West Bengal govt’s new investment policy promotes job-linked growth, incentives for plant and machinery

West Bengal Chief Minister Suvendu Adhikari during the unveiling of the investment promotion policy in Kolkata on November 5, 2026.

Offering incentives to industries that employ more women and assistance for investments in plant and machinery, as well as a fixed timeline for approval of projects, the Bharatiya Janata Party (BJP) government in West Bengal on Thursday (November 5, 2026) announced a new investment promotion policy.

The West Bengal Investment Promotion Policy, 2026 that comes into effect from May 9, 2026 the day when the first BJP government in the State took office, offers up to 120 % assistance to a thrust sector unit in a priority area on the share of fixed capital investment (FCI) made in plant and machinery.

The announcement of incentives marks a policy shift for West Bengal, the fourth most populous State in the country, as the previous Trinamool Congress government had passed the Revocation of West Bengal Incentive Schemes and Obligations 2025, retroactively scrapping three decades of industrial incentive schemes and subsidies.

“The previous government had cheated the industrialists,” Chief Minister Suvendu Adhikari said while unveiling the much-awaited policy document for the revival of industries in the State. The Chief Minister said that West Bengal will try to emerge from the “bad experiences” as far as industry was concerned of the previous two regimes.

“We will neither have a forcible land acquisition policy like the Left Front nor will we have a flawed land policy like the Trinamool Congress, asking industries to buy their own land without support from the government,” Mr. Adhikari said.

Under the policy of ‘jobs come first’, the State government has announced extending substantial employer EPF contribution reimbursements, leading with 100% reimbursement for women and transgender employees in MSMEs for 10 years, 75% for women in eligible service units and robust support for large and strategic industrial projects.

The ceiling for the amount of assistance given on the share of (FCI) made in plant and machinery is 100 % for regular units, 110 % for units in thrust sectors or priority areas, and 120 % for thrust-sector units located in priority areas. The assistance will cease when the applicable ceiling is reached or 10 years after commercial production begins, whichever is earlier.

The State government has identified several sectors as thrust areas, such as semiconductors and electronics, green hydrogen and waste-to-energy, emerging digital technologies, EVs and batteries, defence and food and marine processing, among others.

On the fixed timeline for approval of projects, the State government has also announced a 30-day delivery of certificates of intent, a 45-day timeline for certificates of eligibility and a dedicated relationship officers for large projects.

The policy promises a waiver of surcharges on renewable energy open access until March 2030, and sick and closed industrial units that can be revived will receive special assistance. Non-profits, such as hospitals and universities who invest more than ₹100 crore can keep at least a quarter of their capacity fee, for groups the State notifies for 10 years along with extra benefits.

The Chief Minister, who interacted with captains of industry during the launch of the policy, sought their opinion on whether they had witnessed any change in the past five months since the BJP government came to power. “If industrialists cooperate with the government, the government will always stand by them and protect their interests,” he said.

One of the promises made by the BJP during the West Bengal Assembly polls 2026 have been to revive industrial fortunes of the State, a commitment that has turned out to be its biggest challenge.

Mr. Adhikari said that he has ended “ended extortion” and added that his government has been “positive about industrialisation and an industry-friendly atmosphere in Bengal”. The State’s Industries and Commerce Minister Tapas Roy and Finance Minister Swapan Dasgupta were also present at the launch of the investment promotion policy.

While the Chief Minister assured that the concerns about land acquisition for industry will be addressed, senior officials of the State government said that a GIS-mapped land inventory for industries is being prepared. The State government is likely to have a fresh policy as far as making land for industries was concerned.

Mr. Adhikari said the government had already handed over land to 33 business groups and was in a position to meet the current demand for industrial plots of around ₹1 lakh crore over the next few months.

India / West Bengal / Kolkata / process industry