Incentive Scheme for MSMEs in Powerloom Sector: Subsidy for Patent RegistrationScheme StatusScheme Status

The “Subsidy for Patent Registration” is a sub-scheme under the 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 remains valid up to 31st December 2024.

Objective

The broader scheme aims to promote the installation of new-age shuttleless powerlooms by MSMEs to: • Boost production of high-quality fabrics
• Create a sustainable MSME ecosystem
• Enhance resource utilization and employment
• Position West Bengal as a leader in the Powerloom sector

The Subsidy for Patent Registration specifically supports enterprises in obtaining legal protection for innovation through reimbursement for patent registration costs.

Benefits

50% subsidy on patent registration expenditure
Maximum subsidy of ₹5,00,000/-

Eligibility Criteria

• Applicable to micro, small, and medium enterprises (MSMEs) in the powerloom sector
• Enterprises must have started production between 01.01.2022 to 31.12.2024
• Enterprises must sign a Four-party agreement with:
– Directorate of Textiles
– Financial Institution
– Tantuja
• Applicable to:
– Private sector units
– Cooperative/joint sector undertakings
– Companies managed by State Government or Industrial SHGs
• Projects must be backed by a feasibility report and approved by a recognized financial institution

Exclusions

• Enterprises already covered under previous State Incentive Schemes
• Units with issued eligibility certificates but no sanctioned/disbursed incentives
• Units that began production before 31.12.2021

Application Process

Offline Mode
• Submit application in Form-A2 to the Directorate of Textiles
• Applications must be submitted within 12 months from the date of commercial production
• Reimbursement is based on proof of patent fee payment and registration

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

• MOA & AOA / Partnership Deed
• Names and addresses of Directors / Partners / Owners / SHG Members
• Approved project report
• Loan sanction and disbursement letters
• Four-party agreement copy
• Audited balance sheets (last 2 years, if applicable)
• Details of current production (items, capacity, value over past 3 years)
• Land ownership or lease documents
• Mutation and conversion certificate
• WBPCB Consent to Operate certificate
• SGST and trade licence
• First electricity bill
• Acknowledgement of Udyam Registration
• SC/ST certificate (if applicable)
• Other statutory licences (if applicable)
• Self-declaration as per Para 7.1(vi) of guidelines
Copy of Patent Registration Certificate
Proof of payment of patent registration fees

Frequently Asked Questions (FAQs)

  1. What areas are classified under “Zone A” for the purpose of determining incentives?
    Zone A generally refers to more developed districts based on industrial potential and infrastructure.

  2. Which districts fall under “Zone B” for incentive classification?
    Zone B typically includes less-developed districts where enhanced incentives may apply.

  3. What is the primary eligibility criteria for incentives under the “Incentive Scheme for MSMEs in Powerloom Sector”?
    The unit must be an MSME in the powerloom sector, started production within the scheme period, and executed the four-party agreement.

  4. How does the Directorate of Textile scrutinize and conduct physical inspection of the enterprise upon receiving its application for incentives?
    Through document verification, site visits, and cross-checking certification and production details.

  5. What is the procedure for claiming the Subsidy?
    The unit must submit Form-A2 along with CA-certified documents and proof of patent registration, within 12 months of commercial production.

  6. What is the significance of the classification of areas into different zones for the scheme?
    Zone classification helps determine the scale or type of benefits applicable to enterprises based on location.

  7. 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?
    No, dual benefits are not allowed under the same or similar incentive category.

  8. How does the Directorate of Textiles determine the eligibility of enterprises for projects financed from their own resources?
    Via audited reports, utilization certificates, and physical inspection.

  9. What is an “Approved project”?
    A project that has been cleared and sanctioned by a recognized financial institution with a valid feasibility report.

  10. What measures are in place to prevent misuse of the subsidy scheme?
    Strict document verification, CA certification, and physical audits are conducted to ensure compliance.

  11. What action will the Directorate of Textile take if an application is determined to be ineligible for incentives under the Incentive Scheme for MSMEs in the Powerloom Sector?
    The application will be rejected, and the applicant will be informed with reasons. No subsidy will be disbursed.

Sources And References

Guidelines (Kolkata Gazette)

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