§1Who it is for

  • Units 100% owned by SC, ST or persons with disability (and women among them)

Useful if

SC/ST/PwD founders in manufacturing or service

§2Eligibility

  1. 100% SC/ST/PwD ownership (joint ventures by majority; Telangana SC/ST 51% + other state SC/ST 49% allowed)

SC converted to Christianity eligible

  1. Can set up in GHMC for Annexure I(A) activities with commercial approvals
  2. Advance subsidy: promoter must bring at least 10% of project cost; not for transport/mobile equipment; self-financed units ineligible
  3. Production within 18 months of first instalment or recovery
  4. Mental disability not eligible

§3Benefits

  • Manufacturing: 50% investment subsidy on FCI, max Rs.100.00 lakh; women +20% max Rs.20 lakh (max Rs.120 lakh)
  • Service: 35%, max Rs.75.00 lakh; women +10% max Rs.10 lakh (max Rs.75 lakh)
  • Land cost reimbursement 50% max Rs.50 lakh in TGIIC estates
  • Power Rs.1.50 per unit for 5 years
  • Quality certification / patent / ZED 100% max Rs.3.00 lakh per certification
  • Advance subsidy before production: 35% and 45% of eligible subsidy in two pari-passu instalments, final 20% after production

§4Norms — pattern of assistance

  1. Continuous production 3 years for SC/ST/PwD
  2. Co-borrower rule for women: only parents, spouse, sons, brother (if unmarried)

§5Documents

Tick each one as you get it ready.

Partnership deed / MoA / AoA

Term loan sanction letter

§6How to apply

  1. 1

    TG-iPASS; advance subsidy via Annexure-XII after term loan sanction, approvals and start of civil works

§7Pros and cons

Merits

  • Subsidy can be drawn before production starts (pari-passu) - rare among states

Demerits

  • Subject to SCSP/TSP budget availability

→Related schemes

Need help with TG SC/ST/PwD package?

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

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