SubsidyDepartment of Industries & Commerce, Government of TelanganaVerified 25 May 2026Official source

Telangana MSME Policy 2020 — Capital Investment Subsidy

The Telangana MSME Policy 2020 provides a Capital Investment Subsidy to support investments in plant, machinery, and equipment for eligible enterprises. This is designed to encourage new and existing businesses in more underdeveloped areas, with varying support levels for general, SC/ST, and women entrepreneurs.

Maximum amount
₹1.0Cr
Typical payout
₹20.0L
Processing time
8–36 weeks
Application window
Open year-round

Check if your startup qualifies for Telangana MSME Policy 2020 — Capital Investment Subsidy

Answer a few questions about your company and get a free, personalised eligibility report across all active government schemes — including TS MSME Capex.

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Eligibility criteria

Company type
Private Limited, LLP, Proprietorship, Partnership Firm
Stage
Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+)
States
Telangana
Sectors
manufacturing, food_processing, textile, chemicals, engineering, agritech, pharma, other
Prerequisites
  • Udyam (MSME) registration required

Documents required

1
Udyam Registration Certificate
Mandatory for identifying enterprise eligibility under the MSME category.
Tip: Ensure your Udyam Registration is up-to-date and accurately reflects your business details.
2
Incorporation documents (Partnership Deed, LLP Agreement, or MoA/AoA)
Necessary to prove legal formation and structure of the business entity.
Tip: Keep your incorporation documents ready and ensure they are notarized if required.
3
Land documents (Sale Deed, registered Lease Deed, or allotment letter)
Required to verify property rights for business operations.
Tip: Ensure the documents are current and registered with the appropriate authorities.
4
Detailed Project Report (DPR)
Outlines the project scope, financials, and operational plans.
Tip: Include all necessary projections and justifications for the project's feasibility.
5
Proof of loan sanction letter from a bank/financial institution
Conditional for projects relying on external funding.
Tip: Obtain this from your lender and ensure all details match your project report.
6
Invoices, receipts, and CA certified expenditure statements
Mandatory to validate investment in plant, machinery, and equipment.
Tip: Organize all financial documents and certify them with a Chartered Accountant.
7
Certificate of Commencement of Commercial Production (DCP)
Verifies the start of production to align with subsidy disbursement timelines.
Tip: Secure this certificate from your local industry office once operations begin.
8
Power allocation sanction order and initial electricity bill copy
Requires verification of operational utility services at the manufacturing site.
Tip: Ensure both documents reflect the correct business name and site address.
9
Caste Certificate (for SC/ST)
Applicable for SC/ST entrepreneurs seeking additional subsidy benefits.
Tip: Obtain this from the appropriate Telangana revenue authority.
10
Environmental clearance certificates
Necessary if prior permissions like pollution control are required.
Tip: Check with your local regulatory bodies if your project requires this clearance.

How to apply for TS MSME Capex

1
Visit the TS-iPASS portal and register a common corporate profile.Open portal
2
Log in to the entrepreneur dashboard and access the Incentives Application module.
3
Complete the application form with entity parameters and fixed capital investments breakdown.
4
Scan and upload all required documents.
5
Submit your completed claim through the system to the District Industries Centre (DIC).

Frequently asked questions

Who is eligible for TS MSME Capex?

TS MSME Capex is available to Private Limited, LLP, Proprietorship, Partnership Firm companies at the Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+) stage, across Telangana. Udyam (MSME) registration is required.

How much funding does TS MSME Capex provide?

TS MSME Capex provides up to ₹1.0Cr. Most applicants receive around ₹20.0L.

How long does TS MSME Capex approval take?

The typical processing time from submission to disbursement is 8–36 weeks.

Is TS MSME Capex currently accepting applications?

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

Do I need Udyam registration for TS MSME Capex?

Yes, Udyam (MSME) registration is required. Register at udyamregistration.gov.in before applying.

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