Telangana Pre-DCP Investment Subsidy

Telangana’s incentive guidelines allow first-generation promoters from SC, ST, and PwD categories to receive investment subsidy before commercial production begins. This is a departure from the usual practice, where such support is released only after a unit starts operations — a stage when these promoters often lack the funds to complete construction. The subsidy is drawn in pari-passu mode alongside the term loan.

The eligible investment subsidy is paid in three instalments: 35% as the first, 45% as the second, and the remaining 20% after commercial production starts. The first instalment is sanctioned once the term loan is approved, necessary permissions are secured, and civil work has begun. The second instalment follows completion of civil work and placement of orders for plant and machinery. The final 20% is sanctioned by the respective State or District Level Committee after production commences. Disbursal depends on budget availability under SCSP, TSP, and PwD allocations.

The scheme applies to new micro and small enterprises in manufacturing and services, excluding the transport sector and mobile or movable equipment.

- Secure approval for your term loan and all necessary project clearances. - Start civil construction and submit your claim for the first instalment through the Telangana TS-iPASS portal, attaching your caste or disability certificate. - Submit your request for the second instalment once civil works finish and orders for plant and machinery have been placed. - Approach the SLC/DLC for the remaining 20% after you commence commercial production.