West Bengal MSME Policy
To create a sustainable ecosystem in the MSME sector which can maximize the utilization of resource and widen the area of operation to make the state emerge as the MSME leader in the country in the next ten years Department of MSME and Textiles, West Bengal Government has launched MSME Policy.
- Provide a better and more conducive business environment for MSME sector.
- Keep simplifying the business regulatory environment in the state. .
- Enhance the quality of human resource through training and skill development packages.
- Strengthen participation of and support to SHGs and cooperatives in the production and marketing in micro enterprise sector with special focus on handicrafts and village industries.
- Encourage joint ventures with private sector in the entire value chain of the MSME sector.
- Provide fiscal incentives to encourage entrepreneurs to set up Micro, Small and Medium Enterprises with a view to focusing on development of MSMEs in the backward region of the State.
Period of Operation:
The policy will be in effect from the 1st April 2013 in the whole of West Bengal and remain valid for the period ending on 31st March, 2018.
Applicability and Eligibility:
- All micro, small and medium enterprises in the manufacturing sector which have started production on or after 1st day of April 2013 can apply for fiscal incentives under the policy.
- The units may be in the private sector, cooperative sector and joint sector undertaking as also companies/undertakings owned and managed by the State Government and the Industrial SHGs.
- Modern /Hi-tech plant & Machinery to be installed that conform to the standard productivity.
- Unit will have to strictly observe requisite pollution control compliances.
- Unit will have to commit to remain in production for at least 5 years from the date of commercial production.
- A unit defaulting in payment of any government dues / FI dues will not be eligible for assistance under this policy.
- Capital Investment Subsidy up to 40% depending upon the MSME zone subject to a ceiling of Rs. 50 Lakh, will be provided to the new micro and small enterprise.
- 20% additional subsidy on admissible subsidy for all enterprises wholly owned by women, SC/ST and minority community entrepreneurs.
- Interest Subsidy up to 7.5% on term loan depending upon the MSME zone will be provided to the micro and small enterprises for 5 years.
- Interest Subsidy up to 25% of total Term Loan Interest subject to ceiling of Rs. 175.00 Lakh per year for 5 years will be provided to medium enterprises.
- Up to 100% waiver of electricity on the electricity consumption for 5 years subject to maximum of Rs. 50.00 Lakh per year depending upon the MSME zone and Enterprise category.
- Power Subsidy up to Rs. 1.5/KwH subject to ceiling of Rs. 30 Lakh for 5 years depending upon zone and enterprise category.
- 50% re-imbursement of the cost of energy audit undertaken by a certified agency to be available after implementation of the recommendations.
- 25% reimbursement of the cost of installations for energy conservation as per energy audit subject to a ceiling of Rs 2 Lakh.
- Stamp Duty and Registration Fee Subsidy up to 100% depending upon the enterprise category.
- Reimbursement of Entry Tax on plant and machinery available after beginning of commercial production by the unit.
- Up to 90% (depending upon the zone) VAT refund paid for 8 years or 75% of fixed Capital Investment whichever reached earlier.
- Total CST refund for 3 years from the date of commencement of commercial production.
- Assistance up to 50% or Rs 2 Lakh maximum for water conservation/ pollution control measures.
- Support up to Rs. 10 Crore (depending upon the zone) for common infrastructure such as road, power etc for each micro and small industrial cluster.
- Standard quality compliance @ 50% of cost up to a maximum of Rs. 5 lakh for obtaining certification / accreditation like ISO-9000, ISO-14000, ISO-18000, Social Accountability Standards, OEKO-TEX etc.
- Reimbursement of 50% of expenditure for obtaining patent registration subject to a maximum of Rs. 5 Lakh.
For Details on Zones and Incentives: Click Here