Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives
Government of Telangana · Central government
Telangana provides 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
**Key components:**
- **Investment subsidy:** 15%–25% of FCI for MSMEs, with a higher rate for SC/ST-owned and women-owned units and for those in backward districts. - **Power-cost reimbursement:** ₹1–₹2 per unit consumed, for 5 years. - **Interest subsidy:** 3%–9% on term loans, for 3–5 years. - **SGST reimbursement:** for 5–10 years. - **Stamp-duty refund:** 100% for MSMEs in backward districts. - **Enhanced incentives:** available to SC/ST and women entrepreneurs.
TS-iPASS provides approvals within guaranteed time limits.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not specified
- 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, eligible for some components
How to apply
1. Register the industrial project on the TS-iPASS portal at ipass.telangana.gov.in. 2. Submit project details so that single-window clearances — building plan, environmental, fire NOC and others — are issued within the guaranteed timelines. 3. Secure the TS-iPASS approval along with the Investment Intention Certificate. 4. Begin production and satisfy the minimum FCI and employment thresholds. 5. Approach the Department of Industries and Commerce for the Incentive Eligibility Certificate, attaching a CA-certified FCI statement, Udyam Registration and GSTIN. 6. After filing GST returns, lodge annual SGST reimbursement claims. 7. Send power-cost reimbursement claims to TSSPDCL/TSNPDCL, enclosing monthly electricity bills and the Eligibility Certificate.
Frequently asked questions
Who can apply for Telangana TS-iPASS incentives?
Manufacturing and eligible service-sector units that secure clearance via the TS-iPASS single-window system can apply, and certain components are also open to eligible expansion and diversification of existing units.
What investment subsidy is available?
MSMEs are eligible for an investment subsidy of 15%–25% of Fixed Capital Investment, with higher rates available to SC/ST and women-owned enterprises and to units located in backward districts. The applicable percentage varies according to the district classification and the category of the enterprise.
What is the power-cost reimbursement?
Energy-intensive manufacturing benefits most, as qualifying units are reimbursed ₹1 to ₹2 for every unit of electricity consumed, over a five-year period.
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 provides time-bound industrial clearances through a single-window system, and registration under it is mandatory for any unit seeking to claim incentives.
How do I apply?
Apply via the TS-iPASS portal at ipass.telangana.gov.in: register your project and secure single-window clearances, then file incentive claims with the Department of Industries and Commerce once production has commenced.
Details last verified on 14 September 2026. Source: the issuer's published information.