West Bengal Incentive Scheme 2026: What Is Revoked, What Is Reported, and What to Do Now
As of 26 October 2026, West Bengal has no comprehensive industrial incentive scheme in force. The Revocation Act of 2025 cancelled ten earlier schemes, including the West Bengal Incentive Schemes of 2008, 2015 and 2021 and the State Support for Industries Schemes, with retrospective effect. The new government has approved a draft Industrial Policy and says it will be released before Diwali. For MSMEs, a new West Bengal Incentive Scheme 2026 has been reported, covering units that start production from 1 October 2026, with interest subsidy and electricity duty waivers that vary by zone. Its formal notification and district-wise zone list had not been published when we checked. This guide sets out what is revoked, what has been announced, and what a business planning a unit in Bengal should do now.
Where things stand
| Scheme | Status on 26 October 2026 |
|---|---|
| WBIS 1993, 1999, 2000, 2004, 2008, 2015 and 2021; State Support for Industries Schemes 2008 and 2013; Power Intensive Industries Scheme 2005 | Revoked retrospectively by the 2025 Revocation Act |
| Banglashree scheme for MSMEs (2020) | Ran from 1 April 2020 to 31 March 2025; no extension found |
| West Bengal Incentive Scheme 2026 for MSMEs | Reported in July 2026 for units starting production from 1 October 2026; gazette text not yet located |
| New Industrial Policy (large units) | Draft approved by a Group of Ministers on 3 October 2026; release promised before Diwali |
| West Bengal Textile Incentive Scheme 2022 | Not in the revoked list; five-year scheme from December 2022 |
The 2025 Revocation Act
- What it did: the Revocation of West Bengal Incentive Schemes and Obligations in the Nature of Grants and Incentives Act, 2025 cancelled ten schemes from the date they began, barred claims for past and future dues, ended pending proceedings, and allowed the state to recover excess payments as arrears of land revenue.
- Who it hit: cement and steel makers reported large sums at risk: ₹427 crore for Nuvoco Vistas and ₹300 crore for NU Vista, for example. NU Vista and other companies challenged the Act in the Calcutta High Court in 2025.
- What may change: the industries minister said in August 2026 that the government “may have to repeal the act”, and reports on the draft policy say withdrawn incentives may be restored in instalments, with MSMEs paid first. Until the Act is repealed or struck down, claims under the old schemes stand extinguished.
West Bengal Incentive Scheme 2026 for MSMEs: what has been reported
| Benefit (micro and small units) | Zone A | Zones B and C |
|---|---|---|
| Interest subsidy on term loans, for 5 years | 25% | 35% |
| Electricity duty waiver, for 5 years | 50% | 75% |
- Who qualifies: new manufacturing MSMEs with Udyam registration that start commercial production on or after 1 October 2026. Units that started on or before 30 September 2026 are outside it.
- Period: 1 October 2026 to 30 September 2031.
- Women and SC/ST-owned micro and small units: a full electricity duty waiver, up to ₹10 lakh a year.
- Quality certification: 50% of the cost of ISI, BIS, ISO or HACCP certification, up to ₹5 lakh for micro and small units and ₹10 lakh for medium units.
- Clusters: support of up to ₹5 crore for an approved park with at least five MSMEs, ₹250 crore of investment and 500 workers.
- Expansion of existing units: capital subsidy, stamp duty reimbursement and power subsidy are listed, but rates have not been published.
These figures come from published reports of the state’s decision. Which districts fall in Zones A, B and C has not been published, and the zones under Banglashree (A to E) should not be assumed to carry over. We will update this guide once the notification is available.
The gap year: units that started between April 2025 and September 2026
Banglashree covered units that began production by 31 March 2025, and its last filing window closed on 30 March 2026. WBIS 2026 starts with units that begin production on 1 October 2026. A unit that started in between appears to fall outside both. If your unit is in that window, keep every record of investment, loans and production start, because the new Industrial Policy or a transitional provision may yet cover it.
The new Industrial Policy
- The state budget of 22 June 2026 set aside ₹5,000 crore for an investment promotion and incentive framework.
- Reports in October 2026 say incentives are being considered for investments above ₹100 crore, with a single-window system, a transparent land policy and power tariff support. MSMEs, AI, semiconductors and data centres are named as focus areas.
- Separate GCC, startup, AI Mission and women-entrepreneur policies were also promised in the budget. None had been notified when we checked.
Other support still available
- Bhabishyat Credit Card: collateral-free loans up to ₹5 lakh at 4% interest for entrepreneurs aged 18 to 55.
- Textile Incentive Scheme 2022: capital subsidy of 10% to 20%, a full electricity duty waiver, a power subsidy and full stamp duty reimbursement for textile units.
- Central schemes: PMEGP, the credit guarantee scheme for MSMEs, and the PLI schemes are unaffected by the state Act.
What to do now if you are planning a unit
- A manufacturing MSME that has not yet started production will start after 1 October 2026 and so falls within WBIS 2026; record the date commercial production begins.
- Get Udyam registration before you start, and keep the dated proof of commercial production.
- Keep loan sanction letters, disbursement dates and electricity bills from day one; the interest subsidy and duty waiver are claimed against them.
- Wait for the zone list before building a business plan around the Zone B or C rates.
- For an investment above ₹100 crore, wait for the Industrial Policy before committing to incentives in your project report.
- If you hold unpaid dues under the old schemes, keep the claims and correspondence ready for a possible restoration process.
Frequently asked questions
Is there a West Bengal Incentive Scheme in 2026?
An MSME scheme called the West Bengal Incentive Scheme 2026 has been reported for units starting production from 1 October 2026. A wider Industrial Policy with incentives for larger units is expected before Diwali 2026. The older schemes were revoked in 2025.
Can I still claim incentives under WBIS 2015 or 2021?
Not at present. The 2025 Revocation Act cancelled those schemes with retrospective effect and barred claims. That may change if the Act is repealed or the Calcutta High Court strikes it down.
Which districts are in Zone A, B and C under WBIS 2026?
The district list had not been published when we checked. Do not assume the Banglashree zones apply.
TAXAJ helps businesses in Kolkata and across West Bengal with company registration, Udyam, project reports and incentive paperwork. See our Kolkata team, our project report service, or our guide to the KMC trade licence.
Last updated 26 October 2026. Sources: Revocation of West Bengal Incentive Schemes and Obligations in the Nature of Grants and Incentives Act, 2025 (Bill No. 5 of 2025); Banglashree for MSMEs, Notification 1543/MSMET of 22 July 2020; West Bengal Textile Incentive Scheme, 2022; West Bengal Budget 2026-27; reports in KNN India (July and October 2026), Business Standard (June 2025), The Telegraph (August 2026), Millennium Post (October 2026) and DD News (October 2026). The WBIS 2026 figures are as reported; the gazette notification had not been located. General information only; we will update this guide when the scheme and policy are notified.
