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    Inclusivity Officials
    Dec 29 th, 2017

    MSME Policy of Telangana

    To help the Industrial Development in Telangana, the Government has a unique vision and uplifting policies. It vision for it’s industries is to:

    “Research to Innovation; Innovation to Industry; Industry to Prosperity”.

    The industrial policy framework will be driven by the slogan of :

    MSME policy of telangna govenment

    “In Telangana—Innovate, Incubate, Incorporate”.


    • Adequate number of smaller plots in Industrial parks for SMEs; developed sheds for Micro units
    • Special fund for addressing Incipient Sickness
    • Special fund for IP registrations assistance
    • Special fund for anti-pirating assistance
    • Special fund for technology transfer and modernization to MSME sector
    • Reimbursement of land conversion charges for units in own land, subject to an upper limit
    • Marketing assistance to participate in national and international trade shows and buyer-seller meets
    • Consultant panel to respond to MSME entrepreneur needs
    • Separate State Level Bankers Committee (SLBC) for industries, particularly SMEs
    • Decentralized procedure for issue of licenses and permissions to Micro enterprises at the level of Industrial Promotion Officers (IPOs)


    • 100% reimbursement of Stamp duty and transfer duty paid by the industry on purchase of land meant for industrial use.
    • 100% reimbursement of Stamp duty for Lease of Land/Shed/ Buildings and also mortgages and hypothecations.
    • 25% rebate in land cost limited to Rs. 10.00 Lakhs in Industrial Estates/ Industrial Parks.
    • 25% Land conversion charges for industrial use limited to Rs. 10.0 lakhs.
    • Fixed power cost reimbursement @ Rs. 1.00 per unit for 5 years from the date of commencement of commercial production.
    • 15% investment subsidy on fixed capital investment subject to a maximum of Rs. 20.00 lakhs.
    • Reimbursement of 100% net VAT/CST or State Goods and Services Tax (SGST) for a period of 5 years from the date of commencement of commercial production.
    • Interest subsidy under Pavala Vaddi Scheme on the term loan taken on the fixed capital investment by New Micro and Small Enterprises in excess of 3% per annum subject to a maximum reimbursement of 9% per annum for a period of 5 years from the date of commencement of commercial production.
    • Seed capital assistance to First Generation Entrepreneurs to set-up Micro Enterprises @10% of the Machinery cost, which will be deducted from the eligible investment subsidy.
    • 50% Reimbursement of cost involved in skill up-gradation and training the local manpower limited to Rs. 2,000 per person.
    • 50% subsidy on the expenses incurred for quality certification/ patent registration limited to Rs. 2.00 Lakhs.

    25% subsidy on specific cleaner production measures limited to Rs. 5.00 Lakhs


    It is an unfortunate reality that a very miniscule proportion of existing industrial units are owned by SC/ST entrepreneurs. There are a number of structural barriers which the SC/ST entrepreneurs find extremely difficult to overcome.

    Some of these initiatives under Telangana State Program for Rapid Incubation of Dalit Entrepreneurs (T-PRIDE) are as follows:

    • A special direct funding program for financing SC/ST entrepreneurs will be worked out to utilize the money available under the respective Sub-Plans.
    • Payment of Margin Money on behalf of the SC/ST entrepreneurs by the government
    • Preferential allotment of plots in Industrial Parks
    • Supplier diversity opportunities in large industries
    • State departmental procurement policy in tune with GOI SME procurement policy (20%)
    • Intensive Entrepreneur and Skill Development programs
    • Subsidy eligibility if funded by CRISIL Rated NBFCs
    • No negative list
    • Interest subsidy for service sector units (except transport sector)
    • State supported CGTMSE-type scheme for SC/ST entrepreneurs
    • Organizations like the Dalit India Chamber of Commerce and Industry (DICCI) will be involved in planning, implementing and monitoring special programs for the SCs/STs
    • Representation in all district and state level committees


    The Telangana State Government will consider providing incentives to the SC/ST entrepreneurs in the following areas under its T-IDEA (Telangana State Industrial Development and Entrepreneur Advancement) incentive scheme:

    1. Stamp duty reimbursement
    2. Land cost rebate
    3. Land conversion cost
    4. Power cost reimbursement
    5. Investment subsidy
    6. VAT reimbursement
    7. Interest subsidy
    8. Seed capital for 1stgeneration entrepreneur
    9. Training and skill development cost reimbursement
    10. Quality/patent support
    11. Clean production measures
    12. Reimbursement of infrastructure development costs


    • New Pharma-City and Chemical City with well-developed infrastructure including waste management
    • Development of the Hyderabad Warangal Industrial Corridor
    • Development of Warangal as the textile hub of Telangana
    • Food Processing and Seed Production Initiatives
    • Mini-industrial townships along with industrial parks
    • Direct loan facilitation to Dalit entrepreneurs
    • Creation of a Venture Capital/Angel Fund
    • Inter-state VAT rationalization on industrial inputs and outputs
    • Review and Reform of all age old industry sector regulations, including labour laws