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
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
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.
To 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.