Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives
Telangana: 15%–25% investment subsidy + power cost reimbursement + SGST refund for new manufacturing units.
- Funding amount
- Varies by program
- Funding type
- Subsidy
- Provider
- Government of Telangana (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Telangana Industrial Policy 2020–25 delivers a suite of financial incentives to new industrial units through the TS-iPASS single-window clearance system. Aimed at boosting manufacturing and eligible services, the policy offers investment subsidies of 15%–25% of Fixed Capital Investment, with preferential rates for SC/ST and women entrepreneurs as well as units located in backward districts. Additional benefits include power-cost reimbursement of ₹1–₹2 per unit for five years, interest subsidy of 3%–9% on term loans for three to five years, SGST reimbursement for five to ten years, and a complete 100% stamp-duty refund for MSMEs in backward districts. Expansion or diversification projects of existing units may also qualify for certain components. All incentives are non-dilutive and non-repayable, providing meaningful support without reducing the founder's equity stake.
Highlights
- MSMEs can get up to 25% investment subsidy on Fixed Capital Investment.
- Power-cost reimbursement of ₹1–₹2 per unit for five years.
- SGST reimbursement available for 5 to 10 years.
- 100% stamp-duty refund for MSMEs in backward districts.
- Enhanced benefits for SC/ST and women entrepreneurs.
- All incentives are non-dilutive — no equity taken.
Who can apply
New industrial units engaged in manufacturing and eligible service sectors that obtain clearance under the TS-iPASS (Telangana State Industrial Project Approval and Self-Certification System) are eligible. Expansion and diversification of existing units may also qualify for some incentives. Enhanced benefits are available for SC/ST and women-owned enterprises, as well as for units set up in backward districts.
Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
- Investment subsidy: 15%–25% of Fixed Capital Investment, with higher rates for SC/ST and women-owned enterprises and units in backward districts.
- Power-cost reimbursement: ₹1–₹2 per unit of electricity consumed for a period of five years.
- Interest subsidy: 3%–9% on term loans for three to five years.
- SGST reimbursement: For five to ten years, depending on the unit category.
- Stamp-duty refund: 100% for MSMEs in backward districts.
- All incentives are equity-free and non-repayable.
About the provider
Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives is offered by Government of Telangana, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.
Documents you’ll need
Before you apply to Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Frequently asked questions
Who can apply for Telangana TS-iPASS incentives?
New industrial units in manufacturing and eligible service sectors that obtain clearance through the TS-iPASS single-window system are eligible. Eligible expansion and diversification units also qualify for some components.
What investment subsidy is available?
MSMEs can receive 15%–25% of Fixed Capital Investment as investment subsidy. SC/ST and women-owned enterprises and units in backward districts receive higher rates. The exact percentage depends on district classification and enterprise category.
What is the power-cost reimbursement?
Eligible units receive a reimbursement of ₹1 to ₹2 per unit of electricity consumed for five years. This is particularly significant for energy-intensive manufacturing operations.
Is this scheme equity-free?
Yes. All benefits — investment subsidy, power-cost reimbursement, interest subsidy, SGST reimbursement, and stamp duty refund — are non-dilutive, non-repayable incentives.
What is TS-iPASS and why does it matter?
TS-iPASS (Telangana State Industrial Project Approval and Self-Certification System) guarantees time-bound approvals for industrial clearances. Units registered under TS-iPASS get a single-window clearance, which is also the entry point for all incentive claims.
How do I apply?
Apply through the TS-iPASS portal at ipass.telangana.gov.in. Register your project, obtain single-window clearances, and then file incentive claims with the Department of Industries and Commerce after commencement of production.
What documents are required to claim incentives?
After commencement of production, you must submit a CA-certified Fixed Capital Investment statement, Udyam Registration, and GSTIN to the Department of Industries and Commerce for an Incentive Eligibility Certificate.
How long does the subsidy last?
The investment subsidy is a one-time grant. Power-cost reimbursement is available for five years. Interest subsidy is for three to five years, and SGST reimbursement is for five to ten years, depending on the specific program component.
What is the application deadline for Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives?
Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives runs on a rolling basis with no fixed deadline — applications are accepted on an ongoing basis. Check the official site to confirm the window is currently open.
Is DPIIT recognition required for Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives, though having it can strengthen your application and unlock other benefits.
Who offers Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives?
Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives is offered by Government of Telangana, a government body. It is provided as non-dilutive funding.
Alternatives to Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives
Not sure Telangana Industrial Policy 2020–25 (TS-iPASS) — Incentives is the right fit, or already applied? These are other subsidies open to Indian startups that founders shortlist alongside it.
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