Incentive Scheme for MSMEs in Powerloom Sector - Subsidy on Stamp Duty and Registration Fees

Incentive Scheme for MSMEs in Powerloom Sector: Subsidy on Stamp Duty and Registration Fees was a state-level scheme by West Bengal government to support the textile industry. The original scheme, launched on 1st January 2022, stayed valid until 31st December 2024 and has now closed. West Bengal has since approved the West Bengal Incentive Scheme (WBIS) 2026, which continues to offer reimbursement of stamp duty and registration fees for eligible micro, small and medium enterprises (MSMEs) from 1st October 2026.

WBIS 2026 will run for five years, until 30th September 2031, unless changed earlier by a government notification. It covers new and eligible manufacturing MSMEs that begin commercial production on or after 1st October 2026 and hold Udyam Registration. Units that started production on or before 30th September 2026 are not covered under the new scheme.

Incentive Scheme for MSMEs in Powerloom Sector - Subsidy on Stamp Duty and Registration Fees

The earlier powerloom incentive scheme supported MSMEs in the powerloom sector by reimbursing stamp duty and registration fees paid during document registration. It covered micro, small and medium enterprises that started commercial production between 1st January 2022 and 31st December 2024. The scheme has now ended, and the benefit continues under the broader WBIS 2026 for eligible manufacturing units.

Under WBIS 2026, existing eligible MSMEs that take up approved expansion projects can claim reimbursement of stamp duty and registration fees, along with capital subsidy, power subsidy, electricity duty waiver and support for water conservation and environmental compliance.

Highlights

Benefits

Under the earlier powerloom scheme, eligible enterprises received stamp duty and registration fee reimbursement based on enterprise size and location. Micro and small enterprises in Zone A, B and C received 75 percent, while those in Zone D and E received 100 percent. Medium enterprises received 75 percent support in the applicable zones.

Under WBIS 2026, the reimbursement of stamp duty and registration fees continues for existing eligible MSMEs undertaking approved expansion projects. The new scheme also adds interest subsidy on term loans, electricity duty waiver, power subsidy and reimbursement of quality certification costs for eligible manufacturing units. Micro and small enterprises wholly owned by women or SC/ST entrepreneurs receive a 100 percent electricity duty waiver for five years, subject to a maximum reimbursement of ₹10 lakh per year.

Eligibility

For the original powerloom scheme, businesses had to be micro, small or medium enterprises in the powerloom sector, with commercial production started between 1st January 2022 and 31st December 2024. A four-party agreement involving the Directorate of Textiles, the financial institution and Tantuja was required.

For WBIS 2026, the eligibility rules have changed. The scheme applies to new and eligible manufacturing MSMEs that begin commercial production on or after 1st October 2026 and obtain Udyam Registration. It covers private, cooperative and joint sector units, state government owned undertakings and industrial self help groups. Units that started production on or before 30th September 2026 are not eligible.

Application Process

For the earlier powerloom scheme, the application was submitted to the Directorate of Textiles within 12 months of starting commercial production. The relevant form can still be reviewed through the official department links given below.

STEP 1 - Check whether the business falls under the new WBIS 2026 by confirming that commercial production begins on or after 1st October 2026 and that Udyam Registration is in place.

STEP 2 - Keep the required documents ready, including the approved project report, loan sanction letters, four-party agreement and proof of stamp duty and registration fee payment.

STEP 3 - Submit the application through the official department portal or the Directorate of Textiles office in Kolkata as per the scheme guidelines.

Documents

Applicants should keep copies of the following documents ready:

• Memorandum and Articles of Association or partnership deed, along with details of directors, partners or owners.
• Approved project report and bank loan sanction and disbursement letters.
• Copy of the four-party agreement and audited balance sheets for the last two years.
• Land deed or lease agreement, mutation and conversion certificate, consent to operate from WBPCB, SGST payment proof, trade license and Udyam Registration certificate.
• Evidence of payment of stamp duty and registration fees.

References

Review the official scheme details here: Government Guidelines

FAQ's

Is the original powerloom incentive scheme still running?

No. The original scheme, launched on 1st January 2022, closed on 31st December 2024. The benefit continues under the new WBIS 2026 from 1st October 2026.

What is WBIS 2026?

West Bengal Incentive Scheme 2026 is the new MSME incentive scheme approved by West Bengal government. It runs from 1st October 2026 to 30th September 2031 and covers stamp duty and registration fee reimbursement along with other incentives.

Who is eligible under the new scheme?

New and eligible manufacturing MSMEs that start commercial production on or after 1st October 2026 and hold Udyam Registration are eligible. Units that started production on or before 30th September 2026 are not covered.

What does the stamp duty subsidy cover?

It covers expenses for land or building purchases and long term lease agreements within government approved industrial parks, as per the scheme rules.

Where can I find the official scheme details?

The official department guidelines are available through the West Bengal MSME and Textiles department links given in the references section.