The Interest Subsidy on Term Loan (IS) is a sub-scheme under the broader Banglashree for Micro, Small, and Medium Enterprises (MSME) scheme. Launched by the Department of MSME & Textiles, Government of West Bengal on 1st April 2020, this initiative aims to strengthen the MSME ecosystem by offering financial incentives in the form of interest subsidies. The scheme is valid until 31st March 2025.

Summary of WB Banglashree Scheme

• Scheme Name: Banglashree Interest Subsidy on Term Loan (IS)

• Launch Date: 1st April 2020

• Validity: Until 31st March 2025

• Target Sector: Micro, Small, and Medium Manufacturing Enterprises (MSMEs)

• Implemented By: MSME & Textiles Department, Government of West Bengal

• Subsidy Type: Annual interest subsidy on Term Loan

• Loan Source: From RBI-approved banks or financial institutions

• Application Mode: Online via Shilpasathi Portal

Objectives

• Promote balanced MSME growth across all zones in West Bengal

• Encourage new enterprises to begin commercial production

• Provide financial support to reduce interest liability on term loans

• Maximize resource utilization and create employment

Interest Subsidy Pattern

• Micro & Small Enterprises

  • Zone A & B: 55% of annual interest liability

  • Zone C, D & E: 70% of annual interest liability

• Medium Enterprises

  • Zone B, C, D & E: 25% of annual interest liability

  • Maximum limit: ₹1.75 crore per year

Duration of Subsidy: Up to 5 years from the date of commencement of commercial production.

Eligibility Criteria

• Must be a Micro, Small, or Medium Enterprise in the manufacturing sector.

• The enterprise must have started production on or after 1st April 2019.

• Should be in private, cooperative, joint, or state government-managed sector.

• Commercial Production Date (DOCCP) should fall between 1st April 2020 and 31st March 2025.

Exclusions

• Enterprises that have already received incentives under any other state scheme

• Units that started production before 01.04.2019

• Negative Industries List:

  • Sponge Iron Factory

  • Brick industries (except Fly Ash, Sand Lime, Refractory Bricks)

  • Any other industry declared by the State Government

Note: Second-hand machinery and certain installations are excluded from the plant & machinery investment calculation.

How to Apply

Step-by-Step (Online via Shilpasathi Portal)

Registration:

1. Visit Shilpasathi Portal, click ‘Apply Online’.

2. Select ‘Create New’ for registration and enter your details.

Application:

1. Log in to the portal using username/password or OTP via mobile.

2. Navigate to All Services → MSME Incentive and click ‘Create CAF’.

3. Fill out the eligibility form, then continue with the Common Application Form (CAF).

4. Upload documents, preview, and apply.

5. Proceed to fill Form-A and specify year-wise subsidy details.

6. Finalize the application by submitting the “Verify & Submit” section.

7. A unique Application Reference Number will be generated for tracking.

Deadline for First Application:

• Within 12 months from DOCCP or the notification date of Banglashree, whichever is later.

Necessary Documents for Application

• Memorandum/Articles of Association or Partnership Deed

• List of Directors/Owners/SHG Members

• Approved Project Report

• Loan Sanction and Disbursement Letter

• Audited Balance Sheet (last 2 years, if applicable)

• Plant & Machinery Bills and Receipts

• Land documents or Lease/Rent Agreement

• Mutation & Conversion Certificate

• Pollution Board Consent Certificate

• SGST-related documents

• Trade License

• Udyog Aadhaar Certificate

• Electricity Bill (if applicable)

• SC/ST Certificate (if applicable)

• Self-declaration (Para 7.1(vi))

• Bank Certificate (Annexure-II)

• Any other relevant statutory licenses

Frequently Asked Questions (FAQs)

Q: What are the zones under Banglashree?
Zones A to E are defined by industrial potential and backwardness. Zone A includes more developed areas, while Zone E covers the most backward districts.

Q: What is the timeline to apply?
Enterprises must submit the first application within 12 months of their production start or Banglashree notification.

Q: Can enterprises apply under multiple state schemes?
No. Dual benefit from Banglashree and other state incentive schemes is not allowed.

Q: What if my enterprise received previous incentives?
Those enterprises are ineligible if incentives were already sanctioned or disbursed under other state schemes.

Q: What if the application is rejected?
Enterprises can appeal or seek clarification through the helpdesk contact provided.

Helpdesk Contact

• Address: Protiti, 23, Abanindranath Tagore Sarani (Camac Street), Kolkata – 700017, West Bengal

• Phone: +91 33 2255 3700

• Toll-Free Helpline: 1800-345-5562

• Email (Queries): [email protected]

• Technical Issues: [email protected]

References & Important Links

• Shilpasathi Portal – West Bengal MSME Services

• Guidelines from Kolkata Gazette

• User Manual and Official FAQs