Incentive Scheme for MSMEs in Powerloom Sector: State Capital Investment Subsidy

On receipt of application for incentive from an enterprise the Directorate of Textile shall make, as expeditiously as possible and not later than 15 days, scrutiny of/ enquiry into particulars furnished by the enterprise and cause physical inspection of the enterprise through the Officers of the Directorate to ascertain Fixed Capital Investment proposed to be made in Plant and Machinery (new age shuttle less loom) by it.

Capital Investment Subsidy will be released by Directorate of Textiles (DOT) to the Bank/FI in advance as per requisition placed by the bank against the invoice of the purchase order produced by the enterprise. Bank will place requisition as mentioned above as per format prescribed by the Directorate of Textile.

Enterprises need to apply for the subsidy along with the required documents to the designated authorities as per the guidelines provided by the concerned department or agency.

The classification helps in determining the quantum of incentives available for projects based on their location, with higher incentives provided for projects in backward areas.

Yes, an eligible enterprise which has availed of incentive/ subsidy in respect of any of the items specified under any other Incentive of State Govt. shall also be eligible to get the benefits of other items only under Incentive Scheme for MSMEs in Powerloom Sector subject to fulfillment of terms and conditions of the Scheme.

In case of projects with arrangement of finance from own resources, eligibility of the enterprise shall be considered by the Directorate of Textiles according to the declaration of the enterprise regarding source of finance supported by a certificate issued by a Chartered Accountant as per Annexure-VI provided the Directorate of Textiles is satisfied about the technical specification of the machineries installed and the arrangement of such finance.

"Fixed Capital Investment" means investment made in plant and machinery in an approved project of the eligible unit/enterprise on or after 1st January, 2021 subject to other conditions laid down in Clause No.-7 of the official scheme guideline.

"Approved Project" means the industrial project of a unit/ an expansion unit in the Powerloom sector which should be approved before implementation of the project in two steps - the technical part of the project should be approved before implementation of the project by the Directorate of Textile under the Deptt. of Micro, Small & Medium Enterprises and Textiles, Govt. of West Bengal and subsequently should be approved for its financial part by any commercial Banks/ Financial Institution (Central and State)/ Cooperative Banks/ scheduled banks approved by RBI/ RRBs financing the project.

Strict guidelines, documentation requirements, and verification procedures are in place to ensure that subsidies are availed by eligible enterprises for genuine purposes only.

If any application is found to be not eligible for incentives under the Incentive Scheme for MSMEs in Powerloom Sector, Directorate of Textile will issue a letter of rejection to the applicant enterprise.