AI SummaryWest Bengal government has approved West Bengal Incentive Scheme (WBIS) 2026 for Micro, Small and Medium Enterprises, which replaces the earlier Banglashree for MSMEs interest subsidy on term loan. The new scheme offers interest subsidy on term loans along with electricity duty waivers, quality certification support and other benefits for manufacturing units.
WBIS 2026 comes into effect from 1st October 2026 and will stay in force for five years until 30th September 2031. It applies to new manufacturing MSMEs that begin commercial production on or after 1st October 2026 and hold Udyam Registration.
West Bengal Incentive Scheme 2026 - Interest Subsidy on Term Loan
West Bengal Incentive Scheme 2026 is run by the Micro, Small and Medium Enterprises and Textiles Department, Government of West Bengal. It replaces the earlier Banglashree for MSMEs incentive framework that ran from 1st April 2020 to 31st March 2025. The new scheme keeps the interest subsidy on term loans and adds support such as electricity duty waiver and reimbursement of quality certification costs.
The scheme targets new and eligible MSMEs in the manufacturing sector. Units that began production on or before 30th September 2026 are not covered under WBIS 2026. Enterprises in the private, cooperative and joint sectors, state government owned undertakings and industrial self-help groups can apply.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | West Bengal Incentive Scheme (WBIS) 2026 |
| Level | State |
| Beneficiary State | West Bengal |
| Nodal Department | Micro, Small & Medium Enterprises and Textiles Department |
| Effective From | 1st October 2026 |
| Valid Until | 30th September 2031 |
| Benefit Type | Interest subsidy, electricity duty waiver, cash support |
| Official Website | msme.wb.gov.in |
Benefits
Eligible micro and small enterprises get interest subsidy on term loans taken from commercial banks, cooperative banks, scheduled banks, regional rural banks and financial institutions for approved projects. The subsidy is paid for five years from the date of first loan disbursement.
| Zone | Interest Subsidy |
|---|---|
| Zone A | 25% of annual interest liability for 5 years |
| Zones B and C | 35% of annual interest liability for 5 years |
Along with the interest subsidy, manufacturing units get an electricity duty waiver. Zone A units get a 50% waiver for five years, while units in Zones B and C get a 75% waiver. Micro and small enterprises wholly owned by women or SC/ST entrepreneurs get a 100% electricity duty waiver for five years, subject to a maximum of ₹10 lakh per year.
Eligibility
To qualify under WBIS 2026, the following conditions should be met:
- Business must be a micro, small or medium enterprise in the manufacturing sector.
- Commercial production must begin on or after 1st October 2026, and the unit must hold Udyam Registration.
- Enterprise should belong to the private, cooperative or joint sector, or be a state government owned undertaking or an industrial self-help group.
Application Process
Applications for WBIS 2026 incentives are submitted online through the official MSME portal of the Government of West Bengal.
STEP 1 - Go to the official website at msme.wb.gov.in and open the Banglashree or incentive scheme section. Create a new account by selecting the applicant type and entering the registration number.
STEP 2 - Log in to the dashboard and choose the incentive service, then create a common application form for the interest subsidy on term loan.
STEP 3 - Fill in the eligibility and application details, upload the required documents, and submit the form. Keep a copy of the acknowledgement for future reference.
Documents
Keep digital copies of the following documents ready while applying:
- Udyam Registration certificate and approved project report.
- Bank loan sanction and disbursement letters for the term loan.
- Last two years audited balance sheets and details of plant and machinery.
- Land deed or rent and lease agreements, trade license and consent to operate from WBPCB.
References
- Official MSME Department, Government of West Bengal
- MSME and Textiles Department, West Bengal
- KNN India report on WBIS 2026 approval
FAQ's
Is the old Banglashree scheme still running?
The earlier Banglashree for MSMEs scheme ran until 31st March 2025 and has been replaced by West Bengal Incentive Scheme 2026, which starts from 1st October 2026.
Who can apply under WBIS 2026?
New manufacturing MSMEs that begin commercial production on or after 1st October 2026 and hold Udyam Registration can apply.
How much interest subsidy is available?
Zone A units get 25% of the annual interest liability for five years, while units in Zones B and C get 35% for the same period.
Where do I apply?
Applications are submitted online through the official MSME portal at msme.wb.gov.in.