fiscal incentives to msme and telangana govt. industrial ......• to extend investment subsidy to...

Fiscal Incentives to MSME and

Telangana Govt. Industrial

Policies

Ravikanth TataRavikanth Tata & CO., Chartered AccountantsMob: 9000 52 42 65

What is MSME?Manufacturing Sector Enterprises Investment in Plant & Machinery

Micro Enterprises:

• Does not exceed < 25 lakh rupees.

Small Enterprises:

• More than > 25 lakh rupees to < 5 Crore rupees.

Medium Enterprises:

• More than > 5 Crore rupees to <10 crore rupees.

Service Sector Enterprises Investment in Equipment :

Micro Enterprises: Does not exceed <10 lakh rupees.

Small Enterprises: More than > 10 lakh rupees but does not exceed < 2 crore rupees.

Medium Enterprises: More than > 2crore rupees but does not exceed < 5 core rupees.

T-IDEA (Telangana State Industrial Development and Entrepreneur Advancement)

incentive scheme 2014 :• Stamp duty reimbursement

• Land cost rebate

• Land conversion cost

• Power cost reimbursement

• Investment subsidy

• VAT reimbursement

• Interest subsidy

• Seed capital for 1st generation entrepreneur

• Training and skill development cost reimbursement

Quality/patent support

• clean production measures

• Reimbursement of infrastructure development costs

SPECIAL SUPPORT FOR SC/ST ENTREPRENEURS

TS-PRIDE: Telangana State Program for Rapid Incubation of Dalit Entrepreneurs

• A special direct funding program for financing SC/ST entrepreneurs

• Payment of Margin Money on behalf of the SC/ST entrepreneurs by the government

• Preferential allotment of plots in Industrial Parks• Supplier diversity opportunities in large industries• State departmental procurement policy in tune with

GOI SME procurement policy (20%)

• Intensive Entrepreneur and Skill Development programs• Subsidy eligibility if funded by CRISIL Rated NBFCs• No negative list• Interest subsidy for service sector units (except transport sector)• State supported CGTMSE-type scheme for SC/ST entrepreneurs• Organizations like the Dalit India Chamber of Commerce and

Industry (DICCI) will be involved in planning, implementing and monitoring special programs for the SCs/STs

• Representation in all district and state level committees.

SPECIAL SUPPORT FOR SC/ST ENTREPRENEURS

TS-PRIDE: Telangana State Program for Rapid Incubation of Dalit Entrepreneurs

Each of the districts of the state (excluding Hyderabad) will have one or more industrial parks exclusively for women. Organizations working for women entrepreneurs like COWE, ALEAP and FICCI-FLO will be invited to partner with the government to identify and train women entrepreneurs, get their project proposals developed, link them to financial institutions and handhold and monitor the progress of their projects.

SPECIAL ASSISTANCE TO WOMEN ENTREPRENEURS

CENTRAL GOVERNMENT INCENTIVES

As per Andhra Pradesh Reorganization Act 2014, the Central Government shall take fiscal measures, including offer of tax incentives, to the successor States, to promote industrialization and economic growth in both the States.

• 100% central excise benefit for 5 (or more) years• 100% income tax benefit for 5 years; 30% for the next

5 years• other investment subsidy benefits

• 100% reimbursement of Stamp duty and transfer duty paid by the industry on purchase of land meant for industrial use.

• 100% reimbursement of Stamp duty for Lease of Land/Shed/ Buildings and also mortgages and hypothecations.

• 25% rebate in land cost limited to Rs.10.00 Lakhs in Industrial Estates/ Industrial Parks.

• 25% Land conversion charges for industrial use limited to Rs.10.0 lakhs.


Incentive Scheme 2014 :

• Fixed power cost reimbursement @ Rs. 1.00 per unit for 5 years from the date of commencement of commercial production.

• 15% investment subsidy on fixed capital investment subject to a maximum of Rs.20.00 lakhs.

• Reimbursement of 100% net VAT/CST or State Goods and Services Tax (SGST) for a period of 5 years from the date of commencement of commercial production.



• Interest subsidy under Pavala Vaddi Scheme on the term loan taken on the fixed capital investment by New Micro and Small Enterprises in excess of 3% per annum subject to a maximum reimbursement of 9% per annum for a period of 5 years from the date of commencement of commercial production.



• Seed capital assistance to First Generation Entrepreneurs to set-up Micro Enterprises @10% of the Machinery cost, which will be deducted from the eligible investment subsidy.

• 50% Reimbursement of cost involved in skill up-gradation and training the local manpower limited to Rs.2000 per person.

• 50% subsidy on the expenses incurred for quality certification/ patent registration limited to Rs. 2.00 Lakhs.



• 25% subsidy on specific cleaner production measures limited to Rs.5.00 Lakhs.

• To extend investment subsidy to the identified service activities related to industries setup in all Municipal Corporation limits in the state.



Ravikanth TataChartered Accountant

Ravikanth Tata & COChartered AccountantsMob: 9000 52 42 65

Thank You

fiscal incentives to msme and telangana govt. industrial ......• to extend investment subsidy to...

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