MySubsidy

Telangana Land Conversion Charges Reimbursement

Commissionerate of Industries, Government of Telangana · Central government

Telangana's MSME Policy 2024 reimburses 25% of land conversion charges for industrial use to MSMEs, up to ₹10.00 Lakh.

Open, rolling. Applications are accepted continuously — there is no deadline.

Key facts

Subsidy amount
Up to ₹10,00,000
Instrument
Subsidy
Deadline
Rolling
Disbursement
Reimbursed after spend

About this scheme

The Land Conversion Charges Reimbursement scheme falls under the Telangana MSME Policy 2024. It addresses a specific cost that Micro, Small, and Medium Enterprises (MSMEs) face: the charges levied when agricultural land is converted to non-agricultural land for industrial use. By reimbursing these charges, the scheme reduces one of the upfront expenses involved in setting up or expanding an industrial unit.

The Government of Telangana operates this incentive to encourage MSMEs to establish or grow their operations within the state. Lowering this particular entry cost is intended to support local manufacturing, generate employment, and contribute to the state's economic development.

The reimbursement works directly, simplifying how businesses obtain and ready land for industrial purposes. This makes Telangana a more viable option for industrial investment, especially for smaller enterprises.

Who can apply

Eligible business forms
Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
Udyam registration
Not specified
MSME registration
Required
DPIIT startup recognition
Not specified
GST registration
Not specified
Where the business may be based
Telangana

- The applicant must be a Micro, Small, or Medium Enterprise (MSME) as defined under the MSME Development Act, 2006. - The land in question must be located in Telangana and be intended for conversion from agricultural to non-agricultural use for industrial purposes.

How to apply

The Land Conversion Charges Reimbursement is availed as an incentive under Telangana's larger MSME Policy - 2024. The application process generally consists of the following steps:

- **Review the Official Guidelines:** To begin with, applicants need to read the 'Incentives guidelines-Final Version.pdf' document in full, as it sets out the exact instructions, eligibility criteria and documentation requirements. This document is the authoritative reference for how to apply. - **Prepare Documentation:** Assemble every document required, which includes proof of MSME registration, land ownership papers, evidence of payment made towards converting land from agricultural to industrial use, and any further forms or affidavits stipulated in the guidelines. - **Submit Application:** As a rule, applications are filed with the concerned district industry center (DIC) or the department of the Government of Telangana designated for this purpose under the policy. Whether submission happens through an online portal or in physical form will be specified in the official guidelines. - **Verification and Approval:** The authorities examine the application and the accompanying documents as part of a verification process. After verification and approval are complete, the reimbursement amount is taken forward for processing. - **Disbursement of Funds:** Once final approval is granted, the 25% reimbursement, subject to a ceiling of ₹10.00 Lakh, is disbursed to the eligible MSME.

Apply on the issuer's site

Frequently asked questions

What is the purpose of the Land Conversion Charges Reimbursement scheme?

The scheme reimburses part of the cost MSMEs in Telangana incur when converting agricultural land to non-agricultural land for industrial use, thereby lowering their financial burden and supporting industrial growth in the state.

Who is eligible to claim this reimbursement?

MSMEs registered and operating in Telangana may claim the reimbursement if they convert agricultural land to industrial use in line with state regulations.

What is the maximum reimbursement amount an MSME can receive?

An MSME that qualifies can claim back 25% of its land conversion charges, capped at ₹10.00 Lakh per enterprise.

What type of land conversion is covered under this scheme?

The scheme covers land conversion charges incurred when agricultural land is converted for non-agricultural use, provided that use is for industrial development.

Is this a grant or a loan?

The funds are provided as a reimbursement, which counts as a subsidy or grant, so they are equity-free and need not be repaid.

How can an MSME apply for this reimbursement?

MSMEs should consult the 'Incentives guidelines-Final Version.pdf' on the Telangana Industries Department website, then apply through the channels set out in the policy, attaching proof of the land conversion charges paid and their MSME registration details.

Sectors

  • Msme
  • Telangana
  • Industrial Land
  • Incentive
  • Reimbursement

Details last verified on 16 September 2026. Source: the issuer's published information.