Banglashree for Micro, Small and Medium Enterprises

GOVERNMENT OF WEST BENGAL
Department of Micro, Small and Medium Enterprises and Textiles
4 Abanindra Nath Tagore Sarani(7th Floor), Kolkata – 700016

No. 1543/MSMET-18011(11)/1/2020 Kolkata, the 22nd July, 2020

NOTIFICATION

WHEREAS, the Governor is pleased to sanction the implementation of a new Incentive Scheme for Micro, Small and Medium Enterprises in west Bengal in the following manner with an eye to promoting growth and development of such enterprises in the State.

1. Short Title

The Scheme may be called Banglashree for Micro, Small and Medium Enterprises (hereinafter referred as Banglashree for MSMEs)

2. Object

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.

3. Commencement and Duration

Unless specifically mentioned against the respective items of incentives sanctioned under the Scheme, it comes into effect on and from the 1st day of April, 2020 in the whole of West Bengal and shall remain in force for a period of five years ending on 31st March 2025, if not withdrawn/ amended earlier by a Notification in the official Gazette to that effect.

4. Definitions

In the Banglashree for MSMEs, unless the context otherwise requires

(i) “Approved Location” means location mentioned in the approved project.

(ii) “Approved Project” means the industrial project of an enterprise/ an expansion project in the manufacturing sector which should be approved before implementation of the project by any Directorate under the Deptt. of Micro, Small & Medium Enterprises and Textiles, Govt. of West Bengal or concerned DIC or Micro, Small & Medium Enterprises Development Institute (MSMEDI), Govt. of India or Food Processing Industries & Horticulture Deptt., Govt. of West Bengal or Commercial Banks/ Financial Institution (Central and State)/ Cooperative Banks/ scheduled banks approved by RBI/ RRBs financing the project.

(iii) “Central Government” means the Government of India.

(iv) “DIC” means the District Industries Centre, which also includes the Sub-DIC, Siliguri.

(v) “Eligible Enterprise” means a micro, small or medium enterprise which has obtained Udyog Aadhaar Registration and subsequently been found eligible as per terms and conditions of Banglashree for MSMEs.

(vi) “Existing Industrial Enterprise” means a micro, small or medium enterprise which has started production before 1st April, 2019 and obtained Udyog Aadhaar Registration.

(vii) “New Industrial Enterprise” means a micro, small or medium enterprise in the manufacturing sector which has started commercial production on or after the 1st April, 2019 and obtained Udyog Aadhaar Registration.

(viii) “Expansion of existing enterprise “means expansion for the same item(s) of production within its existing approved capacity or for expansion for enlarged approved capacity or for manufacture of a new item with an approved capacity.

Explanation 1:

In case of expansion of an existing enterprise, the fixed capital investment made or to be made on approved project shall increase the total value of the fixed capital investment of the enterprise by not less than 25% of the net value of fixed capital investment as on 31.03.2019, having complete set of existing plant & machinery in running condition. However, in respect of the enterprises which are set up on or after 01.04.2019, such date will be the date immediately prior to the date on which the enterprise goes for expansion other condition remaining the same. At least 15% additional employment has to be generated due to the expansion. Such enterprises will be eligible for subsidy under clause No.9, 10 (for separate term loan for expansion portion), 13, 16, 17, 18, 19.

(ix) “Factory” means any premises including the precincts thereof:

a) Wherein ten or more workers are working or were working in any part of which a manufacturing process is being carried out with the aid of power or is ordinarily so carried on, Or

b) Wherein twenty or more workers are working or were working on any of the preceding twelve months and in any of which a manufacturing process is being carried on without the aid of power or is ordinarily so carried on but does not include a mine, subject to the operation of the Mines Act, 1952 (35 of 1952) or a railways running shed.

c) “Factory Worker” means a person employed, directly or through any agency, whether for wages or not, in any manufacturing process for cleaning any part of the machinery or equipment or premises used for manufacturing process or in any other kind of work incidental to or connected with the manufacturing process or the subject of the manufacturing process.

(x) “Term Loan” means a loan secured from Bank or Financial Institution approving the project as per clause 4 (ii) for acquiring fixed capital assets in the form of land, building, plant and machinery, tools & implements, appliances etc.

(xi) “Working Capital” means capital required for running any industrial enterprise and includes cash credit and/ or any other short term loan actually utilized as working capital.

(xii) “Fixed Capital Investment” means investment made in plant and machinery in an approved project of the eligible enterprise on or after 1st April, 2018 subject to other conditions laid down in Clause No.-7 of Banglashree for MSMEs.

Explanation – I

The “fixed capital investment” shall be calculated as follows:-

Plant and Machinery:

It shall be calculated as follows:-

The cost of plant and machinery as found installed at the approved location, excluding the cost of any second hand plant and machinery purchased and installed for the purpose of implementation of the project. The cost of the following items shall be excluded while calculating the investment made in Plant & Machinery:

a. Equipments such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores.

b. Installation of Plant and Machinery.

c. Research and development equipments and pollution control equipments.

d. Power generation set and extra transformer installed by the enterprise as per the regulations of the State Electricity Board.

e. Bank charges and service charges paid to the National Small Industries Corporations or the State Small Industries Corporation.

f. 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.

g. Gas producer plant.

h. Transportation charges for indigenous machinery from the place of their manufacture to the site of the enterprise.

i. Charges paid for technical knowhow for erection of Plant and Machinery.

j. Such storage tanks which store raw materials and finished products only and are not linked with the manufacturing process

k. Fire fighting equipments.

Explanation-II

Advances paid to suppliers of plant and machinery for the approved project of the eligible enterprise on or after 1st April 2018 will be taken into account in calculating the total fixed capital investment.

xiii) “Micro Enterprise” in the manufacturing sector means an enterprise classified as such in MSMED Act, 2006.

xiv) “Small enterprise” in the manufacturing sector means an enterprise classified as such in MSMED Act, 2006.

xv) “Medium enterprise” in the manufacturing sector means an enterprise classified as such in MSMED Act, 2006.

xvi) “State” means the state of West Bengal.

xvii) “State Financial Institution” means the West Bengal Financial Corporation.

xviii) “State Government” means the Government of West Bengal

xix) “Enterprise” means any manufacturing project in the micro, small and medium sector including industrial cooperatives and industrial self- help groups, which has obtained Udyog Aadhaar Registration.

Explanation:

If an enterprise has different plants in and outside the State and owned by same promoter with the same name and style, the enterprise will be treated as one enterprise and consolidated value of plant & machinery of all such plants will be taken into consideration for determination of the scale of the enterprise.

xx) “Year” means, unless otherwise specifically mentioned/ stated and not repugnant to the context, the financial year commencing from the 1st April and ending on 31st March following.

5. Applicability of Banglashree for MSMEs

5.1 The Banglashree for MSMEs shall generally be applicable to all micro, small and medium enterprises in the manufacturing sector which have started production on or after 1st day of April 2019.

5.2 The enterprises may be in the private sector, cooperative sector and joint sector undertaking as also companies/ undertakings owned and managed by the State Government and the Industrial SHGs.

6. Non-applicability of Banglashree for MSMEs

The Banglashreefor MSMEs shall not be applicable to the enterprises;

(i) That has commenced production on or after 01.04.2018 and before 01.04.2019.

(ii) That has been registered and for which eligibility certificates have been issued/ incentives have been sanctioned and/ or disbursed under the respective Incentive Scheme of the State. This will continue to be governed by the respective Incentive Scheme of the State.

(iii) That has been registered and for which eligibility certificate have been issued in terms of the respective Incentive Scheme of the State but no sanction or disbursement of incentive has been made. The claim will be governed by the respective Incentive Scheme of the State.

(iv) That has commenced production before 01.04.2019 and applied for incentive under the respective Incentive Scheme of the State within the stipulated date. The claim will be governed by the respective Incentive Scheme of the State.

7. Eligibility criteria for incentives under Banglashree for MSMEs

7.1 Any micro, small or medium enterprise in the manufacturing sector shall be eligible for incentives under Banglashree for the MSMEs excluding those mentioned in the negative list of industries at Annexure-IV subject to the fulfillment of the conditions specified below:

i) A micro, small or medium enterprise shall commence its commercial production from 01.04.2019 to 31.03.2025. and shall submit its first incentive application to the General Manager, District Industries Centre/ Officer-In-Charge Sub-DIC,Siliguri within 12 (twelve) months from the date of commencement of commercial production or 12 months from the date of this notification, whichever is later.

ii) Existing enterprises will be eligible for incentive for expansion of the project as per clause 20 of this scheme.

Explanation

A micro, small or medium enterprise which will commence its production on 31.03.2025 shall submit its first incentive application in prescribed form within 30.03.2026 to the General Manager, District Industries Centre/ Officer-In-Charge, Sub-DIC concerned.

iii) The enterprise shall file Udyog Aadhar Registration.

iv) The project will be covered by a detailed feasibility report/ project prepared for the purpose and approved in terms of Sub-para 7.1 (v).

v) A new project/Expansion project should be approved before its implementation by any Directorate under the Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal or concerned DIC or Micro Small and Medium Enterprises Development Institute (MSME-DI), Government of India or Food Processing Industries and Horticulture Department, Govt. of West Bengal or Commercial Banks/ Financial Institution (Central and State)/ Co-Operative Banks/Scheduled Banks approved by RBI/ RRBs financing the project.

In case of projects with arrangement of finance from own resources, eligibility of the enterprise shall be considered by the General Manager, District Industries Centre/ Officer-In-Charge, Sub-DIC according to the declaration of the enterprise regarding source of finance supported by a certificate issued by a Chartered Accountant as per Annexure VI. provided the General Manager, District Industries Centre/ Officer-In-Charge, Sub-DIC is satisfied about the arrangement of such finance.

vi) An eligible enterprise which has availed of incentive/ subsidy in respect of any of the items specified under any other Incentive/ Subsidy Scheme of Govt. of India/ State Govt. shall also be eligible to get the benefits of other items only under Banglashree for MSMEs subject to fulfillment of terms and conditions of the Scheme.

vii) The enterprise will submit a ‘self- declaration’ affirming:

(a) That the enterprise has installed Modern/Hi-tech plant & machinery that conform to the standard productivity.

(b) That the enterprise will strictly observe requisite pollution control compliances.

(c) That the enterprise will conduct regular Energy Audit and ensure standard energy efficiency wherever applicable.

(d) That the enterprise will follow/maintain labour laws.

(e) That the enterprise will remain in production for at least five years from the date of commencement of commercial production.

(f) That the enterprise has not defaulted in payment of any government dues/ dues of Financial Institutions.

(g) That the enterprise has not misrepresented or withheld any information and not suppressed any fact/ information related to the claim submitted.

(h) That all documents like approved project report, bills/ vouchers of the plant and machinery etc. submitted by the enterprise with the claim are genuine.

(i) That the terms and conditions of Banglashree for MSMEs are binding on the enterprise.

(j) That the enterprise will not divert/ utilize the loan amount disbursed by the bank/ financial institution for carrying out any activity/ project other than the implementation of the approved project.

7.2 The Enterprise will make application in prescribed Form (Form A) to the General Manger of District Industries Centre/ Officer-in-Charge Sub-DIC, Siliguri, after commencement of commercial production for grant of incentives under the Scheme.

8. Classification of developed areas and backward areas

For the purpose of determination of type and quantum of incentives available under this scheme for the approved projects, according to their locations, the State has been classified into the following zones:-

Zone-A : Kolkata Municipal Corporation Area, All municipal areas of North 24-Parganas, All municipal areas of South 24-Parganas, All municipal Corporation and municipal areas of Howrah.

Zone-B : Districts of 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, Municipal Corporations/ Municipal Areas of Paschim Medinipur, Purba Medinipur, Purba Bardhaman,,Paschim Bardhaman and Nadia.

Zone-C : Districts of Purba Bardhaman, Paschim Bardhaman (excluding municipal corporation/ municipal areas), Purba Medinipur (excluding municipal corporation/ municipal areas), Nadia (excluding municipal corporation/ municipal areas), Malda, Jalpaiguri, Murshidabad and Darjeeling (excluding Siliguri Municipal Corporation),Kalimpong, Alipurduar.

Zone-D : Districts of Birbhum, Purulia, Bankura, Paschim Medinipur (excluding municipal corporation/ municipal areas), Uttar Dinajpur, Dakshin Dinajpur, Sundarban Areas of South and North 24 Parganas and Jhargram .

Zone-E : Cooch Behar District.

9. State Capital Investment Subsidy

9.1 An eligible micro or small enterprise located in Zone C , D & E area will be entitled to State Capital Investment Subsidy for its approved project as follows :-

Micro Enterprise

Zone C – 25% of the Fixed Capital Investment
Zone D – 40% of the Fixed Capital Investment
Zone E – 60% of the Fixed Capital Investment

Small Enterprise

Zone C- 15% of the Fixed Capital Investment
Zone D – 30% of the Fixed Capital Investment
Zone E – 40% of the Fixed Capital Investment

9.2 An additional subsidy of 20% on State Capital Investment Subsidy normally admissible will be provided to all eligible micro and small enterprises wholly owned (100%) by women, SC/ST, and minority commenterprisey entrepreneurs.

Explanation: If a micro enterprise having fixed capital investment of Rs.2 lakh in Zone C area, its normally admissible capital investment subsidy is Rs. 50,000/- (25% of fixed capital investment). In this case, an eligible micro and small enterprise will be entitled for additional subsidy of Rs. 10,000/- (20% on Rs. 50,000/-) and total admissible capital investment subsidy will be Rs. 60000/-.

9.3 An eligible micro or small enterprise wholly owned by women, SC/ST, and minority commenterprisey entrepreneurs and set up in Zone – A and B area will be entitled to State Capital Investment Subsidy as follows:

Micro Enterprise :- 15% of the Fixed Capital Investment
Small Enterprise :- 10% of the Fixed Capital Investment

9.4 The subsidy normally admissible and additional subsidy taken together will not exceed Rs.50 Lakh for a Small Enterprise located in Zone C & D area and will not exceed Rs. 75 Lakh for a Small Enterprise located in Zone E area.

10. Interest Subsidy on Term Loan

10.1 An eligible micro, small or medium enterprise will be entitled to Interest Subsidy on annual interest liability on the Term Loan borrowed from a Commercial Bank/ Cooperative Bank/ Scheduled Banks approved by RBI/ RRBs/ Financial Institution (Central and State) for implementation of the approved project as follows.

Micro & Small Enterprise –

Zone A & B – 55% of interest liability for 5 years.
Zone C, D & E- 70% of interest liability for 5 years

Explanation:

The interest subsidy admissible for an eligible micro or small enterprise in Zone – A & B area will be calculated in the following manner :-

Annual interest liability on Term Loan paid by the enterprise x 55/ 100

Medium Enterprise –

Zone – B, C, D & E: – The interest subsidy will be 25% of total Term Loan interest paid by the enterprise for 5 years subject to a ceiling of Rs. 175 lakh per year.

Explanation :

The Interest Subsidy admissible for an eligible medium enterprise will be calculated in the following manner :

Annual interest liability on Term Loan paid by the enterprise x 25/ 100

10.2 The interest subsidy will be payable annually subject to submission of a statement/ certificate (in annexure-II) by the lending Bank /Financial Institution to substantiate that the enterprise has paid the due interest to the institution on the due dates and has not defaulted in payment of interest at any time during the period.

11. Waiver of Electricity Duty

An eligible micro, small or medium enterprise for its approved project will be entitled to waiver of electricity duty (reimbursement of electricity Duty) on the electricity consumed for the manufacturing activity as follows:

Micro & Small Enterprise –

Zone A & B – 50% waiver of electricity duty on the electricity consumption for 5 years from the date of commencement of commercial production.

Zone C, D & E- 75% waiver of electricity duty on the electricity consumption for 5 years from the date of commencement of commercial production.

An eligible micro or small enterprise wholly owned by women, SC/ST and minority commenterprisey entrepreneurs will be entitled to 100% waiver of electricity duty on the electricity consumed for 5 years from the date of commencement of commercial production of its approved project irrespective of location subject to a maximum of Rs.10 Lakh/year.

Medium Enterprise –

Zone – B &C- 100% waiver of electricity duty on the electricity consumption for 5 years from the date of commencement of commercial production subject to a maximum of Rs.25.00 lakh per year.

Zone – D &E – 100% waiver of electricity duty on the electricity consumption for 5 years and 75% waiver from the 6th year upto 10th year from the date of commencement of commercial production subject to a maximum of Rs.50.00 lakh per year.

12. Power Subsidy

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 as follows :

Micro, Small and Medium Enterprise

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

The power subsidy will not exceed Rs.10 lakh per year for a micro enterprise, Rs.20 Lakh per year for a small enterprise and Rs.30 Lakh per year for a medium enterprise and will be payable annually.

13. Subsidy for Energy Efficiency

13.1 An eligible micro or small enterprise for its approved project will be entitled to a reimbursement of 50% of the cost of energy audit undertaken by a certified agency. The reimbursement will be made after implementation of the recommendations.

13.2 An eligible micro or small enterprise for its approved project will be entitled to a reimbursement of 25% of the cost of installations for energy conservation as per energy audit subject to a maximum Rs.2 Lakh.

14. Subsidy on Stamp Duty and Registration Fee

14.1 An eligible micro, small and medium enterprise will be entitled to a reimbursement of stamp duty and registration fee paid by it for the purpose of registration of documents as per clause 14.2 within the State at the following rates:-

Micro & Small Enterprise :

Zone – A – 25%
Zone – B – 50%
Zone – C – 75%
Zone – D & E – 100%

Medium Enterprise in Zone – B, C, D and E : 75%

14.2 The subsidy will be admissible for the purpose of:

i. Purchase of land and/ or buildings for setting up of the approved project

And

ii. Land/building/shed taken on Lease (minimum ten years) at any government/ government approved Industrial Park/ Estate for setting up of the approved project.

14.3 The amount admissible will be calculated proportionately based on the percentage of land/ buildings used for setting up of the enterprise for implementation of the approved project.

15. Subsidy for State Goods and Services Tax (SGST)

An eligible micro, small and medium enterprise for its approved project will be entitled to refund Net SGST paid to the Government of West Bengal as follows:

Zone B & C-Refund of 30% of Net SGST paid for eight years from the date of commencement of commercial production. Cumulative refund of SGST shall not exceed 75% of fixed capital investment.

Zone D & E- Refund of 50% of Net SGST paid for eight years from the date of commencement of commercial production. Cumulative refund of SGST shall not exceed 75% of fixed capital investment

16. Subsidy for Water conservation/Environment Compliance

An eligible micro or small enterprise for its approved project will be entitled to a reimbursement of 50% of expenditure incurred by it towards cost of captive Effluent Water Treatment Plant for wastewater recycling and/ or other pollution control devices subject to a maximum of Rs. 2 lakh.

17. Subsidy for Standard Quality Compliance

An eligible micro or small enterprise shall be reimbursed 50% of the expenditure incurred subject to a maximum of Rs.5 Lakh for obtaining ISI/ BIS certification/ ISO 9000/ ISO 14000/ ISO 14001/ ISO 18000/ ISO 22000/ HACCP certification from approved Institutions/ Research Laboratories. Any new certificate not covered above may be honoured on case to case basis according to necessity and essentiality.

Explanation 1 : The certificate must have name & address of the certification agency, address of the site/location certified;scope of certification,certificate number,date of issue and period of validity (or date of expiry), Name and Logo & Number of the accreditation board (NABCD)

Explanation 2: An eligible micro or small enterprise has to furnish a Chartered Accountant certificate (in original) as per Annexure -V regarding details of expenditure incurred in acquiring ISI/ BIS certification/ ISO 9000/ ISO 14000/ ISO 14001/ ISO 18000/ ISO 22000/ HACCP certificate (excluding Hotel and Travel expenses & surveillance charges).

18. Work Force Welfare Assistance

18.1 An eligible micro, small or medium enterprise for its approved project will be entitled to a reimbursement of 100% in first year and 75% in the remaining years of expenditure incurred by it for paying its contribution towards Employees State Insurance (ESI) and Employees Provident Fund (EPF) if at least 50% of the employees in the enterprise are recruited from amongst the persons registered with Employment Bank of the State. The period of assistance will be as follows:-

Zone – B – 5 years.
Zone – C – 7 years.
Zone – D & E – 9 years.

18.2 The reimbursement of expenditure specified in sub-para 18.1 above will be payable annually based on minimum statutory limit subject to the condition that the enterprise has paid its contribution towards ESI and EPF on due dates.

18.3 ‘Employee’ will have the same meaning as defined under “Employees’ Provident Fund Act, 1952” and “Employees’ State Insurance Act, 1948”

19. Subsidy for Patent Registration

An eligible micro, small or medium enterprise for its approved project will be entitled to a reimbursement of 50% of expenditure incurred by it for obtaining Patent Registration.

Subsidy for Patent Registration shall not exceed Rs.5 Lakh.

20. Incentive for approved expansion project of an existing enterprise

An existing eligible micro, small or medium scale enterprise for its approved expansion project will be entitled for incentives under clause nos. 9, 10 (for separate term loan against the expansion portion), 13, 16, 17, 18 and 19 subject to fulfillment of the conditions prescribed for the respective items.

21. Power to amend and/or relax

Notwithstanding anything contained in any of the provisions of Banglashree for MSMEs, the State Government may at any time-

(i) modify, vary, alter, amend or withdraw any of the provisions made here in above in this Scheme and such modifications, variations, alterations, amendments and withdrawal shall be effective from the date specified in the order so made in this behalf.

(ii) make any relaxation in applying the provisions of this Scheme but such relaxation shall be made on merits of the approved project in each case, as the State Government may consider necessary and appropriate.

(iii) may issue instructions and guidelines to facilitate implementation, to remove anomalies and to clarify the interpretations of the provisions of this Scheme.

22. Grievance Redressal and Interpretation

In case of any grievances against the decision of the GM Concerned, application to be made to the Director MSME. In case of any interpretation regarding the scheme, Director MSME shall consult the Department of MSME&T before taking any final decision.

23. Repeal and Saving

23.1 The West Bengal Incentive Scheme, 2013 for Micro , Small and Medium Scale Enterprises shall stand repealed except in respect of para 6 and para 7.1 (i) of the present Scheme.

23.2 The benefits extended to the enterprise under any previous Incentive Scheme shall continue to be governed under the respective Scheme.

23.3 Micro, Small & Medium Enterprises which have started production on or after 01.04.2018 and before 01.04.2019 and obtained Udyog Aadhaar Registration and have not applied under WBIS 2013, will be allowed to apply within 6 months from the dateof this notification. This will be governed by the West Bengal Incentive Scheme 2013 for MSMEs as modified upto 22.05.2015 except subsidy mentioned in Clause no. 15,16 &17 of the said Scheme.

23.4 If an enterprise falling under any of the three categories of enterprises as defined in the MSMED Act, 2006, graduates to a higher category or beyond the purview of the act from its original category shall only continue to avail of Non-Tax benefits of its original category for a period of three (3) years from the date of such graduation to the higher category or original eligible years which ends earlier.

23.5 In the event of GST Act 2017 being replaced by any other Act, the provision of the Scheme will apply mutatis mutandis even after the new Act comes into force.

The Banglashree for Micro, Small and Medium Enterprises is notified with the concurrence of the Finance Department, vide, U.O. No Group-C/2020-2021/0013 dated 14.07.2020 and with the approval of the State Cabinet in its 73rd meeting held on 15.07.2020.

By Order of the Governor,

Sd/- Rajesh Pandey
Principal Secretary to the
Government of West Bengal

OPERATIONAL PROCEDURES OF BANGLASHREE FOR MICRO, SMALL AND MEDIUM ENTERPRISES

1. A micro, small or medium enterprise claiming to be eligible for incentive under Banglashree for MSMEs shall duly apply through offline mode till the online portal is introduced and then only through online portal in prescribed form to the General Manager, District Industries Centre concerned/ O/C, Sub-DIC, Siliguri in Form-A except for Waiver of Electricity Duty for which it shall apply to the Director, Directorate of Electricity Duty in Form-C.

2. On receipt of application for incentive from an enterprise the General Manager, District Industries Centre shall make, as expeditiously as possible, scrutiny of/ enquiry into particulars furnished by the enterprise and cause physical inspection of the enterprise to ascertain the actual date of commencement of commercial production and Fixed Capital Investment made in Plant and Machinery by it and on being satisfied that the same is in order in terms of the provisions of the Scheme, the General Manager, District Industries Centre concerned (i) shall issue a Certificate in Form-B for date of commencement of commercial production and fixed capital investment in favour of the enterprise and (ii) shall also recommend the case to the Director, Directorate of Electricity Duty in Form-F when the enterprise expresses its intention to apply for Waiver of Electricity Duty to the Director, Directorate of Electricity Duty.

The General Manager, District Industries Centre concerned shall also approve admissible amount of incentive as early as possible and inform the applicant on quantum of admissible amount of incentive. If any application is found to be not eligible for incentives under the Banglashree for MSMEs, the General Manager, District Industries Centre will issue a letter of rejection to the applicant enterprise.

3. Time frame for submission of first Application

4. (a) An eligible enterprise shall apply to the Commissioner of Commercial Taxes, West Bengal in Form-E at the close of each year requesting him to certify the total amount of SGST paid (excluding input credit) by it in respect of goods manufactured and sold during the year in respect of which the application has been made.

(b) On receipt of the application, the Commissioner of Commercial Taxes, West Bengal, would verify the payments of SGST paid (excluding input credit) and other particulars as contained in the application and issue a certificate to the General Manager, District Industries Centre/Officer-in-Charge, Sub District Industries Centre concerned certifying the amount of SGST paid (excluding input credit) by the enterprise during the year under consideration along with production details .

(c) The enterprise shall maintain the accounts in such a manner that at any time as may be necessary it can show clearly the amount of SGST paid (excluding input credit) in respect of sales made by it of the item(s) manufactured as per approved project to which it is entitled to refund of SGST paid (excluding input credit) under Banglashree for MSMEs.

5. The General Manager, District Industries Centres shall work out the admissibility of the enterprise for refund of SGST paid (excluding input credit) after receiving the certificates from the Commissioner of Commercial Taxes, West Bengal in the manner specified in 3 above.

6. The General Manager, District Industries Centre will place the requisition of funds to the Director, MSME, West Bengal, for approved amount of incentives.

7. (a) On receiving the allotment of funds for the purpose of disbursement of approved incentive to an enterprise, the General Manager, District Industries Centre shall require the enterprise concerned to submit a ‘self declaration’ to the effect that the enterprise shall be liable to refund the entire amount of incentive and in case of failure to refund, the entire amount shall be recoverable under the Public Demands Recovery (PDR) Act if

(i) the incentive has been claimed by misrepresentation as to an essential factor by furnishing false information,

(ii) the enterprise shifts itself from zone-D & E area to anywhere in the State or from this State to outside the State,

(iii) the enterprise discontinues production in respect of its approved project within 5 (five) years from the date of commencement of commercial production,

(iv) the enterprise is sold out.

(v) the loan amount disbursed by Bank/ Financial Institution for the approved project is found to be diverted/ utilized for some other activities/ projects

AND

If any amount of subsidy/ incentive is paid in excess of the entitlement of the enterprise detected afterwards, the enterprise will be liable to refund the same failing which the amount shall be recoverable under the PDR Act.

(b) After satisfaction as to submission of ‘self-declaration’ as stated hereinabove the General Manager, District Industries Centre shall formally issue sanction order in favour of the enterprise with endorsement to the Drawing and Disbursing Officer of the District Industries Centre.

8. The Drawing and Disbursing Officer in the District Industries Centre shall in turn draw the amount of incentive sanctioned by the General Manager, District Industries Centre, obtain an advance stamped receipt for the amount to be disbursed and disburse the same to the enterprise concerned through its Bank/ Financial Institution under intimation to the enterprise.

9. The General Manager, District Industries Centre will maintain a separate register for the purpose of diarizing and recording all applications received under Banglashree for MSMEs.

10. The General Manager, District Industries Centre will also maintain a disbursement register for the purpose of keeping enterprise wise records of all disbursement made under Banglashree for MSMEs.

No. 1543-MSMET dated 22.07.2020, Source