BMSMEPS

Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS)

4.9/10

“Power Subsidy (PS)” incentives under “Banglashree for MSMEs” scheme implemented by the MSMEs Dept., Government of West Bengal, aims to provide power subsidy on the electricity consumed for the manufacturing activity to an eligible micro or small enterprise.

State Cash

States / UT: West Bengal

Nodal department: Micro, Small & Medium Enterprises and Textiles Department

Scheme for: Infra

Scheme profile

DBT (direct benefit transfer): No

Scheme open date: 2020-04-01

Categories: Business & Entrepreneurship

Sub-categories: Setting up / start-up / entrepreneurship

Target beneficiaries: Business Entity

Tags: MSME, Incentives, Power Subsidy, Entrepreneurship, Subsidy

Details

“Power Subsidy (PS)” is a sub-scheme under the “Banglashree for Micro, Small and Medium Enterprises” scheme. It was launched on 1st April 2020 by the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, and shall remain in force till 31st March 2025.

Objectives of the "Banglashree for MSME” Scheme:

The object of the Scheme is to extend fiscal incentives to encourage entrepreneurs to set up Micro, Small and Medium Enterprises with a view to focusing on balanced development of MSMEs across the State and creating a sustainable ecosystem in the MSME sector which can maximize the utilization of resource, generate new employment and widen the area of operation to make the State emerge as the MSME leader in the country.
> Objectives of the “Power Subsidy”:

Through this incentive, an eligible micro, small or medium enterprise for its approved project will be entitled to power subsidy on the electricity consumed for the manufacturing activity.

Benefits

  • Micro, Small and Medium Enterprise:
  • Subsidy of ₹1.00 / Kwh for enterprises located in Zone – A & B area and ₹1.50/ Kwh. for enterprises located in Zone – C, D & E area for five years from the date of commencement of commercial production. NOTE: The power subsidy will not exceed ₹10,00,000/- lakh per year for a micro enterprise, ₹20,00,000/- per year for a small enterprise and ₹30,00,000/- per year for a medium enterprise and will be payable annually

Micro, Small and Medium Enterprise:

  • Subsidy of ₹ 1.00 / Kwh for enterprises located in Zone – A & B area and ₹ 1.50/ Kwh. for enterprises located in Zone – C, D & E area for five years from the date of commencement of commercial production.

NOTE: The power subsidy will not exceed ₹ 10,00,000/- lakh per year for a micro enterprise, ₹ 20,00,000/- per year for a small enterprise and ₹ 30,00,000/- per year for a medium enterprise and will be payable annually.

Eligibility

  • The business/organization should be a Micro/ Small/ Medium Enterprise.
  • The business/organization should belong to the manufacturing sector.
  • The business/organization should have started production on or after 1st April 2019.
  • The business/organization should be in the private sector/ cooperative sector/ joint sector undertaking or should be a company/ undertaking owned and managed by the State Government or the Industrial SHGs.
  • The Date of Commencement of Commercial Production (DOCCP) should be between 1st April 2020 to 31st March 2025.


Exclusions

Enterprises Excluded from this Scheme:

  • Enterprises registered and for which eligibility certificates have been issued /incentives have been sanctioned and/ or disbursed under the respective Incentive Scheme of the State.
  • Enterprises registered and for which eligibility certificates have been issued in terms of the respective Incentive Scheme of the State but no sanction or disbursement of incentive has been made.
  • Enterprises commenced production before 01.04.2019 and applied for incentive under the respective Incentive Scheme of the State within the stipulated date.

Negative List Of Industries:

  1. Sponge Iron Factory.
  2. Bricks (Excluding Fly Ash bricks, Sand lime Bricks, Refractory Bricks).
  3. Any other industry notified by the State Govt. for inclusion in this list.

Items excluded while calculating the investment made in Plant & Machinery:

  • Equipment such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores.
  • Installation of Plant and Machinery.
  • Research and development equipment and pollution control equipment.
  • Power generation set and extra transformer installed by the enterprise as per the regulations of the State Electricity Board.
  • Bank charges and service charges paid to the National Small Industries Corporations or the State Small Industries Corporations.
  • Procurement or installation of cables, wiring, bus bars, electrical control panels (not mounted on individual machines), oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the Plant and Machinery or for safety measures.
  • Gas producer plant.
  • Transportation charges for indigenous machinery from the place of their manufacture to the site of the enterprise.
  • Charges paid for technical know-how for the erection of the Plant and Machinery.
  • Such storage tanks which store raw materials and finished products only and are not linked to the manufacturing process.
  • Fire fighting equipment.

NOTE: The cost of any second-hand plant and machinery purchased and installed for implementation of the project will be excluded in the calculation of the cost of the plant and machinery.

How useful is this scheme?

Public benefit analysis

A practical look at this scheme for citizens

AI-generated insights showing how useful, accessible, and practical this scheme may be — combining deterministic scoring rules with a public-policy LLM analyst.

4.9
/ 10
Public Benefit Score
Accessibility 6.0/10 Moderate
Rural usefulness 4.0/10 Moderate
Application complexity 4.0/10 Moderate
Financial impact 4.0/10 Moderate
Literacy barrier 6.0/10 Moderate
Women inclusivity 5.0/10 Moderate
Awareness 4.5/10 Moderate
Implementation reliability 6.0/10 Moderate
Bigger shape means a better fit for citizens
  • Accessibility6.0
  • Financial impact4.0
  • Rural utility4.0
  • Awareness4.5
  • Simplicity6.0
  • Inclusivity5.0

What problem does this scheme solve?

The scheme provides significant financial incentives for micro, small, and medium enterprises in West Bengal, promoting entrepreneurship and economic growth.

Key challenges addressed

  • High electricity costs for manufacturing enterprises
  • Encouragement for setting up new MSMEs

Most beneficial for

  • Micro and small enterprises in manufacturing
  • Entrepreneurs in backward areas

Likely challenges

  • Complex application process
  • Limited awareness among potential beneficiaries

Practical insights for citizens

The scheme is practical but may face challenges in rural implementation due to digital barriers.

Rural challenges

  • Limited internet access
  • Lack of awareness about the scheme

Digital challenges

  • High digital dependency may exclude non-tech-savvy applicants

Implementation bottlenecks

  • Verification delays
  • Potential bureaucratic hurdles

Awareness challenges

  • Low outreach to rural entrepreneurs

Application analysis

Application mode
Online portal
Documents burden
Minimal documentation required
Verification complexity
Moderate complexity in verification
Office dependency
Low, primarily online
DBT dependency
No direct benefit transfer dependency
CSC support
Limited
Estimated citizen effort
High effort due to multiple steps

Estimated beneficiary reach

  • Rural / urban reach Moderate
  • Gender reach Moderate
  • Target income group Low to middle-income entrepreneurs
  • Occupation reach Manufacturing sector

Benefit analysis

Benefit type
Cash
Benefit frequency
Annual
Benefit practicality
Practical for eligible enterprises
Financial meaningfulness
Moderately meaningful due to capped subsidy amounts
Long-term impact
Positive impact on MSME growth and sustainability

Plain-language guidance

This scheme offers cash subsidies for electricity costs to help small businesses in West Bengal. It aims to support new manufacturing enterprises and reduce their operational costs.

Who should apply
Micro and small manufacturing enterprises that started production after April 2019.
Who may struggle
First-time applicants and those unfamiliar with online processes.
Best application route
Apply via the Shilpasathi Portal online.

This intelligence section is generated by an AI policy analyst combined with rule-based scoring. Scores and narrative are estimates derived from the publicly available scheme information shown on this page; actual experience may vary by state, district, and department. Always confirm details on the official portal before you apply.

Application Process

Online

Registration Process:

Step 1: Visit the Shilpasathi Portal and click ‘Apply Online’. On the next screen, click ‘Create New’ for new registration.
Step 2: Select the Applicant Type (Industry /Business /Commercial /Charitable Society/ Govt. entity) and enter the Registration Number.
Step 3: On the ‘User Registration’ page, fill in all the mandatory fields and click ‘Register’.

Application Process:

Step 1: Visit the Shilpasathi Portal and click ‘Apply Online’.
Step 2: Login to the portal using your username & password or via OTP using your registered mobile number.
Step 3: You will be directed to the user dashboard. Click ‘ALL SERVICES’ and then select 'MSME Incentive' from the list of services.
Step 4: Click ‘Create CAF’. Your CAF ID will be created. Click ‘Apply Online’ to proceed.
Step 5: Fill in the "eligibility form" and click “Save and Continue” to get redirected to the common application form (CAF).
Step 6: In the CAF, fill in all the mandatory fields, and click “Update and Continue” to preview the form.
Step 7: After the form gets submitted, you will be taken to the “Dashboard” to view the application status.
Step 8: From the Dashboard, continue with the application by clicking “Click to Proceed”. When done click “Save” to save the updated information.
Step 9: Click "Preview" to preview the form before the final submission.
Step 10: On the next screen, click "Go to Application" to fill out the "Online Form - A" application.
Step 11: You will be taken to the "APPLY SUBSIDY" section to check year-wise subsidy items of the respective application you intend to apply for. Once complete, click "SAVE".
Step 12: You will be taken to the "FILL UP SUBSIDY" tab. Provide the year-wise subsidy details for the incentive, and click "Add More" to see the multiple-year or year-wise breakup.
Step 13: Upload the relevant documents, preview the details, click “VERIFY & SUBMIT”, check the declaration box and click “Submit Application”.
Step 14: On final submission of Form-A application, you will be provided an application reference number. Use this number to check the status of your application.

Date of submission of first application: Within 12 months from the DOCCP or within 12 months from the date of notification of Banglashree, whichever is later.

Helpdesk:

Protiti, 23, Abanindranath Tagore Sarani (Camac Street), Kolkata - 700017, West Bengal, India; Phone: +91 33 2255 3700; Fax: +91 33 2255 3737; Email: silpa.sathi@wbidc.com.
For any technical query or any critical issues faced while applying please mail to our Quick Response Team at: qrt.silpasathiwb@gmail.com
Silpa Sathi Single Window Cell - Helpline Number (Toll-free): 1800-345-5562

Clarifications

Additional points from the scheme information published on myScheme (not legal advice).

What areas are classified under Zone A for the purpose of determining incentives?

Zone A includes the Kolkata Municipal Corporation Area, all municipal areas of North 24-Parganas, all municipal areas of South 24-Parganas, and all municipal corporation and municipal areas of Howrah.

Which districts fall under Zone B for incentive classification?

Zone B comprises districts such as Hooghly, North 24 Parganas (excluding municipal areas and Sundarban areas), South 24 Parganas (excluding municipal areas and Sundarban areas), Howrah (excluding corporation and municipal areas), Siliguri Municipal Corporation, Paschim Medinipur, Purba Medinipur, Purba Bardhaman, Paschim Bardhaman, and Nadia.

What are the eligibility criteria for incentives under Banglashree for MSMEs?

Micro, small, or medium enterprises in the manufacturing sector that commence commercial production between 1st April 2019 and 31st March 2025 are eligible. Existing enterprises are also eligible for incentives for project expansion.

Which enterprises are not eligible for Banglashree for MSMEs?

Enterprises that commenced production before 1st April 2019, those registered and received incentives under other state incentive schemes, or those that applied for incentives under other schemes within the stipulated date are not eligible.

What is the timeline for submitting the first incentive application under Banglashree for MSMEs?

Enterprises must submit their first incentive application to the General Manager, District Industries Centre, or Officer-In-Charge Sub-DIC, Siliguri within 12 months from the date of commencement of commercial production or within 12 months from the date of the notification, whichever is later.

Can enterprises in the manufacturing sector other than micro, small, and medium enterprises avail of Banglashree for MSMEs?

No, the scheme is specifically applicable to micro, small, and medium enterprises in the manufacturing sector.

What is the procedure for claiming the Subsidy?

Enterprises need to apply for the subsidy along with the required documents to the designated authorities as per the guidelines provided by the concerned department or agency.

What is the significance of the classification of areas into different zones for the scheme?

The classification helps in determining the quantum of incentives available for projects based on their location, with higher incentives provided for projects in backward areas.

Can enterprises avail of incentives under both Banglashree for MSMEs and other state incentive schemes simultaneously?

No, enterprises cannot avail incentives under both schemes simultaneously. They must choose one scheme based on their eligibility and requirements.

Is there any provision for enterprises that have already received incentives under other state schemes but wish to expand their projects?

Yes, existing enterprises are eligible for incentives under Banglashree for MSMEs for project expansion, subject to the conditions specified in the scheme.

How does the State Government verify the eligibility of enterprises for the incentives?

The eligibility of enterprises is verified based on the documents submitted along with the application, and inspections may be conducted by designated authorities if required.

What measures are in place to prevent misuse of the subsidy scheme?

Strict guidelines, documentation requirements, and verification procedures are in place to ensure that subsidies are availed by eligible enterprises for genuine purposes only.

Is there any provision for enterprises to appeal if their application for incentives is rejected?

Yes, enterprises have the right to appeal against the rejection of their application, and there is a designated process for handling such appeals.

Definitions

  • Definition 1
  • Zone-A
  • Zone-B
  • Zone-C
  • Zone-D
  • Zone-E

References

Guidelines (Kolkata Gazette)
https://silpasathi.wb.gov.in/read-bytea-file-all/aWQ%3D/MTU5/NDQ%3D/ZW9kYl9zdGF0aWNfcGFnZV9wZGZfbWFuYWdl/cGRmX2NvbnRlbnQ%3D/MDFfMTU0M19tc21ldF8xODAxMV8yMjA3MjAyMF9jb21wcmVzc2VkLnBkZg%3D%3D
User Manual
https://silpasathi.wb.gov.in/read-bytea-file-all/aWQ%3D/MjE1/NDQ%3D/ZW9kYl9zdGF0aWNfcGFnZV9wZGZfbWFuYWdl/cGRmX2NvbnRlbnQ%3D/ODItTVNNRSBJbmNlbnRpdmVzLXVzZXItbWFudWFsLnBkZg%3D%3D
FAQs
https://wbmsme.gov.in/faq

Apply

Apply now

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Frequently asked questions

What is the purpose of Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS)?
Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS) is a government welfare initiative designed to support Infra, Business Entity through benefits related to Business & Entrepreneurship, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
Who can apply for Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS)?
Eligibility for Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS) may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
What benefits are offered under Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS)?
Benefits under Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS) may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
Which department manages Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS)?
Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS) is managed by Micro, Small & Medium Enterprises and Textiles Department and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
Can users apply online for Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS)?
Yes, eligible applicants may be able to apply online for Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS) through official government portals, authorised service centres, or digital application systems depending on the implementation process.
Is Aadhaar mandatory for Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS)?
Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
Where can users apply for Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS)?
Applications for Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS) may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
What documents may be required for Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS)?
Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
Is Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS) available in all states?
No, Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS) is primarily available for eligible residents of West Bengal and may be implemented through state government departments and local administrative offices.
Can residents outside West Bengal apply for Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS)?
Eligibility for Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS) is generally limited to residents of West Bengal unless otherwise specified in the official scheme guidelines.
Does Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS) provide business loan or startup assistance?
Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS) may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.
Is collateral required under Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS)?
Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.
Can CSC centres help users apply for Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS)?
Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
How can users check the latest updates for Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS)?
Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
Are there deadlines for applying to Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS)?
Some schemes may operate through fixed application windows, annual registration cycles, or department-specific deadlines depending on scheme implementation policies.
Can beneficiaries track application status for Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS)?
Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
Where can users get help for Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS) in West Bengal?
Users in West Bengal may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
Which nearby public services may help with Banglashree for Micro, Small and Medium Enterprises: Power Subsidy (PS) applications?
Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.