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Telangana State Industrial Policy

Telangana State Industrial Policy

Telangana State Industrial Policy

The Government of Telangana has formulated the new Industrial Policy, which aims at providing sustainable industrial development and to create gainful employment opportunities in the state of Telangana. In this article, we look at the Telangana State Industrial Policy in detail.


The following are the primary objectives of the Telangana State Industrial Policy:

  • The new Telangana State Industrial Policy strives to provide a framework which stabilizes and make existing industries more competitive.
  • It also attracts new international and national investments in the industrial sector.
  • The policy aims at core manufacturing sectors, with the creation of employment for urban and rural people by adding value to the existing skills emphasised at all stages.
  • The most significant outcome of the policy will be the production of high-quality goods at the most competitive rates with high global recognition.
  • It also creates online and help-desk grievance redressal system where the entrepreneurs are encouraged to report instances of corruption or any delays in delivering timely tasks by the Telangana State Government departments. 

Focus Sectors

The following are the sectors that will be supported under the Telangana Industrial Policy.

Life Sciences industry sector which includes the bulk drugs, formulations, vaccines, nutraceuticals, biologicals, incubation centres, R&D facilities and medical equipment.

  • Information Technology Hardware sectors.
  • Precision Engineering including aviation, aerospace and defence sectors.
  • Food processing sectors 
  • Automobile and Auto components sector
  • Textiles industry sectors
  • Chemical and Plastic industry sectors
  • FMCG and Domestic Appliances 
  • Engineering and Capital Goods which includes castings, foundry and Ferroalloys and other metallurgical industry sectors.
  • Gems and Jewellery industry sectors.
  • Waste Management and Green Technologies industry sectors
  • Renewable Energy and Solar Parks sectors
  • Mineral-based and wood-based Industry sectors
  • Transportation/Logistic Hub/Inland Port/Container Depot sectors

Special Focus on SMEs and Micro Industries

The new Telangana State Industrial Policy creates special provisions for the SME and Micro sectors, that are as follows:

  • Adequate number of small plots in the Industrial parks for the SMEs; developed sheds for the Micro units 
  • Special fund for addressing Incipient Sickness 
  • Special fund for anti-pirating assistance 
  • Special fund for IP registrations assistance
  • Special fund for the technology transfer and modernization to the MSME sector
  • Reimbursement of land conversion charges for the units in own land, subject to an upper limit 
  • Marketing assistance to participate in the national and international trade shows and buyer-seller meets
  • Consultant panel to respond to the MSME entrepreneur need
  •  Separate State Level Bankers Committee (SLBC) for the industries, particularly SMEs 
  • Decentralized procedure for the grant of licences and permissions to the Microenterprises at the level of Industrial Promotion Officers (IPOs) 

Industrial Incentives

The State Government proposed to encourage the process of industrialization by providing various kinds of incentives to the entrepreneurs. The Telangana State Government also ensures an entrepreneur-friendly and graft-free regime of disbursing the incentives. The Government guarantees that the incentives will be released on the fixed time, and direct to the bank account of the entrepreneurs. There will be a transparent application system online, with the minimum human interface. There will be enhanced incentive packages for the Scheduled Castes (SC), Scheduled tribes (ST), Physically Handicapped, and women entrepreneurs. The megaprojects with an investment of over Rs. 200 crores in the plant and machinery or employment above 1000 persons will get tailor-made incentives in addition to the standard large category industry incentives

Assistance to Woman Entrepreneurs

The Telangana State Government will support women entrepreneurs in a huge way where the 9 districts of the state will have one or more industrial sectors mainly for women. The organizations working for the women entrepreneurs such as COWE, ALEAP and FICCIFLO will be invited to join with the government to identify and train women entrepreneurs to get their project proposals developed and link them to financial sectors and handhold and monitor the progress of their projects. The Government will facilitate the number of entrepreneurs to emerge from the socially deprived categories such as SCs, STs, BCs and Minorities. 

Special Support for SC/ST entrepreneurs

The framework of the state of Telangana is based on the premise of social justice, the new Telangana State Industrial Policy will create a number of additional support measures that would increase the entrepreneurship among the SCs/STs. This policy will be implemented under the banner of TS-PRIDE – Telangana State Program for the Rapid Incubation of the Dalit Entrepreneurs and some of these initiatives under T-PRIDE that are as follows: 

  • A special direct funding program for the financing SC/ST entrepreneurs to utilize the money that is available under the respective Sub-Plans. 
  • The payment of margin money on behalf of the SC/ST entrepreneurs by the government 
  • Preferential allotment of plots in Industrial Parks 
  • The state departmental procurement policy in line with the GOI SME procurement policy (20%)
  • Intensive Entrepreneur and Skill Development programmes 
  • Supplier diversity opportunities in large industries 
  • Subsidy eligibility if funded by the CRISIL Rated NBFCs
  • No negative list
  • Interest subsidy for the service sector units (except the transport sector) 
  • State-supported CGTMSE-type scheme for the SC/ST entrepreneurs
  • The companies like the Dalit India Chamber of Commerce and Industry (DICCI) will participate in planning, implementing and monitoring the special programmes for SCs/STs 
  • Representation in any district and state-level committees.

Incentive Scheme

The Telangana State Government will be providing incentives to the entrepreneurs in the below areas under its incentive scheme entitled “T-IDEA” (Telangana State Industrial Development and Entrepreneur Advancement)

  • Power cost reimbursement 
  • Investment subsidy
  • VAT reimbursement 
  • Interest subsidy 
  • Stamp duty reimbursement 
  • Land cost rebate 
  • Land conversion cost 
  • Seed capital for 1st generation entrepreneur 
  • Training and skill development cost reimbursement 
  • Quality and patent support 
  • Clean production measures
  • Reimbursement of infrastructure development costs

Central Government Incentives

According to Section 94 (1) of the Andhra Pradesh Reorganization Act 2014, the Central Government would take appropriate fiscal measures, that includes the offer of tax incentives, to the successor states, to support industrialisation and economic growth in the States.

  • 100% central excise benefit for 5 years
  • 100% income tax benefit for 5 years and 30% for the next 5 years
  • Other investment subsidy benefits 

The Government will provide these benefits to the entrepreneurs once they get notified by the Government of India.