§1Who it is for

  • New micro and small enterprises (manufacturing; services only in eligible list) and their expansion/diversification

Useful if

Micro/small manufacturers outside GHMC

Do not spend time on it if

Service businesses (general category) and units in Hyderabad city

§2Eligibility

  1. New units with new machinery commencing production 18.09.2024-31.03.2029
  2. Not within GHMC limits outside notified estates; Sanathnagar, Azamabad, Chandulal Baradari and Kattedan estates ineligible
  3. All service activities ineligible for general category except those at Sl. 44 of Annexure I
  4. Expansion: +25% fixed capital and +25% installed capacity; diversification: +25% FCI and +25% turnover
  5. Leased P&M ineligible; second-hand machinery max 25% of P&M cost; ineligible items under 10% of turnover
  6. Women units: 100% women ownership
  7. Continuous production 6 years (micro & small), 8 years (medium); break over 180 days = not continuous

§3Benefits

  • 25% of eligible fixed capital investment, max Rs.30.00 lakh
  • Women-owned micro/small: additional 20%, max Rs.20.00 lakh (total max Rs.50.00 lakh)

§4Norms — pattern of assistance

  1. Expansion cases capped at Rs.30 lakh including earlier subsidy (Rs.50 lakh for women)
  2. Aided units must take term loan of at least 51% of approved project cost

§5Documents

Tick each one as you get it ready.

Caste certificate from MRO (SC/ST)

§6How to apply

  1. 1

    File on TG-iPASS within six months of commencement of commercial production (Annexure-II Part A + Annexure-III)

  2. 2

    GM, DIC inspects; DIPC/SLC sanction

§7Pros and cons

Merits

  • Cap raised to Rs.30 lakh from Rs.20 lakh and women top-up to 20% (policy summary)
  • Single online filing on TG-iPASS

Demerits

  • Most of Greater Hyderabad excluded for general category
  • Six-month filing deadline after production

→Related schemes

Need help with TG investment subsidy?

Eligibility check, DPR and application file — ask us on WhatsApp.

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. Telangana Operational Guidelines for Implementation of MSME Policy (Incentive Scheme) 2024, Commissionerate of Industries
  2. ICAI MSME & Startup Committee - Telangana State MSME Policy (secondary)

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.