The West Bengal Incentive Scheme: Waiver of Electricity DutyScheme StatusScheme Status

The Government of West Bengal has initiated several measures under “The West Bengal Incentive Scheme” to spur entrepreneurship and bolster the tourism sector. One key initiative is the “Waiver of Electricity Duty” scheme, designed to ease the operational cost burden on tourism projects. By offering a waiver on electricity duty for a period of 5 years from the date of commercial operation, the scheme not only encourages the establishment of new ventures but also supports the expansion of existing ones. This proactive approach aims to generate employment, foster self-employment among the youth, and drive the state’s overall economic growth.

Objectives

  • West Bengal Incentive Scheme:
    To offer financial support that empowers aspiring entrepreneurs to launch their businesses, thereby promoting self-employment and future job creation.

  • Waiver of Electricity Duty Scheme:
    To provide eligible tourism units a waiver on the electricity duty for electricity consumed in approved projects for 5 years from the date of commercial operation, ultimately reducing operating costs.

Benefits

  • Electricity Duty Waiver:
    Eligible units will enjoy a waiver on the electricity duty applicable to the electricity consumed in their approved project for 5 years from the commencement of commercial operations.

Eligibility Criteria

  1. General Eligibility:

    • Applicable to tourism projects/units or expansion projects established on or after 22nd February 2021.

    • The project must be supported by a detailed feasibility report.

    • Approval and sanction from a recognized financial institution (Central Financial Institution, Commercial Bank, or State Financial Institution) are required.

    • The unit must obtain a Registration Certificate, Date of Commencement Certificate, and an Eligibility Certificate issued by the West Bengal Tourism Development Corporation Limited (WBTDC).

  2. Special Eligibility for Hotel Units:

    • Hotel units that commenced commercial operations between 7th January 2015 and 31st December 2020, but could not apply under the previous scheme (WBIS 2015) due to the absence of a bar, are eligible.

  3. Sectors Covered:

    • Private, co-operative, joint sector enterprises, as well as entities owned or managed by the State Government.

Exclusions:

  • Tourism units already registered and sanctioned under any previous scheme are not eligible.

  • Units with pending applications under WBIS 2015 will continue receiving benefits under that scheme.

Application Process

The application process is conducted online via the Shilpasathi portal. The steps include:

  1. User Registration & Login:

    • New Users: Create an account by selecting the appropriate industry/business category and entering the registration number.

    • Existing Users: Log in using the registered credentials.

  2. Service Selection:

    • After logging in, navigate to the dashboard, click on “ALL SERVICES,” and select the “Tourism Incentive” option.

  3. CAF Creation & Form Submission:

    • Generate a CAF ID by clicking “Create CAF.”

    • Complete the common application form with the required details, attach the necessary documents, and review the application.

  4. Final Submission:

    • Confirm the application by checking the declaration box and submit.

    • Notifications regarding application submission, approval, or rejection are sent via SMS and email.

    • Upon approval, download the Registration Certificate from the portal.

Note: Applicants must obtain the Registration Certificate, Date of Commencement Certificate, and Eligibility Certificate before the incentive can be granted.

Required Documents

For Registration and Eligibility Certificate (Form I):

  • Memorandum and Articles of Association or Partnership Agreement.

  • Statement of Directors/Partners/Owners.

  • Detailed Project Report.

  • Valid No Objection Certificates from the Pollution Control Board and West Bengal Fire Service.

  • For loan-based projects: Sanction letter from the financial institution.

  • Audited balance sheets for the last 3 years with Income Tax acknowledgements.

  • Estimates for Building, Plant & Machinery (vetted by a government-registered valuer).

  • Land Deed and other supporting documents (e.g., mutation certificate, site plan, conversion certificate, etc.).

  • Clearance certificates from relevant government authorities (Forest, CRZ, Police, etc.).

  • Sarai Registration Certificate (if applicable for hotels).

  • Valid Trade License.

  • GST Certificate and GST return.

  • Sanctioned Building Plan from the relevant authority.

For Waiver of Electricity Duty Application:

  • Copy of the Registration Certificate issued by the Director of Tourism, Government of West Bengal.

  • Copy of the Eligibility Certificate issued by WBTDC Ltd.

  • Documents regarding the electricity supply to the unit.

  • Copy of the latest Electricity Bill (submitted as and when received).

Frequently Asked Questions (FAQs)

  1. What areas are classified under “Special Area” for the purpose of determining incentives?
    The document does not specify “Special Areas” in detail. Typically, such areas are defined by the state government in the official guidelines or Kolkata Gazette, emphasizing regions requiring special developmental focus.

  2. Which districts fall under Zone B for incentive classification?
    Specific district details for Zone B classification are not listed in the provided information. Applicants should consult the official guidelines or Kolkata Gazette for the comprehensive list.

  3. What are the eligibility criteria for incentives under The West Bengal Incentive Scheme?
    Eligibility requires that tourism projects or units (or their expansion projects) are set up on or after 22nd February 2021, have a detailed feasibility report, and are approved by a recognized financial institution. Additionally, necessary certificates (Registration, Date of Commencement, and Eligibility) must be obtained from WBTDC. Special provisions apply for hotel units operating between January 2015 and December 2020.

  4. What is the procedure for claiming the Subsidy?
    To claim the subsidy, eligible units must secure the required certificates, apply online via the Shilpasathi portal by following the detailed application steps, and, upon approval, download the Registration Certificate which confirms their entitlement to the incentive.

  5. What is the significance of the classification of areas into different zones for the scheme?
    Zonal classifications, such as Zone B, help determine the level of incentives based on regional developmental needs and strategic importance. This ensures that financial support is targeted effectively.

  6. Can tourism units/projects avail of incentives under both The West Bengal Incentive Scheme and other state incentive schemes simultaneously?
    No. Units that have been registered and sanctioned under previous schemes are not eligible for the current scheme, and must opt for benefits under the relevant scheme based on their registration status.

  7. Is there any provision for units that have already received incentives under other state schemes but wish to expand their projects?
    Generally, units that have received previous incentives are excluded from receiving additional benefits under this scheme. For expansions, they must adhere to the current scheme’s eligibility criteria without overlapping prior benefits.

  8. What is the definition of ‘Tourism Units’?
    ‘Tourism Units’ generally refer to businesses and projects operating in the tourism sector, such as hotels, resorts, travel agencies, and other related establishments as defined in the official guidelines.

  9. What is an Approved project?
    An Approved project is one that has been thoroughly evaluated through a detailed feasibility study and has received the necessary sanctions from a recognized financial institution, thereby qualifying for incentive benefits.

  10. Is there any requirement for the submission of fees to get the Registration and Eligibility Certificate and various subsidies within the scheme?
    The provided information does not explicitly state any fee submission requirement for obtaining the certificates or subsidies. Applicants are advised to refer to the official fee structure details on the Shilpasathi portal.

  11. How can one check the status of the submitted application?
    The application status can be monitored online via the Shilpasathi portal under the ‘Check status’ section of the user dashboard. Additionally, SMS and email notifications are sent at key stages of the process.

  12. Can a user apply with more than one application using the same login credentials on the portal?
    While the guidelines do not explicitly restrict multiple applications from the same user login, each application must be submitted separately and must meet all eligibility criteria. For further clarification, contact the helpdesk.

  13. How does the State Government verify the eligibility of enterprises for the incentives?
    Eligibility verification is conducted by cross-checking the submitted documentation (feasibility reports, sanction letters, certificates, etc.) with official records, often including field verification by the designated authorities.

  14. What measures are in place to prevent misuse of the subsidy scheme?
    Stringent documentation requirements, rigorous verification processes, and continuous oversight by designated authorities help ensure the scheme is not misused. Fraudulent claims may result in legal consequences and the cancellation of incentives.

  15. Is there any provision for tourism units/projects to appeal if their application for incentives is rejected?
    Yes, there is a provision for appeals. Applicants can seek clarification and, if needed, file an appeal through the grievance redressal mechanism as detailed in the official guidelines. It is recommended to contact the helpdesk for detailed guidance on the appeals process.

Sources and References

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