Disclaimer….before you read ahead!
The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updation, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.
Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this email.
About this scheme…
State Capital Investment Subsidy Scheme is one of the fiscal incentives provided by provided by State Government of West Bengal as part of their Banglashree Scheme for MSMEs (Banglashree) with the aim of encouraging entrepreneurs to set up Micro, Small and Medium Enterprises (MSMEs) across West Bengal resulting in new employment generation and widening the area of operations such that West Bengal emerges as the MSME leader in the country.
Banglashree Scheme for MSMEs is focused on MSMEs in the manufacturing sector alone. Effective on and from April 1, 2020, it shall remain in force for a period of five years ending on March 31, 2025, if not withdrawn or amended earlier. You may read more about Banglashree Scheme for MSMEs here
How is it being implemented?
Under Banglashree’s State Capital Investment Subsidy Scheme, direct subsidies are given to Micro & Small Enterprises (MSEs) operating in manufacturing sector.
Furthermore, under this Scheme, additional subsidy is given to MSEs wholly owned by women, SC/ST, and minority community entrepreneurs.
What’s on offer?
I. Product
- Subsidy or concessions towards Fixed Capital Investment (FCI) made for new projects or expansion projects
- FCI comprises of investment made in plant & machinery on or after April 1, 2018. For more information on this, refer to Page 3, 4, 5 and 6 of the Scheme here
- Quantum of subsidy:
- For women owned Micro Enterprises in:
- Zone A – 15% of FCI with no upper limit (vis-à- vis nil for entrepreneurs in general category)
- Zone B – 15% of FCI with no upper limit (vis-à- vis nil for entrepreneurs in general category)
- Zone C – 30% of FCI with no upper limit (vis-à- vis 25% for entrepreneurs in general category)
- Zone D – 48% of FCI with no upper limit (vis- à-vis 40% for entrepreneurs in general category)
- Zone E – 72% of FCI with no upper limit (vis-à- vis 60% for entrepreneurs in general category)
- For women owned Small Enterprises in:
- Zone A – 10% of FCI with no upper limit (vis-à- vis nil for entrepreneurs in general category)
- Zone B – 10% of FCI with no upper limit (vis-à- vis nil for entrepreneurs in general category)
- Zone C – 18% of FCI upto ₹50 Lakhs (vis-à-vis 15% for entrepreneurs in general category)
- Zone D – 36% of FCI upto ₹50 Lakhs (vis-à-vis 30% for entrepreneurs in general category)
- Zone E – 48% of FCI upto ₹75 Lakhs (vis-à-vis 40% for entrepreneurs in general category)
- For women owned Micro Enterprises in:
- Disbursement
- The entire amount of sanctioned subsidy is likely to be disbursed at one go. For more information on this, please contact District Industries Centre (DIC) in your respective District via means mentioned below
To identify which zonal classification your business fall under, please refer to Page 6 of the Scheme here.
II. Purpose:
- Investment in Plant & Machinery. For more information on this, refer to Page 3, 4, 5 and 6 of the Scheme here
III. Borrower Type:
- Private Sector (Sole Proprietorship, Partnership, LLP, LLC, Private Company, Public Company etc.), Cooperative Sector, Joint Sector Undertaking, Companies/Undertakings owned & managed by State Government, Companies/Undertakings owned & managed by Industrial SHGs
IX. Turnaround Time
- It takes about 100 days for the disbursement of subsidy under this Scheme to come through once the application is submitted with required documents
- Submission of application to receipt of intimation of approval/rejection – 60 days
- Receipt of approval to intimation of sanction – 20 days
- Receipt of sanction to disbursement – 20 days
Interested? Read ahead to check your eligibility….
I. Is yours a Micro or Small Enterprise per the MSMED Act 2006 with an Udyog Aadhaar Registration?
II. Is yours a business in the manufacturing sector and that does not fall in the negative list of industries? Please refer to Page 29 of the Scheme here
III. Is your business located in West Bengal in either of the Zones A, B, C, D or E? To identify which zonal classification your business fall under, please refer to Page 6 of the Scheme here
IV. Is the Fixed Capital Investment (FCI) in Plant & Machinery, for which subsidy is being availed under this Scheme, made after April 1, 2018?
V.
In case your business has commenced commercial production on or post April 1, 2019 and until March 31, 2025, is the subsidy on FCI being availed for a new or expansion project?
OR
In case your business has commenced commercial production before April 1, 2019, is the subsidy on FCI is being availed for an expansion project alone? For information on subsidy eligible on expansion project, please refer to the Definition & Explanation under “Expansion of Existing Enterprise” on Page 2 of the Scheme here
VI.
In case your business has commenced commercial production on or post April 1, 2019 and until March 31, 2025, is the first incentive application under Banglashree Scheme for MSMEs has been/is being made within 12 months from the date of commencement of commercial production or 12 months from the date of notification of Banglashree Scheme for MSMEs (i.e. July 22, 2020), whichever is later?
OR
For timing of application of subsidy under this Scheme for an expansion project for business that has commenced commercial production before April 1, 2019, please contact DIC in your respective District via means mentioned below
VII.
Is the new project or expansion project under question approved before its implementation by (a) any Directorate under the Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal, or (b) concerned DIC, or (c) Micro Small and Medium Enterprises Development Institute (MSME-DI), Government of India, or (d) Food Processing Industries and Horticulture Department, Govt. of West Bengal, or (e) Commercial Banks / Financial Institution (Central and State ) / Co-Operative Banks/Scheduled Banks approved by RBI / Regional Rural Banks (RRBs), financing the project?
OR
In case your new project or expansion project is envisaged to be financed from own sources, can you provide a declaration regarding source of finance supported by a certificate issued by a Chartered Accountant as per Annexure VI of Banglashree Scheme for MSMEs? For Annexure VI, please refer to Page 31 of the Scheme here
VIII. Your business has not availed the claim sought under this Scheme under any other Incentive or Subsidy Scheme of Government of India or State Government?
If your answers to the questions above are an emphatic YES, you are all set to avail Banglashree’s State Capital Investment Subsidy Scheme!
You may also read more on the eligibility criteria on Pages 2, 4, 5 and 6 of the Scheme here
So…how big is this scheme and what has been done so far?
I. Latest details around Banglashree don’t seem to be available in public domain
II. A budget allocation of ₹100 Crores for fiscal year 2020-21 was made towards the Banglashree Scheme for MSMEs of which State Capital Investment Subsidy Scheme is a part
III. Under the previous avatar of Banglashree Scheme for MSMEs namely, West Bengal Incentive Scheme (WBIS) 2013 for MSMEs which lapsed on March 31, 2018, 520 units had claimed for subsidy
So, now, how should you go about it?
I. For submitting application, please register and apply online here
II. For information on application form for the Scheme, list of documentation required, standard operating procedures and timelines:
- Please scroll online here
OR
- Please refer to page 12 onwards of the Scheme here and look for Form A (including Annexures I, II, IV & VI) and Form B
III. For any queries, please contact the DIC of your respective District in West Bengal via phone or e-mail. You may find their contact details here
Go on then…and do spread the word!
Sources:
