Enlightener Series | State Government Schemes | West Bengal Government's Banglashree for MSME (Part 2/2)

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…

Banglashree Scheme for MSMEs Scheme (Banglashree) comprises of various fiscal incentives provided by State Government of West Bengal 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 for MSMEs Scheme 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on and from April 1, 2020, it shall remain in force for a period of five years ending on March 31, 2025, if not withdrawn or amended earlier.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 Scheme, direct subsidies are given to Micro, Small & Medium Enterprises (MSMEs) operating in manufacturing sector.

Furthermore, under this Scheme, additional subsidies are given to MSMEs wholly owned by women, SC/ST, and minority community entrepreneurs across certain fiscal incentives.

What’s on offer?

I. Product

To first identify which zonal classification your business fall under, please refer to Page 6 of the Scheme here.

State Capital Investment Subsidy: Covered in detail in one of our previous weeks
Interest Subsidy on Term Loan: Covered in detail in our last release
Subsidy on Stamp Duty and Registration Fee: Covered in detail in our last release
Subsidy for State Goods and Services Tax (SGST): Covered in detail in our last release
Waiver of Electricity Duty:
- Reimbursement of electricity duty on the electricity consumed on new or expansion projects
- Quantum:
  - For Micro & Small Enterprises in:
    - Zone A & Zone B – 100% waiver of electricity duty (vis-à-vis 50% for entrepreneurs in general category) on the electricity consumption for 5 years from the date of commencement of commercial production, up to a maximum of ₹10 Lakhs per year
    - Zone C, Zone D & Zone E – 100% waiver of electricity duty (vis-à-vis 75% for entrepreneurs in general category) on the electricity consumption for 5 years from the date of commencement of commercial production, up to a maximum of ₹10 Lakhs per year
  - For Medium Enterprises in:
    - Zone A – nil
    - Zone B & Zone C – 100% waiver of electricity duty on the electricity consumption for 5 years from the date of commencement of commercial production, up to a maximum of ₹25 Lakhs per year
    - Zone D & Zone E – 100% waiver of electricity duty on the electricity consumption for 5 years and 75% waiver from the 6th year up to 10th year, from the date of commencement of commercial production, up to a maximum of ₹50 Lakhs per year
- Disbursement:
  - Direct annual reimbursement of Electricity Duty on additional submission of Form C & Form F to the Director, Directorate of Electricity Duty, by the beneficiary MSME and the General Manager, District Industries Centre (DIC) concerned, respectively. Formats of Form C & Form F are provided in the Scheme on Page 33, 34 and 37 here
  - For more information on this, please contact District Industries Centre (DIC) in your respective District via means mentioned below
Power Subsidy:
- Subsidy or concessions on power/electricity consumed by new or expansion projects
- Quantum: For Micro, Small & Medium Enterprises in:
  - Zone A & Zone B – subsidy of ₹1/Kwh
  - Zone C, Zone D & Zone E – subsidy of ₹1.5/Kwh
  - This subsidy applicable for 5 years from date of commercial production
  - Annual subsidy upto a maximum of ₹10 Lakhs for Micro Enterprise, ₹20 Lakhs for Small Enterprise and ₹30 Lakhs for Medium Enterprise
- Disbursement:
  - Direct annual disbursement of subsidy. For more information on this, please contact District Industries Centre (DIC) in your respective District via means mentioned below
Subsidy for Energy Efficiency:
- Reimbursement of expenses incurred on energy audit by a certified agency and installations for energy conservation as per energy audit in new or expansion projects
- Quantum: For Micro and Small Enterprises incurring expenses on:
  - Energy audit – reimbursement of 50% of cost post implementation of recommendations
  - Installations for energy conservation per energy audit – reimbursement of 25% of cost upto a maximum of ₹2 Lakhs
- Disbursement:
  - Direct disbursement of the said subsidy. For more information on this, please contact District Industries Centre (DIC) in your respective District via means mentioned below
Subsidy for Water conservation/Environment Compliance:
- Reimbursement of expenses incurred on setting up of captive Effluent Water Treatment Plant for wastewater recycling and/or other pollution control devices
- Quantum: Reimbursement of 50% of expenditure incurred by Micro and Small Enterprises subject to a maximum of ₹2 Lakhs
- Disbursement:
  - Direct disbursement of the said subsidy. For more information on this, please contact District Industries Centre (DIC) in your respective District via means mentioned below
Subsidy for Standard Quality Compliance:
- Reimbursement of expenses incurred for obtaining ISI / BIS certification / ISO 9000/ ISO 14000 / ISO 14001/ ISO 18000/ISO 22000/HACCP certification from approved Institutions / Research Laboratories. Any new certificate not covered above may be honoured on case to case basis according to necessity and essentiality. For details refer to Point 17 on Page 9 of the Scheme
- Quantum: Reimbursement of 50% of expenditure incurred by Micro and Small Enterprises subject to a maximum of ₹5 Lakhs
- Disbursement:
  - Direct disbursement of the said subsidy subject to submission of a certificate from Chartered Accountant per Annexure V in original. Please refer to Page 30 for the format of Annexure V
  - For more information on this, please contact District Industries Centre (DIC) in your respective District via means mentioned below
Work Force Welfare Assistance:
- Reimbursement of expenses incurred for paying employer’s contribution towards Employees State Insurance (ESI) and Employees Provident Fund (EPF) if at least 50% of the employees in the enterprise are recruited from amongst the persons registered with Employment Bank of the State
- Quantum: Reimbursement of 100% of expenditure incurred in Year 1 and 75% of expenditure incurred in remaining years of the total period of assistance specified below based on Micro, Small & Medium Enterprises in:
  - Zone A – nil
  - Zone B – 5 years
  - Zone C – 7 years
  - Zone D & Zone E – 9 years
- Disbursement:
  - Direct annual disbursement of the said subsidy subject to submission of a certificate from Regional Provident Fund Commission and Director, ESI per Annexure III in original. Please refer to Page 28 for the format of Annexure III
  - For more information on this, please contact District Industries Centre (DIC) in your respective District via means mentioned below
Subsidy for Patent Registration:
- Reimbursement of expenses incurred for obtaining Patent Registration
- Quantum: Reimbursement of 50% of expenditure incurred by Micro, Small & Medium Enterprises subject to a maximum of ₹5 Lakhs
- Disbursement: Direct disbursement of the said subsidy. For more information on this, please contact District Industries Centre (DIC) in your respective District via means mentioned below

II. Purpose:

State Capital Investment Subsidy: Covered in detail in one of our previous week’s release here
Interest Subsidy on Term Loan: Covered in detail in our last release
Subsidy on Stamp Duty and Registration Fee: Covered in detail in our last release
Subsidy for SGST: Covered in detail in our last release
Waiver of Electricity Duty: Electricity duty on the electricity consumed
Power Subsidy: Power/electricity consumed
Subsidy for Energy Efficiency: Energy audit by a certified agency and installations for energy conservation as per energy audit
Subsidy for Water conservation/Environment Compliance: Captive Effluent Water Treatment Plant for wastewater recycling and/or other pollution control devices
Subsidy for Standard Quality Compliance: Quality Certifications as laid out in refer to Point 17 on Page 9 of the Scheme
Work Force Welfare Assistance: Employer’s contribution towards ESI and EPF
Subsidy for Patent Registration: Patent Registration

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 or Medium 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 expenditure or expenses for which subsidy is being availed under this Scheme, made after April 1, 2018?

In case your business has commenced commercial production on or post April 1, 2019 and until March 31, 2025, is the subsidy being availed for a new or expansion project?

OR
In case your business has commenced commercial production before April 1, 2019, and is looking to avail the following subsidy(ies), is the subsidy being availed for an expansion project alone?

State Capital Investment Subsidy, Interest Subsidy on Term Loan, Subsidy for Energy Efficiency, Subsidy for Water conservation/Environment Compliance, Subsidy for Standard Quality Compliance, Work Force Welfare Assistance, and Subsidy for Patent Registration

For information on subsidy eligible on expansion project, please refer to Clause 20 on Page 10 and 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 Annexure 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 any 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 fiscal incentives under Banglashree for MSMEs 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 doesn’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 for MSMEs Scheme

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

Please refer to page 12 onwards of the Scheme here for relevant Form A and supporting Annexures. Form A is the base application needs to be filed, along with supporting documents, relevant Annexures and relevant additional forms (Form B to Form F) depending on the subsidy/incentive that is envisaged to be claimed

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!

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