Telangana State Specific Subsidy Benefits for MSME Units
The Government of Telangana has introduced a progressive policy framework to encourage entrepreneurship, local manufacturing, and industrial growth across the state. The Telangana MSME Promotion Policy 2024 offers a wide range of subsidy and incentive benefits to support Micro, Small, and Medium Enterprises (MSMEs) in reducing their project costs and enhancing business profitability.
At KIP Financial Consultancy Pvt. Ltd., we work closely with MSME entrepreneurs to help them understand and avail all eligible state and central subsidy benefits for their new or expansion projects.
1. Capital Subsidy
Under the Telangana MSME Promotion Policy 2024, MSME units are eligible for a Capital Investment Subsidy of 25% on fixed capital investment (covering land, building, plant, and machinery) — subject to a maximum limit of ₹30 lakh.
This benefit helps reduce the initial project cost and encourages more entrepreneurs to invest in manufacturing and processing industries within the state.
2. Additional Subsidy for Women Entrepreneurs
- Women-led enterprises (where women hold at least 51% ownership) are entitled to an additional 20% subsidy, up to ₹10 lakh.
- This step promotes women’s participation in industrial and entrepreneurial development across Telangana.
3. Expansion and Diversification Subsidy
- Existing MSME units that plan to expand or diversify their business activities can avail an additional subsidy of up to ₹20 lakh.
- This incentive helps existing industries strengthen their competitiveness and scale operations efficiently.
4. SGST Reimbursement
- Telangana offers 100% reimbursement of State GST (SGST) for the first five years from the date of commercial production.
- After adjusting the input tax credit, the SGST paid in cash is reimbursed to the enterprise.
- This reduces tax burdens and supports smooth cash flow in the initial years of business operation.
5. Power Tariff Rebate
- MSME units are eligible for a power tariff subsidy of ₹1 per unit for the first five years from the commencement of commercial production.
- This benefit helps reduce operating expenses and makes industrial production more affordable.
6. Land Conversion Fee Reimbursement
- If agricultural land is purchased and converted for industrial or business purposes, the government reimburses 25% of the land conversion fee, up to ₹10 lakh.
- This makes land acquisition and conversion more affordable for new industrial units.
7. Pollution Control Equipment Subsidy
- Telangana also encourages sustainable manufacturing by offering 25% capital subsidy, up to ₹5 lakh, on the purchase and installation of pollution control equipment.
- This promotes eco-friendly and compliant business practices.
8. Stamp Duty Reimbursement
The state provides 100% reimbursement of stamp duty paid on:
Land purchase or lease deeds for industrial use
Mortgage or hypothecation deeds for availing bank loans
This helps reduce one-time costs related to property registration and loan documentation.
9. Employment Generation Incentive
For every Telangana resident employed, entrepreneurs can claim ₹2,000 per employee as training or skill development support.
This scheme encourages job creation within the state and supports workforce development.
How KIP Can Help
At KIP Financial Consultancy Pvt. Ltd., we specialize in Subsidy Planning, Project Finance, and Viability Reports for MSME, warehousing, and agri-infrastructure projects.
Our team ensures that your business avails every eligible state and central subsidy and achieves maximum financial benefits.
Reach Us
Call Us : 8683898080
E-mail Us : sales@kipfinancial.com
KIP Financial Consultancy Pvt. Ltd.
DSB – 38, Red Square Market, Hisar – 125001 (HR)
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