West Bengal Textile Incentive Scheme, 2022 (WBTIS)
West Bengal state government scheme
The West Bengal Textile Incentive Scheme, 2022 offers fiscal incentives to textile units across the fibre-to-garment value chain, including a state capital investment subsidy capped between Rs 20 crore and Rs 50 crore, power subsidy of up to Rs 1 crore a year for five years, and a full electricity duty waiver. Units apply to the Director of Textiles.
What is the West Bengal Textile Incentive Scheme, 2022?
The West Bengal Textile Incentive Scheme, 2022 (WBTIS 2022) is an industrial incentive package of the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal. WBTIS 2022 was issued with the concurrence of the Finance Department (U.O. No. Group C/2022-2023/0018 dated 26 August 2022) and notified under No. 4420-MSMET-18099/14/2022 dated 13 December 2022. The scheme remains in force for five years from that date unless withdrawn or amended earlier.
WBTIS 2022 exists because West Bengal has a large but fragmented textile base: strong in handloom, jute and garmenting, thin in spinning and processing. The scheme deliberately covers the entire value chain, from fibre to stitched garment, so that an investor setting up any link in that chain, not only the final stitching unit, can claim support.
Key objectives
- Attract new textile manufacturing investment into West Bengal and encourage existing units to expand.
- Reduce the two costs that decide competitiveness in textiles: capital cost and power cost.
- Push units towards energy efficiency and environmental compliance by paying for part of the audit and compliance spend.
- Deepen the value chain by covering spinning, processing and technical textiles, not only garmenting.
Important: WBTIS 2022 is not a citizen benefit. A weaver, tailor or textile worker cannot apply for a personal grant under this scheme. The applicant is always an enterprise running an approved textile project.
Which units are eligible for WBTIS 2022, and which are not eligible?
A unit can claim WBTIS 2022 incentives if:
- The unit carries out a textile manufacturing activity in West Bengal anywhere in the fibre-to-stitched-garment chain: spinning (short staple and long staple), weaving and knitting, circular knitting, dyeing and processing of fibre, yarn, fabric or garment, garment manufacturing, technical textiles (agrotech, buildtech, indutech, geotech, meditech), non-woven fabric, polymerisation, texturising and twisting.
- The unit commenced commercial production on or after 1 April 2022 for a new project, or on or after 1 April 2023 where the project is an expansion of an existing industry.
- The project is an approved project with fixed capital investment certified by a chartered accountant.
- The unit files the Common Application Form within six months of commencement of commercial production.
- The unit draws power from a licensee power supplier, which is a condition for the power subsidy and the electricity duty waiver.
A unit or person cannot apply if:
- The applicant is an individual seeking a personal cash benefit, loan waiver or job. WBTIS 2022 has no individual beneficiary category at all.
- The activity is trading, retail or job-work without manufacturing, since the scheme is anchored to manufacturing activity.
- Commercial production began before 1 April 2022 (or before 1 April 2023 for an expansion), which puts the project outside the scheme's window.
- The application is filed more than six months after production commenced.
- The unit is claiming the same expenditure under another state incentive scheme for the same period, since double-dipping on the same investment is not allowed.
What incentives does WBTIS 2022 provide?
| Incentive | What the scheme provides |
|---|---|
| State capital investment subsidy | Roughly 10–20 per cent of eligible fixed capital investment depending on activity, capped between Rs 20 crore and Rs 50 crore per approved project |
| Power subsidy | Rs 1–2 per unit of electricity for 5 years from commencement of production, on reimbursement; capped at Rs 50 lakh a year for garment units and Rs 1 crore a year for spinning, weaving, knitting, dyeing and processing, technical textile, non-woven, polymerisation, texturising and twisting units |
| Electricity duty waiver | 100 per cent waiver for 5 years from commencement of production, subject to a maximum of Rs 100 lakh a year |
| Energy audit reimbursement | 50 per cent of the audit cost, maximum Rs 2 lakh |
| Environmental compliance reimbursement | 25 per cent of the cost, maximum Rs 1.50 crore |
| Stamp duty and registration fee | 100 per cent reimbursement of stamp duty and registration fee paid on land and building for the approved project |
| Land conversion and mutation fees | 100 per cent waiver of conversion and mutation fees for land in the approved project |
Two points matter in practice. First, most of the power-side benefits are reimbursement based, the unit pays the electricity bill and claims back later, so the cash flow must be planned for. Second, the headline caps of Rs 20 crore to Rs 50 crore are ceilings for very large projects; a typical MSME unit receives a far smaller amount computed on its own certified investment.
What documents are required for a WBTIS 2022 claim?
| Document | Mandatory | Notes |
|---|---|---|
| Common Application Form (CAF) | Yes | Filed online to the Director of Textiles |
| Certificate of incorporation or registration | Yes | Company, LLP, partnership or proprietorship |
| Udyam Registration certificate | No | For units claiming under MSME categories |
| Detailed Project Report | Yes | Project cost, machinery, activity claimed |
| Proof of commencement of commercial production | Yes | Fixes the six-month application clock |
| Audited accounts and CA certificate of fixed capital investment | Yes | Basis of the capital subsidy computation |
| Land and building documents with stamp duty receipts | Yes | For stamp duty, registration, conversion and mutation benefits |
| Electricity bills from the licensee supplier | Yes | For power subsidy and electricity duty waiver |
| Energy audit report | No | Only if the 50 per cent audit reimbursement is claimed |
| Pollution control consent and compliance spend proof | No | Only if the 25 per cent environmental compliance reimbursement is claimed |
How to apply for WBTIS 2022 incentives
- Commence commercial production and record the date. Everything under WBTIS 2022 is timed from this date, and the date must fall on or after 1 April 2022 (1 April 2023 for an expansion project).
- Assemble the certified investment record. Get a chartered accountant's certificate of fixed capital investment along with audited accounts, because the capital investment subsidy is computed from this.
- File the online Common Application Form (CAF) addressed to the Director of Textiles, Directorate of Textiles (Handloom etc.), Department of MSME and Textiles, within six months of commencement of commercial production. Upload the DPR, registration documents, land papers and electricity bills.
- Cooperate with the district-level inspection. District officers physically verify the unit, its machinery and its actual production.
- Committee review. Projects with investment below Rs 50 crore are considered by the scheme committee; projects above Rs 50 crore go to the High Power Committee.
- Receive the Eligibility Certificate in Form-B, which records which incentives the unit qualifies for and the ceilings that apply.
- Execute the agreement and receive disbursement through the bank, and thereafter file periodic reimbursement claims for the power subsidy and electricity duty waiver over the five-year window.
How to apply offline or with help
- Visit the Directorate of Textiles under the Department of MSME and Textiles in Kolkata, which is the sanctioning authority for the scheme.
- Alternatively, approach the District Industries Centre (DIC) in the district where the unit is located; DIC officers assist with the CAF and coordinate the physical inspection.
- Carry the full document set listed above. Incomplete files are the most common cause of delay at the inspection stage.
How to check the status of a WBTIS application
- Log in to the MSME and Textiles department's online system with the credentials created when the Common Application Form was filed.
- Track the application against its CAF reference number. The stages are: received, under district inspection, before the committee, Eligibility Certificate issued, agreement executed, disbursed.
- For a claim stuck beyond the normal cycle, take the CAF number to the Directorate of Textiles or the District Industries Centre.
Common reasons WBTIS claims fail
- Filed late. The six-month window from commencement of commercial production is the single most frequent cause of rejection.
- Production date outside the scheme window: production began before 1 April 2022, or an expansion began production before 1 April 2023.
- Investment not certified. Claims resting on unaudited figures instead of a chartered accountant's certificate of fixed capital investment.
- Activity outside the covered chain, for example pure trading or a service activity with no manufacturing.
- Power bills from a non-licensee source, which cannot support a power subsidy or duty waiver claim.
- Overlapping claims for the same expenditure under another state incentive scheme.
Key dates
- 26 August 2022 — Finance Department concurrence (U.O. No. Group C/2022-2023/0018).
- 13 December 2022: WBTIS 2022 notified under No. 4420-MSMET-18099/14/2022; the scheme takes effect from this date.
- Five years from 13 December 2022, the scheme's stated period of force.
- 1 April 2022: earliest date of commencement of commercial production for a new unit; 1 April 2023 for expansion of an existing industry.
Where to raise a query or grievance
Queries on WBTIS 2022 go to the Director of Textiles, Directorate of Textiles (Handloom etc.), Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, Kolkata, or to the District Industries Centre in the unit's district. Appeals against a committee decision are taken up within the same departmental chain, and larger projects are re-examined by the High Power Committee.
There is no application fee for WBTIS 2022, and no consultant is authorised by the department to guarantee an Eligibility Certificate.
Documents required
Frequently asked questions
Can an individual apply for the West Bengal Textile Incentive Scheme?
No. The West Bengal Textile Incentive Scheme, 2022 is an industrial incentive for enterprises, not a personal benefit. Only a registered textile manufacturing unit — a company, LLP, partnership or proprietorship running an approved project in West Bengal — can claim under it. There is no cash grant, loan or job for an individual applicant.
What is the maximum capital subsidy under WBTIS 2022?
The state capital investment subsidy under WBTIS 2022 is capped between Rs 20 crore and Rs 50 crore per approved project, depending on the activity and category, with the subsidy computed as roughly 10 to 20 per cent of eligible fixed capital investment.
What power subsidy does WBTIS 2022 give?
WBTIS 2022 gives a power subsidy on electricity consumption for 5 years from the date of commencement of production, on a reimbursement basis. The cap is Rs 50 lakh a year for garment manufacturing units and Rs 1 crore a year for spinning, weaving, knitting, dyeing and processing, technical textile, non-woven fabric, polymerisation, texturising and twisting units.
When was WBTIS 2022 notified and how long does it run?
WBTIS 2022 was notified under No. 4420-MSMET-18099/14/2022 dated 13 December 2022, with the concurrence of the Finance Department, and remains in force for 5 years from that date unless withdrawn or amended earlier.
By when must a textile unit apply under WBTIS 2022?
A unit must submit the Common Application Form within 6 months of commencing commercial production. Missing this window is the most common reason for a claim being rejected outright, because the scheme treats the six-month period as a condition rather than a formality.
Which units qualify under WBTIS 2022?
Textile manufacturing units across the fibre-to-stitched-garment value chain qualify, including spinning, weaving and knitting, circular knitting, dyeing and processing of fibre, yarn, fabric and garment, technical textiles such as agrotech, buildtech, indutech, geotech and meditech, non-woven fabric, polymerisation, texturising and twisting.
Does WBTIS 2022 support energy efficiency and pollution compliance?
Yes. WBTIS 2022 reimburses 50 per cent of the cost of an energy audit subject to a maximum of Rs 2 lakh, and 25 per cent of the cost of environmental compliance measures subject to a maximum of Rs 1.50 crore.
Who approves a WBTIS claim?
The Director of Textiles receives the application, after which a district-level inspection is carried out. Projects with investment below Rs 50 crore are cleared by the scheme committee, and larger projects go to the High Power Committee, which then issues the Eligibility Certificate in Form-B.
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