This overview provides a comprehensive summary of the Telangana MSME Policy 2024 (Incentive Scheme), designed to establish the state as a premier investment destination. The scheme is operational from September 18, 2024, to March 31, 2029.
- Scope and Classification
The policy applies to New Industrial Enterprises and projects involving substantial Expansion or Diversification. The scheme covers the entire state, excluding the GHMC limits, except for enterprises within notified or to-be-developed Industrial Estates/Parks within those limits.
Enterprise Classification (Plant & Machinery Investment / Turnover):
- Micro: Up to ₹2.50 Crore / Up to ₹10.00 Crore.
- Small: More than ₹2.50 Crore to ₹25.00 Crore / More than ₹10.00 Crore to ₹100.00 Crore.
- Medium: More than ₹25.00 Crore to ₹125.00 Crore / More than ₹100.00 Crore to ₹500.00 Crore.
- Financial Incentives: General Category
| Incentive Component | Micro & Small Enterprises | Medium Enterprises |
| Stamp & Transfer Duty | 100% reimbursement for land purchase, lease, and mortgages. | 100% reimbursement for land purchase, lease, and mortgages. |
| Investment Subsidy | 25% of Fixed Capital Investment (FCI), max ₹30 Lakhs. | Not applicable. |
| Power Subsidy | ₹1.00 per unit reimbursement for 5 years from DCP. | ₹1.00 per unit reimbursement for 5 years from DCP. |
| Net SGST Reimbursement | 100% for 5 years or until 100% FCI is realized. | 75% for 7 years or until 100% FCI is realized. |
| Land Cost/Conversion | 25% reimbursement (max ₹10 Lakhs each). | 25% reimbursement (max ₹10 Lakhs each). |
| Pavala Vaddi | Interest subsidy >3%, max 9% for 5 years. | Not applicable. |
- Women Entrepreneurs (General): Eligible for an additional 20% investment subsidy (max ₹20 Lakhs), raising the total investment subsidy ceiling to ₹50 Lakhs.
- Financial Incentives: SC, ST, and PwD Category
Enterprises must have 100% shareholding by SC/ST/PwD entrepreneurs to qualify for these enhanced rates.
| Incentive Component | Micro & Small Enterprises | Medium Enterprises |
| Investment Subsidy | 50% (Mfg) up to ₹100 Lakhs; 35% (Service) up to ₹75 Lakhs. | Not applicable. |
| Power Subsidy | ₹1.50 per unit reimbursement for 5 years from DCP. | ₹1.50 per unit reimbursement for 5 years from DCP. |
| Land Cost | 50% reimbursement in TGIIC estates, max ₹50 Lakhs. | 50% reimbursement in TGIIC estates, max ₹50 Lakhs. |
- Women Entrepreneurs (SC/ST/PwD): Eligible for an additional 20% (Mfg) or 10% (Service) investment subsidy, with total caps of ₹120 Lakhs and ₹75 Lakhs respectively.
- Procedural Requirements and Deadlines
- Filing Portal: All claims must be submitted electronically via the TG-iPASS Portal.
- Standard Deadline: Claims must be filed within six months from the Date of Commencement of Commercial Production (DCP).
- Belated Claims: Applications filed between 6 and 12 months from the specified date are eligible for only 50% of the incentives; after 12 months, claims are ineligible.
- Aided Status: To qualify as an “Aided Enterprise,” units must avail a term loan of at least 51% of the approved project cost.
- Continuous Production: To avoid the recovery of incentives, units must remain in operation for:
- 3 years for SC/ST/PwD enterprises.
- 6 years for General category Micro/Small units.
- 8 years for Medium enterprises.
- Lease Requirements: Units in leased premises must have registered deeds valid for the mandatory production periods mentioned above.