Business · Companies · 10 hrs ago
West Bengal offers investors incentives of up to 120% under new policy
West Bengal Chief Minister Suvendu Adhikari has unveiled a new policy to attract investment and create jobs in the state.
It offers eligible businesses assistance of up to 120% of investment in plant and machinery in priority areas, paid over as many as 10 years after production begins.
The policy names sectors including semiconductors, electric vehicles, green hydrogen, pharmaceuticals and defence as priorities.
Businesses may receive support linked to state goods and services tax, electricity duty, employee provident fund contributions and, in some cases, land or rent costs.
The government says a dedicated fund will back approved incentives, with ₹5,000 crore provided for this purpose.
The policy applies to investments made from May 9, but does not cover about ₹50,000 crore in unpaid incentives promised under previous policies.
Adhikari said the government is preparing a land bank for industry, while a separate land policy may follow.
West Bengal unveiled its Investment Promotion Policy, 2026, offering eligible projects in priority areas assistance of up to 120% of investment in plant and machinery.
The assistance for eligible units in thrust sectors and priority areas will be paid over up to 10 years from the start of production.
The policy offers incentives to manufacturing and service-sector units, while strategic and mega projects can seek tailor-made benefits.
It applies to investments made on or after May 9, when the BJP government assumed office in the state.
A backlog of industrial incentives from the previous government, estimated at ₹50,000 crore, is outside the policy.
- Who
- The West Bengal government, led by Chief Minister Suvendu Adhikari, unveiled the policy.
- What
- The Investment Promotion Policy, 2026, offers investment incentives, including assistance of up to 120% for eligible units in thrust sectors and priority areas.
- When
- Thursday, November 5, 2026.
- Where
- West Bengal, India; the policy was unveiled in Kolkata.
- Why
- The government says the policy is intended to attract investment and boost job creation.
This story does not have two clearly opposing sides.
The policy applies to investments made on or after this date, when the BJP government assumed office in West Bengal.
Chief Minister Suvendu Adhikari unveiled the West Bengal Investment Promotion Policy, 2026.
- Maximum assistance
- Up to 120% of eligible investment in plant and machinery for units in thrust sectors in priority areas
- Assistance period
- Up to 10 years from the start of production
- Regular units
- Assistance capped at 100% of eligible fixed capital investment
- Strategic and mega projects
- Threshold is over ₹500 crore in fixed capital investment if investors arrange land, or over ₹1,000 crore if the government allots land
- Excluded backlog
- Estimated ₹50,000 crore in incentives from the previous government
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What people are saying
The earlier government deleted the word incentive. We have reintroduced it and made a provision of ₹5,000 crore,
From zero incentives, we now have incentives. That’s a good start, even though other states may be offering more,
The policy emphasis on high-growth sectors, enhanced manufacturing incentives, R&D, technology upgradation, specialty steel, green energy and advanced manufacturing ecosystems is particularly relevant.
Particularly commendable is the Government’s innovative and pragmatic approach to incentives, including SGST-linked assistance and electricity duty reimbursement, which moves beyond conventional capital subsidies.