Incentive Scheme for MSMEs in Powerloom Sector: Subsidy for Standard Quality Compliance

Incentive Scheme for MSMEs in Powerloom Sector: Subsidy for Standard Quality Compliance was a West Bengal state scheme that reimbursed 50% of certification costs up to ₹ 5,00,000/- for micro and small powerloom enterprises. The scheme ran from 1st January 2022 and closed on 31st December 2024.

West Bengal has since approved a new and broader West Bengal Incentive Scheme (WBIS) 2026 for MSMEs, which continues the quality certification support from 1st October 2026. Under the new scheme, eligible micro and small enterprises can get 50% reimbursement of certification costs for ISI, BIS, ISO and HACCP certificates, capped at ₹ 5 lakh for micro and small units and ₹ 10 lakh for medium units.

Incentive Scheme for MSMEs in Powerloom Sector: Subsidy for Standard Quality Compliance - Introduction

This powerloom scheme was introduced on 1st January 2022 by the Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal. It helped micro and small powerloom units pay for quality certifications from approved institutions and research laboratories. The scheme remained open until 31st December 2024, after which it closed.

The main aim of the scheme was to help MSMEs in the textile sector install new-age shuttleless powerlooms and follow higher production standards. By encouraging quality compliance, the scheme helped units grow, create jobs and strengthen the state's position in the powerloom industry.

For eligible enterprises, the scheme covered half of the cost of certifications such as ISO 9000, ISO 14000, ISO 14001 and ISO 18000. For other certifications not listed, authorities could review a request case by case.

Key Information

New WBIS 2026 Scheme

West Bengal approved the West Bengal Incentive Scheme (WBIS) 2026 for MSMEs in July 2026. This new scheme will come into effect on 1st October 2026 and will remain operational for five years until 30th September 2031, unless changed or withdrawn earlier by a government notification.

Under WBIS 2026, the state will reimburse 50% of certification costs for quality certifications such as ISI, BIS, ISO and HACCP. The support is subject to a ceiling of ₹ 5 lakh for micro and small enterprises and ₹ 10 lakh for medium enterprises.

The new scheme applies to new and eligible MSMEs in the manufacturing sector that start commercial production on or after 1st October 2026 and obtain Udyam Registration. It covers enterprises in the private, cooperative and joint sectors, state government-owned undertakings and industrial self-help groups (SHGs). Units that began production on or before 30th September 2026 will not be eligible.

Benefits

Under the earlier powerloom scheme, eligible units could receive a 50% subsidy on qualified certification expenditure, capped at a maximum of ₹ 5,00,000/-. The new WBIS 2026 continues this support for quality certification with the same 50% rate, while raising the ceiling to ₹ 10 lakh for medium enterprises.

Eligibility

For the earlier powerloom scheme, eligibility was based on the following points:

• The unit had to be a micro, small or medium enterprise (MSME) within the powerloom sector.
• Commercial production had to start between 01.01.2022 and 31.12.2024.
• A valid Four-party agreement involving the Directorate of Textiles, the financial institution and Tantuja was required.
• The business unit had to operate in the private, cooperative or joint sector, including entities managed by the State Government or Industrial SHGs.
• A detailed, approved project report and formal sanction from a Central Financial Institution, Commercial Bank or State Financial Institution were needed.

For the new WBIS 2026 scheme, units must start commercial production on or after 1st October 2026 and obtain Udyam Registration to be eligible for the quality certification reimbursement.

Application Process

Under the earlier powerloom scheme, applicants had to submit an application in the prescribed Form-A2 to the Directorate of Textiles after starting commercial production. The first application had to be filed within 12 months from the production start date.

STEP 1 - Prepare the required documents, including the certificate from a Chartered Accountant detailing certification expenses, along with the proof of ISO, BIS or ISI certificates obtained.

STEP 2 - Submit the application in Form-A2 to the Directorate of Textiles within 12 months of starting commercial production.

STEP 3 - Wait for the Directorate to scrutinize the documents and conduct a physical inspection of the enterprise, usually within 15 days.

STEP 4 - Once approved, the subsidy is released directly to the bank or financial institution based on the purchase order invoices provided.

For the new WBIS 2026 scheme, applications will be processed through the official MSME channels of the Government of West Bengal once the scheme takes effect from 1st October 2026.

Send your documents to:
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.
Phone: 033-2248 4537 / 2248 6271 (Ext. 215)

Documents

The following documents were required for the earlier powerloom scheme application:

1. Authenticated copy of Memorandum/Articles of Association or partnership deed.
2. Statement of ownership listing Directors, Partners or Members.
3. Copy of the approved project report.
4. Loan sanction and disbursement letters from the bank.
5. Executed agreement copies.
6. Audited balance sheets for the last 2 years.
7. Details of current manufacturing activities and production capacity in West Bengal.
8. Proof of land or building ownership/lease agreements.
9. Mutation and conversion certificates for land.
10. Valid consent to operate from the WBPCB.
11. SGST documentation.
12. Valid trade licence.
13. First electricity bill.
14. Udyam Registration acknowledgement.
15. SC/ST certificate (if applicable).
16. Self-declaration as per official guidelines.
17. Copies of obtained ISO/BIS/ISI certificates.
18. Original money receipts and invoices for certification expenditure.

Definitions

References

You can review the Official Scheme Guidelines for further details. For the new WBIS 2026 scheme, check the official MSME department website of West Bengal.

FAQ's

Is the powerloom quality compliance scheme still running?

No. The earlier powerloom scheme closed on 31st December 2024. West Bengal has approved the new WBIS 2026 scheme, which takes effect from 1st October 2026 and continues the quality certification reimbursement.

What is the certification subsidy under WBIS 2026?

Under WBIS 2026, eligible micro and small enterprises get 50% reimbursement of certification costs for ISI, BIS, ISO and HACCP, capped at ₹ 5 lakh for micro and small units and ₹ 10 lakh for medium units.

What areas are classified under Zone A?

Zone A includes the Kolkata Municipal Corporation area, as well as all municipal areas within North 24-Parganas, South 24-Parganas and Howrah.

Who is eligible under the new WBIS 2026 scheme?

New and eligible MSMEs in the manufacturing sector that start commercial production on or after 1st October 2026 and obtain Udyam Registration are eligible. Units that began production on or before 30th September 2026 are not covered.

How is the subsidy released?

Under the earlier scheme, the Directorate of Textiles released the subsidy directly to the bank or financial institution based on the purchase order invoices provided.