Subsidy or reimbursement

Pavala Vaddi Interest Subsidy

A programme by Commissionerate of Industries, Government of Telangana

Reimburses part of the interest on a term loan taken for eligible fixed capital investment, for five years.

At a glance

Best forNew micro and small enterprises in Telangana that borrow to fund their fixed capital investment.
StageEarly revenue – Growth
Duration5 years from the start of commercial production

About Pavala Vaddi Interest Subsidy

This is not a loan. It pays back part of the interest you pay on a term loan that funded eligible fixed capital investment.

What you get

  • Reimbursement of interest above a base rate, up to a ceiling per year, for five years from the start of commercial production

Who can apply

  • A micro, small or medium enterprise in Telangana, set up or expanded under the MSME Policy 2024
  • Located outside Greater Hyderabad Municipal Corporation limits, with exceptions set out in the guidelines
  • Benefits are counted from the date the unit starts commercial production, and the scheme runs from 18 September 2024 to 31 March 2029
  • Micro and small enterprises that have taken a term loan on eligible fixed capital investment

How selection works: The General Manager of the District Industries Centre verifies the documents and inspects the unit. For larger investments in plant and machinery, the General Manager recommends the claim to the Commissioner of Industries for sanction. Payment comes after the spend, not before.

How to apply: File the incentive claim on the TG-iPASS portal, which handles the claim online from start to finish. Questions go to coi.inds@telangana.gov.in.

Where to apply

Other Commissionerate of Industries, Government of Telangana programmes

Everything about Commissionerate of Industries, Government of Telangana