Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives
Government of Telangana · Central government
Telangana offers new manufacturing units a 15%–25% investment subsidy, power cost reimbursement, and SGST refund.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
About this scheme
The scheme comprises several components. Investment subsidy covers 15%–25% of Fixed Capital Investment (FCI) for MSMEs, with higher rates available for SC/ST-owned, women-owned, and units in backward districts. Power-cost reimbursement is provided at ₹1–₹2 per unit consumed for 5 years. Interest subsidy on term loans ranges from 3%–9% for 3–5 years. SGST reimbursement is available for 5–10 years, and a 100% stamp-duty refund applies to MSMEs in backward districts. Enhanced incentives are offered to SC/ST and women entrepreneurs.
TS-iPASS ensures time-bound approvals, guaranteeing a defined processing timeline for applicants.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Telangana
- New industrial units in manufacturing and eligible services, cleared through TS-iPASS. - Expansion or diversification of existing units is eligible for certain components.
How to apply
- Register the industrial project on the TS-iPASS portal (ipass.telangana.gov.in). - Furnish project particulars to secure single-window clearances, including building plan, environmental, and fire NOC, within the assured timeframes. - Receive the TS-iPASS approval along with the Investment Intention Certificate. - Begin production and satisfy the prescribed minimum FCI and employment criteria. - Submit an application to the Department of Industries and Commerce for the Incentive Eligibility Certificate, accompanied by a CA-certified FCI statement, Udyam Registration, and GSTIN. - File SGST reimbursement claims annually, following the submission of GST returns. - Present power-cost reimbursement claims to TSSPDCL/TSNPDCL, attaching monthly electricity bills and the Eligibility Certificate.
Frequently asked questions
Who can apply for Telangana TS-iPASS incentives?
New industrial units in manufacturing and eligible service sectors that secure clearance via the TS-iPASS single-window system qualify, as do certain expansions and diversifications of existing units for specific components.
What investment subsidy is available?
Investment subsidy for MSMEs ranges from 15% to 25% of Fixed Capital Investment, with higher rates applicable to SC/ST and women-owned enterprises and units in backward districts. The precise percentage is determined by district classification and enterprise category.
What is the power-cost reimbursement?
Eligible units are reimbursed ₹1 to ₹2 per unit of electricity consumed, for a period of five years. This benefit is especially relevant for energy-intensive manufacturing operations.
Is this scheme equity-free?
Yes. Every benefit under the scheme — investment subsidy, power-cost reimbursement, interest subsidy, SGST reimbursement, and stamp duty refund — is a non-dilutive, non-repayable incentive.
What is TS-iPASS and why does it matter?
TS-iPASS (Telangana State Industrial Project Approval and Self-Certification System) ensures time-bound approvals for industrial clearances. Registered units receive single-window clearance, which also serves as the entry point for all incentive claims.
How do I apply?
Apply for clearances and incentives through the TS-iPASS portal at ipass.telangana.gov.in by registering your project, obtaining single-window approvals, and submitting incentive claims to the Department of Industries and Commerce once production begins.
Details last verified on 3 August 2026. Source: the issuer's published information.