The “Interest Subsidy on Term Loan (IS)” is a sub-scheme under the Banglashree for Micro, Small and Medium Enterprises scheme. Launched on 1st April 2020 by the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, the scheme will remain in force until 31st March 2025. Its objective is to extend fiscal incentives to encourage entrepreneurs in setting up and expanding MSMEs by providing an interest subsidy on the term loan borrowed from eligible financial institutions for the implementation of approved projects. This subsidy aims to create a sustainable ecosystem, generate employment, and boost the MSME sector in West Bengal.
Benefits
• Interest Subsidy on annual interest liability for 5 years on term loans borrowed from Commercial Banks, Cooperative Banks, Scheduled Banks, RRBs, or other approved financial institutions.
• For Micro & Small Enterprises:
– Zone A & B: 55% subsidy
– Zone C, D & E: 70% subsidy
• For Medium Enterprises:
– Zone B, C, D & E: 25% subsidy, subject to a ceiling of ₹1,75,00,000 per year
Eligibility
• The business must be a Micro/Small/Medium Enterprise in the manufacturing sector.
• The unit should have commenced production on or after 1st April 2019.
• It can be in the private, cooperative, or joint sector, or owned and managed by the State Government or Industrial SHGs.
• The Date of Commencement of Commercial Production (DOCCP) must fall between 1st April 2020 and 31st March 2025.
Exclusions
• Enterprises that have already been issued eligibility certificates or have received incentives under any respective state incentive scheme.
• Enterprises that commenced production before 1st April 2019 and applied for incentives within the stipulated date.
• Negative List of Industries:
– Sponge Iron Factories
– Bricks (excluding Fly Ash bricks, Sand lime Bricks, Refractory Bricks)
– Any industry notified by the State Government for inclusion in the negative list
• Items excluded while calculating the investment include:
– Equipment like tools, jigs, dies, moulds, and spare parts
– Installation charges, R&D and pollution control equipment, power generation sets, extra transformers, bank charges, service charges, procurement/installation of electrical fittings not mounted on individual machines, transportation charges for indigenous machinery, technical know-how charges, storage tanks not linked to the manufacturing process, and fire-fighting equipment
– The cost of any second-hand plant and machinery
Application Process
Online via Shilpasathi Portal
Registration Process:
• Step 1: Visit the Shilpasathi Portal and click “Apply Online”. Then, select “Create New” for new registration.
• Step 2: Select the appropriate Applicant Type (Industry/Business/Commercial/Charitable Society/Govt. entity) and enter the Registration Number.
• Step 3: Fill in all mandatory fields on the User Registration page and click “Register”.
Application Process:
• Step 1: Login to the portal using your username & password or via OTP using your registered mobile number.
• Step 2: From the user dashboard, click “ALL SERVICES” and select “MSME Incentive”.
• Step 3: Click “Create CAF” to generate a CAF ID, then select “Apply Online”.
• Step 4: Fill in the eligibility form and click “Save and Continue” to be redirected to the Common Application Form (CAF).
• Step 5: Complete all mandatory fields in the CAF and click “Update and Continue” to preview the form.
• Step 6: After submission, view the application status on the dashboard. Click “Click to Proceed” and then “Save” to update your information.
• Step 7: Click “Preview” to review the form, then “Go to Application” to fill out Online Form – A.
• Step 8: In the APPLY SUBSIDY section, review the year-wise subsidy items and click “SAVE”.
• Step 9: In the FILL UP SUBSIDY tab, provide the year-wise subsidy details (multiple-year break-up if needed) and click “Add More”.
• Step 10: Upload the relevant documents, preview, click “VERIFY & SUBMIT”, check the declaration box, and then click “Submit Application”.
• Step 11: On final submission, an application reference number is generated.
Note: The first application must be submitted within 12 months from the DOCCP or within 12 months from the notification of Banglashree, whichever is later.
Helpdesk:
For technical queries or critical issues, contact:
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Protiti, 23, Abanindranath Tagore Sarani (Camac Street), Kolkata – 700017, West Bengal
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Phone: +91 33 2255 3700 | Fax: +91 33 2255 3737
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Email: [email protected]
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Quick Response Team Email: [email protected]
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Helpline (Toll-free): 1800-345-5562
Documents Required
• Copy of the Memorandum of Association and Articles of Association authenticated by the Registrar of Companies, or a partnership deed where applicable
• Statement with the name and address of the Directors/Partners/Owners, or members of the Cooperative or Self Help Groups
• Copy of the Approved Project Report
• Loan Sanction Letter and Disbursement Letter issued by the financial institution/bank
• Audited Balance Sheet for the last 2 years, wherever applicable
• List of Plant and Machinery with original values and copies of bills/receipts
• Details of existing manufacturing activities in West Bengal (annual approved capacity, production figures for the last three years)
• Copy of Land Deed (or, if applicable, rent agreement/lease deed)
• Copy of Mutation & Conversion Certificate of land/building
• Consent to Operate Certificate from the WBPCB
• Copies regarding SGST
• Copy of Trade Licence
• Copy of the First Electricity Bill (wherever applicable)
• Copy of Acknowledgement of Udyog Aadhaar Registration
• Copy of SC/ST Certificate (if applicable)
• Copy of Other Statutory Licenses/Certificates as required
• Self Declaration as per para 7.1(vi) of the Scheme
• Certificate from Bank/Financial Institution as per Annexure-II
Frequently Asked Questions (FAQs)
Q: What areas are classified under Zone A for incentive determination?
A: The classification of zones, including Zone A, is defined in the scheme guidelines as notified by the State Government.
Q: Which districts are categorized under Zone B for incentives?
A: Specific districts in Zone B are listed in the official notification; please refer to the guidelines.
Q: What are the eligibility criteria for incentives under Banglashree for MSMEs?
A: The enterprise must be an MSME in the manufacturing sector, with production commencement on or after 1st April 2019 and a DOCCP between 1st April 2020 and 31st March 2025.
Q: Which enterprises are not eligible for Banglashree incentives?
A: Enterprises that have already received incentives or eligibility certificates under the state scheme, those that commenced production before 1st April 2019, or those listed in the Negative List are excluded.
Q: What is the timeline for the submission of the first incentive application?
A: The first application must be submitted within 12 months from the DOCCP or from the date of notification of Banglashree, whichever is later.
Q: Can enterprises outside the MSME sector avail incentives under Banglashree?
A: No, the scheme is exclusively for Micro, Small, and Medium Enterprises in the manufacturing sector.
Q: What is the procedure for claiming the subsidy?
A: The subsidy is claimed by applying online through the Shilpasathi Portal following the detailed steps outlined above.
Q: What is the significance of classifying areas into different zones?
A: The zone classification determines the percentage of interest subsidy applicable to the enterprise.
Q: Can enterprises avail incentives under both Banglashree and other state incentive schemes simultaneously?
A: Generally, enterprises that have already received incentives under other state schemes are excluded from receiving Banglashree incentives.
Q: Are there provisions for enterprises that have already received state incentives but wish to expand their projects?
A: Such enterprises may not be eligible if they have already received incentives under the state scheme; refer to the eligibility criteria.
Q: How does the State Government verify eligibility for incentives?
A: Through rigorous documentation and verification processes as stipulated in the official guidelines.
Q: What measures are in place to prevent misuse of the subsidy scheme?
A: Strict eligibility criteria, detailed documentation requirements, and verification processes are implemented to prevent misuse.
Q: Is there an appeals process if an application is rejected?
A: Yes, the official guidelines provide for an appeals process; please refer to the guidelines for details.