Home Economy West Bengal announces incentives for small units

West Bengal announces incentives for small units


Kolkata : The West Bengal government Wednesday announced an incentive scheme for micro and small-scale enterprises to encourage their growth and promote employment generation.

The West Bengal Incentive Scheme 2007 for Micro and Small Scale Enterprises will be applicable to units in the manufacturing sector set up on or after April 2007. The scheme will also include expansion projects of existing units.

Announcing the scheme at a Confederation of Indian Industry (CII) seminar, Chief Minister Buddhadeb Bhattacharya said the micro and small-scale sector is important to address the problem of unemployment in the country.

"The incentives are required to help the SME (small and medium enterprise) sector grow in the globalised environment. The incentives will help the SMEs train people, upgrade technology and help in the flow of credit," he said.

The incentives include state capital investment subsidy ranging from 17 percent to 35 percent and interest subsidies ranging from 25 percent to 30 percent.

The scheme also includes a waiver of electricity duty and 30 percent reimbursement of electricity charges for a period of five years from the date of commercial production.

It also provides for 75 percent reimbursement of expenditure for modernisation of unit with a cap of Rs.500,000.

The improved package includes a subsidy of 50 percent of expenditure incurred for obtaining patent registration with a cap of Rs.750,000.

The scheme has 10 percent additional incentive for all categories of subsidies, excepting those of waiver of electricity duty and patent registration.

The state already has two SME clusters at Baruipur for surgical equipment and Shantiniketan for leather goods.

G.D. Gautama, principal secretary (small scale enterprises and textiles), said 20 more clusters in different areas of the state have been approved.

The central government will provide 75 percent of the funds required, while the state will give 20 percent and the industry association promoting the cluster the remaining part.

The total envisaged investment in 20 clusters stood at about Rs.800 million.

West Bengal has identified 91 more clusters and proposals will be submitted to the centre shortly.