The Bengal government plans to incentivise the setting up of power mills in a bid to boost textile manufacturing in the state.
State MSME and textiles minister Chandranath Sinha on Thursday said that an incentive scheme for MSMEs (micro, small and medium enterprises) in the powerloom sector has been notified by the state government with an objective to provide fiscal support for the installation of new age powerlooms to boost production of improved quality fabrics in the state.
The scheme, which runs from January 1, 2022 for three years ending December 31, 2024, will offer eligible MSMEs a capital investment subsidy of 20 per cent on fixed capital investment in plant and machinery. There will also be an interest subsidy on term loans for five years depending upon the location of the plant and waiver of electricity duty.
Under the scheme, the state is classified into five zones covering developed and backward areas for purposes of incentive limits.
“For those who would be interested in setting up powermills under the scheme, Tantuja will provide them with yarn (to the first 2000 powerlooms) and buyback support,” Sinha said at the annual general meeting of Merchants Chamber of Commerce and Industry.
Under the scheme, the state would also provide reimbursement towards Employees State Insurance and Employees Provident Fund if the MSMEs employ 50 per cent from persons registered with the employment bank of the state.
