West Bengal Textile Incentive Scheme: Capital Subsidy up to ₹500 Cr — Frequently Asked Questions

It is a fiscal incentive programme of the Government of West Bengal, run through the Department of Micro, Small and Medium Enterprises and Textiles. It took effect on 13 December 2022 and is aimed at drawing textile manufacturing into the state. Its State Capital Investment Subsidy sub-scheme is the component that gives capital support to eligible textile enterprises for approved projects.

Between 10% and 20% of the approved project cost. Because both the percentage and the ceiling depend on the activity, the admissible amount works out anywhere from ₹50 crore to ₹500 crore. The highest ceiling, ₹500 crore, applies to polymerisation and composite textile units; ₹250 crore applies to certain technical textile categories; spinning, dyeing and processing units can go up to ₹200 crore; and weaving, knitting, texturing, twisting, circular knitting and other technical textile categories are capped at ₹100 crore.

It covers the manufacturing and processing of textiles, apparel and technical textiles products. The scheme is written to support the whole production chain, from fibre through to stitched garments, so units at different points of manufacturing can qualify.

Units in the private sector, the co-operative sector and the joint sector can apply, as can companies or undertakings owned or managed by the State Government. Two conditions weigh most heavily: production must have begun on or after 1 April 2022, and the project must have been approved and sanctioned by a Central Financial Institution, a Commercial Bank or a State Financial Institution. The unit also needs specific certificates issued by the Directorate of Textiles.

The scheme's stated eligibility criteria do not ask for DPIIT recognition or MSME registration. Instead, the certification trail runs through the Directorate of Textiles: the unit must hold a Registration Certificate, a Date of Commencement Certificate and an Eligibility Certificate issued by that Directorate.

Neither. The State Capital Investment Subsidy is a non-repayable incentive, so it is not a loan that has to be paid back and it is not an equity investment that hands the state a stake in your unit.

Applications can be made until 13 December 2027.

On the portal you complete an eligibility form and then the CAF, along with Form A and Form C where they apply. Form A and Form C (if any) have to be downloaded, self-signed and uploaded again before submission, and only Form A needs a self-signed copy while Form C is uploaded as a copy. The unit must also hold its Registration Certificate, Date of Commencement Certificate and Eligibility Certificate from the Directorate of Textiles.

The whole process is online. Begin by registering on the official website, entering all the mandatory details and confirming the registration. Then visit the user login page, sign in with your registered email ID and password, fill in the eligibility form, check your eligibility on the portal, complete the CAF, and fill Form A and Form C where applicable. Download those forms, self-sign them, upload the signed Form A and a copy of Form C, and submit the application. The scheme guidelines are published on the Department's website at textiles.wb.gov.in.

Payment does not follow automatically from approval. Disbursement depends on meeting every parameter the scheme sets out and on successful verification, so the subsidy is released once the conditions in the guidelines have been satisfied.

West Bengal Textile Incentive Scheme: Capital Subsidy up to ₹500 Cr 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.