The West Bengal Incentive Scheme: State Capital Investment Subsidy

Description
The scheme “State Capital Investment Subsidy” 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 shall remain valid upto 31st December, 2025. Objective of the "West Bengal Incentive Scheme” Scheme: The object of the Scheme is to provide financial assistance and help enthusiastic intending or prospective entrepreneurs to start their own business as a self-employed youth who will become an employer in upcoming days and generate more employment. Objectives of the "State Capital Investment Subsidy" Scheme: Through this incentive, eligible micro or small enterprises shall receive a State Capital Investment Subsidy on the fixed capital investment i.e. the investment made in building and plant and machinery and also on equipment installed for pollution control measures in the tourism unit.

Exclusions
• The West Bengal Incentive Scheme shall stand non-applicable in respect of those tourism units that have been registered for and have been sanctioned incentives under any previous scheme.
• Any unit which may have applied for registration with the Directorate of Tourism under WBIS (West Bengal Incentive Scheme ) 2015, before the date of commencement of this Scheme and whose applications may have not been disposed off prior to the coming into effect of this 2021 Scheme or deemed to have been disposed of shall be entitled to all benefits under WBIS 2015 only.

Definitions
Eligible Unit
(Source: https://westbengalincentive21.wb.gov.in/files/contents/notification_wbis_2021.pdf)

Zone-A
(Source: https://westbengalincentive21.wb.gov.in/files/contents/notification_wbis_2021.pdf)

Zone-B
(Source: https://westbengalincentive21.wb.gov.in/files/contents/notification_wbis_2021.pdf)

Zone-C
(Source: https://westbengalincentive21.wb.gov.in/files/contents/notification_wbis_2021.pdf)

Zone-D
(Source: https://westbengalincentive21.wb.gov.in/files/contents/notification_wbis_2021.pdf)

Special Area
(Source: https://westbengalincentive21.wb.gov.in/files/contents/notification_wbis_2021.pdf)

Benefits
• Group A: 7.5%, subject to a limit of ₹ 1,00,00,000/-,
• Group B: 10%, subject to a limit of ₹ 1,00,00,000/-,
• Group C: 15%, subject to a limit of ₹ 1,20,00,000/-,
• Group D: 20%, subject to a limit of ₹ 1,50,00,000/-.
• Special Area: 25%, subject to a limit of ₹ 1,75,00,000/-.
• Note: In no case, the amount of this subsidy to an eligible unit in respect of the building component will exceed 50% of the total State Capital Investment Subsidy given to the unit.

Eligibility Criteria
1. - The Scheme shall be generally applicable to all eligible tourism projects/units and also to expansion projects of existing units set up on or after the effective date (i.e. 22nd February, 2021) of this incentive scheme.
2. Or,
3. - Eligible Hotel Units who started their commercial operation on or after 7th January, 2015 to 31st December, 2020 but could not apply under previous scheme 2015 due to absence of a Bar in the Hotel.
4. - The units may be in the private sector, co-operative sector, joint sector as also companies/undertakings owned or managed by the State Government.
5. - The project should be covered by a detailed feasibility report/project prepared for the purpose.
6. - The project should have been approved and sanctioned by a Central Financial Institution or Commercial Banks or State Financial Institutions.
7. - The unit should hold an Registration Certificate, Date of Commencement Certificate and Eligibility Certificate issued by the West Bengal Tourism Development Corporation Limited on satisfaction of arrangement.

Required Documents
• A copy of the Memorandum and Articles of Association issued by the Registrar of Companies/ Partnership agreement.
• A Statement of names and addresses of the Director/ Partners/Owners of the company.
• Project Report.
• Valid No objection Certificate from pollution control Board.
• Valid No objection Certificate from West Bengal Fire Service.
• In case of loan, Photocopy of Sanction letter from the Central Financial Institution/State Financial institution/ Bank.
• Copy of the Audited Balance sheet for the last 3 years with Income Tax acknowledgement.
• Estimate for Building and Plant & Machinery vetted by Govt. Registered Valluer / Chattered Valluer.
• Land Deed and all other Documents supporting statements made in the Form (Mutation/ROR, Conversion Certificate, site plan,clearance from M.A. Deptt. etc.
• All applicable clearance from Govt. authorities (Forest, CRZ, Police, etc.)
• Sarai Registration Certificate under Bengal Sarai Regulation Act (in case Hotel started their Commercial operation)
• Valid Trade License from appropriate authority.
• GST Certificate and GST return.
• Sanctioned Building Plan from appropriate authority (KMC/ Municipality/ Panchayat/or any other appropriate authority).
• A copy of the Techno-Economic Feasibility Report.
• A copy of (loan) sanctioned letter issued by Financial Institution/Bank.
• Valuation Certificate by Govt, registered valuer regarding building and plant & machinery.
• A certificate from a Chartered Accountant as per Annexure-A (format is available for download in attachment section).
• A certificate in respect of fixed assets as per Annexure-B (format is available for download in attachment section).
• Audited Annual Accounts till date.
• GST Return.
• Trade License up to date.
• Proof of date of commencement of commercial operation.

Frequently Asked Questions
Q: What areas are classified under ''Special Area'' for the purpose of determining incentives?
A: "Special Area" includes the districts of Paschim Medinipur, Bankura, Purulia, Jhargram & Blocks under Sunderbans area in both North 24 Parganas & South 24 Parganas Districts.

Q: Which districts fall under Zone B for incentive classification?
A: Zone B comprises districts such as North 24-Parganas (excluding Kolkata Municipal Corporation, Bidhannagar Municipality, New Town Kolkata Development Authority and Blocks under Sundarbans area), South 24 Parganas (excluding Kolkata Municipal Corporation and Blocks under Sunderbans areas), Howrah, Hooghly, Paschim Bardhaman.

Q: What are the eligibility criteria for incentives under The West Bengal Incentive Scheme 2021?
A: The 2021 Scheme shall be generally applicable to all eligible tourism projects/units and also to expansion projects of existing units set up on or after the effective date of this incentive scheme and also those eligible Hotel Units who started their commercial operation on or after 7th January, 2015 to 31st December, 2020 but could not apply under previous scheme 2015 due to absence of a Bar in the Hotel. The units may be in the private sector, co-operative sector, joint sector as also companies/undertakings owned or managed by the State Government.

Q: What is the procedure for claiming the Subsidy?
A: 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.

Q: What is the significance of the classification of areas into different zones for the scheme?
A: 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.

Q: Can tourism units/projects avail of incentives under both The West Bengal Incentive Scheme and other state incentive schemes simultaneously?
A: No, tourism units/projects cannot avail incentives under both schemes simultaneously. They must choose one scheme based on their eligibility and requirements.

Q: Is there any provision for the units that have already received incentives under other state schemes but wish to expand their projects?
A: Yes, existing tourism units/projects are eligible for incentives under The West Bengal Incentive Scheme for project expansion, subject to the conditions specified in the scheme.

Q: What is the definition of ‘Tourism Units’?
A: "Tourism Unit" means a project or a unit under commercial operation related to tourism activities as defined in Annexure-I and as may be further notified by the Tourism Department.

Q: What is an Approved project?
A: "Approved Project" means a project within the definition of a Tourism Unit for which registration certificate & eligibility certificate have been issued under the scheme in conformity with compliance of all terms and conditions relating to a tourism unit for which registration certificate and eligibility certificate have been issued under this Scheme.

Q: Is there any requirement for the submission of fees to get the Registration and Eligibility Certificate and various subsidies within the scheme?
A: No, there is no requirement for the submission of any fees to get the Registration and Eligibility Certificate and various subsidies within the scheme.

Q: How to check the status of the Submitted Application?
A: After successfully logged in, a "Details" link will be available on the Dashboard to adjacent of the respective application. Click on the "Details" link to view the application status history. Applicants can also view the application status in the dashboard of the respective applications individually.

Q: Can the user apply with more than one application with the same user login credential in this portal?
A: Yes, there is provision to apply for more than one application with the same user 'Login Credential' in this portal.

Q: How does the State Government verify the eligibility of enterprises for the incentives?
A: The eligibility of enterprises is verified based on the documents submitted along with the application, and inspections may be conducted by designated authorities if required.

Q: What measures are in place to prevent misuse of the subsidy scheme?
A: Strict guidelines, documentation requirements, and verification procedures are in place to ensure that subsidies are availed by eligible enterprises for genuine purposes only.

Q: Is there any provision for tourism units/projects to appeal if their application for incentives is rejected?
A: Yes, tourism units/projects have the right to appeal against the rejection of their application, and there is a designated process for handling such appeals.