Incentive Scheme for MSMEs in Powerloom Sector: Interest Subsidy on Term Loan
State: West Bengal
Ministry: null
Department: Micro, Small & Medium Enterprises and Textiles Department
Category: Business & Entrepreneurship
Beneficiary Type: Business Entity, Government Organisation, Joint Liability Groups (JLGS), NGO, Registered Societies, Self Help Groups (SHGS), Trust

“Interest Subsidy on Term Loan” incentives under the “Incentive Scheme for MSMEs in Powerloom Sector” scheme implemented by the Dept. of MSME & T, Government of West Bengal, aims to provide subsidy on annual interest liability on the Term Loan borrowed from a Bank to an approved project.

Benefits:
&gt; **Micro &amp;amp; Small Enterprise:**

  - **Zone A &amp;amp; B:** 55% of interest liability for 5 years.  - **Zone C, D &amp;amp; E:** 70% of interest liability for 5 years
&gt; **Medium Enterprise:**

  - **Zone B, C, D &amp;amp; E:** 25% of total Term Loan interest paid by the enterprise for 5 years subject to a ceiling of ₹ 1,75,00,000/- per year.
&gt; **Note:** The interest subsidy will be payable annually subject to submission of a statement / certificate (in [Annexure-II](https://wbmsmet.gov.in/home/download/YzA0YzdiMjc0YjAwYjBiMDgwYTRjYmRkOTU1MDY1NGQyNTNjM2YyYWYxMDRhNTkyYjRiMWI1YmVkZDYyOTZlN2YwNDc3ZDgwMDM5YzgxYjhmZWZiMWY2ODI0ZTNjYTUzMjU4N2YwYjViMjJiZTllZjAzYmM3NTRiZTY4ZDk0MTVjVmtvdlJCcjA0ZlpLYjZkbTlPQ0hyUTBaNGRuVzZZOXpHTlpGRkJwcUlZaDNwNXF0S01rSU4rTE5ZS3JCd3VKVmp5c1drM3hEb29QaHlXNit1Vy9CQT09)) by the lending Bank /Financial Institution to substantiate that the unit has paid the due interest to the institution on the due dates and has not defaulted in payment of interest at any time during the period.

Eligibility:
- The Scheme shall be generally applicable to all micro, small, and medium enterprises (MSMEs) in the powerloom sector.
  - Enterprises must have started production from 01.01.2022 to 31.12.2024.
  - Enterprises should have executed a Four-party agreement with the Directorate of Textiles, Financial institution and Tantuja.
  - The units should be a private sector, cooperative sector and joint sector undertaking as also companies/undertakings owned and managed by the State Government and the Industrial SHGs.
  - The project should be covered by a detailed feasibility report/project prepared for the purpose.
  - The project should have been approved and sanctioned by a Central Financial Institution or Commercial Banks or State Financial Institutions.

Application Process:
[Offline]
After commencement of production an eligible micro, small or medium enterprise in Powerloom segment claiming the subsidy, will submit an application as per prescribed format in Form-A2 with all the relevant documents to the Directorate of Textiles.
Time frame for submission of first Application:Within 12 months from the date of commencement of commercial production (01.01.2022 to 31.12.2024).
Address:Directorate of Textiles, Handlooms, Spinning Mills, Silk Weaving & Handloom Based Handicrafts Division
New Secretariat Buildings,
1, K. S. Roy Road, 5th Floor, 'B' Block,
Kolkata 700001.
Tel No. 033-2248 4537 / 2248 6271 (Ext. 215)
Fax No. 033-2248 4537

Documents Required:
A copy of the Memorandum of Association and Articles of Association authenticated by the Registrar of Companies/ partnership deed (wherever applicable).
A statement on the name and address of the Directors /Partners /Owners of the enterprise/ Members of Cooperative or Self Help Groups, as applicable.
Copy of approved project report.
A copy of loan sanctions letter and disbursement letter issued by financial institutions/ banks.
Copy of agreement.
A copy of the audited balance sheet for the last 2 years wherever applicable.
Existing manufacturing activities in West Bengal stating items, annual approved capacity, annual production during the last three years (in quantity and value in Rs. Lakh), if applicable.
Copy of the land deed (wherever applicable) (In case of rented /leasehold land / buildings, copy of rent agreement and receipt /lease agreement).
Copy of mutation & conversion certificate of land/ building.
Copy of valid consent to operate certificate from the WBPCB.
Copies regarding SGST.
Copy of trade licence.
Copy of first electricity bill (wherever applicable)
Copy of acknowledgement of Udyam Registration
Copy of SC / ST certificate wherever applicable.
Copy of other statutory licenses/certificates, if necessary.
“Self declaration” as per para 7.1(vi) of the Official Scheme Guidelines.
A certificate from Bank/FI as per Annexure-II.