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West Bengal Policy on Information and Communication Technology, 2012 and West Bengal ICT Incentive Scheme, 2012


West Bengal has always been regarded as one of India's States with high intellectual capital and with immense potential to emerge as one of the most attractive investment destinations for the Information Technology (IT) and Information Technology­ enabled Services (ITeS) sectors. However, West Bengal was a late starter in this sector and presently it contributes only about 2.6% of India's software turnover, providing employment to an estimated 1,00,000 persons, concentrated in the Kolkata metropolitan area. A well-planned and effective strategy is required to encourage additional investments from large IT companies, to revitalize and tap the talent of home-grown entrepreneurs in the small and medium sector and to enable the spread of the industry to Tier II and Tier Ill locations. This would facilitate the electronic delivery of Government services though effective e-Governance measures and would have a positive impact in the social and economic lives of a larger community of citizens.


As far as the Electronics System Design and Manufacturing (ESDM) Sector is concerned, the position of West Bengal in an all-India context is not satisfactory, given the relatively poor scenario of the country as a whole. West Bengal has, however, some presence in the manufacture of solar equipments. On the other hand, the hardware sector in West Bengal has great potential for growth with the availability of skilled and qualified manpower. A large part of the existing manpower in the semi-conductor industry in India, for instance, is from West Bengal.




To become one of the leading States in India in the IT and ITeS and ESDM sectors and to enable West Bengal to transform into a knowledge-driven welfare society with extensive use of IT and ITeS in Governance and in the daily lives of the people of the State.




1)    To become one of the top three States in India by turnover and employment, both in the IT and ITeS and ESDM sectors by 2020.

2)    To create an investor-friendly climate in the State for increasing West Bengal's share in production of electronic goods in  India to  15% by value by 2020.

3)    To provide seamless and reliable citizen-centric services and information for the public, thereby enhancing efficiency, transparency and accountability in Government.

4)    To leverage on the premier educational and research institutions located in West Bengal to emerge as a leading State in the area of chip design, embedded software industry and areas related to Very- large-scale integration (VLSI) technologies.

5)   To significantly enhance availability of skilled manpower in the ESDM sector.  Special focus for augmenting post graduate education and to produce about 400 PhDs in this field annually by 2020.

6)    To work with the Government of India and other State Governments for developing and mandating standards and certification for electronic products and services and to strengthen the Quality Assessment infrastructure in West Bengal.

7)  To develop a necessary mechanism for effective disposal of e-waste in the State


Policy Highlights


  • Setting up of 26 IT parks & Incubation centers at least one each in every district of the State.
  • Encouragement of ICT activities in Tier-II and Tier-III cities in rural areas by enhancing incentives.
  • Encouragement for setting up of new Hardware units and to build at least 15 clusters for SME in Hardware sector in next 5 years.
  • “Design Centre” to be developed in the State with the assistance to premier technology institutions.
  • Gaming and Animation sector is given special emphasis in the form of special incentives.
  • Focus on Rural IT infrastructure and Rural IT training.
  • Venture Capital for innovation and creativity for Local entrepreneurs.
  • Local manufacturers and developers to be given preference in Government procurement of Hardware and Software.
  • Start-up companies in SME sector are encouraged by providing assistance on Lease rental, Power bill, Recruitment and Exhibition expenses.
  • Boosting R & D activities in IT sector by giving reimbursement for patent filing in SME sectors.
  • To leverage IT in the enhancement of productivity in different sectors of the economy, the following measures shall be taken:


    1. Use of IT will be extended to the agriculture, animal husbandry, fishery and SME sectors for a more balanced growth and development.
    2. A B2B portal is being developed for the global marketing of handicrafts and indigenous products of the local artisans.

Focus Areas


  • Focus on key industry verticals of financial services and banking, Insurance, Engineering Design and Life sciences for IT sector growth.
  • To take care CAGR of the State in Animation industry to 35 percent and in Gaming industry to 75 percent in next five years

Software Sector

Capital investment subsidy increased for IT software units as follows:

a)      10% (max Rs. 2.5 crores) from previous 7.5% (max. Rs. 1.5 crores) –A&B areas

b)      12 % (max Rs. 3.5 crores) from previous 10 % (max Rs. 2.5 crores)- C areas

c)      15% with no limit payable in 5 equal yearly installment for D areas.

Hardware Sector

Capital investment subsidy

a)      Limit has been increased to Rs. 4.5 crores from previous Rs. 3.5 crore for ‘B’ areas.

b)      Introduced new 15 % subsidy up to a limit of Rs. 4.5 crore for ‘D’ areas.

Animation & Gaming Sector

·        Capital investment subsidy of 12% upto a limit of Rs. 3.5 crore payable in 5 equal yearly installments for A & B area; 15% upto a limit of Rs. 4.5 crore payable in 5 equal yearly installments for C & D area.

·        IT companies in AG sector may avail 75% reimbursement upto a maximum limit of Rs. 1.50 lakhs per candidate for a maximum of ten candidates, towards the cost of course fee and a computer, economically and /or physically challenged candidates for Certified or Diploma Training and absorbing them for a minimum of one year physically challenged candidates for Certified or Diploma Training and absorbing them for a minimum of one year.

 MSME Sector

·  Entrepreneurship assistance for Startup SME companies in the form of reimbursements towards Lease rentals, Power Bill, Recruitment assistance and Exhibition fees etc.

·     Subsidy for Patent filling (50% cost reimbursement upto a maximum of Rs. 5.00 Lakhs) for IT units in MSME sector.

·     Subsidy for Quality improvement (50% reimbursement of certifications expenditure upto a maximum of Rs. 5.00 lakhs) for IT units in MSME sector.

 Mega projects

Notwithstanding anything contained anywhere in the Scheme, the State Government may consider special package of incentives under this Scheme to a Mega Project on case by case basis, based on its pioneering nature of project, location aspect introduction of state of the art technology, scope of further related investment etc.

Geographical Classification

Group A

Group B

Group C 

Group D

Kolkata Municipal Corporation, North 24 Parganas, South 24 Parganas, Howrah

District Hooghly, and sub-divisions of Siliguri,  Kharagpur, Durgapur, Asansol, Haldia, Kalyani


District of Burdwan (excluding sub-divisions of Durgapur, Asansol, Purba Mednipur(excluding sub-division of Haldia), Malda, Jalpaiguri, Nadia (Except sub-division of Kalyani, Murshidabad.

District Birbhum, Bankura, Paschim Medinipur (except sub-division of Kharagpur), North & South Dinajpur, Purulia, Coochbehar, Darjeeling( excluding sub-division of Siliguri)And places not covered under Group A, B and C.


For Further Details Please Visit Website  www.itewb.gov.in

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