West Bengal Powerloom MSME Electricity Duty Waiver — Up to ₹50 Lakh a Year — Frequently Asked Questions

It depends on the size of your enterprise and the zone your unit sits in. Micro and small enterprises in Zones A and B get 50% of their electricity duty back, capped at ₹10 lakh a year for five years, while those in Zones C, D and E get 75%, also capped at ₹10 lakh a year for five years. Medium enterprises in Zones B and C receive a full 100% waiver with an annual ceiling of ₹25 lakh for five years. Medium units in Zones D and E get 100% for the first five years and 75% from years six to ten, with the annual cap set at ₹50 lakh in both phases.

The current listing shows applications open until 31 December 2025. There is a second, tighter clock you should watch: your first application has to be submitted within 12 months of the date your commercial production commenced, so do not sit on the outer deadline if your unit started producing earlier.

Micro, small and medium enterprises in West Bengal's powerloom sector. Your unit must have begun commercial production between 1 January 2022 and 31 December 2024, your project must be covered by a detailed feasibility or project report, and it must have been approved and sanctioned by a Central Financial Institution, a Commercial Bank or a State Financial Institution. Ownership can be private sector, cooperative sector, joint sector, a state government-owned or managed company or undertaking, or an Industrial SHG.

Yes. Commercial production has to have begun between 1 January 2022 and 31 December 2024. Units that started producing before or after that period are not covered by this scheme.

No. This is a subsidy-style reimbursement of electricity duty — the duty you have already paid on manufacturing power comes back to you. No equity, shares or ownership stake in your enterprise is involved, and the scheme carries no repayment obligation.

It is one of the eligibility conditions for the scheme. An applicant must have executed a four-party agreement involving the Directorate of Textiles, a financial institution and Tantuja. If that agreement is not in place, your application will not meet the scheme's requirements.

You will need a detailed feasibility report or project report for the powerloom installation, proof that the project has been approved and sanctioned by a Central Financial Institution, a Commercial Bank or a State Financial Institution, the four-party agreement with the Directorate of Textiles, the financial institution and Tantuja, and the prescribed application form, FORM-C, along with any other supporting documents the Directorate of Electricity Duty asks for.

Applications are made offline. Fill in FORM-C, attach the supporting documents, and submit the complete package to the Director of Electricity Duty, Directorate of Commercial Taxes, at the specified address in Kolkata. A help desk is available by phone and email if you need assistance while putting the application together.

There is no competitive shortlisting. The critical gate is that your project has already been sanctioned by a Central Financial Institution, a Commercial Bank or a State Financial Institution — this functions as a pre-screening step on viability. After that, the Directorate of Electricity Duty checks that your enterprise and project comply with the scheme guidelines, and then processes the reimbursement claims.

It is specific to the powerloom sector. The broader incentive programme this sub-scheme belongs to is aimed at MSMEs installing new-age shuttleless powerlooms, so the fiscal support is tied to powerloom production rather than to textile manufacturing in general.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for West Bengal Powerloom MSME Electricity Duty Waiver — Up to ₹50 Lakh a Year, though having it can strengthen your application and unlock other benefits.

West Bengal Powerloom MSME Electricity Duty Waiver — Up to ₹50 Lakh a Year is offered by Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.