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 MSME powerloom units, up to ₹50 lakh yearly for 5–10 years.
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 support 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 broaden operational capacity, positioning West Bengal as a leading powerloom hub nationally.
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 with approved projects receive a direct reimbursement of electricity duty paid on power consumed for manufacturing. This benefit applies for a period of 5 to 10 years from the start of commercial production, lowering operational costs and supporting modernisation. The scheme is open to 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
To apply for the Waiver of Electricity Duty scheme, candidates must complete an offline procedure as outlined below:
- Compile a comprehensive feasibility study or project report detailing the proposed powerloom installation. - Obtain formal approval and sanction for the project from a Central Financial Institution, Commercial Bank, or State Financial Institution. - Confirm that commercial production began on or after January 1, 2022, and no later than December 31, 2024. - Secure the designated application form for this scheme. - Complete FORM-C accurately and assemble all necessary supporting documentation as specified by the Directorate of Electricity Duty. - Forward the entire application dossier to the Director of Electricity Duty, Directorate of Commercial Taxes, at the designated Kolkata address. - Ensure the initial application is filed within 12 months of the commercial production start date. - For queries, reach the help desk by phone or email.
How applications are assessed
The assessment process begins with an eligibility check of the enterprise, followed by project approval from a designated financial institution. Applications go to the Directorate of Electricity Duty, which verifies that the MSME and its proposed project meet the scheme’s guidelines.
A key requirement is that the project must first receive sanction and approval from a Central Financial Institution, Commercial Bank, or State Financial Institution. This prior approval acts as a pre-screening step, confirming the viability and formal backing of the powerloom installation. Once this is established, the Directorate processes the 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 paid on power used for manufacturing. The benefit applies for 5 to 10 years, with reimbursement percentages and annual caps varying 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, provided they are private, cooperative, or joint sector undertakings, or Industrial SHGs, and have an approved project sanctioned by a financial institution. Production must have commenced between January 1, 2022, and December 31, 2024.
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. Micro and small enterprises are eligible for a yearly benefit capped at ₹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?
Applications for this scheme are submitted offline. Eligible MSMEs must apply using FORM-C to the Directorate of Electricity Duty with the required documents, and the first application must be filed within 12 months of starting commercial production.
Sectors
- Manufacturing Industrial
- Powerloom
- Textile
- Msme
- West Bengal
- Electricity Duty
Details last verified on 7 September 2026. Source: the issuer's published information.