Key Benefits & Incentives for Business Owners

Here are some of the major incentives under T-IDEA (for various enterprise sizes). If you’re planning to set up or expand in Telangana, these are the kinds of benefits you can access.

For Micro & Small Enterprises (MSEs)

• 100% reimbursement of stamp duty & transfer duty for land/shed/buildings.

• Rebate of 25% in industrial land cost (up to ₹10 lakhs) in industrial estates/parks.

• Reimbursement of 100% SGST (state goods & services tax) for 5 years from commencement of commercial production.

• Fixed power cost reimbursement at approx. ₹1 per unit for 5 years for eligible units.

• Investment subsidy of ~15% (varies by category) on fixed capital investment (for MSEs) subject to certain ceilings.

• Soft-loan/interest subsidy (“Pavala Vaddi”) on term loans for fixed capital: up to 3%-9% per annum for 5 years (for certain categories) in some cases.

• Seed capital assistance for first-generation entrepreneurs & subsidies for training local manpower, quality/patent certification, cleaner production measures.

For Women-owned Enterprises

• Additional incentives: For example, women-owned units may get an extra 10% investment subsidy over the base rate, up to a higher ceiling.

• All general incentives for MSEs apply, plus the extra benefits.

For Medium / Large / Mega Projects

• Tailor-made incentive packages for mega investments (e.g., investment thresholds of ₹100 crore+ for certain sectors) or employment of 1,000+ people.

• The same types of benefits (stamp/land/power/SGST) apply, but with different ceilings/periods.

Eligibility – What Business Owners Should Know

If you’re planning to apply under T-IDEA, here’s what you should check:

• The project must be in Telangana, and be within eligible sectors as defined in the Industrial Policy & scheme guidelines.

• Enterprise size matters (Micro/Small/Medium vs Large/Mega) — incentives differ by category.

• For women-owned enterprises: the enterprise must have significant (often 100%) share of women ownership (sole proprietorship, partnership/LLP/ Pvt Ltd with women as majority).

• Enterprises probably need to register properly (e.g., UDYAM or state equivalent), get clearances, and start production/commercial operations by certain date to claim full benefits.

• The application and claims for reimbursement will need documentary proof (investment, commercial production start date, employment, power consumption data etc).

How to Apply – Step by Step

1. Project Planning: Prepare your project details—investment amount, plant & machinery cost, land, employment, production start date.

2. Check Sector & Category: Ensure your business falls under eligible sectors and your enterprise size category (MSE/Medium/Large).

3. Submit Application via TS-iPASS / Single Window: Telangana has a one-stop clearance system (TS-iPASS) for industries. You will submit your application for incentives under T-IDEA through the state portal.

4. Commencement of Commercial Production: Once your unit is commissioned and production starts, you become eligible for the incentives (many apply after start of production).

5. Claim Reimbursements: Submit your claim for benefits (e.g., stamp duty reimbursement, SGST reimbursement, power cost subsidy) with required documents.

6. Maintain Compliance: You will need to maintain records (investment, employment, production, power consumption, tax payments) for the incentive period.

7. Follow Up & Monitoring: The state may monitor your performance, and benefits will be provided as per scheme rules.

Important Considerations & Things to Watch

• Even though incentives look generous, you still bear a considerable portion of the investment cost – the subsidy or reimbursement helps reduce cost, it doesn’t cover everything.

• Timeliness matters: Many incentives require commercial production to begin within a stipulated timeframe, and you must apply within a time window.

• For SGST, stamp duty, etc., claims may require prior approvals of land purchase/lease and submission of evidence.

• For power cost reimbursement: You may need to meet consumption criteria and maintain separate meter for eligible industrial power.

• For women/Scheduled Caste/Tribe benefits: Make sure you meet ownership and documentation requirements to claim the extra benefit.

• The scheme was legislated and notified via government orders (e.g., GO Ms No. 28, 29-11-2014) and may be subject to periodic revisions.

• Check whether your project is located in an approved industrial park/estate or greenfield area or expansion. Some benefits differ by location.

• Understand that benefits may differ for units within Municipal Corporation limits vs outside, or for service units vs manufacturing units. Always cross‐check the scheme guidelines.