The “Interest Subsidy on Term Loan” is a key sub-scheme under the “Incentive Scheme for MSMEs in Powerloom Sector” launched by the Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal. Initiated on 1st January 2022, this scheme offers interest subsidies on term loans taken by MSMEs to promote the adoption of new-age shuttleless powerlooms, boost textile production, and improve the overall competitiveness of the Powerloom sector in the state. The scheme is valid until 31st December 2025.
Key Highlights of WB Interest Subsidy Scheme
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Scheme Name: Interest Subsidy on Term Loan (under Incentive Scheme for MSMEs in Powerloom Sector)
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Launched By: Department of MSME & Textiles, West Bengal
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Start Date: 01 January 2022
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Valid Till: 31 December 2025
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Incentive Type: Annual Interest Subsidy
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Eligible Units: Micro, Small, and Medium Enterprises (MSMEs) in the Powerloom sector
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Loan Type: Term Loan from approved banks/FIs
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Mode of Application: Offline via Directorate of Textiles, Kolkata
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Location of Implementation: Entire State, classified into Zones A–E
Benefits of the Scheme
Micro & Small Enterprises
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Zones A & B: 55% of the annual interest liability for 5 years
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Zones C, D & E: 70% of the annual interest liability for 5 years
Medium Enterprises
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Zones B, C, D & E: 25% of annual interest liability for 5 years
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Subject to a ceiling of ₹1.75 crore per year
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📌 Note: The subsidy will be paid annually upon submission of a certificate (Annexure-II) from the lending institution proving timely interest payment and no default.
Eligibility Criteria
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Applicant must be a Micro, Small, or Medium Enterprise in the Powerloom sector
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Enterprise must have commenced production between 01.01.2022 and 31.12.2024
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A Four-party agreement must be signed with:
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Directorate of Textiles
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Financial Institution
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Tantuja
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The MSME unit itself
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Applicable to units in:
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Private Sector
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Cooperative Sector
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Joint Sector
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State Government undertakings or SHGs
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The project must:
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Be backed by a feasibility report
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Have a loan sanction from a Commercial/Cooperative/Scheduled Bank or State/Central Financial Institution
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Exclusions
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Enterprises have already issued Eligibility Certificates or disbursed incentives under earlier state schemes
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Enterprises that started production before 31.12.2021
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Applications for incentives are already governed by older schemes
How to Apply – Offline Process
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Post Production: After starting commercial production, the MSME unit must apply within 12 months
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Application Format: Submit in Form-A2
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Submit To:
Directorate of Textiles
Handlooms, Spinning Mills, Silk Weaving & Handloom-Based Handicrafts Division
New Secretariat Buildings,
1, K. S. Roy Road, 5th Floor, ‘B’ Block, Kolkata – 700001-
Phone: 033-2248 4537 / 2248 6271 (Ext. 215)
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Fax: 033-2248 4537
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Documents Required for Application
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Memorandum & Articles of Association or Partnership Deed
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List of Directors/Partners/Owners
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Approved Project Report
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Loan Sanction Letter and Disbursement Letter from Bank/Financial Institution
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Copy of Four-party Agreement
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Audited Balance Sheet (past 2 years, if available)
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Statement of existing production capacity and performance
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Land documents:
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Deed, Rent/Lease Agreement, Mutation, Conversion Certificate
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Consent to Operate from WBPCB
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SGST Registration & Returns
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Trade Licence
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First Electricity Bill
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Udyam Registration Certificate
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SC/ST Certificate (if applicable)
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Any other statutory license or certificate
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Self-declaration as per Para 7.1(vi)
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Annexure-II Certificate from the lending bank
Frequently Asked Questions (FAQs)
Q: What are the zones defined under this scheme?
A: The state is divided into Zones A–E based on industrial development; incentives vary accordingly.
Q: Can a unit that started production before 01.01.2022 apply?
A: No, only units that commenced production on or after 01.01.2022 are eligible.
Q: Can I apply if I have received benefits under another scheme?
A: No, dual benefits under different state incentive schemes are not allowed.
Q: What is the deadline to apply?
A: Within 12 months from the date of commencement of commercial production.
Q: What is an “Approved Project”?
A: A project with a feasibility report and loan sanctioned from a recognized financial institution.
Q: What if my application is found ineligible?
A: It will be rejected, and you will be notified accordingly by the Directorate of Textiles.
