INDUSTRIAL DEPARTMENT INCENTIVES-TELANGANA

The following incentives can be claimed through the online incentive application system
through the TS-iPASS portal:

 Investment Subsidy.
 Reimbursement of Stamp Duty, Transfer Duty, Mortgage Duty, Land Conversion charges,
Reimbursement of Land Cost purchased in IE / IDA / IE.
 Reimbursement of Power Tariff.
 Reimbursement of Interest Subsidy under Pavala Vaddi (25 paisa interest)scheme.
 Reimbursement of Sales Tax.
 Grant of seed capital assistance.
 Reimbursement of certification charges for acquiring quality certification.
 Reimbursement of cost of equipment purchased for cleaner production measures.
 Reimbursement of cost involved in skill upgradation and training.
 Sanction of Industrial Infrastructure fund (IIDF).
 Advance Subsidy claim for SC, ST & PHC enterprises. (If the applicant caste is SC/ST)

Procedure for filing of incentive applications:

S.No. Nature of claim Filing period Supporting documents

• All documents as per check slip

Within 6 months of Date of • Civil engineers certificate as per
Investment Subsidy (one
1.
time claim)
Reimbursement of Stamp
2.
Duty etc., (one time claim)
Reimbursement of Power
3.
Tariff (5 years from DCP)
Reimbursement of Interest
4. Subsidy under Pavala Vaddi
scheme(5 years from DCP)
commencement of format
production (DCP) • Statement of accounts in respect
of aided enterprises as per format
• All documents as per check slip
Within 6 months of DCP • Attested copy of registered docs
• Attested Copy of payment proof
• All documents as per check slip
during 1st claim
• Power utilization particulars of
Within 6 months after previous 3 years certified by CA
i.r.o expansion / diversification
completion of every half
During subsequent claims
year (F.Y)
• Attested copy of power bills
• Attested receipts from DISCOM
• Self certification as per format
• Attested copy of Valid CFO
• All documents as per check slip
Within 6 months after during 1st claim
completion of every half • Certificate from Financial
year (F.Y) institution in prescribed format
• Attested copy of Valid CFO
 • All documents as per check slip
Within 6 months after during 1st claim
Reimbursement of Sales Tax
5. completion of every half • Form A issued by the concerned
(5 years from DCP)
year (F.Y) authority
• Attested copy of Valid CFO
• All documents as per check slip
Grant of seed capital Within 6 months from date • Sanction letter of term loan and
6.
assistance of sanction of term loan seed capital loan from Financial
Institution
• Certificate from GM, DIC
confirming functional status at the
time of acquiring ISO 9000 / ISO
14001 / HACCP Certificate
• Attested copy of the quality
Within 6 months from certificate acquired
Reimbursement of
7. obtaining quality • Certificate from CA of
certification charges
certification expenditure incurred giving the
details along with bills, vouchers
and proof of payment
• Undertaking / Declaration from
the Managing Director / Proprietor
/ Partner duly notarized
• All documents as per check slip
• Valid CFO
Reimbursement of cost of • Original bills & payment proof
equipment purchased for certified by Financing institution /
8. Within 6 months of DCP CA in case of self financed
cleaner production
measures • Certificate from TSPCB on the
cleaner production measures
adopted with certified copy and
list of equipments
• All documents as per check slip
• Copy of certification of institute
Reimbursement of cost Within 6 months from along with the list of participants
9. involved in skill up gradation completion of training with their signature
and training program • Original bills & payment proof
certified by the training institute
• Details of employees trained as
per format
• All documents as per check slip
Sanction of Industrial Before DCP or within 6
10. • Copy of the Project & its
Infrastructure fund (IIDF) months from the DCP
approval report
 • All documents as per check slip
• Electrical feasibility certificate
After sanction of term loan • Proof of own capital invested
Advance Subsidy claim for
11. by the Financing institution • Proof of borrowed capital from
SC, ST & PHC enterprises
Twice prior to DCP outside
• Term loan release statement as
per format

Application for Incentives

 The proponent shall obtain Udyog Aadhar after the Date of Commencement of
Production in their industry/establishment.
 The proponent Can apply for the incentives through TS-iPASS online portal
(https://ipass.telangana.gov.in).
 The common application with all the required documents and information is submitted.

Processing of the Application

 Following the submission of the application, it will be forwarded to the respective GM,
DIC.GM-D. Prashanth Kumar
Mobile 8008059429
Near R&D Office Sangareddy)
The GM will conduct pre-scrutiny of the application and raise queries, if any.
 Then an inspector will be assigned to conduct inspection of the unit and to provide
recommendation.
 After that, the application along with recommendation of the inspector will be
submitted for further processing to the GM, DIC.
 For applications from manufacturing Industries with investment in of less than 25 lakh in
machinery and for services industry with investment of less than 10 lakh in equipment, the
application will be sent to the District Level Committee and all the other cases will be sent
to State level committee by the GM, DIC.

District Level Case

 In case of District level applications, the application will be placed in-front of the DIPC
for approval.
 Based on the application and recommendation from the inspection, the DIPC will take a
decision in the meeting and the minutes will be Communicated to the Commissioner of
Industries (CoI).
 After the minutes are communicated, the sanction letter will be issued to the
proponent.
 Commissioner of Industries will maintain a seniority list for release of the incentives.
Separate list for Power/ Pavala Intrest and others will be maintained. Also separate list for
SC/ST for Service/Manufacturing and passenger vehicles.
State Level Case

 For state level applications, it will be forwarded to Joint Director, Commissionerate of

Industries where all shortfalls will be obtained.
 The document will then be forwarded to Additional Director, who in turn will put up the
application in front of the Scrutiny cum Verification Committee (SVC). The SVC will meet
and scrutinize the application.
 If the application is found to be in order then it is placed in front of SLC for approval with
the recommendation of the SVC.
 SLC will approve the application based on the recommendations received. Once
approved, the sanction letter will be issued.
 After the sanction letter is issued, the release proceeding will be prepared .
 The seniority list of all sanctioned incentive applications will be maintained by COI for
release of the incentives. Separate list for Power/ Pavala and others will be maintained.
Also separate list for SC/ST for Service/Manufacturing and passenger vehicles.

Release Process:

 After the list is created, the Budget release order/ Administrative Sanction will be
granted by the Government.
 Based on the list the senior-most industrial units will be identified for disbursement of
incentives.
 The details of the selected units will be sent to the respective GM, DIC for verification of
running status of the unit.
 GM, DIC then shares the running status to the CoI recommending for release of funds.
 Then the incentives are disbursed through online to the Bank account submitted by the
applicant.

Checklist of Documents for Submission with Application:

(Approval Certificates need to be uploaded, if the applicant has not received them through TS-
iPASS)

 Certificate from the financing institution concerned showing term loan released and the
value of assets acquired as on prior to filing of claim/within 6 months from the date of
commencement of commercial production whichever is earlier together with other details
and machinery statement as a statement of account in the form prescribed with attested
copies of bills in case of institutionally financed Enterprises/industries (OR) List of Plant &
Machinery & Equipment purchased and installed in the prescribed form with attested
copies of bills and payment proof in respect of self financed Enterprises/industries.
 Caste Certificates issued by Tahsildar/ M.R.O's concerned in case of SC/ST Entrepreneur.
 Aadhar of the Entrepreneur.
 PAN Card of the Entrepreneur.
 Certificate from the Chartered Accountant and % of holding of equity in the company by
each partner/director.
 Regd. Partnership Deed/Articles of Association and Memorandum of Association in case
of Pvt. Ltd and Limited companies along with incorporation certificate / Bye-laws in case of
Indl. Cooperative along with Registration Certificate.
 Approval of Director of Factories.
 Boilers Certificate.
 Approval of Director of Town & Country Planning / UDA.
 Regular building plans approval of Municipality or Gram Panchayat.
 Consent for Operation from TSPCB/Acknowledgement from the General Manager, DIC
concerned.
 Power release Certificate from TSTRANSCO/DISCOM.
 Environmental clearance.
 EM Part – I full set/IEM/IL.
 Udyog Aadhar.
 Project Report.
 Term loan sanction letters.
 Board Resolution authorizing to sign and file claim etc., in case of Pvt./Ltd., Companies,
Cooperatives and similar authorization in respect of partnership firms.
 Registered land Sale deed/Premises Lease deed.
 C.A. and C.E. Certificate regarding 2nd hand plant & machinery.
 C.E. Certificate for Self fabricated machinery.
 BIS Certificate.
 Drug License.
 Explosive License.
 VAT/CST/GST Certificate.
 Production particulars for the last 3 years as per fixed capital investment and Line of
Activity of the application duly certified by CA for the 1st time of the claim, if it is
expansion / diversification project.
 RTA Certificate.
 Undertaking and Finance Certificate Prescrbed Format.
 Photo of the applicant along with the equipment in respect of mobile units.

Timelines for Incentive Sanction and Disbursement Process

 Issue of acknowledgement/ intent letter : 7 days.

 Issue of sanction letter : 30 days.
 Release of Subsidy : within 15 days from the issue of Letter of credit (LoC).