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 for | New micro and small enterprises in Telangana that borrow to fund their fixed capital investment. |
|---|---|
| Stage | Early revenue – Growth |
| Duration | 5 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
- Stamp Duty and Transfer Duty ReimbursementPays back the stamp duty and transfer duty an eligible MSME paid when it bought land for industrial use.
- Land Cost and Land Conversion Charges ReimbursementPays back a share of the land cost in industrial estates and parks, and of the charge for converting agricultural land to industrial use.
- Power Cost ReimbursementReimburses fixed power consumption charges at a set rate per unit for five years from the start of commercial production.
- Investment Subsidy for Micro and Small EnterprisesPays back a share of eligible fixed capital investment as a capped subsidy for General-category micro and small enterprises.
- Additional Investment Subsidy for Women-Owned EnterprisesAn extra investment subsidy, on top of the general one, for micro and small enterprises set up by women entrepreneurs.
- Enhanced Capital Investment Subsidy for SC, ST and PwD EntrepreneursA higher-rate capital investment subsidy for micro and small enterprises set up by SC, ST or PwD entrepreneurs, with separate schedules for manufacturing and services.
- Net SGST ReimbursementPays back the net State GST a unit pays on what it makes, for a fixed period or until its eligible investment is recovered, whichever comes first.
- Skill Upgradation and Training ReimbursementPays back part of what a unit spent training local manpower, as a one-time facility with a cap per person.
- Quality Certification, ZED and Patent Registration SubsidyPays back the cost of a quality certification, ZED certification or patent registration, up to a cap per item.
- Cleaner Production SubsidyPays back part of the cost of specific cleaner-production measures at the unit, up to a cap.
- Industrial Infrastructure Development Fund (IIDF) ContributionThe state pays part of the cost of bringing roads, power and water to the doorstep of a standalone unit.
Everything about Commissionerate of Industries, Government of Telangana