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A Glimpse of West Bengal’s MSME Policy for 2013-2018


West Bengal not only has huge number of MSME units but also at the same time has diversified approach towards production and services. The various business sectors include but not only limited to food processing, agro industries, leather, gems and jewelry, iron and steel industries, mineral based industry, manufacturing, handicrafts, service sector etc. The state plans to create one of the largest employment opportunities in MSME sector in the next five years. The priority will be given to skill development, technology intervention, marketing and having productive eco-friendly business environment. The New MSME Policy for 2013-2018 aims to make the state a leading MSME state in the country in the next ten years.


  • To increase vendor linkages of MSME from present 2% to 10% over the next 5 years
  • Increase the volume of market of MSME products by minimum 25%
  • The state government plans to give incentives to energy efficient and cutting edge technology coupled with priority on skill development
  • Cluster development and regional innovation will be the main areas supported by MSME Policy

Main highlights:

  • Capital investment subsidy for MSME with a maximum amount of Rs 50 lakh for small enterprises, 20% additional subsidy for enterprises owned by women, SC/ST and other minority entrepreneurs as well as zone wise subsidy for medium and micro enterprises.
  • Interest subsidy on term loan will be given to micro and small enterprises for 5 years. Zone wise division is there al though.
  • Exemption from electricity duty for all micro and small enterprises with almost 50% five years for A & B zones, 75% for C& D zones and 100% for enterprises owned by women, SC/ST and other minority entrepreneurs. Exemption from electricity duty for all medium enterprises will be of 100% with subject to Rs 25 lakh per year for 5 years or 1.25 crore per year for 5 years in zone C& D and for zoned it will be 100% exemption for 5 years and 75% from the 6th year onwards with a maximum of Rs 50 lakh per year or Rs 2.5 crore per year.
  • Power subsidy to all micro and small enterprises of Rs 1 / Kwh for Zone A & B and subsidy of Rs. 1.50 / Kwh for units in Zone C & D For 5 years with a ceiling of Rs 20 Lakh per annum for small enterprises and Rs 30 Lakh for medium enterprises.
  • Micro and small enterprises are given incentives for energy efficiency of almost 50% reimbursement of the cost of energy audit undertaken by any certified agency.
  • Micro and small enterprises in zone D are eligible to 100% waiver, 75% for zone C, 50% for zone B and 25% for zone A. Medium enterprises simultaneously in zones B,C and D are entitled for a 75% waiver at stamp duty.
  • Refunds in VAT, CST, in cluster development, skill development and others are also provided to MSMEs.

Eligibility criteria for the units to avail benefits under this policy:  

  • Modern/Hi-tech machinery and plant to be installed that comply with the standard productivity.
  • Units will have to strictly conform to the pollution control norms.
  • Regular Energy Audit has to be conducted and standard energy efficiency to be ensured wherever applicable.
  • Enterprises have to strictly adhere to labour laws.
  • Enterprises have to be into commercial operation for no less than 5 years.
  • Lastly, units those have any default in paying government dues are not eligible for any sort of assistance under this policy.

For more information on this policy CLICK HERE

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