West Bengal has announced a new investment policy aimed at attracting factories, creating jobs and making the state more competitive as an industrial destination.
The West Bengal Investment Promotion Policy, 2026, offers financial assistance of up to 120% of eligible investment in plant and machinery for certain projects. The government unveiled the policy on November 5, with support generally spread over 10 years from the start of production.
The headline figure needs a clear explanation. The 120% support is not a payment available to every business immediately. Total assistance is capped according to the type of project and its eligible fixed capital investment in plant and machinery.
Regular units can receive assistance up to 100%, trust-sector units or units in priority areas up to 110%, and trust-sector units located in priority areas up to 120%. These are overall limits under the incentive framework, rather than an upfront cash grant.
The policy focuses on industries that could bring new investment and employment opportunities. These include semiconductors and electronics, electric vehicles and batteries, automotive manufacturing, specialty steel, critical minerals processing, green hydrogen, pharmaceuticals, defence and shipbuilding.
Regular units must meet an eligibility threshold of ₹100 crore in investment or provide employment to at least 1,000 people. This gives the policy a clear emphasis on sizable manufacturing projects and job creation.
Support will come through several channels intended to reduce business costs. These include assistance linked to State Goods and Services Tax, reimbursement of electricity duty, support for employers’ provident fund contributions and reimbursement of stamp duty and property registration costs. Interest subsidies, assistance for pollution-control equipment and patent-related expenses also form part of the package. Together, these measures seek to ease the financial pressure involved in establishing and operating an industrial unit.
The duration of assistance varies. Eligible units can receive support over 10 years, with production determining its release. Service units are eligible for assistance for five years, while strategic and mega projects may receive support for longer periods.
The policy also includes reimbursement of electricity duty and rental assistance for leased premises, to be disbursed over five years. It applies to investments made on or after May 9, when the Bharatiya Janata Party government assumed office.
Some activities remain outside its coverage, including micro, small and medium enterprises, large units and non-profit institutions, sick or closed units, and certain projects with existing incentives.
Chief Minister Suvendu Adhikari said the government had sanctioned ₹25,000 crore to support its incentive commitments, with assistance to be paid through a dedicated fund. He also acknowledged unpaid incentives from earlier policies and the state’s financial difficulties.
Industry representatives welcomed the announcement but stressed that implementation would determine its success. Ambuja Neotia Group chairman Harshavardhan Neotia highlighted investment, enterprise and employment, while the Bengal Chamber welcomed dedicated funding for incentives.
The government also promised a unified single-window system, faster clearances and predictable execution. For businesses and workers, the practical test will be whether these promises lead to timely payments, functioning factories and lasting jobs.
