The “Subsidy for Standard Quality Compliance” is a sub-scheme under the broader Incentive Scheme for MSMEs in Powerloom Sector, launched on 1st January 2022 by the Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal. This scheme is valid up to 31st December 2024.
Objective
The main objective of the Incentive Scheme for MSMEs in Powerloom Sector is to support the installation of new-age shuttleless powerlooms by MSMEs, aiming to: • Boost production of high-quality fabrics
• Enhance competitiveness
• Create employment
• Build a sustainable ecosystem for powerloom-based MSMEs
The Subsidy for Standard Quality Compliance specifically provides financial reimbursement for obtaining quality certifications to improve product standards.
Benefits
• 50% reimbursement of the expenditure incurred for obtaining certifications
• Maximum benefit of ₹5,00,000
• Applicable certifications include:
– ISO 9000
– ISO 14000
– ISO 14001
– ISO 18000
• Other certifications may also be considered on a case-to-case basis
Eligibility Criteria
• MSMEs in the powerloom sector
• Units must have commenced production between 01.01.2022 to 31.12.2024
• Enterprises must execute a Four-party agreement with:
– Directorate of Textiles
– Financial Institution
– Tantuja
• Units must operate in:
– Private, Cooperative, Joint Sector
– Companies managed by the State Government or Industrial SHGs
• Projects must have:
– Detailed feasibility/project report
– Approval from Central/State Financial Institutions or Commercial Banks
Exclusions
• Enterprises that have already been registered and received incentives under other State Incentive Schemes
• Enterprises registered but not claimed or sanctioned incentive under previous schemes
• Units that began production before 31.12.2021
Application Process
Offline Mode
• Submit application in Form-A2 to the Directorate of Textiles
• Application should be made within 12 months of commencement of commercial production
• Include original CA certificate (Annexure-V) showing expenditure incurred (excluding hotel/travel/surveillance charges)
Submission Address:
Directorate of Textiles
Handlooms, Spinning Mills, Silk Weaving & Handloom Based Handicrafts Division
New Secretariat Buildings, 1, K. S. Roy Road, 5th Floor, ‘B’ Block, Kolkata – 700001
Phone: 033-2248 4537 / 2248 6271 (Ext. 215)
Fax: 033-2248 4537
Documents Required
• Memorandum & Articles of Association or Partnership Deed
• Details of Directors / Partners / Owners / Members of SHGs
• Approved project report
• Loan sanction and disbursement letters
• Four-party agreement copy
• Audited balance sheets (last 2 years)
• Details of existing manufacturing activities in West Bengal
• Land deed / Lease agreement (if applicable)
• Mutation & conversion certificate of land/building
• WBPCB Consent to Operate certificate
• SGST & Trade Licence copies
• First electricity bill (if applicable)
• Acknowledgement of Udyam Registration
• SC/ST Certificate (if applicable)
• Other relevant licenses/certificates
• Self-declaration as per para 7.1(vi) of official guidelines
• ISI/BIS/ISO certificates and payment bills/receipts
Frequently Asked Questions (FAQs)
-
What areas are classified under “Zone A” for the purpose of determining incentives?
Zone A typically includes more industrialized or urbanized districts. Classification is based on development indices set by the state. -
Which districts fall under “Zone B” for incentive classification?
Zone B includes less developed or priority districts. A full list is issued in the government’s zone classification order. -
What is the primary eligibility criteria for incentives under the “Incentive Scheme for MSMEs in Powerloom Sector”?
Units must be MSMEs in the powerloom sector, commenced production within the scheme period, and have signed the required four-party agreement. -
What information must be included on a certification certificate to ensure it meets all necessary requirements?
The certificate must mention the certifying agency, scope of certification, validity period, and enterprise details. -
How does the Directorate of Textiles scrutinize and conduct physical inspection of the enterprise upon receiving its application for incentives?
The Directorate verifies documents, conducts site inspection, and reviews financial and operational status before approval. -
How is the Capital Investment Subsidy released by the Directorate of Textiles to the Bank/FI, and what requisites are necessary for this process?
It is released after evaluation, directly to the Bank/FI, and requires utilization certificates, CA audit reports, and valid project documents. -
What is the procedure for claiming the Subsidy?
Submit Form-A2 offline with required documentation within 12 months of production start. -
What is the significance of the classification of areas into different zones for the scheme?
Zones determine the intensity of incentive benefits—units in backward zones may get higher incentives. -
Would an eligible enterprise that has availed of incentives or subsidies under any other state government incentive scheme be eligible for benefits under the Incentive Scheme for MSMEs in the Powerloom Sector for other specified items?
Generally not eligible, unless the benefit sought is for a different purpose not covered under the previous scheme. -
How does the Directorate of Textiles determine the eligibility of enterprises for projects financed from their own resources?
By reviewing project reports, fund utilization proofs, and CA certification of self-investment. -
What is an “Approved project”?
A project that has been appraised and sanctioned by a recognized financial institution or bank. -
What measures are in place to prevent misuse of the subsidy scheme?
Measures include document audits, inspection visits, and cross-verification with certifying agencies and financial records. -
What action will the Directorate of Textiles take if an application is determined to be ineligible for incentives under the scheme?
The application will be rejected, and the applicant will be notified with reasons and may be given an opportunity to reapply or appeal.