Incentive Scheme for MSMEs in Powerloom Sector: Waiver of Electricity Duty
Incentive Scheme for MSMEs in Powerloom Sector - Waiver of Electricity Duty is a Government of West Bengal incentive implemented through the Department of Micro, Small & Medium Enterprises and Textiles, notified on 20 December 2021, and effective from 1 January 2022.
The scheme aims to reduce electricity-related operational costs for MSMEs in the powerloom sector by providing waiver on electricity duty charged on industrial power consumption. For you as an MSME, this incentive helps improve profitability and supports sustainable operations by lowering recurring energy expenses.
Key Features
- Electricity duty exemption: Provides waiver on electricity duty for power consumed in manufacturing activities.
- Operational cost reduction: Helps MSMEs reduce recurring electricity expenses.
- Support for powerloom sector: Specifically designed for enterprises engaged in powerloom operations.
- Time-bound benefit: Available for a defined period under the scheme timeline.
- Encouragement for new and expansion units: Supports both new setups and expansion projects.
- Reimbursement / waiver mechanism: Benefit provided through exemption or reimbursement after verification.
Financial Assistance
Eligibility Criteria
- Must be a Micro, Small or Medium Enterprise (Powerloom sector)
- Must be located in West Bengal
- Must have Udyam Registration
- Must be engaged in powerloom manufacturing activity
- Project must be approved under the scheme
Additional conditions:
- Must use electricity for industrial production
- Proper records of electricity consumption required
Non-eligibility conditions:
- Non-powerloom units
- Units not engaged in manufacturing
- Incomplete or unverifiable electricity records
Documents Required
- Udyam Registration Certificate
- Electricity bills and duty payment records
- Proof of industrial electricity connection
- Project approval documents
- Bank account details
Application Process
Option 1: Apply with Bullit, Recommended
Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.
Option 2 : Apply Online (Government Process)
- Register on West Bengal Textile / MSME Portal
- Fill application form (Form-A2)
- Select Waiver of Electricity Duty component
- Enter electricity consumption details
- Upload electricity bills and required documents
- Submit application
- Verification by Directorate of Textiles
- Approval of waiver / reimbursement
- Disbursement of benefit
- Track application status online