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 reimburses ESI and EPF contributions for powerloom MSMEs where at least 50% of employees come from the State 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 Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal, introduced the 'Incentive Scheme for MSMEs in Powerloom Sector' on January 1, 2022. The scheme remains in force until December 31, 2024. It seeks to extend fiscal incentives to textile-sector MSMEs that install new-age shuttleless powerlooms. The intended outcomes are higher output of improved quality fabrics, a more sustainable MSME ecosystem, better resource utilisation, fresh employment, and a broader operational base that positions West Bengal as a leader in the powerloom sector.
'Work Force Welfare Assistance' operates as a sub-scheme under this framework, delivering targeted incentives. A micro, small, or medium enterprise in the powerloom sector that qualifies may claim reimbursement of what it spends towards its Employees' State Insurance (ESI) and Employees' Provident Fund (EPF) contributions.
Reimbursement is conditional: no less than 50% of the enterprise's employees must be drawn from persons registered with the Employment Bank of the State. The sub-scheme thus eases employee welfare costs for MSMEs while encouraging recruitment from local sources.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- West Bengal
- All micro, small, and medium enterprises (MSMEs) operating in the powerloom sector are covered. - Commercial production must have started on or after January 1, 2022, and no later than December 31, 2024. - A Four-party agreement must have been signed with the Directorate of Textiles, a Financial Institution, and Tantuja. - Eligible units include those in the private sector, cooperative sector, joint sector, as well as companies or undertakings owned and managed by the State Government, including Industrial Self Help Groups (SHGs). - The project requires backing from a detailed feasibility report and must have received approval and sanction from a Central Financial Institution, Commercial Bank, or State Financial Institution. - For reimbursement of ESI/EPF contributions, at least 50% of the enterprise's employees must be recruited from persons registered with the Employment Bank of West Bengal.
How to apply
- Procure Form-A2, the prescribed format for applying for this subsidy. - Fill in the form completely, providing all required particulars along with the supporting documents. - Send the completed application to the Directorate of Textiles in offline mode. - The first application must reach within 12 months of the date of commencement of commercial production. That date of commencement of commercial production has to 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 provides financial incentives to MSME textile units in the state for installing new shuttleless powerlooms, aiming to raise quality fabric output, build a sustainable ecosystem, create jobs and strengthen the state's position in the powerloom sector.
What specific benefits does the 'Work Force Welfare Assistance' sub-scheme offer?
Qualifying MSMEs are reimbursed in full for their ESI and EPF contributions during the first year. From the second year onward, 75% of these contributions is reimbursed for 5, 7, or 9 years, as determined by the zone.
What are the eligibility criteria for an enterprise?
MSMEs in the powerloom sector that began production between January 1, 2022, and December 31, 2024, are eligible, provided they are private, cooperative, or joint sector undertakings with a Four-party agreement, a detailed feasibility report, and project approval from a financial institution, and that at least 50% of their employees come from the State's Employment Bank.
How long can an enterprise receive these benefits?
The benefit period varies by zone: Zone B receives 5 years, Zone C 7 years, and Zones D & E 9 years.
What is the application process?
Submit your application offline in the prescribed Form-A2 to the Directorate of Textiles, with the first application due within 12 months of commencing 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 18 September 2026. Source: the issuer's published information.