Telangana Launches Comprehensive MSME Policy for Growth

September 20, 2024

The Telangana government has launched the MSME 2024 policy to help micro, small, and medium enterprises (MSMEs) overcome key challenges. These challenges include access to land, finance, raw materials, skilled labor, market access, and technology. This policy was introduced by Chief Minister A. Revanth Reddy and it is the first major initiative for MSMEs since he became Chief Minister in December 2023.

Key Objectives of the MSME 2024 Policy

The main goal of this policy is to close the gaps in the TS-iPASS framework (a system for approving industrial projects in Telangana) and to give MSMEs complete support, from the start of their business to sell their products. The policy has 40 different measures aimed at helping businesses grow and succeed.

Land Access Initiatives

One big challenge for MSMEs is finding affordable land. To address this:

Five out of ten new industrial parks will be set aside just for MSMEs.
One park will be reserved for women-owned MSMEs, and another will focus on innovative start-ups.
5% of plots in these parks will be reserved for women entrepreneurs, and 15% for SC/ST entrepreneurs (people from Scheduled Castes and Scheduled Tribes). SC/ST entrepreneurs will also get a 50% discount on land costs.

Financial Support Measures

The policy includes several financial help options to reduce money-related challenges:

SC/ST entrepreneurs will get a 50% subsidy on their capital investments, up to ₹1 crore.
Other MSMEs will receive a 25% subsidy, up to ₹30 lakh.
Women entrepreneurs can get an extra 20% subsidy, up to ₹20 lakh.

Growth Acceleration Initiatives

To help MSMEs grow, the policy will:

Set up ten common facility centers in different districts to provide shared resources.
Build testing centers and warehouses with private investors. These investors will receive discounts and rebates to encourage their participation.

Technological Advancements

To promote the use of modern technology, the policy will:

Establish a ₹100 crore Yantram Fund for MSMEs to help them adopt new technologies.
Require the government to purchase 25% of its supplies from MSMEs.
Provide reimbursements for MSMEs that purchase digital technology in bulk and for intellectual property rights (IPR) registration costs.

Focus on Women’s Empowerment

The policy puts special emphasis on women-owned enterprises, including:

Reserved plots for women in industrial parks.
Additional financial support for women-owned businesses, along with reimbursement for importing technology.

The Telangana MSME 2024 policy is a well-rounded plan designed to support MSME growth by making it easier for them to get land, funding, and technology. It also focuses on helping women entrepreneurs and marginalized communities, aiming for inclusive growth and economic progress.

About the Telangana Government

Telangana, established in 2014, is the youngest state in India, formed from the state of Andhra Pradesh. The capital of Telangana is Hyderabad, a major center for technology and pharmaceuticals, often called “Cyberabad.” Telangana is home to the world’s largest irrigation project, the Kaleshwaram Lift Irrigation Scheme, and celebrates the unique Bathukamma festival, which honors nature and womanhood. The state’s official language is Telugu, and it has a rich cultural heritage, including the famous Kuchipudi dance. The state also supports financial inclusion through schemes like Rytu Bandhu, which provides financial assistance to farmers.

« Previous Post Next Post »