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West Bengal Textile Policy

Department of MSME and Textiles, West Bengal Government has launched Textile Policy to encourage entrepreneurs for setting up new Micro, Small and Medium Enterprises as well as for expansion of existing units in textile sector with a view to encouraging the dispersal of such enterprises to lesser developed area as well as in order to propel the growth of the Textile Sector in the State.


  • Providing a better and more conducive business environment for textile sector with special focus on spinning mills, yarn procurement, handloom, powerloom, hosiery and garment sector.
  • Developing web-enabled common application gateway.
  • Promoting pooling of common services and functions (common facility centre) under cluster approach for the benefit of smaller players.
  • Strengthening participation of and support to SHGs and cooperatives in the production and marketing in textile sector.
  • Setting up industrial estates / textile parks for providing basic infrastructure to textile industries.
  • Encouraging joint ventures with private sector in the entire value chain of the textile industry.
  • Creating marketing infrastructure and support through setting up haats/parks and facilitating participation of state’s textile sector in fairs/expo/exhibitions.
  • Facilitating design support to handloom sector with special focus on SHGs and cooperatives.

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 September 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.

Fiscal Incentives:

  • 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.
  • Assistance to the tune of 50% of project cost subject to a ceiling of Rs. 5 crore for setting up CETP in new or in existing parks.
  • 50% freight subsidy to units located in Zone D districts for supplies meant for export from the state.
  • 10% additional subsidy over and above the capital subsidy available under this policy, will be provided to Powerloom Units.
  • Power Subsidy up to Rs. 2.5/KwH for Powerloom Units.
  • 10% subsidy shall be provided on the sale value of handloom fabrics exported to a country outside India.
  • 6% interest rebate on working capital loan taken by PWCS and Handloom Clusters/Groups.
  • 10% additional subsidy on capital investment shall be provided for setting up of hosiery and Apparel/Garment over and above capital subsidy under this Policy.

For Details Regarding Zones and Incentives: Click Here

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