State Profile of Telangana

• Telangana State food processing policy & T-IDEA

• Telangana State Food Processing Society

• Single Window clearance(http://industries.telangana.gov.in/SWCInterduction1.aspx)

Creation, Modernization and Expansion of Food Processing Units

• Food processing industry would be granted the status of a seasonal industry and would be eligible to get relief from minimum electricity demand charges during the closure period.

• Food processing industries will be eligible for electricity duty exemption for captive power plants for self use for a period of 5 years from commencement of commercial operation.

For units established in the Special food processing

• Power rebate of Rs. 2 per unit for 5 years

MSME

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

Medium Enterprises & Large Industries

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

Units established by SCS, STS and Minorities

• Capital grant of 15% upto Rs 20 lakh (over and above any capital grant available from MoFPI and/or state industrial policy).
• Land cost rebate of 33% upto Rs 20 lakhs.

Units established by SHGS and FPOS

• Capital grant of 15% upto Rs 1 Crore (over and above capital grant available from MOFPI) and/or state Individual policy.
• Land cost rebate of 33% upto Rs 20 lakhs. Land cost rebate of 25% shall be extended for the first 20 % plots as early bird

MSME

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

Medium Enterprises & Large Industries

• 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 only for Medium Enterprises.

Creation, Modernization and Expansion of Food Processing Units

• Government of Telangana would incentivize development of new food processing units as well as modernization and expansion of existing food processing units in the state with Grant-in-aid of 35% of project cost up to Rs. 4 crores

Development of Processing Clusters in the State

• Units developed in the identified cluster would be eligible for grant-in-aid of 35% of project cost up to Rs. 10 crores

Development of New Food Parks and Promotion of New and Existing Food Parks

• Government would also support food parks with capital subsidy of 50%. The maximum limit of the grant will be evaluated on a pro-rata basis at the rate of Rs. 1 crore per acre subjected to an upper cap of 50 crores depending upon land size for areas where such project would enable development of a crucial cluster

Development of Logistics and Supply Chain Infrastructure for Food Produce

• Grant-in-aid of 35% of project cost up to Rs. 10 crores for for silos, warehouses, packhouses, cold storage, pre-cooling units etc. in identified areas
• Grant-in-aid of 50% up to Rs. 10 crores for frozen storage, deep freezers, vapor treatment facilities and irradiation facilities
• All food processing units and preservation facilities would be eligible for 50% grant up to Rs. 5 lacs for participating in domestic and global best practice certifications subjected to uninterrupted compliance to certification requirements. List of eligible certifications would be mentioned in the detailed guidelines.

Support for Mega Projects in food Processing Industries

• In order to promote mega projects which bring in technology expertise and extensive backward and forward linkages, any project with net capital investment in plant and machinery more than Rs. 100 crore or providing employment to more than 1,500will be considered a Mega project. These projects will be eligible for tailor made incentives as per the provisions of Telangana state industrial policy

For units established in the Special food processing zones
Interest subvention of 75% of the total interest payable on the term loan of the unit, not exceeding a total of Rs 2 Crores.

Units established by SCS, STS and Minorities
0% Interest subvention of the interest payable on term loan (over and above 75%), total not exceeding Rs 2 Crores

Units established by SHGS and FPOS
10% interest subvention of the Interest payable on term loan (over and above 75%), total not exceeding Rs 2 Crores

MSME
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.

MSME

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

Medium Enterprises & Large Industries

• 100% reimbursement of Stamp duty and transfer duty paid by the industry on purchase of land meant for industrial use.
• Reimbursement of 75% net VAT/CST or State Goods and Services Tax (SGST) for a period of 7 years from the date of commencement of commercial production for Medium Scale Enterprises or up to realization of 100% fixed capital investment, whichever is earlier.
• Reimbursement of 50% net VAT/CST or State Goods and Services Tax (SGST) for a period of 7 years from the date of commencement of commercial production for Large Scale Industries or up to realization of 100% fixed capital investment, whichever is earlier.

Not Applicable

Not Applicable

For units established in the Special food processing zones

• 100% reimbursement of APMC fee for 7 years.

Government of Telangana through an empowered cabinet sub-committee shall offer tailor made Incentives to the following food processing and/or retall projects:

• Total fixed capital investment in plant and machinery of more than Rs 100 Crore.
• Direct employment of more than 1,000 persons.
• Total procurement of raw material from Telangana of more than Rs 500 Crore per annum.
• Total procurement of more than Rs. 100 Crore per annum from enterprises of state's SHGS, and FPOS.

MSME

• 50% Reimbursement of cost involved in skill upgradation 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

Medium Enterprises & Large Industries

• 50% Reimbursement of cost involved in skill upgradation 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 only for Medium Enterprises.
• 25% subsidy on specific cleaner production measures limited to Rs.5.00 Lakhs.
•  Infrastructure like roads, power and water will be provided at door step of the industry for standalone units by contributing 50% of the cost of infrastructure from IIDF with a ceiling of Rs.1.00 Crore, subject to (a) the location should be beyond 10 kms from the existing Industrial Estates/IDA’s having vacant land/shed for allotment and (b) cost of the infrastructure limited to 15% of the eligible fixed capital investment made in the ind