Incentive Scheme for MSMEs in Powerloom Sector: Work Force Welfare Assistance

The 'Incentive Scheme for MSMEs in Powerloom Sector' was introduced on January 1, 2022, by the Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal, and remains in effect until December 31, 2024. The scheme's primary purpose is to offer fiscal incentives to MSMEs in the textile sector for the installation of modern shuttleless powerlooms. This is intended to enhance the production of higher-quality fabrics and foster a sustainable environment for MSMEs, with the broader goals of optimising resource use, creating fresh employment opportunities, and expanding operational reach to position West Bengal as a frontrunner in the powerloom industry.

Under this framework, the 'Work Force Welfare Assistance' sub-scheme provides targeted support. Through this component, an eligible micro, small, or medium enterprise in the powerloom sector can claim reimbursement for its contributions to Employees' State Insurance (ESI) and Employees' Provident Fund (EPF). A prerequisite for this reimbursement is that at least 50% of the enterprise's workforce must be drawn from individuals registered with the State's Employment Bank. This measure eases the financial burden of employee welfare for MSMEs while simultaneously encouraging local hiring.

• Collect the prescribed Form-A2, which is the designated format for subsidy claims.
• Fill in every section of the form with complete information and attach the required supporting documents.
• Submit the completed application offline to the Directorate of Textiles.
• The first application must be filed within 12 months of the start of commercial production, and that production start date must be between January 1, 2022, and December 31, 2024.
• Address the application 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.