West Bengal Textile Incentive Scheme — 100% Electricity Duty Waiver up to ₹1Cr

The Waiver of Electricity Duty is one specific incentive sitting inside West Bengal's larger Textile Incentive Scheme, which the state's Department of Micro, Small and Medium Enterprises and Textiles notified on 13 December 2022. The parent scheme stays in force for five years from that notification and spreads fiscal support right across the textile chain, from fibre through to stitched garments, with the aim of getting more manufacturing capacity built inside the state.

This particular incentive targets one of the heaviest recurring costs a mill carries — the duty levied on the power it draws. A unit whose project has been approved can claim a complete exemption from electricity duty on the electricity its project consumes, and the relief is available for five years beginning on the day production starts.

The logic is straightforward. Cheaper power improves the operating economics of spinning, processing and garment units, which is expected to pull fresh investment into the sector, put the state's resources to better use and create employment. West Bengal presents the scheme as a route to becoming a preferred base for textile manufacturing.

Applications are accepted on a rolling basis, so there is no fixed closing date to work towards.

• 100% waiver of electricity duty on power consumed by the approved project
• Maximum benefit of ₹1 crore (₹1,00,00,000) per year
• Relief available for five years from the date production begins
• For textile, apparel and technical textile manufacturing and processing units in West Bengal
• Production must have commenced on or after 1 April 2022
• Rolling applications — no fixed deadline

This incentive is reserved for units that actually make or process textiles. It covers manufacturing and processing activity in textiles, apparel and technical textile products, and it is explicitly not available to general industrial units or enterprises outside those categories.

Key conditions:

• Production must have started on or after 1 April 2022.
• The unit may belong to the private, co-operative or joint sector. Companies and undertakings owned or managed by the State Government also qualify.
• The project must be approved and sanctioned by a Central Financial Institution, a Commercial Bank or a State Financial Institution.
• The unit must hold three documents issued by the Director of Textiles — a Registration Certificate, a Date of Commencement Certificate and an Eligibility Certificate.

All of the above apply to units located in West Bengal.

West Bengal Textile Incentive Scheme — 100% Electricity Duty Waiver up to ₹1Cr is open to startups at any stage. It is open to startups registered anywhere in India.

West Bengal Textile Incentive Scheme — 100% Electricity Duty Waiver up to ₹1Cr accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Approved enterprises receive a 100% waiver of electricity duty on the electricity consumed by their approved project. The relief is capped at ₹1,00,00,000 per year and can be claimed for five years from the date production commences.

Because the support arrives as a duty waiver rather than a cash transfer or a loan, it directly lowers the unit's running costs and sharpens its competitiveness against mills in other states. The saved amount can be ploughed back into operations or expansion, which supports sustainable growth for textile businesses in West Bengal.

West Bengal Textile Incentive Scheme — 100% Electricity Duty Waiver up to ₹1Cr is offered by Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

Registration and application both happen online through the state's textiles portal.

• Register: Complete the registration form on the official portal at https://textiles.wb.gov.in/register, fill in every mandatory field and submit. You will receive a confirmation.
• Log in: Return to the login page at https://textiles.wb.gov.in/register and sign in using your registered mail ID and password.
• Check eligibility: Fill in the eligible form and verify your eligibility within the portal itself.
• Complete your forms: Finish the CAF along with Form A, and Form C where it applies.
• Self-sign: Download Form A and Form C (if applicable) and self-sign them.
• Upload: Attach the signed Form A and a copy of Form C, if applicable.
• Submit: Send in your application.

Once the paperwork is in, the Director of Textiles issues the necessary certificates after being satisfied with the arrangements. Final approval of the project is also required from a Central, Commercial or State Financial Institution.

Before you apply to West Bengal Textile Incentive Scheme — 100% Electricity Duty Waiver up to ₹1Cr, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

West Bengal Textile Incentive Scheme — 100% Electricity Duty Waiver up to ₹1Cr is best suited for startups in India seeking non-dilutive funding of ₹1Cr. If that describes your startup, review the eligibility criteria above before applying.