Banglashree Scheme for Micro, Small and Medium Enterprises (MSME)

The Banglashree scheme is a State-level incentive scheme launched by the Department of Micro, Small & Medium Enterprises & Textiles, West Bengal (MSME & T), Government of West Bengal.
Effective from 1 April 2020, the scheme covers manufacturing MSMEs across West Bengal and is valid until 31 March 2025 (unless amended or extended).
The object: “to extend fiscal incentives to encourage entrepreneurs to set up Micro, Small and Medium Enterprises … create a sustainable ecosystem … generate new employment … widen the area of operation … make the State emerge as the MSME leader in the country.”

Here are the major incentive components of the Banglashree scheme that you should pay attention to:

1. State Capital Investment Subsidy (CIS)

For micro & small enterprises located in different Zones (C, D, E):
- Micro: Zone C – ~25%, Zone D – ~40%, Zone E – ~60% of investment.
- Small: Zone C – ~15%, Zone D – ~30%, Zone E – ~40%.
Additional subsidy (≈ 20%) for enterprises wholly owned by Women / SC / ST / Minority entrepreneurs.
Caps: e.g., Small enterprises in certain zones: max subsidy amounts (e.g., ₹ 50 lakh or ₹ 75 lakh) under CIS.

2. Interest Subsidy on Term Loans

For Micro & Small enterprises:
- Zone A & B: ~55% of annual interest liability for 5 years.
- Zone C, D & E: ~70% of annual interest liability for 5 years.
For Medium enterprises: Zone B, C, D & E: ~25% of annual interest liability (subject to limit e.g., ₹ 1.75 crore per year) for 5 years.

3. Subsidy for Stamp Duty & Registration Fee

Micro & Small enterprises: Zone A – ~25%, Zone B – ~50%, Zone C – ~75%, Zone D & E – ~100% reimbursement of stamp duty/registration fee paid for land/building or lease (minimum 10 years) in approved industrial parks/estates.
Medium enterprises: Zones B, C, D & E – ~75%.

4. Subsidy for Net SGST (State Goods & Services Tax)

Eligible Micro/Small/Medium manufacturing units: Refund of a percentage of net SGST paid for 8 years from date of commercial production.
- Zone B & C: ~30% of net SGST.
- Zone D & E: ~50% of net SGST.
Cumulative refund capped at ~75% of fixed capital investment (FCI) in most cases.

5. Power / Utility Subsidy & Other Sub-schemes

Subsidy on power/energy consumption (manufacturing units) – e.g., in Zones C/D/E: ~₹ 1.50 per kWh for manufacturing MSMEs for first five years from start of production. Government schemes
Sub-schemes also include:
- Subsidy for energy efficiency (audit + implementation). Government schemes
- Subsidy for water‐conservation/environment compliance. Government schemes
- Subsidy for workforce welfare assistance (ESI/EPF contributions) – e.g., 100% reimbursement for first year, then 75% in subsequent years. Government schemes

Manufacturing sector enterprises are eligible (micro, small, medium) under the scheme.
Units must have commenced commercial production on or after 1 April 2019 (some provisions) and often first incentive application should be submitted within 12 months of production start or scheme notification — whichever is later.
The “fixed capital investment” definition: investment in plant & machinery (P&M) made on or after 1 April 2018 for new units under Banglashree.
The State is classified into five zones (A, B, C, D, E) for differential incentives — zones reflect backwardness/development of districts.
There is a “negative list” of industries that are not eligible under this scheme (e.g., sponge iron, bricks (except fly ash/sand-lime/refractory), certain others) — you should check Annexure IV of the scheme.
Enterprises already covered under certain earlier state schemes (e.g., WBIS-2013) may not be eligible for duplicate incentives under Banglashree for the same portion of investment.

Lower setup & operation cost: With subsidies on capital investment, interest, power, SGST refund, stamp duty – your financial burden decreases, making investment more feasible.
Enhanced viability in less developed zones: Units located in Zones C/D/E (backward parts of West Bengal) receive higher incentives — an advantage if you are locating outside the main urban clusters.
Support for growth & upgrade: The scheme assists new units and expansion/modernisation of existing MSMEs, giving you scale-up opportunities.
Green & compliance focus: With sub-schemes for energy-efficiency, water conservation, environment compliance, you can both meet regulatory demands and gain subsidy.
Inclusive advantage: Women-owned, SC/ST, minority-owned enterprises receive additional benefits — good if you qualify.

Meeting eligibility criteria in full is crucial (date of production commencement, investment period, registration, documentation).
While the scheme runs until 31 March 2025 (for applications etc), ensure your project schedule aligns so you don’t miss deadlines.
The actual benefit depends on correct classification (zone, micro/small/medium), and submission of claims annually (for interest subsidy, SGST refund etc).
Infrastructure and logistics costs in certain zones might be higher — don’t assume incentives alone guarantee profit.
Some exclusions apply (negative list of industries, second-hand machinery, used equipment, certain cost items may not count). E.g., tools, jigs, spare parts, installation charges may be excluded from investment calculation.