The “Waiver of Electricity Duty” 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. It is valid until 31st December 2024 and aims to encourage MSMEs in the powerloom sector by reducing electricity costs, thereby enhancing productivity and competitiveness.
Scheme Key Highlights (Short Summary)
• SGST waiver support for electricity consumed in manufacturing activity
• Duration: 5–10 years, based on enterprise type and zone
• Four-party agreement mandatory
Benefits
Micro & Small Enterprises:
• Zone A & B: 50% waiver (max ₹10,00,000/year) for 5 years
• Zone C, D & E: 75% waiver (max ₹10,00,000/year) for 5 years
Medium Enterprises:
• Zone B & C: 100% waiver (max ₹25,00,000/year) for 5 years
• Zone D & E:
• 100% waiver for 5 years
• 75% waiver from 6th to 10th year (max ₹50,00,000/year)
Eligibility
• Applicable to Micro, Small, and Medium enterprises in the powerloom sector
• Enterprises must have started production between 01.01.2022 and 31.12.2024
• Must have executed a Four-party agreement with:
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Directorate of Textiles
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Financial Institution
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Tantuja
• Units must be under private, cooperative, joint sector, or State-owned enterprises
• Project must be supported by a feasibility report and approved by financial institutions
Exclusions
• Enterprises already receiving incentives under other state schemes
• Units that commenced production before 31.12.2021
• Enterprises issued eligibility certificates but have not claimed or received any incentives
Application Process
Offline
Step 1: Fill the application in FORM-C (prescribed format)
Step 2: Attach all required documents
Step 3: Submit to:
Director of Electricity Duty
Directorate of Commercial Taxes
Annex Building – III, 6th & 7th Floor
14, Beliaghata Road, Kolkata – 700015
Phone: 033-2251 0106
Helpdesk: 033-2251 0190, [email protected]
Timeframe:
• Submit first application within 12 months from date of commercial production
Documents Required
• Eligibility cum Registration Certificate
• Udyam Registration Certificate
• Electricity Supply Documents
• Electricity Bills (as applicable)
• SC/ST Certificate (if applicable)
• Any other supporting documents
Frequently Asked Questions (FAQs)
Q: Who is eligible for this subsidy?
MSMEs in the powerloom sector that began production between Jan 2022 and Dec 2024 and signed a Four-party agreement.
Q: What’s the maximum subsidy under this scheme?
Up to ₹10 lakh/year for Micro & Small Enterprises and up to ₹50 lakh/year for Medium Enterprises in select zones.
Q: How many years is the benefit applicable for?
5 years for all MSMEs. Medium enterprises in Zones D & E get extended benefits up to 10 years.
Q: What is a Four-party agreement?
An agreement between the enterprise, Directorate of Textiles, a financial institution, and Tantuja.
Q: Is this subsidy applicable if an enterprise already claimed another incentive?
No, enterprises benefitting under other state schemes for the same project are excluded.
Q: Where do I apply?
Submit your offline application in Form-C to the Directorate of Electricity Duty, Kolkata.