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| Incentive Schemes |
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| INCENTIVES |
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The West Bengal Incentive Scheme (WBIS) 2004 was announced for industrial projects of large and small -scale units to be set up in the state. The scheme is presently applicable for the period of five years ending on 31st March 2009.
The West Bengal Incentive Scheme (WBIS) 2004 was announced for industrial projects of large and small-scale units to be set up in the state. The scheme is presently applicable for the period of five years ending on 31st March 2009. |
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| Rs. Million |
| Type of Unit |
Investment limits in Plant & Machinery |
Investment in Equipments (Services) |
| Micro |
2.5 |
1 |
| Small |
50 |
20 |
| Medium |
100 |
50 |
| Large |
Above 100 |
Above 50 |
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| TOURISM UNIT |
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A unit in the large and small scale sector related to tourism activities is also eligible for incentives under the scheme.
The state has been classified into different groups based on geographical areas for the purpose of determination of types and quantum of incentive available under this Scheme. |
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| GROUP A |
Kolkata Municipal Corporation. |
| GROUP B |
North24Parganas, South24Parganas, Howrah, Hooghly, Burdwan, Nadia and East. |
| GROUP C |
Medinipur Districts Murshidabad, Birbhum, Purulia, Bankura, Malda, Coochbehar, North Dinajpur, South Dinajpur, Jalpaiguri, Darjeeling and West Medinipur districts. |
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| APPLICABILITY |
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Any industrial projects including tourism units engaged in all large and small scale projects. |
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Expansion projects of existing units. |
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The units may belong to private sector, co-operative sector, joint-sector and also companies/ undertakings owned or managed by the State Government. |
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| NON-APPLICABILITY |
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Industrial or tourism projects that have been sanctioned incentives under any previous scheme. |
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Industries listed in the negative list of industries. |
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| NEGATIVE LIST OF INDUSTRIES |
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Hydrogenated Edible Oil. |
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Hospitals, Nursing Home, Clinics, Diagnostic Centre. |
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Amusement Parks. |
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Bricks (excluding fly ash bricks, sand lime bricks, refractory bricks). |
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Thermal Plants for generation of electricity except for captive use specifically required for the unit (s) to be registered. |
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Distribution of Electricity Aquaculture projects. |
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All types of plantation including Tea Plantation and bought leaf tea-processing factory, any other industry notified by the state govt. for inclusion in the list. |
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| REGISTRATION AND ELIGIBILITY |
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Large sector - the industrial unit has to be registered with the Directorate of Industries and subsequently issue of eligibility certificate is done by WBIDC. |
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Small Scale sector - the industrial unit has to be registered with the District Industries Centre(s) of the Directorate of Cottage and Small Scale industries and eligibility certificate is issued by WBIDC. |
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Tourism sector - any tourism unit in the large sector has to be registered with the Directorate of Tourism and in small scale sector with the District Industries center of the Directorate of Cottage and Small Scale industries. In both the cases eligibility certificate is issued by WBTDC. |
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 The West Bengal Incentive Scheme 2004 at a Glance
| Sl. No. |
Incentives Heads |
Particulars |
Criteria |
A |
B |
C |
| 1A |
Capital Investment Subsidy |
7.5% of the Fixed Capital Investment. Limit-Rs.150 lakhs. |
Investment in plant & machinery |
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| 10% of the Fixed Capital Investment. Limit-Rs.250 lakhs. |
As above |
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| 1B |
Capital Investment Subsidy — Relocation of Leather Units |
15% and 25% of Fresh Investment for Large and Small scale units respectively relocating to Calcutta Leather Complex. Limit Rs 150 lakhs (large units only). |
Relocation accompanied with modernisation |
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| 2 |
Interest Subsidy |
25% of annual interest liability, Limit - Rs.100 lakhs per year for 5 years |
Interest on term loan borrowed from Bank/FI |
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| 25% of annual interest liability, Limit - Rs.100 lakhs per year for 7 years |
As above |
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| 3 |
Waiver of Electricity Duty |
for 5 years from the date of commercial production/operation |
Electricity Consumed for commercial production/operation |
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| 4 |
Employment Generation Subsidy |
Large sector -50% of the contribution for ESI and EPF for 5 years & 60% with employment generation of 200 or more people |
50% recruitment from Employment Exchanges |
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| Large sector -50% of the contribution for ESI and EPF for 7 years & 60% with employment of 200 or more people. |
As above |
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| Small scale sector -75% of the contribution for ESI and EPF for 5 years. |
As above |
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| Small scale sector -75% of the contribution for ESI and EPF for 7 years. |
As above |
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| 5 |
Refund of Stamp Duty & Registration Fees |
50% refund for (i) acquisition of land and buildings for setting up of approved projects within the state (ii) setting up of Industrial complexes and centers with infrastructure. |
Refundof duties/fees actually paid |
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| 6 |
Subsidy for Conversion for use of piped gas |
75% of investment on conversion/installation of equipment Limit-Rs. 10 lakhs |
Applies to both new and existing unit |
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| 20% subsidy for 5 years on use of gas from date of commencement of supply of gas. |
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| 7 |
Subsidy for Quality improvement in the Small Scale sector |
Expenditure for modernization of unit, installation of the pollution control device and obtaining ISO/ISI certification |
Eligible Unit in Small Scale sector. |
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| Subsidy of 50% of the Expenditure |
Does not apply to IT units |
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Limit-Rs.5 lakhs
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| New units in the areas of - |
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Information Technology (Software,
Hardware) |
All the units in these specified industries located in group A areas shall receive the same incentives as applicable to the new units located in group B areas |
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Electronics |
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Agro and Food Processing Industry |
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Haldia Petrochemicals Ltd Downstream
Projects |
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Newspaper Industry |
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Bio-Technology |
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Jute Diversification |
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Agricultural implements |
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Tourism & Hosiery |
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Mega projects - projects with an investment exceeding Rs.25.00crores are eligible to special package of incentives on case by case basis |
To all the benefits as provided in the WBIS 2004 except interest subsidy. In lieu of it industrial promotion assistance is provided @ 75% of sales tax paid for a maximum period of 15 years. |
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SEZ Units
This Scheme is only applicable to units located in the phase-1 of the Manikanchan SEZ and will not apply to other SEZ units |
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100% Export Oriented Units |
Eligible to all incentives under this Scheme |
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Special Category Project
Units having investment above Rs.100 crore |
Government may also consider granting special package of incentives on case by case basis. |
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The West Bengal IT Incentive Scheme (WBITIS) 2004 was announced for IT/ IT Enabled Services (ITES) projects of large and small -scale units to be set up in the state. The scheme is presently applicable for the period of five years ending on 31st August 2009.
The definition of Large, and small-scale units is the same as referred in the West Bengal Incentive Scheme 2004. |
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| APPLICABILITY |
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To all large and small-scale projects inclusive of expansion projects to be set up on or after 1 st September 2004. |
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The units may be in the private sector, co-operative sector, joint sector as also companies/ undertakings owned or managed by the state government |
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| REGISTRATION AND ELIGIBILITY |
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Same as applicable to referred in the WBIS 2004 |
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| CLASSIFICATION OF AREAS |
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Same as applicable to WBIS 2004 classified into A B & C areas |
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| GROUP A |
Kolkata Municipal Corporation |
| GROUP B |
North24Parganas, South24Parganas, Howrah , Hooghly , Burdwan, Nadia and East Medinipur Districts. |
| GROUP C |
Murshidabad, Birbhum, Purulia, Bankura, Malda, Coochbehar, North Dinajpur , South Dinajpur , Jalpaiguri, Darjeeling and West Medinipur districts. |
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The West Bengal IT Incentive Scheme (WBITIS) 2004 at a glance
| Sl. No. |
Incentives Heads |
Particulars |
Criteria |
A |
B |
C |
| 1 |
Capital Investment Subsidy |
7.5% of the Fixed
Capital Investment
limit-Rs. 150 lakhs payable in 5 equal yearly installments. Also applicable to IT units on their relocation to approved industrial complex |
Investment in Land, Buildings,Plant & Machinery, Computer Hardware, Software etc |
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| 10% of the Fixed Capital Investment limit-Rs.250 lakhs payable in 5 equal yearly installments Also applicable to IT units on their relocation to approved industrial complex |
As above |
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| 2 |
Interest Subsidy |
25% of annual interest, Limit-Rs. 100 lakhs per year for 5 years |
Interest on term loan borrowed from Bank/FI |
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| 25% of annual interest,limit-Rs. 100 lakhs per year for 7 years |
Same as above |
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| 3 |
Waiver of Electricity Duty |
for 5 years from the date of production/operation |
Electricity consumed for commercial production /operation |
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| 4 |
Employment Generation Subsidy |
50% of the contribution for ESI and EPF for 5 years |
Large & medium sector.(Payment must have been made on due dates) |
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| 50% of the contribution for ESI and EPF for 7 years |
As above |
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| 75% of the contribution for ESI and EPF for 5 years |
Small scale sector (Payment must have been made on due dates) |
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| 75% of the contribution for ESI and EPF for 7 years |
As above |
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| 5 |
Refund of Stamp Duty & Registration Fees |
100% refund of stamp duty and registration fee for IT units |
Related to purchase of land/buildings |
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| Same for IT enabled services if meeting criteria |
Land acquired is 0.3 acres for every 100 jobs created (ITES) |
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| 50% remission for industrial complex and centers with infrastructure facilities |
Only for first sale of such complexes /centres |
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| 6 |
Subsidy for Quality improvement in the Small Scale sector |
50% of the expenditure limit-Rs.5 lakhs |
Expenditure for ISI /ISO 9000 Certification |
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| 7 |
Incentives for approved expansion project of an existing unit |
An existing IT unit for its approved expansion project will be entitled all the incentives in this scheme |
Subject to the fulfillment of the conditions for the respective items for a new unit. |
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| 8 |
Mega project |
The state government may consider granting special package of incentives under this scheme on case by case basis. |
Based on the pioneer nature of the project, locational aspects , state of the art technology, scope of further related investment. |
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The West Bengal Incentive to Power Intensive Industries 2005 referred to WBIPS 2005
for large-scale industrial units to be set up in the set. The scheme is presently applicable for the period of five years ending on 31st March 2009. |
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| The WBIPS 2005 at a glance |
| Area group |
Monthly average load factor |
Admissible incentive on net energy charges |
Period during which incentive will be available |
| B |
Less than 40%
40 % to 50%
Above 50% Less
than 40% |
Nil
20%
25%
Nil |
3 years |
| C |
40 % to 50%
Above 50% |
20%
25% |
5 years |
| Note: Also applies to all units in SEZ and 100% E0L |
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ELIGIBILITY AND REGISTRATION
Same as applicable to large sector in WBIS 2004 |
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| APPLICABILITY |
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All large scale units and also for expansion of existing units on or after July16, 2004 drawing power from West Bengal State Electricity Board (WBSEB). |
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The units may be in the private sector, co-operative sector, joint sector, and also companies/ undertakings owned or managed by the Government of West Bengal drawing power from the above authority |
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Units which are already availing concessions from DPL and WBSEB but presently, discontinued. |
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Units entered into agreement but not having got connection and had not started drawing power subject to units starting commercial /operation within two years from the signing of the agreement or six months from issue of this scheme whichever is later. |
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| INCENTIVE SHOULD BE AVAILABLE |
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From the date of commencement of power supply for production/commercial operation. |
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The unit will have to be commencing actual withdrawal of power within 24 hours from the day of incorporation |
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For approved expansion project separate metering arrangement should be there. |
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| INCENTIVE NOT AVAILABLE |
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Units, which have availed State capital Investment Subsidy on purchase and installation of captive power generation set |
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Also for investment made in captive power plant for availing industrial promotion assistance |
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