The West Bengal Incentive Scheme: Interest Subsidy on Term Loan

## West Bengal Incentive Scheme: Interest Subsidy on Term Loan

Introduced on February 22, 2021, the Interest Subsidy on Term Loan operates as a sub-scheme within the wider West Bengal Incentive Scheme. It extends financial support to entrepreneurs — both those starting out and those already in business — who intend to set up or grow tourism-related ventures anywhere in West Bengal. Generating self-employment and fresh jobs within the state forms part of its stated purpose.

Under this scheme, a direct subsidy offsets the interest payable on term loans. Borrowers who take financing from commercial banks and financial institutions for tourism projects therefore carry a lighter interest burden, which in turn makes such borrowing a more workable proposition. The state's aim in lowering interest liability is to create conditions more favourable to investment and expansion in West Bengal's tourism sector.

Tourism projects sit at the centre of the programme, whether they are new ventures or expansions of units already running. Business structures across the private, co-operative and joint sectors qualify, and state government-owned undertakings are covered as well. By casting its net this wide, the scheme allows a range of stakeholders to draw on the financial assistance, feeding into the broader development of tourism infrastructure and services in the state.

- **Step 1: Visit the Shilpasathi Portal** - Go to the official Shilpasathi portal at `https://silpasathi.wb.gov.in/` and select the ‘Apply online’ button. - **Step 2: User Registration** - New users should click ‘Create New’, choose their Industry/Business/Commercial/Charitable Society/Govt. entity type, and provide the relevant Registration number. Complete the 'User Registration' window with accurate details and click ‘Register’. Those who already have an account may click ‘Sign In’ and log in using their User ID, password, and Captcha code, or with a registered mobile number and OTP. - **Step 3: Access Services** - Once logged in, your user dashboard opens. Select ‘ALL SERVICES’ to see the services on offer. - **Step 4: Select Tourism Incentive** - In the services list, tick the checkbox next to ‘Tourism Incentive’. - **Step 5: Create CAF ID** - Select ‘Create CAF’ to generate your Common Application Form (CAF) ID. After it is generated, click ‘Apply Online’ to continue. - **Step 6: Fill Application Form** - The common application form opens. Enter all required details accurately. - **Step 7: Attach Documents** - Upload every document needed for issuance of the certificate. Click ‘Save & Continue’. - **Step 8: Review and Confirm** - A ‘Document successfully uploaded’ message confirms the upload. Check the details you have entered for accuracy. - **Step 9: Declaration and Submission** - Tick the Declaration checkbox at the bottom left of the application page, then click ‘Submit’. - **Step 10: Receive Notifications** - SMS and email notifications will reach you at critical stages, such as application submission, approval, or rejection. - **Step 11: Check Application Status** - You are redirected automatically to the ‘Check status’ page, where you can track your application's progress. - **Step 12: Download Certificate** - After all steps are completed successfully and the authority grants approval, download the approved Registration Certificate from the online system by clicking ‘Download Certificate’. - **Note on Incentives Process:** The complete process requires obtaining a Registration Certificate first, then a Date of Commencement Certificate, and lastly an Eligibility Certificate from the West Bengal Tourism Development Corporation Limited. Eligible units may apply for the various incentives, including the Interest Subsidy, through specific online forms on the Shilpasathi portal only after all three certificates have been secured.

Applications submitted via the Shilpasathi portal are taken up for scrutiny by the West Bengal Tourism Development Corporation Limited. The review covers the detailed feasibility report, approval of the project by a financial institution, and confirmation that the unit satisfies every stated eligibility condition.

On completion of this review, three certificates are issued: the Registration Certificate, the Date of Commencement Certificate, and the Eligibility Certificate. Once these are in hand and a separate application for the incentive has been filed, the competent authority grants final approval, after which the interest subsidy is disbursed.