SubsidyInformation Technology, Electronics & Communications (ITE&C) Department, Government of TelanganaVerified 25 May 2026Official source

Telangana IT Policy 2021 — Capital Investment Subsidy

The Telangana IT Policy 2021 offers a Capital Investment Subsidy up to ₹40 Lakhs for the first three registered IT/ITeS MSMEs in Telangana. This scheme aims to support early-stage growth of companies by covering capital investment in infrastructure and utilities.

Maximum amount

₹40.0L

Typical payout

₹30.0L

Processing time

6–24 weeks

Application window

Open year-round

Check if your startup qualifies for Telangana IT Policy 2021 — Capital Investment Subsidy

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Eligibility criteria

Company type: Private Limited, LLP
Stage: Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+)
States: Telangana
Sectors: saas, ai, fintech, healthtech, edtech, iot, deep_tech, bpo, ites

Documents required

Certificate of Incorporation / Business Registration

Certificate confirming the legal registration of the company, mandatory for proving eligibility.

Tip: Register your business with the appropriate state or national authority to obtain this document.

Permanent Account Number (PAN)

The PAN is mandatory for tax-related identification, required for all financial transactions.

Tip: Apply through the official NSDL or UTIITSL websites to obtain a PAN card.

Valid GST Registration Certificate

Proof of GST registration, necessary for companies to confirm their financial compliance.

Tip: Ensure GST returns are updated for smooth processing.

Certified proof of commencement of commercial operations or production

Mandatory document proving that the company has begun operations or production activities.

Tip: Keep records of invoices or contracts linked to the start of commercial activities.

Audited Balance Sheets and Financial Statements

Mandatory financial documents verifying the company's accounts for the year of capital deployment.

Tip: Engage a certified auditor to prepare and verify these documents.

Land Sale Deed or Registered Premises Lease Deed

Proof of property ownership or leased premises, mandatory for subsidy eligibility.

Tip: Ensure deeds are duly registered with the local authorities.

Itemized list of purchased plant, machinery, hardware, and equipment with matching invoices

Detailed and mandatory list of capital items purchased, required with supporting invoices.

Tip: Maintain a detailed spreadsheet matching purchase orders with invoices.

Power Release Certificate and initial electricity bills

Mandatory document from DISCOM highlighting the initial power connection setup.

Tip: Request this certificate from your local electricity provider post installation.

Term Loan Sanction Letters

Conditional document required if the capital infrastructure was financed through loans.

Tip: Obtain a copy of this letter from your bank if applicable.

Chartered Engineer (CE) Certificate

Conditional for self-fabricated equipment; verifies custom hardware configurations.

Tip: Engage a certified Chartered Engineer to assess and certify equipment as required.

Production and deployment particulars for the previous 3 years

Conditional if claiming as expansion/diversification; provides historical production details.

Tip: Compile and verify historical production data for past three years if applicable.

Board Resolution authorizing a designated executive

Conditional if required by the company structure to authorize subsidy claims.

Tip: Draft through the board and ensure it is signed by all required board members.

How to apply for TS IT Capex

Complete the institutional investor profile and obtain login credentials.

Fill out the Capex Subsidy Application Form and upload the mandatory documents.Open portal

Submit the formal project report detailing fixed asset allocation along with the application.

Frequently asked questions

Who is eligible for TS IT Capex?

TS IT Capex is available to Private Limited, LLP companies at the Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+) stage, across Telangana.

How much funding does TS IT Capex provide?

TS IT Capex provides up to ₹40.0L. Most applicants receive around ₹30.0L.

How long does TS IT Capex approval take?

The typical processing time from submission to disbursement is 6–24 weeks.

Is TS IT Capex currently accepting applications?

Yes, TS IT Capex is currently active and accepting applications. Application window: Open year-round.

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Information is based on publicly available scheme guidelines. Last verified 25 May 2026. Always verify with official sources before applying.