§1Policies

§2Incentive pattern

Capital subsidy25% of FCI up to Rs.30 lakh (women +20% up to Rs.20 lakh); SC/ST/PwD 50% up to Rs.100 lakh

Micro & small only; SC/ST/PwD service 35% up to Rs.75 lakh

Telangana Operational Guidelines for Implementation of MSME Policy (Incentive Scheme) 2024, Commissionerate of Industries
SGST / investment subsidy100% net SGST 5 yrs (micro/small); 75% for 7 yrs (medium); capped at 100% FCI

Half-yearly claims

Telangana Operational Guidelines for Implementation of MSME Policy (Incentive Scheme) 2024, Commissionerate of Industries
Interest subsidyPavala Vaddi: interest above 3% reimbursed up to 9% p.a. for 5 years

New micro & small only

Telangana Operational Guidelines for Implementation of MSME Policy (Incentive Scheme) 2024, Commissionerate of Industries
Stamp duty100% reimbursement of stamp and transfer duty on land, lease, mortgage, hypothecation

Up to 5x plinth area

Telangana Operational Guidelines for Implementation of MSME Policy (Incentive Scheme) 2024, Commissionerate of Industries
LandLand cost 25% up to Rs.10 lakh (SC/ST/PwD 50% up to Rs.50 lakh); conversion 25% up to Rs.10 lakh

TGIIC and approved private parks

Telangana Operational Guidelines for Implementation of MSME Policy (Incentive Scheme) 2024, Commissionerate of Industries
Power tariffRs.1.00/unit (SC/ST/PwD Rs.1.50) for 5 years

Energy (KVAH) charges only

Telangana Operational Guidelines for Implementation of MSME Policy (Incentive Scheme) 2024, Commissionerate of Industries
Patent & qualityQuality/ZED 50% up to Rs.2 lakh; patent 100% up to Rs.2 lakh (SC/ST/PwD 100% up to Rs.3 lakh)

Per certification

Telangana Operational Guidelines for Implementation of MSME Policy (Incentive Scheme) 2024, Commissionerate of Industries
EmploymentSkill upgradation 50% of training cost, max Rs.2,000 per local worker

One time

Telangana Operational Guidelines for Implementation of MSME Policy (Incentive Scheme) 2024, Commissionerate of Industries
OtherCleaner production 25% up to Rs.5 lakh; IIDF 50% of doorstep infra up to Rs.1 crore

IIDF for medium and SC/ST/PwD units

Telangana Operational Guidelines for Implementation of MSME Policy (Incentive Scheme) 2024, Commissionerate of Industries

§3State schemes

More incentives in the policy (6)

Name and benefit are from the policy; the full conditions are not on this page yet — see the policy document.

  • T-IDEA (Telangana State Industrial Development and Entrepreneur Advancement) incentive scheme, G.O.Ms.No.28 of 2014Earlier MSME incentive scheme; now applies to large and mega units; MSMEs starting 18.09.2024 to guideline date may choose it
  • T-PRIDE (SC/ST incentive scheme), G.O.Ms.No.29 of 2014Earlier SC/ST scheme; now for large and mega units
  • Yantram FundRs.100 crore over four years for technology transfer and modernisation (policy proposal)
  • MSME plot reservation in new industrial parks20% of plots for MSMEs; one MSME park for women; 5% women and 15% SC/ST plots in others
  • Public procurement preference20% of public procurement from MSMEs; 5% sub-reserved for SC/ST and 5% for women
  • Duty reimbursement on imported samples for prototypingUp to Rs.10 lakh (women up to Rs.15 lakh)

§4District zones

In many states the subsidy rate changes with the zone of the district or block.

ZoneGHMC limits (excluded area)

General-category units here get no incentives; SC/ST/PwD may set up Annexure I(A) activities with commercial approvals

Greater Hyderabad Municipal Corporation limits outside existing/notified industrial estates · Sanathnagar, Azamabad, Chandulal Baradari and Kattedan industrial estates (fully ineligible)

Telangana Operational Guidelines for Implementation of MSME Policy (Incentive Scheme) 2024, Commissionerate of Industries
ZoneRest of Telangana

Uniform rates - the 2024 policy has no district-wise rate zones

All other areas

Telangana Operational Guidelines for Implementation of MSME Policy (Incentive Scheme) 2024, Commissionerate of Industries

Schemes for some districts only

  • One District One Product (ODOP) list, Dec 2024Adilabad, Bhadradri Kothagudem, Hyderabad, Jagtial, Jangaon, Jayashanker Bhupalpally, Jogulamba Gadwal, Kamareddy, Karimnagar, Khammam, Kumaram Bheem Asifabad, Mahabubnagar, Mancherial, Medak, Medchal Malkajgiri, Mahabubabad, Mulugu, Nagarkurnool, Nalgonda, Narayanpet, Nirmal, Nizamabad, Peddapalli, Rajanna Sircilla, Ranga Reddy, Sangareddy, Siddipet, Suryapet, Vikarabad, Wanaparthy, Warangal Rural, Warangal Urban (Hanumakonda), Yadadri Bhuvanagiri

→Industrial land in this stateAgency, portal, allotment, lease

§5Famous for

§6Choose your district

For each district: its ODOP product, its subsidy zone and the schemes that run only there.

§7Focus sectors & ODOP

ODOP / clusters33 entries

Adilabad: Soybean based products, Cotton bales

  • Adilabad: Soybean based products, Cotton bales
  • Bhadradri Kothagudem: Chilies
  • Hyderabad: Studded gold jewellery
  • Jagtial: Mango
  • Jangaon: Rice based products, Brass artifacts
  • Jayashanker Bhupalpally: Chillies
  • Jogulamba Gadwal: Groundnut
  • Kamareddy: Soyabean
  • Karimnagar: Granites, Silver filigree
  • Khammam: Chillies, Granite
  • Kumaram Bheem Asifabad: Millets
  • Mahabubnagar: Mango (Banaganapalle), Millets
  • Mancherial: Mango
  • Medak: Tomato processed products
  • Medchal Malkajgiri: Pharmaceuticals & Biotech products
  • Mahabubabad: Chillies
  • Mulugu: Chillies
  • Nagarkurnool: Mango
  • Nalgonda: Sweet lime, Orange, Cotton
  • Narayanpet: Cotton & Silk sarees, Custard apple pulp, Groundnut
  • Nirmal: Cotton bales, Soybean
  • Nizamabad: Turmeric
  • Peddapalli: Rice based products
  • Rajanna Sircilla: Fisheries
  • Ranga Reddy: Biscuits & Confectionery, Food/Veg processing
  • Sangareddy: Engineering products, Milk based products
  • Siddipet: Gollabama sarees, Cherial paintings, Vegetable processing
  • Suryapet: Cement, Milk/Dairy products
  • Vikarabad: Fullers earth/Bentonite granules and powder, Vegetable processing
  • Wanaparthy: Groundnut
  • Warangal Rural: Warangal durries, Chillies
  • Warangal Urban (Hanumakonda): Granite slabs
  • Yadadri Bhuvanagiri: Handloom Ikkat products, Milk/Dairy products

§8Why do business here — and why not

Merits

  • All claims filed on one portal (TG-iPASS) with fixed half-yearly deadlines (operational guidelines)
  • SC/ST/PwD units can draw 80% of investment subsidy before production (operational guidelines para 4.13)
  • Full stamp duty refund and 100% SGST refund for micro/small (operational guidelines)

Demerits

  • Industrial land costly: policy notes TGIIC land at Rs.31,360 per sqm in Siddipet and Rs.21,280 in Patancheru (as summarised by ICAI from the policy)
  • General-category service units excluded except listed activities; Hyderabad city excluded
  • Continuous-production lock-in of 6-8 years with recovery under Revenue Recovery Act

Still being researched

We could not confirm these points from an official source, so no figure is printed on the page.

Open items3 points pending
  • MSME Policy 2024 booklet is a scanned image PDF; text not machine-read - policy-level announcements (Yantram fund, procurement, plot reservation) taken from ICAI summary
  • Focus sectors not stated in operational guidelines
  • Single-window and TGIIC land rates not confirmed from TGIIC site