West Bengal Textile Incentive Scheme — 100% Electricity Duty Waiver up to ₹1Cr — Frequently Asked Questions
Answers to the questions founders most often ask about West Bengal Textile Incentive Scheme — 100% Electricity Duty Waiver up to ₹1Cr — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
What exactly does this incentive give a textile unit?
It exempts the unit completely from electricity duty on the electricity its approved project consumes. The exemption runs for five years from the date production starts and is capped at ₹1,00,00,000 per year.
How much can a unit save each year under this scheme?
The ceiling is ₹1,00,00,000 per year. That is the maximum waiver available in any single year of the five-year benefit window, which begins on the date production commences.
Is there a last date to apply?
No. Applications are accepted on a rolling basis, which means the window is always open. The scheme itself is valid for five years from its launch on 13 December 2022.
Which businesses are eligible?
Units engaged in the manufacturing and processing of textiles, apparel and technical textile products in West Bengal qualify. Production must have begun on or after 1 April 2022, and the unit can be in the private, co-operative or joint sector, including companies or undertakings owned or managed by the State Government. General industrial units and enterprises outside the textile categories are not covered.
Does my project need approval from a bank or financial institution?
Yes. The project must be approved and sanctioned by a Central Financial Institution, a Commercial Bank or a State Financial Institution. That approval is a condition of eligibility, and final approval of the project from one of these institutions is also part of the process.
Which certificates do I need from the Director of Textiles?
Three documents are required: a Registration Certificate, a Date of Commencement Certificate and an Eligibility Certificate, all issued by the Director of Textiles.
Does the scheme take equity in my company, or do I have to repay the benefit?
Neither. This is a fiscal incentive in the form of a duty waiver, so it is non-dilutive and nothing has to be repaid. No stake in the business is taken in exchange for the relief.
What forms and documents are involved in the application?
You complete the CAF, Form A and Form C where applicable. Form A and Form C then need to be downloaded, self-signed and uploaded — the signed Form A along with a copy of Form C. Your eligibility is also verified through the portal before the Director of Textiles issues the certificates.
How do I apply?
Register on the official textiles portal at https://textiles.wb.gov.in/register, then log in with your registered mail ID and password. Fill in the eligible form, check your eligibility on the portal, complete the required forms, upload the signed copies and submit the application. Full scheme details are published in the official document at https://textiles.wb.gov.in/assets/New_PUBLICATION_OF_WBTIS_2022.pdf.
When does the five-year benefit clock start?
It starts from the date of commencement of production, not from the date the project is approved or the application is submitted. The waiver then runs for five years from that point, subject to the annual ceiling of ₹1,00,00,000.
Is DPIIT recognition required for West Bengal Textile Incentive Scheme — 100% Electricity Duty Waiver up to ₹1Cr?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for West Bengal Textile Incentive Scheme — 100% Electricity Duty Waiver up to ₹1Cr, though having it can strengthen your application and unlock other benefits.
Who is eligible to apply for West Bengal Textile Incentive Scheme — 100% Electricity Duty Waiver up to ₹1Cr?
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.
Who offers West Bengal Textile Incentive Scheme — 100% Electricity Duty Waiver up to ₹1Cr?
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. It is provided as non-dilutive funding.
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