Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives
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Quick Answer
Telangana: 15%–25% investment subsidy + power cost reimbursement + SGST refund for new manufacturing units
- Funding amount
- Varies
- Funding type
- Subsidy
- Provider
- Government of Telangana
- Application deadline
- Rolling
- Location
- Telangana
About this subsidy
Key components: (1) Investment subsidy: 15%–25% of FCI for MSMEs (higher for SC/ST/women-owned and backward districts). (2) Power-cost reimbursement: ₹1–₹2 per unit consumed for 5 years. (3) Interest subsidy: 3%–9% on term loans for 3–5 years. (4) SGST reimbursement for 5–10 years. (5) Stamp-duty refund (100% for MSMEs in backward districts). (6) Enhanced incentives for SC/ST and women entrepreneurs. TS-iPASS offers guaranteed time-bound approvals.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Create a free account to view.
Subsidy providers
The Government of Telangana, formed in 2014, has rapidly built one of India's most celebrated innovation ecosystems, centred on Hyderabad. Through the IT, E&C department and the Telangana State Innovation Cell (TSIC), the state operates a connected network of incubators,…
Learn moreBenefits & Funding
What You Get
Telangana Industrial Policy 2020–25 channels incentives through the TS-iPASS single-window system. MSMEs can receive an investment subsidy of 15%–25% of Fixed Capital Investment, with higher rates for SC/ST and women-owned enterprises and units in backward districts. Power-cost reimbursement of ₹1–₹2 per unit consumed is provided for five years — a significant benefit for energy-intensive manufacturing. Interest subsidy of 3%–9% on term loans is available for three to five years. SGST reimbursement is provided for 5 to 10 years. Stamp duty is refunded at 100% for MSMEs in backward districts. SC/ST and women entrepreneurs receive additional enhanced benefits across all components. All incentives are equity-free and non-repayable.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Obtain free Udyam Registration at udyamregistration.gov.in.
Obtain free Udyam Registration at udyamregistration.gov.in.
You - 2
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Submit on the official portal
Use the official application link and verify all details before final submission.
- 2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
Who can apply for Telangana TS-iPASS incentives?
New industrial units in manufacturing and eligible service sectors that obtain clearance through the TS-iPASS single-window system are eligible. Eligible expansion and diversification of existing units also qualify for some components.
What investment subsidy is available?
MSMEs can receive 15%–25% of Fixed Capital Investment as investment subsidy. SC/ST and women-owned enterprises and units in backward districts receive higher rates. The exact percentage depends on district classification and enterprise category.
What is the power-cost reimbursement?
Eligible units receive a reimbursement of ₹1 to ₹2 per unit of electricity consumed for five years. This is particularly significant for energy-intensive manufacturing operations.
Is this scheme equity-free?
Yes. All benefits — investment subsidy, power-cost reimbursement, interest subsidy, SGST reimbursement, and stamp duty refund — are non-dilutive, non-repayable incentives.
What is TS-iPASS and why does it matter?
TS-iPASS (Telangana State Industrial Project Approval and Self-Certification System) guarantees time-bound approvals for industrial clearances. Units registered under TS-iPASS get a single-window clearance, which is also the entry point for all incentive claims.
How do I apply?
Apply through the TS-iPASS portal at ipass.telangana.gov.in. Register your project, obtain single-window clearances, and then file incentive claims with the Department of Industries and Commerce after commencement of production.
Sources
Data on this page is compiled from official program and provider references.
