Banglashree for Micro, Small and Medium Enterprises: Power Subsidy

Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS) is a state incentive program of the Government of West Bengal that helped micro, small and medium manufacturing units lower their electricity costs. The scheme was managed by the MSME and Textiles Department and ran from 1st April 2020 to 31st March 2025. The state has now moved to a new incentive framework, the West Bengal Incentive Scheme (WBIS) 2026, which carries forward the power subsidy support for eligible MSMEs.

The Banglashree power subsidy gave cash support on electricity consumed during manufacturing. It was part of the larger Banglashree framework launched on 1st April 2020. The scheme aimed to cut operational overheads, encourage balanced regional development and create jobs across the state. Applications were made online through the Shilpasathi single window portal and the online Banglashree system of the MSME department.

Banglashree for Micro, Small and Medium Enterprises: Power Subsidy - Introduction

The Banglashree power subsidy was notified on 22nd July 2020 and remained in force till 31st March 2025. Under this scheme, a manufacturing unit could claim a subsidy on the electricity it used for production. The rate depended on the zone where the unit was located and the category of the enterprise.

For example, a micro or small unit in Zone A and Zone B areas got a subsidy of ₹1.00 per Kwh, while a unit in Zone C, D and E areas received ₹1.50 per Kwh. Medium enterprises were also covered under the same rate structure. The subsidy was paid for five years from the date of commercial production.

With the Banglashree period ending on 31st March 2025, the West Bengal government approved the WBIS 2026 incentive scheme for MSMEs. This new scheme, effective from 1st October 2026 for five years, provides interest subsidy on term loans and power subsidies to eligible units. Units that began production between 1st April 2025 and 30th September 2026 are not covered under WBIS 2026.

Highlights

Benefits

Under the Banglashree power subsidy, eligible manufacturing units received direct cash support on electricity used for production. The subsidy rate was ₹1.00 per Kwh for units in Zone A and Zone B, and ₹1.50 per Kwh for units in Zone C, D and E. The subsidy was paid annually for five years from the date of commercial production.

Annual caps applied under the scheme: ₹10 lakh for micro enterprises, ₹20 lakh for small enterprises and ₹30 lakh for medium enterprises, paid every year. The new WBIS 2026 scheme continues to offer power subsidy along with interest subsidy on term loans to reduce the financial load on MSMEs.

Eligibility

These conditions applied for the Banglashree power subsidy:

• The business had to be classified as a micro, small or medium enterprise in the manufacturing sector.
• The unit had to commence production on or after 1st April 2019, with the date of commercial production falling between 1st April 2020 and 31st March 2025.
• The business had to be in the private, cooperative or joint sector, or an industrial SHG.
• A valid Udyam registration was required for the enterprise.

Exclusions

Certain entities were not eligible for this subsidy:

• Enterprises that already received incentives under other state schemes.
• Units that commenced production before 1st April 2019 and applied under previous schemes.
• Industries listed in the negative list, such as sponge iron factories and traditional brick kilns (excluding fly ash or sand lime bricks).

Second-hand plant and machinery costs, as well as specific auxiliary equipment like firefighting gear, gas producer plants and general electrical wiring, were not counted in the total investment value.

Application Process

Applications for the Banglashree scheme were made online through the Shilpasathi single window portal and the online Banglashree system of the MSME department. The steps are given below.

STEP 1 - Create a new account on the Shilpasathi portal under the registration tab, or register on the online Banglashree system of the MSME department.

STEP 2 - Log in to the account and open the MSME Incentive service to generate the Common Application Form (CAF) ID.

STEP 3 - Fill out the eligibility form and the detailed CAF with the required business and unit details.

STEP 4 - Submit the required documents through the apply subsidy section, including the first electricity bill, trade licence, WBPCB consent and audited balance sheets.

STEP 5 - Track the application regularly using the reference number given after final submission. The first application had to be submitted within 12 months of the date of commercial production or 12 months from the notification date, whichever was later.

Documents

These documents were needed for the application:

• Company registration papers like the Memorandum of Association or partnership deed.
• Approved project report and bank disbursement letters.
• Audited balance sheets for the last two years.
• Valid trade licence and WBPCB consent certificate.
• Electricity bills and money receipts for the claim period.
• Land and building documents including rent or lease agreements, and ID proof of owners, partners or directors.

References

Official MSME Department, West Bengal

Online Banglashree Registration and Guidelines

FAQ's

Is the Banglashree power subsidy still running?

The Banglashree scheme ran from 1st April 2020 to 31st March 2025. It has been replaced by the West Bengal Incentive Scheme (WBIS) 2026, which is effective from 1st October 2026 and offers power and interest subsidies to eligible MSMEs.

What areas are classified under Zone A?

Zone A covered the Kolkata Municipal Corporation and the municipal areas of North 24-Parganas, South 24-Parganas and Howrah. The zone decided the subsidy rate a unit could claim.

Who is not covered under WBIS 2026?

Units that began production between 1st April 2025 and 30th September 2026 are not covered under the new WBIS 2026 scheme, as per the draft policy.

Can I apply if I already get benefits from another state scheme?

No. An enterprise had to choose one scheme and could not claim incentives under two different state policies at the same time.