The State Capital Investment Subsidy is a sub-scheme under the broader West Bengal Textile Incentive Scheme, launched on 13 December 2022 by the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal. This scheme is applicable for a duration of five years from the date of launch.
Objective
The West Bengal Textile Incentive Scheme is designed to provide fiscal incentives across the entire textile value chain, from fibre to garments, in order to: • Promote investments
• Maximize resource utilization
• Create employment opportunities
• Establish West Bengal as a hub for textile manufacturing
The State Capital Investment Subsidy sub-scheme specifically aims to support capital investment by textile units through direct subsidy based on the type of manufacturing activity.
Benefits
Eligible enterprises are entitled to subsidies based on their type of textile manufacturing activity, as follows:
| Sl. No. | Manufacturing Activity | Quantum of Subsidy | Maximum Admissible Amount |
|---|---|---|---|
| 1 | Spinning (short staple) | 10% | ₹200 Cr |
| 2 | Weaving & Knitting (warp/flat-bed), Texturing & Twisting | 20% | ₹100 Cr |
| 3 | Circular Knitting | 10% | ₹50 Cr |
| 4 | Dyeing & Processing (fibres, yarn, fabric, garment) | 20% | ₹200 Cr |
| 5 | Technical Textile (Agrotech, Buildtech, Indutech, Geotech, Meditech) & Non-Woven | 20% | ₹250 Cr |
| 6 | Other Technical Textiles | 10% | ₹100 Cr |
| 7 | Polymerization | 20% | ₹500 Cr |
| 8 | Composite Textile Units (spinning + weaving + processing + technical textiles) | 10% | ₹500 Cr |
Eligibility Criteria
• Enterprises engaged in manufacturing and processing of textiles, apparel, or technical textile products
• Units that have commenced production on or after 1st April 2022
• Applicable to private, cooperative, joint sector, or state-managed companies
• Project must be approved by a financial institution (Central/State/Commercial Bank)
• Must hold the following:
– Registration Certificate
– Date of Commencement Certificate
– Eligibility Certificate from the Directorate of Textiles
Exclusions
• Units already approved under other State schemes with issued eligibility or disbursed incentives
• Units registered under old schemes but have not claimed/submitted incentives yet
Application Process
Online Mode
Registration Steps
• Step 1: Visit the official registration page
• Step 2: Fill in required fields and click “Register”
• Step 3: Receive registration confirmation
Application Submission
• Step 1: Visit the user login page
• Step 2: Login using registered Email ID and Password
• Step 3: Complete the Eligibility Form
• Step 4: Fill and submit the Common Application Form (CAF)
• Step 5: Complete and download Form A and Form C (if applicable)
• Step 6: Self-sign and upload scanned copies of forms
• Step 7: Submit the final application
Helpdesk: Directorate of Textiles, Government of West Bengal
Documents Required
• Auditor’s or Chartered Accountant’s Certificate for utilization of funds
• Certificate from Chartered Accountant as per Annexure – I
• Certificate for fixed assets as per Annexure – II
• Any other documents as may be required
Frequently Asked Questions (FAQs)
-
What is an “Approved Project” as defined under the guidelines?
A project that has been formally sanctioned by a recognized financial institution (Central/State Bank) for investment in the textile sector. -
What is an “Eligible Unit/Enterprise”?
A manufacturing unit that meets the criteria set out under the scheme, including commencement of production after 1 April 2022 and holding valid certificates from the Directorate of Textiles. -
What are the eligibility criteria for incentives under The West Bengal Textile Incentive Scheme?
The unit must be engaged in textile manufacturing/processing, be newly established post-April 2022, and have all approvals and certifications in place. -
What is the procedure for claiming the Subsidy?
Eligible enterprises must register and apply online via the official portal, upload required documents and forms (CAF, Form A/C), and submit the claim. -
What type of textile sector enterprise shall be covered under this scheme?
All units involved in spinning, weaving, knitting, dyeing, technical textiles, polymerization, or composite operations are covered. -
Can an eligible textile sector enterprise avail of incentives under both “The West Bengal Textile Incentive Scheme, 2022” and other state incentive schemes simultaneously?
No, the scheme does not permit dual benefits from multiple state schemes for the same project. -
Is there any provision for textile sector enterprises that have already received incentives under other state schemes but wish to expand their projects?
Yes, such enterprises can apply for new investments or expansion, provided they are separately approved and eligible under this scheme. -
Is there any requirement for the submission of fees to get the Registration and Eligibility Certificate and various subsidies within the scheme?
No specific fees are mentioned; however, departmental charges may apply as per procedural norms. -
How does the State Government verify the eligibility of enterprises for the incentives?
Through a multi-stage verification process, including scrutiny of financial and technical documents and site inspections. -
What measures are in place to prevent misuse of the subsidy scheme?
Stringent documentation requirements, audits, and cross-verification by the Directorate of Textiles are in place. -
Is there any provision for enterprises to appeal if their application for incentives is rejected?
Yes, appeals may be submitted to the concerned authority as defined in the scheme’s administrative framework.