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

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

The “Work Force Welfare Assistance” initiative, part of the broader “Incentive Scheme for MSMEs in Powerloom Sector,” was launched by the Department of Micro, Small, and Medium Enterprises and Textiles (MSME & T) of the West Bengal Government. This scheme aims to support enterprises in the powerloom sector by reimbursing contributions made towards Employees State Insurance (ESI) and Employees Provident Fund (EPF), thereby promoting workforce welfare.

Overview of the Scheme

Initiated on January 1, 2022, this scheme is set to continue until December 31, 2024. It focuses on providing fiscal incentives for the establishment of modern shuttleless powerlooms, encouraging MSMEs to enhance the production of high-quality fabrics while fostering a sustainable ecosystem within the textile industry. The overarching goal is to optimize resource utilization, generate employment opportunities, and position West Bengal as a leading state in the powerloom sector across India.

Aims of the Work Force Welfare Assistance Sub-scheme

This sub-scheme facilitates eligible micro, small, and medium enterprises in the powerloom sector to reclaim costs associated with ESI and EPF contributions for their workforce. Specifically, enterprises must ensure that at least 50% of their employees are sourced from the Employment Bank registered individuals in the state.

Key Benefits

• 100% reimbursement for the first year of contributions.
• 75% reimbursement in subsequent years.
• Support duration varies by zone:
  • Zone B: 5 years
  • Zone C: 7 years
  • Zone D & E: 9 years

Eligibility Requirements

To qualify for this scheme, enterprises must meet the following criteria:

• Must be categorized as micro, small, or medium enterprises within the powerloom sector.
• Production must have commenced between January 1, 2022, and December 31, 2024.
• A four-party agreement must be in place with the Directorate of Textiles, a financial institution, and Tantuja.
• Eligible entities may include private sector firms, cooperative societies, joint sector undertakings, and state government-managed companies or industrial Self-Help Groups (SHGs).
• The project must be accompanied by a comprehensive feasibility report.
• Approval must be granted by a Central Financial Institution, commercial banks, or state financial institutions.

Application Procedure

To apply for the subsidy, eligible enterprises must follow these steps:

• Submit an offline application using Form-A2 to the Directorate of Textiles after beginning production.
• The first application must be submitted within 12 months of starting commercial production (between January 1, 2022, and December 31, 2024).

Contact Details

For further assistance, applicants can reach out 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.
Tel No: 033-2248 4537 / 2248 6271 (Ext. 215)
Fax No: 033-2248 4537

Official Information Source

For additional details, please visit: myScheme.gov.in