“Power Subsidy (PS)” 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, it will remain in force until 31st March 2025. The objective of the overall Banglashree scheme is to extend fiscal incentives that promote balanced development, job creation, and resource utilization in the MSME sector, positioning West Bengal as a leader in MSMEs. The Power Subsidy component provides eligible enterprises a subsidy on the electricity consumed for manufacturing activities for their approved projects.
Benefits
• Subsidy Rate:
– Zone A & B: ₹1.00 per kWh
– Zone C, D & E: ₹1.50 per kWh
– Subsidy is applicable for 5 years from the date of commencement of commercial production
• Annual Cap:
– Micro Enterprise: Up to ₹10,00,000 per year
– Small Enterprise: Up to ₹20,00,000 per year
– Medium Enterprise: Up to ₹30,00,000 per year
Eligibility
• Must be a Micro, Small, or Medium Enterprise (MSME) in the manufacturing sector
• Production should have started on or after 1st April 2019
• Eligible entities can be in the private, cooperative, or joint sector, or owned/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 received eligibility certificates/incentives under other state incentive schemes
• Enterprises that commenced production before 1st April 2019 and applied within the stipulated date
• Industries on the Negative List (e.g., Sponge Iron Factory, certain Bricks industries, and any other industry notified by the State Govt.)
• Certain costs are excluded when calculating the investment in Plant & Machinery, including:
– Equipment for maintenance (tools, jigs, dies, moulds, spare parts)
– Installation charges, R&D, and pollution control equipment
– Additional transformers, bank/service charges, non-machine-mounted electrical fittings
– Transportation charges for indigenous machinery, technical know-how fees, storage tanks (not linked to manufacturing), fire fighting equipment
– Cost of second-hand plant and machinery
Application Process
Online via Shilpasathi Portal
Registration Process:
• Step 1: Visit the Shilpasathi Portal and click “Apply Online”; then click “Create New” for new registration
• Step 2: Select the appropriate Applicant Type (Industry/Business/Commercial/Charitable Society/Govt. entity) and enter your 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 with your registered mobile number
• Step 2: From the user dashboard, click “ALL SERVICES” and select “MSME Incentive”
• Step 3: Click “Create CAF” to generate your CAF ID, then click “Apply Online”
• Step 4: Fill in the eligibility form and click “Save and Continue” to proceed to the Common Application Form (CAF)
• Step 5: Complete the CAF by filling in all mandatory fields, then click “Update and Continue” to preview your form
• Step 6: After submission, check the Dashboard for your application status; click “Click to Proceed” and then “Save”
• Step 7: Click “Preview” to review before final submission
• Step 8: Click “Go to Application” to fill out Online Form – A
• Step 9: In the APPLY SUBSIDY section, review the year-wise subsidy items and click “SAVE”
• Step 10: In the FILL UP SUBSIDY tab, provide the year-wise subsidy details and click “Add More” for multiple-year break-up
• Step 11: Upload the required documents, preview details, click “VERIFY & SUBMIT”, check the declaration box, and then click “Submit Application”
• Step 12: On final submission, note the application reference number for future tracking
Note: The first application must be submitted within 12 months from the DOCCP or from the notification date of Banglashree, whichever is later.
Helpdesk:
• Address: Protiti, 23, Abanindranath Tagore Sarani (Camac Street), Kolkata – 700017, West Bengal, India
• Phone: +91 33 2255 3700
• Fax: +91 33 2255 3737
• Email: [email protected]
• Quick Response Team Email: [email protected]
• Helpline (Toll-free): 1800-345-5562
Documents Required
• Memorandum of Association and Articles of Association (authenticated by the Registrar of Companies) or partnership deed (as applicable)
• Statement with names and addresses of Directors/Partners/Owners or Cooperative/SHG members
• Copy of Approved Project Report
• Loan Sanction Letter and Disbursement Letter from the financial institution/bank
• Audited Balance Sheet for the last 2 years (where applicable)
• List of Plant and Machinery with original values and copies of bills/receipts
• Details of existing manufacturing activities (annual approved capacity and production for the last 3 years)
• Copy of Land Deed (or rent/lease agreement and receipt, if applicable)
• Mutation & Conversion Certificate of land/building
• Consent to Operate Certificate from WBPCB
• Copies related to SGST
• Copy of Trade Licence
• Copy of First Electricity Bill (where applicable)
• Acknowledgement of Udyog Aadhaar Registration
• Copy of SC/ST Certificate (if applicable)
• Copies of other statutory licenses/certificates, if necessary
• Self Declaration as per para 7.1(vi) of the Scheme
• Documents regarding the supply of electricity to the unit
• Copies of all Electricity Bills and corresponding money receipts for which the claim is made
Frequently Asked Questions (FAQs)
Q: What areas are classified under Zone A for incentive determination?
A: The official guidelines define Zone A areas; please refer to the scheme notification for details.
Q: Which districts are classified under Zone B?
A: Districts in Zone B are listed in the official notification; check the guidelines for specifics.
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 other state schemes, those that commenced production before 1st April 2019, and those in the negative list are excluded.
Q: What is the timeline for submitting the first incentive application?
A: The application must be submitted within 12 months from the DOCCP or from the notification date of Banglashree, whichever is later.
Q: Can enterprises outside the MSME sector avail of these incentives?
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: Enterprises must apply online through the Shilpasathi Portal following the steps outlined above.
Q: What is the significance of the zone classification in the scheme?
A: Zone classification determines the applicable subsidy rate for power consumption (₹1.00 per kWh for Zone A & B and ₹1.50 per kWh for Zone C, D & E).
Q: Can enterprises avail of incentives under both Banglashree and other state schemes simultaneously?
A: Generally, enterprises that have received incentives under other state schemes are not eligible for Banglashree incentives.
Q: Is there a provision for enterprises that have already received incentives but wish to expand?
A: Such enterprises may be ineligible if they have already received state incentives; refer to the eligibility criteria for details.
Q: How does the State Government verify eligibility?
A: Through comprehensive documentation and verification as outlined in the official guidelines.
Q: What measures are in place to prevent misuse of the subsidy scheme?
A: Strict eligibility criteria, detailed documentation, and verification processes help prevent misuse.
Q: Is there an appeals process if an application is rejected?
A: Yes, the official guidelines provide for an appeals process; refer to the scheme guidelines for more details.