West Bengal Unveils New Investment Promotion Policy, 2026

The West Bengal government has announced investment incentives of up to 120 percent of eligible plant and machinery investment for industrial units in designated thrust sectors located in priority areas under'West Bengal Investment Promotion Policy, 2026'. The assistance will be disbursed over a period of 10 years from the start of commercial production.

The policy also provides for a waiver of surcharges on renewable energy open access until March 2030, offering relief to industries procuring renewable power through open access. Green hydrogen has been identified as one of the thrust sectors eligible for enhanced investment incentives, alongside electric vehicles and batteries, semiconductors and electronics, automotive, specialty steel, critical minerals processing, pharmaceuticals, defence and shipbuilding.

The policy covers micro, small and medium enterprises (MSMEs), large industrial units, service-sector enterprises, not-for-profit institutions and sick or closed industrial units. For regular units, assistance is capped at 100 percent of eligible fixed capital investment, while thrust-sector units or units located in priority areas can receive assistance of up to 110 percent. Units belonging to thrust sectors and located in priority areas are eligible for the maximum assistance of 120 percent.

Manufacturing-sector incentives include financial assistance linked to State Goods and Services Tax (SGST), reimbursement of electricity duty, assistance towards Employees’ Provident Fund (EPF) contributions and reimbursement of stamp duty paid on project land.

For service-sector units, the incentives include SGST-linked assistance, EPF contribution support, electricity duty reimbursement and rental assistance for leased premises, with benefits disbursed over five years. Strategic and mega projects may receive tailor-made incentives.

The policy applies to investments made on or after May 9, 2026. The government has earmarked INR 5,000 crore through a Dedicated Assured Incentive Fund to support sanctioned incentives.

However, the estimated INR 50,000 crore backlog of industrial incentives promised under previous government regimes remains outside the scope of the new policy.