The “Subsidy on Stamp Duty and Registration Fees” 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. The scheme will remain valid up to 31st December 2024.
Objective
The broader objective is to promote new-age shuttleless powerlooms among MSMEs in the textile sector by offering fiscal support. It aims to: • Boost production of improved quality fabrics
• Strengthen the MSME ecosystem in textiles
• Enhance employment and industrial spread
• Position West Bengal as a Powerloom sector leader in India
The specific goal of the sub-scheme is to reimburse stamp duty and registration fees paid by eligible enterprises for property/document registrations within the state.
Benefits
• Micro & Small Enterprises
– Zone A: 75%
– Zone B: 75%
– Zone C: 75%
– Zone D & E: 100%
• Medium Enterprises
– Zone B, C, D & E: 75%
Eligibility Criteria
• Applicable to micro, small, and medium enterprises (MSMEs) in the powerloom sector
• Production must have started between 01.01.2022 and 31.12.2024
• Enterprises must execute a Four-party agreement with:
– Directorate of Textiles
– Financial Institution
– Tantuja
• Enterprises may operate in:
– Private, Cooperative, or Joint Sector
– Companies managed by the State Government or Industrial SHGs
• Project must be backed by a detailed feasibility report and approved by a recognized financial institution
Exclusions
• Enterprises already covered under earlier State Incentive Schemes
• Units issued eligibility certificates but not sanctioned or disbursed incentives
• Units that began production before 31.12.2021
Application Process
Offline Submission
• Submit application in Form-A2 to the Directorate of Textiles
• Must apply within 12 months of commercial production
• Include all relevant documents and proof of stamp duty & registration fee payment
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 / 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)
• Current manufacturing details (products, capacity, production history)
• Land deed or rent/lease agreement with receipt
• Mutation & 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)
• Land schedule and sketch map of land/building
• Receipts/documents showing payment of stamp duty and registration fee
Frequently Asked Questions (FAQs)
-
What areas are classified under “Zone A” for the purpose of determining incentives?
Zone A typically includes urban/industrially developed districts notified by the state government. -
Which districts fall under “Zone B” for incentive classification?
Zone B includes districts with moderate development. Official notifications detail district-wise classification. -
What is the primary eligibility criteria for incentives under the “Incentive Scheme for MSMEs in Powerloom Sector”?
Enterprises must be MSMEs in the powerloom sector, commenced production during the scheme period, and completed a four-party agreement. -
For what purpose will the subsidy be admissible under this sub-scheme?
Reimbursement of stamp duty and registration fees paid for property/document registration related to the approved enterprise project. -
How will the amount admissible be calculated for the approved project based on the percentage of land or buildings used for setting up the enterprise?
The amount will be prorated based on the extent of property used for the enterprise, verified by physical inspection and documentation. -
How does the Directorate of Textile scrutinize and conduct physical inspection of the enterprise upon receiving its application for incentives?
Through site visits, verification of property and documents, and cross-checking with the feasibility report and registration records. -
What is the procedure for claiming the Subsidy?
Submit Form-A2 offline with supporting documents, including land schedule, stamp duty receipts, and registration fee proofs. -
What is the significance of the classification of areas into different zones for the scheme?
Zone classification affects the percentage of subsidy. Less developed zones receive higher reimbursement rates. -
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. Double benefits for the same purpose are not permitted. -
How does the Directorate of Textiles determine the eligibility of enterprises for projects financed from their own resources?
By evaluating self-funding proofs, audit reports, and physical verification of asset deployment. -
What is an “Approved project”?
A project that has received financial sanction and approval from a recognized financial institution. -
What measures are in place to prevent misuse of the subsidy scheme?
Scrutiny of documents, site inspection, and submission of CA-certified financial details ensure transparency. -
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 enterprise will be formally notified with reasons for rejection.