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West Bengal Textile Incentive Scheme — 25% ETP Subsidy up to ₹1.5 Cr — Frequently Asked Questions

FAQ

Answers to the questions founders most often ask about West Bengal Textile Incentive Scheme — 25% ETP Subsidy up to ₹1.5 Cr — who qualifies, the funding amount, required documents and how the application works.

Frequently asked questions

What exactly does this West Bengal subsidy reimburse?

It reimburses a share of the money a textile enterprise has spent on setting up a captive Effluent Water Treatment Plant used for wastewater recycling, along with other pollution control devices. The reimbursement is calculated on eligible expenditure at a rate of 25%, and it cannot exceed ₹1.5 crore.

How much funding can a single unit receive?

An eligible unit is reimbursed 25% of its eligible expenditure, subject to a ceiling of ₹1.5 crore, which is ₹15,000,000. The cap applies regardless of how much the unit actually spent on the equipment.

Which units are eligible to apply?

Industries engaged in the manufacturing and processing of textiles, apparel and technical textile products are eligible. Private sector units, co-operative sector units, joint sector units, and companies or undertakings owned or managed by the State Government can all apply.

Is there a deadline for submitting the application?

No fixed deadline has been set — applications are accepted on a rolling basis and the window stays open. The scheme itself is valid for five years from December 2022, when it was launched.

When must my unit have started production to qualify?

Your unit must have commenced production on or after 1 April 2022. Units that began manufacturing before that date fall outside this sub-scheme's eligibility.

Do I need any prior project approval before I can claim the subsidy?

Yes. The project for which you are seeking the subsidy must first have been approved and sanctioned by a Central Financial Institution, a Commercial Bank, or a State Financial Institution. On top of that, the unit has to hold a Registration Certificate, a Date of Commencement Certificate and an Eligibility Certificate issued by the Directorate of Textiles.

Does this scheme take equity in my company?

No. This is a subsidy paid out as a reimbursement, so it is non-dilutive — the state government does not take any equity stake or ownership share in your business in return for the money.

Is DPIIT recognition or MSME registration required to apply?

DPIIT recognition and MSME registration are not listed among the conditions for this sub-scheme. What the unit is required to hold instead are the Registration Certificate, Date of Commencement Certificate and Eligibility Certificate from the Directorate of Textiles, along with the sanction of its project by a financial institution.

What forms and documents go into the application?

Applicants complete the eligibility form and the Common Application Form (CAF) with their project and company details, and also fill in Form A and Form C where applicable. Those forms are downloaded, self-signed and uploaded back to the portal, together with the certificates required under the scheme.

How do I apply for the subsidy?

The process is entirely online. Start by registering on the official website using the registration form, then log in with your registered email ID and password. Complete the eligibility form to confirm you qualify, fill in the Common Application Form, then download Form A and Form C (if applicable), self-sign them, upload the signed copies and submit the complete application through the portal.

What help is available for groups of textile units?

For clusters of at least 5 units that together meet an investment threshold of ₹200 crore, the state government facilitates the setting up of a Common Effluent Treatment Plant managed by a Special Purpose Vehicle formed by the clustered units. The running costs of that CETP are borne by the participating units themselves.

Who offers West Bengal Textile Incentive Scheme — 25% ETP Subsidy up to ₹1.5 Cr?

West Bengal Textile Incentive Scheme — 25% ETP Subsidy up to ₹1.5 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.

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