West Bengal investment policy puts jobs first, offers up to 120% assistance to industries

Kolkata: West Bengal Chief Minister Suvendu Adhikari on Thursday unveiled an investment promotion policy, putting employment generation at the centre of industrial incentives, offering assistance up to 120 per cent for investments in plant and machinery and promising fixed timelines for approvals and payments.

The West Bengal Investment Promotion Policy, 2026, which has been in force since May 9, seeks to attract fresh investments, accelerate industrialisation and generate employment by offering higher incentives to businesses in priority areas and thrust sectors, while linking several benefits to job creation.

The BJP government also promised a more transparent and time-bound investment process, with online applications, direct payment of incentives and dedicated officers for large projects.


The policy covers micro, small and medium enterprises (MSMEs), large units, strategic and mega projects, and service sectors such as IT, healthcare, tourism, finance and education.

Existing units seeking expansion or diversification, not-for-profit institutions and sick or closed units eligible for revival are also covered.

Read more: Bengal govt to include Syama Prasad Mookerjee in school curriculum, drop Singur chapter

A key feature is the reimbursement of employers' contributions to the Employees' Provident Fund (EPF), with higher assistance for women and transgender workers.

MSMEs will receive reimbursement of 100 per cent of the employer's EPF contribution for women and transgender workers for 10 years, against 50 per cent for men.

In service units employing more than 200 people, the reimbursement will be 75 per cent for women and 50 per cent for men for five years.

Large units and mega projects creating at least 200 jobs in priority areas or 400 jobs elsewhere will receive 50 per cent reimbursement for five years.

Existing units seeking expansion must generate additional employment to qualify.

Read more: West Bengal needs 7.25% annual growth to achieve 5X economy by 2047: ORF report

The total assistance available to a unit will be capped at a percentage of its eligible fixed capital investment in plant and machinery. The ceiling is 100 per cent for regular units, 110 per cent for units in thrust sectors or priority areas, and 120 per cent for thrust-sector units located in priority areas.

Such assistance will cease when the applicable ceiling is reached or 10 years after commercial production begins, whichever is earlier. An annual limit will also apply, according to the policy.

Service units will receive assistance for five years, while strategic and mega projects may be approved for longer periods.

The policy seeks to direct investment towards less-industrialised parts of the state by identifying priority areas through an index based on industrial development and infrastructure.

Units in these areas will receive a higher assistance ceiling, an easier employment threshold for EPF reimbursement and enhanced benefits for service-sector investments. The list of priority areas will be reviewed every three years.

The government has identified a wide range of thrust sectors, including semiconductors and electronics, green hydrogen, waste-to-energy, emerging digital technologies, electric vehicles and batteries.

Other sectors include defence, food and marine processing, textiles, biotechnology, pharmaceuticals, medical devices, critical minerals processing, automobile manufacturing, speciality steel, petrochemicals, aviation, shipbuilding and maritime training.

Strategic and mega projects will be eligible for tailor-made incentives. A project must meet at least two of three criteria relating to investment size, operation in a strategic sector and generation of at least 50 jobs per acre.

Larger projects may also receive assistance for developing road, water and power connectivity.

Manufacturing and other eligible units will receive assistance linked to state GST, reimbursement of electricity duty for five years, stamp duty reimbursement on project land and support for research and development.

MSMEs will also be eligible for assistance with loan interest and adoption of new technology.

Service-sector units will receive a package covering assistance linked to SGST, EPF and electricity duty reimbursements and rent support for leased premises for five years.

A unit may opt for either the manufacturing package or that of the service sector, but cannot claim benefits under both.

The policy also provides incentives for not-for-profit institutions, including hospitals, medical colleges and universities, even when funded through corporate social responsibility initiatives.

Such institutions must invest at least Rs 100 crore in the state and keep at least 25 per cent of their capacity free for groups notified by the government for 10 years.

In return, they will be eligible for benefits including stamp duty relief of up to 100 per cent, waiver of land-use conversion fees and net metering.

The policy waives surcharges on renewable energy open access until March 2030.

Sick and closed industrial units that can be revived will receive special assistance. The provision covers units under a resolution plan approved by the National Company Law Tribunal and public sector undertakings.

Revived units will be eligible for special power assistance, land-ceiling relief and other benefits.

To simplify the investment process, applicants will be able to submit a single online application via the Single Window Portal.

A certificate of intent, which locks in the terms of assistance, will be issued within 30 days. A certificate of eligibility will follow within 45 days of commencement of production. Claims will be sanctioned and payments made directly to the unit within 30 days.

A dedicated officer will be assigned to large projects, while the chief secretary will review their progress every month. The incentives will be provided via a dedicated fund, and subsequent changes to the policy cannot reduce benefits already locked in by investors. Applications, approvals and payments will be faceless wherever possible.

The policy comes against the backdrop of industrialists seeking faster clearances, transparent land allocation, predictable incentives and better infrastructure to encourage investments in Bengal.