Incentive Scheme for MSMEs in Powerloom Sector: Work Force Welfare Assistance
Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal · Central government
West Bengal scheme reimburses ESI/EPF contributions for powerloom MSMEs if at least 50% of staff come from the State's Employment Bank.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The 'Incentive Scheme for MSMEs in Powerloom Sector' came into effect on January 1, 2022, under the Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal. Its validity extends until December 31, 2024. The scheme's primary purpose is to offer fiscal incentives to MSMEs in textiles for acquiring modern shuttleless powerlooms. This is intended to enhance the output of superior-grade fabrics and build a durable ecosystem for MSMEs, with the broader goals of optimising resource use, creating fresh employment opportunities, and broadening operational reach to position West Bengal as a frontrunner in the powerloom industry.
A component of this initiative, the 'Work Force Welfare Assistance', provides targeted support. Under this sub-scheme, an eligible micro, small, or medium powerloom enterprise can claim reimbursement for its contributions to Employees' State Insurance (ESI) and Employees' Provident Fund (EPF). A prerequisite for this benefit is that no fewer than 50% of the enterprise's workforce must be drawn from individuals enrolled with the State's Employment Bank. This measure aids MSMEs by reducing their employee welfare outlays while simultaneously encouraging local hiring.
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
- Applicable to all micro, small, and medium enterprises (MSMEs) in the powerloom sector. - Commercial production must have commenced between January 1, 2022, and December 31, 2024. - A Four-party agreement must be executed with the Directorate of Textiles, a Financial Institution, and Tantuja. - Units may be from the private, cooperative, or joint sector, or be companies/undertakings owned and managed by the State Government, including Industrial Self Help Groups (SHGs). - The project must be supported by a detailed feasibility report and approved and sanctioned by a Central Financial Institution, Commercial Bank, or State Financial Institution. - At least 50% of the enterprise's employees must be recruited from persons registered with the Employment Bank of West Bengal to qualify for ESI/EPF contribution reimbursement.
How to apply
- Obtain Form-A2, the prescribed application format, for claiming the subsidy. - Fill out the form in full, attaching all required details and supporting documents. - Submit the completed application offline to the Directorate of Textiles. - The first application must be submitted within 12 months of the date commercial production begins. That production date must fall between January 1, 2022, and December 31, 2024. - Address applications to: 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.
Frequently asked questions
What is the primary objective of this scheme?
The scheme’s objective is to provide fiscal incentives to MSMEs in the textile sector for installing new-age shuttleless powerlooms, thereby improving fabric quality, fostering a sustainable ecosystem, generating employment, and strengthening the state’s position in the powerloom industry.
What specific benefits does the 'Work Force Welfare Assistance' sub-scheme offer?
Eligible MSMEs get full reimbursement of their ESI and EPF contributions in the first year. For the next 5, 7, or 9 years, depending on the zone, 75% of these contributions are reimbursed.
What are the eligibility criteria for an enterprise?
The scheme applies to MSMEs in the powerloom sector that began production between January 1, 2022, and December 31, 2024, and meet conditions including a Four-party agreement, approval by a financial institution, and a detailed feasibility report. Eligible units must be private, cooperative, or joint sector undertakings, with at least 50% of employees drawn from the State's Employment Bank.
How long can an enterprise receive these benefits?
Benefits last 5 years in Zone B, 7 years in Zone C, and 9 years in Zones D and 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 filed within 12 months of the start of commercial production, which must have taken place between January 1, 2022, and December 31, 2024.
Sectors
- Manufacturing Industrial
- Powerloom
- Textile
- Msme
- West Bengal
- Esi
- Epf
- Workforce Welfare
Details last verified on 3 August 2026. Source: the issuer's published information.