“Interest Subsidy on Term Loan” is a sub scheme under The West Bengal Incentive Scheme. It was launched on 22nd February, 2021 by the Department of Tourism, Government of West Bengal and remains valid up to 31st December, 2025.
- Objective of the West Bengal Incentive Scheme : The scheme aims to provide financial assistance to enthusiastic and prospective entrepreneurs, enabling self-employed youth to start their own business, become employers, and generate employment.
- Objectives of the Interest Subsidy on Term Loan Scheme : Through this incentive, an approved project of an eligible unit receives an Interest Subsidy on the annual interest liability of the Term Loan borrowed from a Commercial Bank/Financial Institution.
Benefits
• Group-‘A’ and ‘B’ areas: 50%, up to ₹25,00,000 per year for 5 years.
• Group-‘C’ and ‘D’ areas: 60%, up to ₹25,00,000 per year for 7 years.
• Special Areas: 75%, up to ₹30,00,000 per year for 7 years.
• Note: Subsidy is payable annually on submission of a statement/certificate by the lending bank/financial institution confirming timely interest payment. Subsidy is not applicable for term loans for second-hand plant and machinery or hire-purchase equipment.
Eligibility
• Applicable to all eligible tourism projects/units and expansion projects of existing units set up on or after 22nd February, 2021.
• Or, eligible Hotel Units that started commercial operations between 7th January, 2015 and 31st December, 2020 but could not apply under the previous 2015 scheme due to the absence of a bar in the hotel.
• Units may belong to the private, co-operative, joint sector, or be State Government owned/managed.
• Projects must have a detailed feasibility report/project prepared.
• Projects should be approved and sanctioned by a Central Financial Institution, Commercial Bank, or State Financial Institution.
• The unit must hold a Registration Certificate, Date of Commencement Certificate, and Eligibility Certificate issued by the West Bengal Tourism Development Corporation Limited.
Exclusions
• Not applicable to tourism units registered and sanctioned incentives under any previous scheme.
• Units that applied under WBIS 2015 before this scheme’s commencement and whose applications were pending or deemed disposed of are entitled only to benefits under WBIS 2015.
Application Process
Online Registration Process:
• Step 1: Visit the official Shilpasathi portal and click on the ‘Apply online’ button.
• Step 2: A sign-up window appears; click ‘Create New’ for a new user.
• Step 3: Select the appropriate Industry/Business/Commercial/Charitable Society/Govt. entity and enter the relevant Registration number.
• Step 4: Fill in the User Registration form accurately and click ‘Register’. If already registered, click ‘Sign In’ and log in using your User ID, password, and Captcha code.
Online Application Process:
• Step 1: On the Shilpasathi portal, click ‘Apply online’.
• Step 2: Enter your username, password, and Captcha code then click ‘Log In’ (or sign in using your registered mobile number and OTP).
• Step 3: On the user dashboard, click on ‘ALL SERVICES’ to access the desired service.
• Step 4: Select the checkbox for ‘Tourism Incentive’.
• Step 5: Click ‘Create CAF’ to generate your CAF ID and then click ‘Apply Online’ to proceed.
• Step 6: Fill in the common application form with the necessary details.
• Step 7: Attach the required documents and click ‘Save & Continue’.
• Step 8: Confirm that the documents have been successfully uploaded.
• Step 9: Review your application and click the Declaration checkbox before hitting ‘Submit’.
• Step 10: Receive notifications via SMS and email at key stages (submission, approval, or rejection).
• Step 11: Check your application status via the ‘Check status’ page.
• Step 12: After approval, download your Registration Certificate by clicking ‘Download Certificate’.
Note:
The incentive process involves obtaining the Registration Certificate, Date of Commencement Certificate, and Eligibility Certificate before receiving incentives. After obtaining the first two certificates, tourism units must apply to the Managing Director, West Bengal Tourism Development Corporation for the Eligibility Certificate, and then proceed with the online forms for various incentives.
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]
• For technical issues, email: [email protected]
• Helpline (Toll free): 1800-345-5562
Documents Required
For Registration and Eligibility Certificate (Form I):
• A copy of the Memorandum and Articles of Association or Partnership agreement.
• A statement of names and addresses of the Director/Partners/Owners.
• Project Report.
• Valid No Objection Certificate from the Pollution Control Board.
• Valid No Objection Certificate from West Bengal Fire Service.
• For loan cases: Photocopy of the Sanction letter from the relevant financial institution.
• Copy of the Audited Balance Sheet for the last 3 years with Income Tax acknowledgement.
• Estimate for Building and Plant & Machinery vetted by a Govt. Registered Valuer/Chartered Valuer.
• Land Deed and supporting documents (Mutation/ROR, Conversion Certificate, site plan, clearance from M.A. Deptt., etc.).
• All applicable clearances from Govt. authorities (Forest, CRZ, Police, etc.).
• Sarai Registration Certificate under the Bengal Sarai Regulation Act (for hotels that started operations).
• Valid Trade License from the appropriate authority.
• GST Certificate and GST Return.
• Sanctioned Building Plan from the appropriate authority (KMC/Municipality/Panchayat, etc.).
For Interest Subsidy on Term Loan Application:
• A certificate from a Bank/Financial Institution in the format provided in Annexure-A (available for download).
Frequently Asked Questions (FAQs)
Q: What areas are classified under “Special Area” for determining incentives?
A: Specific criteria define Special Areas based on regional development and investment policies.
Q: Which districts fall under Zone B for incentive classification?
A: The classification details for Zone B districts are specified in the official guidelines.
Q: What are the eligibility criteria for incentives under The West Bengal Incentive Scheme?
A: Eligibility includes criteria such as being an eligible tourism unit/project, adherence to registration dates, and having requisite certificates and approvals.
Q: What is the procedure for claiming the Subsidy?
A: Claiming the subsidy involves submitting periodic interest payment statements and required documents as verified by the lending institution.
Q: What is the significance of classifying areas into different zones?
A: Different zones receive varied subsidy percentages to address regional developmental disparities.
Q: Can tourism units/projects avail of incentives under both The West Bengal Incentive Scheme and other state schemes simultaneously?
A: No, units already registered under previous schemes cannot claim benefits concurrently.
Q: Is there any provision for units that received incentives under other state schemes but wish to expand their projects?
A: Specific provisions exist, subject to detailed eligibility and regulatory norms.
Q: What is the definition of “Tourism Units”?
A: Tourism Units refer to projects/establishments engaged in tourism activities as per the scheme guidelines.
Q: What is an Approved Project?
A: An Approved Project is one that has received sanction from a recognized financial institution or bank.
Q: Is there any requirement for fee submission for obtaining the Registration and Eligibility Certificate and subsidies?
A: The scheme does not mandate any application fee for certificate issuance or subsidy processing.
Q: How to check the status of the Submitted Application?
A: Applicants can log into the portal and view their application status on the ‘Check status’ page.
Q: Can a user apply with more than one application using the same login credentials?
A: Typically, each user login supports a single application process; refer to the guidelines for multiple submissions.
Q: How does the State Government verify the eligibility of tourism units/projects?
A: Verification is done through the examination of certificates, feasibility reports, and approval letters submitted during the registration process.
Q: What measures are in place to prevent misuse of the subsidy scheme?
A: Strict verification processes and periodic audits are implemented to ensure proper utilization of funds.
Q: Is there any provision for tourism units/projects to appeal if their application for incentives is rejected?
A: Yes, there is an appeal process detailed in the official guidelines for rejected applications.