{"id":91022,"date":"2026-11-11T21:29:22","date_gmt":"2026-11-11T15:59:22","guid":{"rendered":"https:\/\/www.taxaj.com/learn\/west-bengal-industrial-policy-2026-investment-promotion\/"},"modified":"2026-11-11T21:29:22","modified_gmt":"2026-11-11T15:59:22","slug":"west-bengal-industrial-policy-2026-investment-promotion","status":"publish","type":"post","link":"https:\/\/www.taxaj.com/learn\/west-bengal-industrial-policy-2026-investment-promotion\/","title":{"rendered":"West Bengal Industrial Policy 2026: EPF Support, Capital Assistance, Land Bank and What It Means for MSMEs"},"content":{"rendered":"

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.<\/strong> 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.<\/p>\n

West Bengal Industrial Policy 2026 at a glance<\/h2>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Point<\/th>\nWhat has been announced<\/th>\n<\/tr>\n<\/thead>\n
Name<\/td>\nWest Bengal Investment Promotion Policy, 2026 (as reported)<\/td>\n<\/tr>\n
Unveiled<\/td>\n5 November 2026, Kolkata; Cabinet approval 28 October 2026<\/td>\n<\/tr>\n
Covers<\/td>\nNew units, expansion of existing units and revival of closed units<\/td>\n<\/tr>\n
Focus sectors<\/td>\nManufacturing, advanced technology, clean energy, defence, semiconductors and electric mobility<\/td>\n<\/tr>\n
Unit tiers<\/td>\nGeneral units, thrust-sector units and priority-area units<\/td>\n<\/tr>\n
EPF support<\/td>\nUp to 100% of the employer’s contribution for women and transgender employees in MSMEs, for 10 years<\/td>\n<\/tr>\n
Capital assistance<\/td>\n100% (general), 110% (thrust sector), 120% (priority area) of eligible plant and machinery, subject to caps<\/td>\n<\/tr>\n
Power<\/td>\nTariff relief for up to five years for new manufacturing and services investment<\/td>\n<\/tr>\n
Land<\/td>\nState buys land from owners and allots it from a land bank; no forcible acquisition<\/td>\n<\/tr>\n
Approvals<\/td>\nSingle-window portal; certificate of intent in 30 days<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n

Why this policy matters after the 2025 revocation<\/h2>\n

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<\/a>.<\/p>\n

The new policy is the replacement framework. The Finance Minister, Swapan Dasgupta, put the backlog of unpaid incentive commitments at roughly \u20b950,000 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.<\/p>\n

EPF contribution support<\/h2>\n

The most unusual incentive is state support for the employer’s share of provident fund. As reported:<\/p>\n

\n\n\n\n\n\n\n\n
Unit<\/th>\nWomen and transgender employees<\/th>\nMen<\/th>\n<\/tr>\n<\/thead>\n
MSMEs<\/td>\n100% for 10 years<\/td>\n50% for 10 years<\/td>\n<\/tr>\n
Units with more than 200 employees<\/td>\n75%<\/td>\n50%<\/td>\n<\/tr>\n
Large units and mega projects<\/td>\n50% for up to 5 years<\/td>\n50% for up to 5 years<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n

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.<\/p>\n

Fixed capital investment assistance<\/h2>\n

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.<\/p>\n

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.<\/p>\n

Power, rent and stamp duty<\/h2>\n