MySubsidy

Incentive Scheme for MSMEs in Powerloom Sector: Subsidy for Water Conservation/ Environment Compliance

Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal · Central government

West Bengal offers micro and small powerloom units up to 50% subsidy, capped at ₹2 lakh, to install sound pollution control devices.

Closed. Applications closed on 31 December 2025. The details below describe the most recent cycle.

Key facts

Subsidy amount
Up to ₹2,00,000
Instrument
Subsidy
Deadline
31 December 2025
Disbursement
Reimbursed after spend

About this scheme

The Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal, runs the "Incentive Scheme for MSMEs in Powerloom Sector". It came into force on January 1, 2022, and remains in effect until December 31, 2024. The scheme encourages textile units to install modern shuttleless powerlooms. It also seeks to build a durable ecosystem for textile MSMEs — using resources more efficiently, creating jobs, and widening operational capacity so that West Bengal emerges as a leading powerloom state in India.

One sub-scheme under this framework is "Subsidy for Water Conservation/ Environment Compliance". It addresses environmental concerns directly. Eligible micro and small enterprises in the powerloom sector may claim reimbursement for money spent on captive sound pollution control devices that form part of an approved project.

The sub-scheme reflects the state government's twin intent: upgrading industrial infrastructure and securing environmental sustainability and compliance in a key manufacturing sector. By covering part of these costs, it nudges businesses towards greener practices and better operational standards.

Who can apply

Eligible business forms
Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
Udyam registration
Not specified
MSME registration
Required
DPIIT startup recognition
Not specified
GST registration
Not specified
Where the business may be based
West Bengal

- Open to all micro, small and medium enterprises (MSMEs) operating in the powerloom sector. - Commercial production must have commenced on or after January 1, 2022, and on or before December 31, 2024. - A Four-party agreement must have been executed with the Directorate of Textiles, a Financial Institution, and Tantuja. - The unit must fall under the private sector, cooperative sector, or joint sector undertaking, which includes companies/undertakings owned and managed by the State Government and Industrial SHGs. - A detailed feasibility report/project prepared for the purpose must cover the project. - Approval and sanction for the project must have been obtained from a Central Financial Institution, Commercial Bank, or State Financial Institution.

How to apply

- **Obtain the application form:** Secure the prescribed format, Form-A2, either from the official website or through the download link supplied. - **Begin production:** Your micro, small or medium enterprise in the Powerloom sector must have commenced commercial production at some point between January 1, 2022 and December 31, 2024. - **Assemble the paperwork:** Collect every supporting document required. Ordinarily this covers the Udyam registration certificate, a detailed project report addressing the installation of sound pollution control devices, the bank sanction letter for the project, invoices or bills for the expenditure incurred, the Four-party agreement, and evidence of production commencement. - **Fill in the application:** Complete Form-A2 in full and without error, enclosing all documents sought. - **File offline:** Deliver the completed form together with the documents, offline, to the Directorate of Textiles at the address given in the scheme details. The filing must reach the Directorate within 12 months of the date on which commercial production commenced. - **Wait for scrutiny:** The Directorate of Textiles will review and verify the application. The Directorate will communicate further on the status of your application.

Apply on the issuer's site

How applications are assessed

Before any subsidy reimbursement is considered, the project needs approval and sanction from a Central Financial Institution, a Commercial Bank, or a State Financial Institution. Once that is in place, the Directorate of Textiles examines the applications received — Form-A2 along with the supporting documents — to confirm eligibility and to verify the expenditure incurred on sound pollution control devices.

Frequently asked questions

What is the primary objective of this sub-scheme?

The "Subsidy for Water Conservation/ Environment Compliance" sub-scheme reimburses eligible micro and small enterprises in the Powerloom sector for expenditure on captive sound pollution control devices.

Which enterprises are eligible to apply for this subsidy?

The scheme covers micro, small and medium enterprises in West Bengal's powerloom sector that began production between January 1, 2022 and December 31, 2024, hold a Four-party agreement, and have secured project approval from a Central Financial Institution, Commercial Bank or State Financial Institution.

What is the maximum subsidy amount available?

Enterprises that qualify may claim a subsidy covering half the applicable cost, capped at ₹2,00,000 (Two Lakh Indian Rupees).

What kind of expenses does the subsidy cover?

The subsidy reimburses an enterprise for what it spends on captive sound pollution control devices under an approved project.

How do I apply for this subsidy?

Submit your application offline in the prescribed format (Form-A2) with all relevant documents to the Directorate of Textiles once commercial production has commenced. The deadline is 12 months from the date commercial production begins.

What is the application deadline?

An enterprise must apply within 12 months of commencing commercial production, and since the scheme covers units that began production between January 1, 2022, and December 31, 2024, the final date on which an application can be submitted is December 31, 2025.

Sectors

  • Manufacturing Industrial
  • Msme
  • Powerloom
  • West Bengal
  • Subsidy
  • Environment Compliance

Details last verified on 16 September 2026. Source: the issuer's published information.