West Bengal Industrial Policy 2026: EPF Support, Capital Assistance, Land Bank and What It Means for MSMEs
West Bengal unveiled its new industrial policy, reported as the West Bengal Investment Promotion Policy, 2026, in Kolkata on 5 November 2026. Chief Minister Suvendu Adhikari presented it after Cabinet approval on 28 October. The headline offers are support for the employer’s EPF contribution for up to 10 years, fixed capital investment assistance of 100%, 110% or 120% of eligible plant and machinery, power tariff relief for up to five years, stamp duty relief on industrial land, and a state land bank in place of companies buying land themselves. The full policy text and the single-window portal details were not public when we checked, so this guide sets out what has been announced, what is still unclear, and what a business planning a unit in Bengal should do now.
West Bengal Industrial Policy 2026 at a glance
| Point | What has been announced |
|---|---|
| Name | West Bengal Investment Promotion Policy, 2026 (as reported) |
| Unveiled | 5 November 2026, Kolkata; Cabinet approval 28 October 2026 |
| Covers | New units, expansion of existing units and revival of closed units |
| Focus sectors | Manufacturing, advanced technology, clean energy, defence, semiconductors and electric mobility |
| Unit tiers | General units, thrust-sector units and priority-area units |
| EPF support | Up to 100% of the employer’s contribution for women and transgender employees in MSMEs, for 10 years |
| Capital assistance | 100% (general), 110% (thrust sector), 120% (priority area) of eligible plant and machinery, subject to caps |
| Power | Tariff relief for up to five years for new manufacturing and services investment |
| Land | State buys land from owners and allots it from a land bank; no forcible acquisition |
| Approvals | Single-window portal; certificate of intent in 30 days |
Why this policy matters after the 2025 revocation
In 2025 the previous government passed the Revocation of West Bengal Incentive Schemes Act, which cancelled ten earlier incentive schemes, including the West Bengal Incentive Schemes of 2008, 2015 and 2021, with retrospective effect. Many units lost subsidies they had already budgeted for. We covered that in our guide to the West Bengal Incentive Scheme 2026 and what was revoked.
The new policy is the replacement framework. The Finance Minister, Swapan Dasgupta, put the backlog of unpaid incentive commitments at roughly ₹50,000 crore and said the state will honour it, though the timing of payments may take time. The government has spoken of an escrow account and ring-fenced funds for committed payments. Whether a particular old claim will be paid, and when, has not been set out yet.
EPF contribution support
The most unusual incentive is state support for the employer’s share of provident fund. As reported:
| Unit | Women and transgender employees | Men |
|---|---|---|
| MSMEs | 100% for 10 years | 50% for 10 years |
| Units with more than 200 employees | 75% | 50% |
| Large units and mega projects | 50% for up to 5 years | 50% for up to 5 years |
Reports differ on the period for the 200-plus tier, and on the employee thresholds for large and mega projects (200 employees in priority areas or 400 elsewhere, in one report). Treat these as indicative until the notification is out. For any of this to work, your EPF registration and monthly ECR filings must be clean from the first month, because the reimbursement will be calculated from them.
Fixed capital investment assistance
Units get assistance worked out as a percentage of eligible plant and machinery: 100% for general units, 110% for thrust-sector units and 120% for priority-area units. This is not paid upfront. Reports say it is staggered over up to 10 years and linked to the start of commercial production, with caps that have not been published.
In practice, this means your fixed asset register, vendor invoices, installation certificates and bank payment trail decide how much you can claim. Keep every machinery invoice in the unit’s name and GSTIN, avoid cash payments, and get a chartered engineer’s certificate at commissioning.
Power, rent and stamp duty
- Power: electricity tariff relief for up to five years for new manufacturing and services investment. The mechanism, whether a rebate, exemption or duty waiver, has not been specified.
- Rent assistance: support for leased premises taken by new units. No amount or period announced yet.
- Stamp duty: exemption on land bought for industrial projects has been reported. Education or health institutions set up from an industry house’s CSR corpus get full stamp duty relief if the group invests at least ₹100 crore.
- MSMEs: loans at affordable interest rates and help adopting new technology. No interest subsidy rate has been announced.
- Industrially backward sub-divisions: higher assistance, but the list of sub-divisions is not yet public.
Land: the land bank route
The policy breaks with both earlier approaches. The Chief Minister said the state will not use forcible acquisition, as the Left Front did, and will not leave industries to buy land on their own, as under the previous government. Instead, the state will buy land directly from willing owners, build a land bank, and allot land from it. Recovered encroached land and existing industrial parks are also in the pool. Hindmotor, Singur and Domjur were named as possible sites before the launch.
Land price, lease tenure and allotment rules have not been released. If you need land, register your requirement with WBIDC or the industries department now, and keep your board resolution, project report and funding plan ready so you can move when allotment opens.
Single window and timelines
- All applications are to go through a single-window portal.
- Certificate of intent within 30 days of application.
- Certificate of eligibility within 45 days of the start of production.
- A government “buddy” officer from project start to commercial operation, for new units and expansions.
- Mega projects get road, water and power support if they create at least 50 jobs per acre.
West Bengal already runs Silpasathi for business approvals. Whether the new portal replaces it or sits on top of it is not yet clear.
What MSMEs in Kolkata should do now
- Get the basics registered: Udyam registration, GST, EPF and ESI, profession tax and a trade licence. Incentive claims fail most often on missing registrations.
- Hold expansion paperwork until the notification: if you are about to buy machinery, keep quotations and board approvals dated, so you can show the investment falls inside the policy period once it is notified.
- Keep clean books from day one: separate project accounts, a fixed asset register and monthly payroll records. These are what an incentive audit checks.
- Track old claims: if you had dues under WBIS 2015 or 2021, keep the sanction letters, claims and correspondence together. The backlog payment process has not been announced.
- Choose the right entity: for a new unit, a private limited company is usually best for bank finance and incentives. See our company registration in Kolkata service.
FAQs
When was the West Bengal Industrial Policy 2026 released?
It was unveiled on 5 November 2026 in Kolkata, after Cabinet approval on 28 October 2026. It has been reported as the West Bengal Investment Promotion Policy, 2026.
Does the new policy cover MSMEs?
Yes. MSMEs get the highest EPF support (100% of the employer’s contribution for women and transgender employees, 50% for men, for 10 years, as reported), plus capital assistance and help with affordable credit.
Is fixed capital assistance paid upfront?
No. It is worked out as 100% to 120% of eligible plant and machinery but paid in instalments over up to 10 years, linked to the start of commercial production and subject to caps.
Will the state acquire land for my factory?
Not by force. The state will buy land from willing owners and allot it from a land bank. Prices and lease terms have not yet been published.
What happens to incentives cancelled in 2025?
The government has said it will honour committed dues, estimated at about ₹50,000 crore, but in phases. No claim process has been announced yet.
TAXAJ helps businesses in Kolkata, Howrah, Salt Lake and New Town with registrations, project reports, incentive paperwork and compliance. Talk to our Kolkata team or see our virtual CFO service.
Last updated 11 November 2026. Sources: The Week and PTI reports of 5 November 2026 on the policy launch; IANS report of 5 November 2026 on the land procurement route; NationPress report of 5 November 2026 on EPF and power incentives; ETV Bharat report of 28 October 2026 on Cabinet approval. The official policy text had not been published when we checked; figures may change when it is notified. General information only.
