Investment subsidy, tax refund and interest support for MSMEs in Telangana
Telangana MSME Policy 2024 incentive scheme
The MSME Policy 2024 was notified by G.O.Ms. No. 16 of 18 September 2024. According to the operational guidelines (G.O.Ms. No. 06 of 23 March 2026, on the Industries Department site), the incentive scheme runs from 18 September 2024 to 31 March 2029. Units in Greater Hyderabad are covered only inside its industrial estates and parks (and for SC, ST and disabled entrepreneurs, for listed activities). Large and mega units are covered by the T-IDEA and T-PRIDE schemes instead. In these guidelines micro means plant and machinery up to ₹2.5 crore, small up to ₹25 crore and medium up to ₹125 crore.
New and expanding micro, small and medium units in Telangana, outside Greater Hyderabad except in its industrial estates
- Investment subsidy for micro and small units: 25% of eligible fixed capital investment, up to ₹30 lakh, with a further 20%, up to ₹20 lakh, for women entrepreneurs
- For SC, ST and disabled entrepreneurs in manufacturing: 50% up to ₹100 lakh
- Net SGST reimbursed: 100% for 5 years for micro and small units, 75% for 7 years for medium units
- 100% reimbursement of stamp duty on industrial land, leases and mortgages
- Reimbursement of fixed power charges at ₹1 per unit for 5 years
- Interest subsidy under Pavala Vaddi for new micro and small units: the interest above 3% a year, up to 9% a year, for 5 years
- 50% of the cost of quality or ZED certification, up to ₹2 lakh per certificate
- Commercial production started within the scheme period (the start date is read from the Udyam certificate)
- Claims filed within six months of starting commercial production
- For an existing unit, at least 25% more fixed capital investment and 25% more capacity or turnover
- Pavala Vaddi is for new units only, not for expansions
Online through the TG-iPASS portal (ipass.telangana.gov.in), then verified by the General Manager of the District Industries Centre. The guidelines are on the Industries Department site.