Launched on 1st January 2022 by the Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal, the “Subsidy for Water Conservation/ Environment Compliance” is a sub-scheme under the broader Incentive Scheme for MSMEs in the Powerloom Sector. This sub-scheme is designed to offer fiscal incentives by reimbursing up to 50% of the expenditure—subject to a maximum of ₹2,00,000/—incurred on installing captive sound pollution control devices for eligible enterprises. The scheme remains valid until 31st December 2024 and is aimed at promoting environmentally compliant production practices among MSMEs in the powerloom sector.
Key Objectives
- Boosting Production and Quality: Enhance the production of improved quality fabrics through the installation of new-age shuttleless powerlooms.
- Sustainable Ecosystem: Create a sustainable ecosystem within the powerloom sector that maximizes resource utilization, generates new employment opportunities, and broadens operational areas.
- Environmental Compliance: Encourage water conservation and adherence to environmental norms by reimbursing costs related to pollution control measures.
Benefits
Eligible micro, small, and medium enterprises in the powerloom sector can avail:
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Subsidy Amount: 50% reimbursement of the expenditure incurred on the installation of sound pollution control devices, with the subsidy capped at ₹2,00,000/-.
Eligibility Criteria
To qualify for this sub-scheme, enterprises must meet the following conditions:
- Must be a micro, small, or medium enterprise in the powerloom sector.
- The enterprise must have started production between 01.01.2022 and 31.12.2024.
- Must have executed a four-party agreement with the Directorate of Textiles, a financial institution, and Tantuja.
- The unit can be a private, cooperative, or joint sector undertaking, including companies/undertakings owned and managed by the State Government and Industrial SHGs.
- The project should be supported by a detailed feasibility report or project report.
- The project must have been approved and sanctioned by a Central Financial Institution, Commercial Bank, or State Financial Institution.
Exclusions
The following enterprises are excluded from availing the subsidy:
- Enterprises for which eligibility certificates have already been issued, or incentives have been sanctioned and/or disbursed under the respective Incentive Scheme of the State.
- Enterprises registered and for which an eligibility certificate has been issued under the state scheme, but no incentive sanction or disbursement has been made.
- Enterprises that commenced production before 31.12.2021 and applied for incentives under the state scheme within the stipulated date (these claims will be governed by the respective state scheme).
Application Process
Offline Submission:
Eligible enterprises that have commenced production must submit their application in the prescribed format (Form-A2) along with all relevant documents to the Directorate of Textiles. The application must be submitted within 12 months from the commencement of commercial production during the period from 01.01.2022 to 31.12.2024.
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.
Tel No.: 033-2248 4537 / 2248 6271 (Ext. 215)
Fax No.: 033-2248 4537
Documents Required
- A copy of the Memorandum of Association and Articles of Association authenticated by the Registrar of Companies/partnership deed (if applicable).
- Statement of the names and addresses of the Directors/Partners/Owners or Members of Cooperative or Self Help Groups.
- Copy of the approved project report.
- Loan sanction letter and disbursement letter issued by financial institutions/banks.
- Copy of the agreement.
- Audited balance sheets for the last 2 years (where applicable).
- Details of existing manufacturing activities in West Bengal, including items produced, annual approved capacity, and annual production figures (in quantity and value in Rs. Lakh) for the last three years, if applicable.
- Copy of the land deed. For rented/leasehold properties, a copy of the rent agreement and receipt/lease agreement.
- Copy of mutation and conversion certificate of land/building.
- Copy of a valid consent to operate certificate from the WBPCB.
- Copies of SGST documents.
- Copy of the trade licence.
- Copy of the first electricity bill (if applicable).
- Copy of the acknowledgement of Udyam Registration.
- Copy of the SC/ST certificate, if applicable.
- Copies of any other statutory licenses/certificates, as necessary.
- “Self declaration” as per para 7.1(vi) of the Official Scheme Guidelines.
- Copies of relevant bills and money receipts for expenditure incurred towards pollution control devices.
- Details of the installed Pollution Control Device.
Frequently Asked Questions (FAQs)
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What areas are classified under “Zone A” for the purpose of determining incentives?
The Official Scheme Guidelines detail the criteria for classifying certain areas as Zone A based on geographical and production factors. Applicants should refer to these guidelines for the specific list of areas. -
Which districts fall under “Zone B” for incentive classification?
The districts falling under Zone B are specified in the Official Scheme Guidelines. For an accurate and updated list, please consult the guidelines or contact the Directorate of Textiles. -
What is the primary eligibility criteria for incentives under the “Incentive Scheme for MSMEs in Powerloom Sector”?
Eligibility primarily requires that the enterprise is a micro, small, or medium enterprise in the powerloom sector, started production between 01.01.2022 and 31.12.2024, and has an approved project backed by a detailed feasibility report, along with adherence to all other specified guidelines. -
How does the Directorate of Textiles scrutinize and conduct physical inspection of the enterprise upon receiving its application for incentives?
The Directorate undertakes a thorough verification process which includes reviewing all submitted documents, conducting physical inspections to assess production capacity and infrastructure, and ensuring compliance with the scheme requirements. -
What is the procedure for claiming the Subsidy?
Eligible enterprises must submit an application using Form-A2 along with the required documents to the Directorate of Textiles within 12 months from the commencement of production. Once the application is verified and approved, the subsidy—covering 50% of the expenditure (up to a maximum of ₹2,00,000/-)—will be reimbursed. -
What is the significance of the classification of areas into different zones for the scheme?
The classification into zones (e.g., Zone A and Zone B) helps tailor the incentive structure based on the specific geographical and infrastructural conditions of each area, ensuring equitable distribution of benefits and targeted support where it is most needed. -
Would an eligible enterprise that has availed of incentives or subsidies under any other state government incentive scheme be eligible for benefits under this scheme?
No. Enterprises that have already received eligibility certificates or incentives under another state government scheme are excluded from claiming additional benefits under this Incentive Scheme for MSMEs in the Powerloom Sector. -
How does the Directorate of Textiles determine the eligibility of enterprises for projects financed from their own resources?
Eligibility for self-financed projects is assessed based on the comprehensive feasibility or project report submitted by the enterprise, along with adherence to financial management criteria and other conditions stipulated in the guidelines. -
What is an “Approved project”?
An approved project is one that has been thoroughly reviewed, sanctioned, and financed by a recognized financial institution—be it a Central Financial Institution, Commercial Bank, or State Financial Institution—after meeting all the necessary criteria outlined in the scheme guidelines. -
What measures are in place to prevent misuse of the subsidy scheme?
The scheme includes strict safeguards such as rigorous document verification, mandatory submission of detailed project reports, physical inspections by the Directorate of Textiles, and clear exclusion criteria to prevent duplicate benefits and ensure the integrity of the subsidy process. -
What action will the Directorate of Textiles take if an application is determined to be ineligible for incentives under the scheme?
If an application is deemed ineligible, the Directorate of Textiles will notify the enterprise of its ineligibility. Further administrative or legal action may be taken as per the provisions in the Official Scheme Guidelines to ensure adherence and prevent misuse.
Sources and References
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Guidelines (Kolkata Gazette)