West Bengal offers up to 120% investment assistance, plans land bank to attract ₹1 lakh crore investments

West Bengal Chief Minister Suvendu Adhikari on Thursday launched the state's Investment Promotion Policy 2026, offering industrial units financial assistance of up to 120% of eligible investment in plant and machinery, while promising to create land banks and facilitate investments worth around ₹1 lakh crore over the coming months. Although formally launched on November 5, the policy is deemed to have been in force from May 9, 2026, making eligible investments from that date subject to its provisions.

The policy seeks to attract investments across manufacturing and services, with higher incentives for projects in identified thrust sectors and less-industrialised priority areas. Adhikari said the state would work with landowners to make industrial land available, including through direct purchase, existing industrial parks and a proposed land bank.

Under the incentive structure, regular manufacturing units can receive assistance of up to 100% of eligible fixed capital investment (FCI). The ceiling rises to 110% for units in thrust sectors or priority areas, and 120% for projects that fall under both categories. The assistance is linked to eligible investment in plant and machinery and is disbursed over time after commercial production begins, subject to prescribed conditions and annual limits.

Jobs, green energy and land availability in focus

The policy includes SGST-linked assistance, reimbursement of electricity duty for five years, stamp duty relief, research and development support and loan-interest assistance for MSMEs. It also provides employment-linked incentives, including reimbursement of employers' EPF contributions for women and transgender employees. MSMEs can receive 100% reimbursement for 10 years, compared with 50% for male employees.

The government has also proposed waiving surcharges on open-access green power until March 2030, with a higher waiver for power generated within West Bengal. Applications will be processed through a single-window portal, with specified timelines for certificates of intent, eligibility approvals and incentive payments.

Adhikari said the government was in a position to facilitate investments of around ₹1 lakh crore in the coming months, citing proposals and projects in the pipeline. These include projects involving Amul, Vedanta, Reliance and the RP-Sanjiv Goenka Group, besides a proposed expansion by JSW Group at Salboni.

The government also estimates that industrial incentive commitments pending under previous policies amount to around ₹50,000 crore. Adhikari said the accumulated liabilities could not be cleared immediately given the state's current financial position, but the government would honour commitments falling due under the new policy. The pending amount represents incentives promised to businesses under earlier regimes, separate from assistance available under the new framework.

(With inputs from PTI.)