Incentive Scheme for MSMEs in Powerloom Sector: Waiver of Electricity Duty
Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal · Central government
The West Bengal government scheme reimburses electricity duty for powerloom MSMEs for 5–10 years, up to ₹50 lakh annually.
Closed. Applications closed on 31 December 2025. The details below describe the most recent cycle.
Key facts
- Subsidy amount
- Up to ₹5,00,00,000
- Instrument
- Subsidy
- Deadline
- 31 December 2025
- Disbursement
- Reimbursed after spend
About this scheme
The Incentive Scheme for MSMEs in the Powerloom Sector was introduced on January 1st, 2022, by the Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal. Its purpose is to provide fiscal incentives to MSMEs that install new-age shuttleless powerlooms, with the aim of improving fabric quality and building a resilient ecosystem for textile businesses. The scheme seeks to optimise resource use, create jobs, and expand business operations, positioning West Bengal as a national leader in the powerloom sector.
A key component of this programme is the "Waiver of Electricity Duty". Under this sub-scheme, eligible micro, small, or medium enterprises in the powerloom sector undertaking approved projects receive a direct reimbursement of electricity duty. This reimbursement applies to electricity used for manufacturing activities for a period of 5 to 10 years, beginning from the date of commercial production commencement. The relief lowers operational costs, supports competitiveness, and encourages modernisation. The scheme is valid for new production commencements until December 31st, 2024.
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. - Production must have commenced between January 1, 2022, and December 31, 2024. - A Four-party agreement must have been executed with the Directorate of Textiles, Financial institution, and Tantuja. - Units may be from the private sector, cooperative sector, joint sector, state government-owned/managed companies/undertakings, or Industrial SHGs. - The project must be covered by a detailed feasibility report/project. - The project must have been approved and sanctioned by a Central Financial Institution, Commercial Bank, or State Financial Institution.
How to apply
The scheme is accessed through an offline application route. The steps are as follows:
- Prepare a detailed feasibility report or project report for the powerloom installation. - Ensure the project has been officially approved and sanctioned by a Central Financial Institution, Commercial Bank, or State Financial Institution. - The enterprise must have commenced commercial production between January 1, 2022, and December 31, 2024. - Obtain the prescribed application form for the scheme. - Duly fill out FORM-C and gather all relevant supporting documents as required by the Directorate of Electricity Duty. - Submit the complete application package to the Director of Electricity Duty, Directorate of Commercial Taxes at the specified address in Kolkata. - The first application must be submitted within 12 months from the date of commencement of commercial production. - For any assistance, applicants can contact the help desk via phone or email.
How applications are assessed
The Directorate of Electricity Duty receives applications and checks that the enterprise and its project meet the scheme’s guidelines. A project must first receive sanction and approval from a Central Financial Institution, Commercial Bank, or State Financial Institution; this prior approval acts as an initial check on the viability and formal support of the powerloom installation. Once this is confirmed, the Directorate processes reimbursement claims for eligible units.
Frequently asked questions
What is the primary objective of the Incentive Scheme for MSMEs in Powerloom Sector?
The scheme offers fiscal incentives to MSMEs in West Bengal’s textile sector for installing new-age shuttleless powerlooms, with the aim of improving fabric quality, creating jobs, and positioning the state as a leader in powerloom manufacturing.
What specific benefit does the "Waiver of Electricity Duty" sub-scheme offer?
Eligible micro, small, and medium enterprises in the powerloom sector can claim reimbursement of electricity duty on power used for manufacturing, with the benefit lasting 5 to 10 years. The reimbursement percentage and annual cap vary by enterprise size and geographic zone.
Who is eligible to apply for this scheme?
The scheme is open to all MSMEs in West Bengal’s powerloom sector, including private, cooperative, joint sector undertakings, and Industrial SHGs. Eligibility requires production to commence between January 1, 2022, and December 31, 2024, and an approved project sanctioned by a financial institution.
What is the maximum financial benefit an enterprise can receive?
Medium enterprises in Zones D and E may claim an electricity duty waiver of up to ₹50 lakh (₹5,000,000) annually for a maximum of 10 years, while micro and small enterprises are eligible for a yearly cap of ₹10 lakh.
Is there a deadline for new enterprises to start production to be eligible?
Yes, eligibility requires that commercial production began between January 1, 2022, and December 31, 2024.
What is the application process for the scheme?
Eligible MSMEs must apply offline in FORM-C to the Directorate of Electricity Duty, attaching the required documents. The first application should be submitted within 12 months of starting commercial production.
Sectors
- Manufacturing Industrial
- Powerloom
- Textile
- Msme
- West Bengal
- Electricity Duty
Details last verified on 3 August 2026. Source: the issuer's published information.