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 :
“In Telangana—Innovate, Incubate, Incorporate”.
SPECIAL FOCUS ON SMEs/MICRO INDUSTRIES:
- 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)
FISCAL BENEFITS TO MSME:
- 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:
- Stamp duty reimbursement
- Land cost rebate
- Land conversion cost
- Power cost reimbursement
- Investment subsidy
- VAT reimbursement
- Interest subsidy
- Seed capital for 1stgeneration entrepreneur
- Training and skill development cost reimbursement
- Quality/patent support
- Clean production measures
- Reimbursement of infrastructure development costs
SPECIFIC INITIATIVES FOR 2014-15:
- 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