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2022 West Bengal Textile Incentive Plan

Published: December 15, 2022
Author: TEXTILE VALUE CHAIN

West Bengal Textile Incentive Scheme, 2022 (WBTIS-2022) is applicable for enterprises engaged in manufacturing & processing of textile, apparel and technical textile. The scheme is effective on and from the date of official notification (i.e., from 13th December 2022) and will in force for 5 years.

Eligible Enterprise

WBTIS 2022 for textile shall be applicable to industries engaged in manufacturing and processing of Textiles, Apparels and Technical Textile Products.
The enterprises may be in the private sector, LLP, cooperative sector and joint sector undertaking as also companies/undertakings owned and managed by the State Government. Enterprises which have started commercial production on or after 1st day of April 2022 are covered under the scheme.

Types of Subsidies Available

1) State Capital Investment Subsidy

Type of Manufacturing Activities Quantum of Subsidy Maximum Admissible Amount
Spinning (short staple and long staple) 10% Rs. 20.00 Cr.
Weaving & Knitting (wrap and flat-bed) 20% Rs. 10.00 Cr.
Circular Knitting 10% Rs. 5.00 Cr.
Dyeing & Processing of Fibers, Yarn, Fabric & Garment 20% Rs. 20.00 Cr.
Technical Textile (Agrotech, Buildtech, Indutech, Geotech and Medi-tech) and non-woven fabric manufacturing. 20% Rs. 25.00 Cr.
Technical Textile (All categories except Agrotech, Buildtech, Indutech, Geotech and Medi-tech) 10% Rs. 10.00 Cr.
Polymerization, Texturizing and Twisting 20% Rs. 50.00 Cr.

2) Waiver of Electricity Duty

An eligible enterprise engaged in textile industry for its approved project will be entitled to 100% waiver of electricity duty for 5 years from the date of commencement of production subject to a maximum of Rs. 100.00 Lakh per year.

3) Power Subsidy

An eligible enterprise engaged in textile industry for its approved project will be entitled to Power Subsidy on electricity consumption for 5 years from the date of commencement of production from any license power supplier on reimbursement basis for the different manufacturing activity as follows:

Type of Manufacturing Activities Quantum of Subsidy Upper Limit
Spinning (short staple and long staple) Rs. 2/unit Rs. 1.00 Crore per annum for 5 years
Weaving & Knitting (wrap and flat-bed) Rs. 2/unit
Circular Knitting Rs. 1.5/unit
Dyeing & Processing of Fibers, Yarn, Fabric & Garment Rs. 2/unit
Technical Textile (Agrotech, Buildtech, Indutech, Geotech and Medi-tech) and (non-woven fabric manufacturing. Rs. 1.5/unit
Technical Textile (All categories except Agrotech, Buildtech, Indutech, Geotech and Medi-tech) Rs. 1.5/unit
Polymerization, Texturizing and Twisting Rs. 2/unit Rs. 50.00 Lakh per annum for 5 years
Garment Manufacturing Unit Rs. 1/unit

Note: Power subsidy will be paid annually on production of electricity bills. Further power subsidy shall not be available for units already enjoying lower power tariffs under DVC area or areas where the state DISCOM or other license DISCOM has offered reduced rates for industry compared to rest of the State.

4) Incentive for Energy Efficiency:

  • 50% re-imbursement of the cost of energy audit undertaken by a certified agency for its approved project with an upper limit of Rs. 2.00 Lakh.
  • 25% reimbursement of the cost of installations for energy conservation as per energy audit subject to a ceiling of Rs. 10.00 Lakh.

5) Re-imbursement of Stamp Duty & Registration Fees

An eligible enterprise engaged in textile industry will be entitled to a re-imbursement of 100% of the stamp duty & registration fees paid for the purpose of –
a) Purchase of land and /or building for setting up of the approved project.
b) Land/Building/Shed taken on lease (minimum 10 years) anywhere in the state for setting up of the approved project.
Note: The Amount admissible will be calculated proportionately based on the percentage of land/building used for setting up of the approved project.
6) Waiver of Fees for Land Conversion & Mutation
An Textile Industry under WBTIS 2022 for its approved project will be entitled to 100% waiver of fees for conversion and mutation of the land.
7) Subsidy for Water Conservation / Environment Compliance
Reimbursement of 25% of expenditure incurred for its approved project by an eligible unit towards cost of captive Effluent Water Treatment Plant (Max Rs. 1.50 Crore) for waste water recycling and /or other pollution control devices.
Note: In case of cluster of units with a minimum of 5 units, State Govt. MSMET Department will set up a CETP to be run by SPV of the clustered units as well as running cost is to be borne by them, if total investment in such units is at least Rs. 200.00 Crore.
Incentive for approved Expansion Project of an Existing Enterprise
An eligible textile unit shall be entitled for –
  • Capital Subsidy
  • Re-imbursement of Stamp Duty & Registration Fees
  • Power Subsidy and Waiver of Electricity Duty if the unit takes a separate metering arrangement for the expansion portion of the unit.
  • Incentive for water conservation and environment compliance.
Important Notes:
1. A new industry in the manufacturing sector of textile claiming to be eligible for incentive under WBTIS 2022 shall commence its commercial production on or after 01.04.2022. Investment towards the project should be made on or after 01.04.2021.

2. Expansion of existing industry claiming to be eligible for incentive under WBTIS 2022 shall commence its commercial production of the expanded portion on or after 01.04.2023 provided the existing industry should have started as a new unit on or after 01.04.2022.

3. A new industry or an expanded portion of the existing industry shall submit first application within 12 months from the date of commencement of commercial production for its new project or for expansion project or 12 months from the date of this notification, whichever is later.

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