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Frequently Asked Questions
What is the West Bengal Incentive Scheme: Interest Subsidy on Term Loan?
This is a sub-scheme launched by the Department of Tourism, Government of West Bengal, on February 22, 2021. Its objective is to provide financial assistance to entrepreneurs starting or expanding businesses in the tourism sector by offering an interest subsidy on term loans obtained from commercial banks/financial institutions.
Who is eligible to apply for this interest subsidy?
The scheme is applicable to eligible tourism projects/units, including expansion projects, established on or after February 22, 2021. Additionally, Hotel Units that commenced commercial operations between January 7, 2015, and December 31, 2020, but were ineligible under the previous scheme due to the absence of a bar, can also apply. Units in private, co-operative, joint sectors, and state government-owned companies are covered.
What are the financial benefits offered under this scheme?
The scheme provides an annual interest subsidy with varying percentages and caps based on the project location. For Group 'A' and 'B' areas, it's 50% up to ₹25 lakh for 5 years. For Group 'C' and 'D' areas, it's 60% up to ₹25 lakh for 7 years. For Special Areas, it's 75% up to ₹30 lakh for 7 years.
How is the interest subsidy disbursed to eligible units?
The interest subsidy is payable annually. Units must submit a statement or certificate from their lending bank/financial institution confirming that they have paid the due interest on time. The subsidy is then reimbursed to the eligible unit. It is not paid for term loans availed for second-hand plant and machinery or hire-purchase equipment.
What is the application process for the scheme?
The application process is entirely online via the Shilpasathi portal (silpasathi.wb.gov.in). Applicants first need to register as a new user or sign in, select 'Tourism Incentive' from 'ALL SERVICES', create a CAF ID, fill out the common application form, attach required documents, review, and submit. Notifications are sent via SMS and email, and approved certificates can be downloaded online.
Are there any specific certificates required to avail this incentive?
Yes, before receiving incentives, eligible units must obtain three key certificates from the West Bengal Tourism Development Corporation Limited: a Registration Certificate, a Date of Commencement Certificate, and an Eligibility Certificate. The application for incentives can only proceed after securing all three.
Quick Answer
This scheme provides an interest subsidy on term loans to eligible tourism projects and entrepreneurs in West Bengal to foster business growth and employment generation.
The West Bengal Incentive Scheme: Interest Subsidy on Term Loan, launched on February 22, 2021, is a crucial sub-scheme under the broader 'West Bengal Incentive Scheme'. Its primary objective is to offer substantial financial assistance to aspiring and existing entrepreneurs, particularly those aiming to establish or expand businesses within the tourism sector across West Bengal. This initiative is designed to encourage self-employment and generate new job opportunities within the state.
The scheme aims to alleviate the financial burden of interest payments on term loans by providing a direct subsidy. This makes it more attractive for individuals and entities to secure necessary financing from commercial banks and financial institutions to fund their tourism projects. By reducing interest liability, the government seeks to foster a more conducive environment for investment and growth in West Bengal's vital tourism industry.
The program explicitly targets tourism projects, including new ventures and the expansion of existing units. It covers various types of business structures within the private, co-operative, and joint sectors, as well as state government-owned undertakings. This inclusive approach ensures that a broad spectrum of stakeholders can benefit from the financial support, thereby contributing to the comprehensive development of the state's tourism infrastructure and services.
Eligibility
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Timelines & Process
Selection Process
The selection process for the Interest Subsidy on Term Loan primarily involves an administrative review and verification of submitted applications and supporting documents. Once an application is submitted through the Shilpasathi portal, it undergoes scrutiny by the relevant authorities, specifically the West Bengal Tourism Development Corporation Limited. This includes verifying the detailed feasibility report, project approval from financial institutions, and ensuring the unit meets all specified eligibility criteria. The process culminates in the issuance of key certificates—Registration Certificate, Date of Commencement Certificate, and Eligibility Certificate. Upon successful issuance of these certificates and subsequent application for the specific incentive, the final approval is granted by the competent authority, leading to the disbursement of the interest subsidy.
Benefits & Funding
Amount
Up to ₹2.1 Cr
What You Get
The scheme offers significant financial relief through an interest subsidy on annual interest liability for term loans. The subsidy rates and limits vary based on the project's location:
For projects in Group 'A' and 'B' areas, a 50% interest subsidy is provided, capped at ₹25,00,000 per year, for a duration of 5 years.
For projects in Group 'C' and 'D' areas, a 60% interest subsidy is provided, capped at ₹25,00,000 per year, for a duration of 7 years.
For projects in Special Areas, an enhanced 75% interest subsidy is provided, capped at ₹30,00,000 per year, for a duration of 7 years.
The subsidy is disbursed annually upon verification from the lending bank/financial institution that the interest payments have been made on due dates. This ensures consistent support over the scheme's tenure, making financing more accessible and sustainable for tourism enterprises.
