T-IDEA Telangana State Industrial Development and Entrepreneur Advancement Incentive Scheme 2014 9


T-IDEA (Telangana State Industrial Development and Entrepreneur Advancement) Incentive Scheme 2014 – Orders – Issued G.O.MS.No. 28 Dated:29.11.2014 Government is extending various Incentives for encouraging establishment of new industrial Enterprises in the State since 1961. Government of Telangana State has issued certain incentives to Micro, Small, Medium, Large & Mega industries under Industrial Investment Promotion Policy 2010- 2015, including the policy for promotion of Scheduled Caste/Scheduled Tribe entrepreneurs. This policy was stated to conclude by 31.03.2015.

In order to bring out an attractive new industrial policy by the Government of Telangana, extensive consultations were also held with industrial Associations i.e., CII, FICCI, FAPSIA, FAPCCI, ALEAP, COWE, DICCI, TIF Cherlapally, Telangana Spinning Mills Association, ASSOCHAM, etc to elicit their views in formulation of the New Industrial Policy.

Series of meetings were conducted with number of industrial associations, line departments and Heads of Departments concerned and finalized the draft Industrial Investment Promotion Policy 2014. A detailed study was made on the Draft Industrial Investment Promotion Policy 2014, covering the incentives being offered under the existing policy. After careful examination, the Government approved the NEW INDUSTRIAL POLICY FRAMEWORK FOR STATE OF TELANGANA 2014 giving major emphasis for Creation of 2 Quality Infrastructure, promotion of Manufacturing Investment Zones and Industrial Corridors, special focus on MSMEs, growth enabling incentives to
create a level playing field, to tap the potential of ever expanding service sector related to industrial activity, fostering industrial clusters, promotion of anchor industries for creation of ancillary base, Capacity building and skill upgradation, inclusive development to build competency in Women and Scheduled Caste & Scheduled Tribe Entrepreneurs, Quality Competitiveness, Export Promotion, promotion of cleaner technology, leveraging existing strengths for value addition, special focus on thrust sectors, revitalization of MSMEs.

4. Under the NEW INDUSTRIAL POLICY FRAMEWORK FOR STATE OF TELANGANA 2014, the Government approve the following fiscal
benefits covering the categories of (a) Micro/Small Enterprises (b) Medium Enterprises & Large Industries (c) Women Entrepreneurs and (d) Mega Projects under the T-IDEA (Telangana State Industrial Development and Entrepreneur Advancement) incentive scheme

4.1.0 Micro and Small Enterprises (MSE’s) Small Enterprise means a Unit having the investment on plant and machinery up to limit as defined by the Government of India from time to time. Micro Enterprise means a Unit in which Investment on plant and machinery up to limit as defined by the Government of India from time to time.

4.1.1 100% reimbursement of Stamp duty and transfer duty paid by the industry on purchase of land meant for industrial use.

4.1.2 100% reimbursement of Stamp duty for Lease of Land/Shed/ Buildings and also mortgages and hypothecations.

4.1.3 25% rebate in land cost limited to Rs.10.00 Lakhs in Industrial Estates/ Industrial Parks.

4.1.4 25% Land conversion charges for industrial use limited to Rs.10.0 lakhs. ‘

4.1.5 Fixed power cost reimbursement @ Rs. 1.00 per unit for 5 years from the date of commencement of commercial production. 3

4.1.6 15% investment subsidy on fixed capital investment subject to a maximum of Rs.20.00 lakhs.

4.1.7 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.

4.1.8 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.

4.1.9 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.

4.1.10 50% Reimbursement of cost involved in skill upgradation and training the local manpower limited to Rs.2000 per person.

4.1.11 50% subsidy on the expenses incurred for quality certification/ patent registration limited to Rs. 2.00 Lakhs.

4.1.12 25% subsidy on specific cleaner production measures limited to Rs.5.00 Lakhs.

4.1.13 To extend investment subsidy to the identified service activities related to industries setup in all Municipal Corporation limits in the
state as per the list appended as Annexure – I.

4.2.0 Medium Enterprises & Large Industries Medium Enterprise means an industry in which Investment on plant and machinery up to limit as defined by the Government of India from time to time. Large Industry means an industry in which investment on plant and machinery is less than Rs 200 crores except Micro, Small and Medium Enterprises.

4.2.1 100% reimbursement of Stamp duty and transfer duty paid by the industry on purchase of land meant for industrial use. 4

4.2.2. 100% reimbursement of Stamp duty for Lease of Land/Shed/ Buildings and also mortgages and hypothecations.

4.2.3 25% rebate in land cost limited to Rs.10.00 Lakhs in Industrial Estates/Industrial Parks.

4.2.4 25% Land conversion charges for industrial use limited to Rs.10.0 lakhs only for Medium Enterprises.

4.2.5 Fixed power cost reimbursement @ Rs.1.00 per unit for a period of 5 years from the date of commencement of commercial production.

4.2.6 Reimbursement of 75% net VAT/CST or State Goods and Services Tax (SGST) for a period of 7 years from the date of commencement
of commercial production for Medium Scale Enterprises or up to realization of 100% fixed capital investment, whichever is earlier.

4.2.7 Reimbursement of 50% net VAT/CST or State Goods and Services Tax (SGST) for a period of 7 years from the date of commencement
of commercial production for Large Scale Industries or up to realization of 100% fixed capital investment, whichever is earlier.

4.2.8 50% Reimbursement of cost involved in skill upgradation and training the local manpower limited to Rs.2000 per person. 50% subsidy on
the expenses incurred for quality certification/ patent registration limited to Rs. 2.00 Lakhs only for Medium Enterprises.

4.2.9 25% subsidy on specific cleaner production measures limited to Rs.5.00 Lakhs.

4.2.10 Infrastructure like roads, power and water will be provided at door step of the industry for standalone units by contributing 50% of the
cost of infrastructure from IIDF with a ceiling of Rs.1.00 Crore, subject to (a) the location should be beyond 10 kms from the existing Industrial Estates/IDA’s having vacant land/shed for allotment and (b) cost of the infrastructure limited to 15% of the eligible fixed capital investment made in the industry.

4.3.0 Women owned Enterprises (Units established as sole Proprietress or invariably having 100% share in Partnership/Private Limited Companies) 5

4.3.1 Additional 10% investment subsidy on fixed capital investment subject to a maximum of Rs. 10.00 lakhs to MSE’s.

4.3.2 All other benefits as per para No.4.1.0 (Micro & Small Enterprises).

4.4.0 Mega Projects

4.4.1 Mega Project means the Industrial unit, which sets up with a capital investment of Rs.200 Crores and above or a project that creates
employment to more than 1000 persons.

4.4.2 The Government will also extend tailor-made benefits to Mega Projects to suit to a particular investment requirements on case to case basis.

4.5.0 Existing Micro/Small/Medium Enterprises Industries 50% subsidy on the expenses incurred for quality certification limited to Rs. 2.00 Lakh.

4.6.0 Infrastructure support:

4.6.1 To provide Rs.100.00 crores of budget every year for promotion of quality infrastructure like roads, power, water, waste management etc.
under Industrial Infrastructure Development Fund (IIDF) Scheme.

4.6.2 Promotion of National Manufacturing Investment Zone (NMIZ) along National Highways to capitalize the strengths in line with Government of India initiatives for value addition within the State.

4.6.3 Promotion of Industrial Corridors to leverage the existing strengths for optimum utilization of resources

4.6.4 Reservation of 30-40% of the land for MSMEs in the upcoming industrial estates developed by Telangana Industrial Infrastructure
Corporation (TSIIC).

4.6.5 TSIIC shall allocate 15.44% of number of plots to Scheduled Caste Entrepreneurs and 9.34% of number of plots to Scheduled Tribe Entrepreneurs  in  new  Industrial  Estate  and  preferential  allotment  to SC/ST entrepreneurs in Existing Industrial Estates

4.6.6  Telangana  Industrial  Infrastructure  Corporation  (TSIIC)  shall  allocate 10% of number of plots to Women Entrepreneurs in the new Industrial Estates

4.7.0  Other benefits (to all categories)

10% of water is reserved for industrial use from the existing projects as well as future projects.

4.8.0  Facilitation of Industries

4.8.1 Strengthening of existing Single Window Clearance System by the Telangana  State  Industrial  Project  Approval  and  Self  Certification System (TS-iPASS).

4.8.2  Creation of “Investment Promotion Cell”

A  Cell  would  be  created  in  the  Commissionerate  of  Industries  to facilitate the investors in effective manner with adequate infrastructure and outsourcing the support services to facilitate investors by providing pre-investment services and also to facilitate them to get requisite clearances under the TS-iPASS till the project is commissioned.

4.9.0   Textile Sector

Government is contemplated to promote Textile Industry for sustainable growth of the sector.

a) The  State   will   provide   reimbursement   of   Interest   Subsidy   to Spinning / Textile industries in addition to the TUF Scheme (Technology Upgradation Fund Scheme of Ministry of Textile, Government of India).

b) Reimbursement of interest  subsidy  @  4%  for  spinning  activity (excluding Ginning) for period of (5) years from the Date of Commencement of Commercial Production.

c) Reimbursement of interest subsidy @ 6% for Industries involved in composite activities i., Spinning and Weaving/Knitting/Dyeing/ Garmenting (excluding ginning) for a period of (5) years from the Date of Commencement of Commercial Production.d) The total interest subsidy including under TUF Scheme should not exceed the rate of interest  levied  by Financial  Institutions  on  the sanctioned and disbursed term loan to the un 27% of incentive amount shall be earmarked for Backward Classes and 12% for minorities.

T-IDEA Telangana State Industrial Development   and  Entrepreneur  AdvancementTo promote Telangana as the best investment destination for investors in India, the State Government have offered various incentives/benefits to all eligible new industrial enterprises set up in the State except in the Municipal Corporation limit of Greater Hyderabad Municipal Corporation excluding existing Industrial Estates/Parks, Industrial Estates notified/ to be notified and commence commercial production on or after 1/1/2015 but before 31-3-2019. However, the Industrial Enterprises located in Sanathnagar, Azamabad, Chandulal Baradari and Kattedan Industrial Estates of Hyderabad and Rangareddy Districts are not eligible for any incentives/concessions. However, the service activities set up in all Municipal Corporation limits as appended in Annexure–I are eligible only for investment subsidy and all other service / Business activities are not eligible for any incentives set up anywhere in the State. Projects  involving  substantial  Expansion  / Diversification  of existing industries in the eligible lines of activities are also entitled for benefits offered under the policy. The list of ineligible Industries/ activities will be notified separately.

The activities indicated in the Annexure-I will be reviewed from time to time for any revisions required.

Necessary amendments/ Orders will be issued by the Commissioner of Industries. Detailed operational guidelines will be issued by the Commissioner of Industries separately.

Government may review and modify the incentives from time to time This order is issued with the concurrence of Finance Department, vide their No.454/PFS/14, dt.25.11.2014.


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9 thoughts on “T-IDEA Telangana State Industrial Development and Entrepreneur Advancement Incentive Scheme 2014

  • J.Ramesh

    With respect to incentives proposed for Textile Sector.The Textile Industry in Sircilla requested to provide investment subsidy in addition to Tuf subsidy given by Ministry of Textiles,Government of India.The Government of Karnataka and Maharastra also providing investment subsidy in addition to Tuf subsidy to Textile Industry.But, Unfortunately it is not taken into consideration by the Government.It is a big back step on the part of Government which will discarage Textile Industry in the State.

  • srikanth

    Sir i am trying for loan since from last year but banks are not giving any information regarding msme loans
    Actually i belongs to sc
    But govt trying to develop us but it is not use

  • nagavardhani

    Sir i am trying for loan since from last year but banks are not giving any information regarding msme loans
    Actually i belongs to st(yerukala)
    But govt trying to develop us but it is not use

  • nilesh

    In sircilla textile industry ended strike in March ,after giving statement from minister stated that all incentives/subsidies which are in pending from long time will be clearing immediately. But til date incentives has not yet given,
    investor from other state has taken back step.

    I look forward and request government ,kindly look forward into it and clear long pending files so that investor can come forward for development.

  • Mohammed Rawoof Pasha

    HI Pavan sir,
    Firstly I would like to congratulate you for launching this portal.
    This is Rawoof I belongs to Makthal-Mahabubnagar,Sir Currently I am working with Bank of America at Hi-tech city Hyd. I have an idea to establish a plant of Ash fly bricks for this plant the investment should goes around 30 Lakhs. As I am from poor background I could not bear this investment. So looking for the helping hands like you sir. I felt that you will help me out on this. If my idea makes you satisfy then please drop me a message or email to 9908360181,mohammedrawoofpasha@gmail.com.

    Hoping for the best sir,

    Regards,
    Rawoof
    9908360181

  • Rajendhar

    hello sir I am trying to industrial loan for colour lab for photo copies print machine so I need money maximum 5,50,000 please give me one solution I am belong to sc thank u

  • syamsunder rao

    What is the maximem amount of land one can purchase in company name to establish INTEGRETED AQUA PROJECT in most backward area in TELANGANA STATE.
    What all the incentives likely to get from state government for creating employment in most backward area like MAHBOOBNAGAR & NALGONDA Districts.

  • shashidhar

    hello all,

    we are already running a designer cloth shop and we would like to apply for business loan

    kindly can any one help me

  • SHAIK MUBEEN

    sir this is SHAIK MUBEEN FROM HYDERABAD I studied mba and i am having experiance in glass and alluminium fabrication business right now i need a capital amount off 5lakh rs for openning the shop so i need your help how i get the loan from telangana govt scheme so please help me what is the way to get it call me or drop the messege at my mail ok sir