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West Bengal CM Suvendu Adhikari Unveils Policy Offering Up to 120% Investment Aid
The state's new Investment Promotion Policy 2026 promises generous incentives, a land bank and a bigger push for women's employment, but a ₹50,000 crore backlog of old dues looms in the background.
West Bengal Chief Minister Suvendu Adhikari on Thursday launched the state's Investment Promotion Policy 2026, offering factories and service units financial assistance worth up to 120% of their eligible investment in plant and machinery. He also said the government can help bring in around ₹1 lakh crore of investment over the coming months.
Here is how the money works. A regular manufacturing unit can claim up to 100% of its eligible fixed capital investment. Units in thrust sectors or in less-industrialised priority areas get up to 110%. Projects that tick both boxes reach the 120% ceiling. The aid does not arrive upfront: it is paid in instalments after commercial production starts, under set conditions and annual limits.
The policy was formally launched on November 5, but it is treated as effective from May 9, 2026. Any eligible investment made since that date falls under its terms, which matters for companies that have already begun spending.
The package goes well beyond the headline figure. It includes SGST-linked assistance, five years of electricity duty reimbursement, stamp duty relief, research and development support, and loan-interest help for MSMEs. The state also plans to waive surcharges on open-access green power until March 2030, with a bigger waiver for electricity generated within West Bengal.
Hiring is part of the pitch too. Employers can get their EPF contributions reimbursed for women and transgender employees. MSMEs receive 100% reimbursement for 10 years, against 50% for male employees. Applications will run through a single-window portal with stated timelines for certificates of intent, eligibility approvals and incentive payments.
Land, often the biggest hurdle for investors, is the other focus. Adhikari said the state will work with landowners and make plots available through direct purchase, existing industrial parks and a proposed land bank. He pointed to projects in the pipeline involving Amul, Vedanta, Reliance and the RP-Sanjiv Goenka Group, plus a proposed JSW Group expansion at Salboni.
One caveat stands out. The government estimates that incentive commitments pending under earlier policies total about ₹50,000 crore. Adhikari said the state cannot clear that pile right away given its finances, though it will honour dues that fall under the new policy. Investors will watch how reliably the new promises get paid.
Read the original report at Fortune India.
FiledReliance IndustriesAndhra PradeshUttar PradeshMaharashtraWest BengalTata Group
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