West Bengal unveils new investment policy with up to 120 per cent assistance
Chief Minister Suvendu Adhikari launched the West Bengal Investment Promotion Policy, 2026, to drive job creation and industrial growth.
West Bengal Chief Minister Suvendu Adhikari on Thursday introduced the West Bengal Investment Promotion Policy, 2026, to encourage industrialisation and employment. According to Business Standard, the policy offers financial aid reaching 120 per cent of eligible fixed capital investment in plant and machinery for units operating in priority areas within thrust sectors.
The incentives are distributed over 10 years from the start of production for manufacturing units. Identified thrust sectors include semiconductors, electronics, electric vehicles, green hydrogen, pharmaceuticals, defence, and shipbuilding. Regular units can receive up to 100 per cent assistance, while those in thrust sectors or priority areas can receive up to 110 per cent.
The policy covers MSMEs, large units, service sectors, and strategic or mega projects. For service-sector units, assistance is provided over five years. Benefits include State Goods and Services Tax (SGST) linked aid, electricity duty reimbursement, and Employees’ Provident Fund (EPF) contribution support.
For MSMEs, the government will reimburse 100 per cent of employer EPF contributions for women and transgender workers for 10 years.
Chief Minister Adhikari stated that the government is working to create a land bank for industries to facilitate investments worth approximately Rs 1 lakh crore. He noted that the current policy applies to investments made on or after May 9. However, he mentioned that a backlog of industrial incentives from the previous administration, estimated at Rs 50,000 crore, remains outside the scope of this new policy due to fiscal constraints.