount
- Up to ₹5Cr
What You Get
This scheme offers a significant financial incentive through the reimbursement of electricity duty on power consumed for manufacturing activities. The benefits are tiered based on the enterprise size and geographic zone within West Bengal:
- Micro & Small Enterprises:
- Zone A & B: Entitled to a 50% waiver of electricity duty, with an annual cap of ₹10 lakh (₹1,000,000), for a period of 5 years.
- Zone C, D & E: Entitled to a 75% waiver of electricity duty, with an annual cap of ₹10 lakh (₹1,000,000), for a period of 5 years.
- Medium Enterprises:
- Zone B & C: Entitled to a 100% waiver of electricity duty, with an annual cap of ₹25 lakh (₹2,500,000), for a period of 5 years.
- Zone D & E: Entitled to a 100% waiver of electricity duty for the first 5 years, with an annual cap of ₹50 lakh (₹5,000,000). From the 6th year up to the 10th year, these enterprises receive a 75% waiver, also subject to an annual maximum of ₹50 lakh (₹5,000,000). The reimbursement directly reduces operational expenses, promoting cost efficiency and sustainability for powerloom MSMEs.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Selection Process
The selection for this reimbursement scheme is primarily based on the eligibility of the enterprise and the approval of their project by specified financial institutions. Applications are submitted to the Directorate of Electricity Duty, which verifies the compliance of the MSME and its project with the scheme guidelines. The crucial aspect is the prior sanction and approval of the project by a Central Financial Institution, Commercial Bank, or State Financial Institution, which serves as a pre-screening step for the viability and formal backing of the powerloom installation. The Directorate then processes the reimbursement claims for eligible units.
Application Process
- 1
Prepare Project Report
Develop a detailed feasibility or project report for the powerloom installation and ensure it is sanctioned by a financial institution.
You - 2
- 3
- 4
- 5
How to apply
Four steps from draft to disbursement — one action each.
- 1
Submit on the official portal
Use the official application link and verify all details before final submission.
- 2
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 the Incentive Scheme for MSMEs in Powerloom Sector?
The main objective is to provide fiscal incentives for the installation of new-age shuttleless powerlooms by MSMEs in the textile sector in West Bengal, aiming to boost quality fabric production, generate employment, and establish the state as a leader in the powerloom sector.
What specific benefit does the "Waiver of Electricity Duty" sub-scheme offer?
This sub-scheme offers eligible micro, small, and medium enterprises in the powerloom sector a reimbursement of the electricity duty on power consumed for manufacturing activities. This benefit is available for 5 to 10 years, with varying percentages and annual caps based on enterprise size and geographic zone.
Who is eligible to apply for this scheme?
The scheme is open to all micro, small, and medium enterprises (MSMEs) in the powerloom sector in West Bengal. Key criteria include commencing production between January 1, 2022, and December 31, 2024, having an approved project sanctioned by a financial institution, and being a private, cooperative, or joint sector undertaking, or an Industrial SHG.
What is the maximum financial benefit an enterprise can receive?
Medium enterprises in Zone D & E can receive up to ₹50 lakh (₹5,000,000) per year as a waiver of electricity duty for up to 10 years. For micro and small enterprises, the maximum annual benefit is ₹10 lakh.
Is there a deadline for new enterprises to start production to be eligible?
Yes, enterprises must have started commercial production between January 1, 2022, and December 31, 2024, to be eligible for this scheme.
What is the application process for the scheme?
The application process is offline. Eligible MSMEs must apply in a prescribed form (FORM-C) to the Directorate of Electricity Duty, along with relevant documents. The first application must be submitted within 12 months of commencing commercial production.
Sources
Data on this page is compiled from official program and provider references.
