West Bengal Textile Incentive Scheme: Waiver of Electricity DutyScheme StatusScheme Status

The “Waiver of Electricity Duty” is a dedicated sub-scheme under the “West Bengal Textile Incentive Scheme”, launched on 13th December 2022 by the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal. This incentive scheme is valid for five years and aims to encourage the establishment and growth of textile units in the state by reducing electricity cost burden through duty waivers.

Scheme Key Highlights (Short Summary)

• Launched on: 13th December 2022
• Validity: 5 years
• Implemented by: Department of MSME&T, Government of West Bengal
• Target: Textile, Apparel & Technical Textile Manufacturing Units
• Applicable on: Electricity consumed in approved textile projects
• Platform: Online application portal of the Directorate of Textiles

Benefits

100% waiver of electricity duty for 5 years from the date of commencement of production
Maximum benefit: ₹1,00,00,000 per year per unit

Eligibility

• Enterprises must be engaged in manufacturing or processing of textiles, apparel or technical textile products
Production start date must be on or after 1st April 2022
• Eligible for units in private, cooperative, joint sectors or State-owned/managed companies
• The project must be approved and sanctioned by a Commercial Bank, Central/State Financial Institution
• The unit must possess:
Registration Certificate
Date of Commencement Certificate
Eligibility Certificate issued by the Director of Textiles

Exclusions

• Units that have already received incentives or eligibility certificates under any other state incentive scheme
• Units that commenced production before 1st April 2022
• Units for which eligibility was issued under previous schemes but no claim or sanction was made

Application Process

Online
Registration:
• Step 1: Visit the official registration portal of the Directorate of Textiles
• Step 2: Fill in all mandatory details and click “Register”
• Step 3: A confirmation message will be shown on successful registration

Application:
• Step 1: Visit the user login page of the portal
• Step 2: Log in using your registered email and password
• Step 3: Fill out the Eligibility Form
• Step 4: Check eligibility status through the portal
• Step 5: Fill out the Common Application Form (CAF)
• Step 6: Complete and download Form A (and Form C if applicable)
• Step 7: Self-sign and upload scanned copies of the forms
• Step 8: Submit the final application

Helpdesk: Directorate of Textiles, Government of West Bengal

Documents Required

• Copy of Eligibility Certificate under the West Bengal Textile Incentive Scheme, 2022
• Copy of Udyam Registration / IEM(B)
• Documents regarding electricity supply to the unit
• Copies of all relevant electricity bills (submit as received)
• Any other supporting documents, if necessary

Frequently Asked Questions (FAQs)

Q: What qualifies as an “Approved Project” under this scheme?
An approved project is one sanctioned by a recognized financial institution and approved by the Department of Textiles, fulfilling all scheme conditions.

Q: Which units are considered eligible?
Units in the textile sector that commenced production on or after 1st April 2022 and hold a valid Eligibility Certificate issued by the Director of Textiles.

Q: What is the benefit of the waiver?
100% electricity duty waiver for 5 years, with a maximum annual benefit of ₹1 crore.

Q: Can units avail benefits under multiple schemes?
No, dual benefits under this and other state incentive schemes are not permitted for the same project.

Q: Is there any provision for enterprises expanding their projects?
Expansion eligibility is not specified under this waiver but may be covered under broader textile incentive guidelines.

Q: What is required to apply?
Registration on the official portal, submission of Eligibility Certificate, electricity-related documents, and application forms.

Sources and References

Guidelines (Kolkata Gazette)

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