Incentives to Mega Projects in Bangaru Telangana

​Incentives to Mega Projects:

Mega Project is an industrial unit, which is set up with a capital investment of Rs.200 crore or more or a project that creates employment to more than 1000 persons. The Government is extending tailor-made benefits to Mega Projects to suit its investment requirements on case to case basis.

Incentives to Women Entrepreneurs:

Units established as sole proprietors of woman or having 100% share by women in Partnership/Private Limited Companies are eligible under incentives for women-owned enterprises. These enterprises are given all incentive of MSE enterprises along with an additional 10 percent investment subsidy on fixed capital investment.

Table: Incentives provided under various Schemes during 2014-15 to 2015-16

Sl. No.	Component of Subsidy	2014-15		2015-16 (up to 30.10.2015)
		Number of cases	Subsidy (Rs. in crore)	Number of cases	Subsidy (Rs. in crore)
1	Investment Subsidy	266	43	72	9
2	Sales Tax	267	130	129	210
3	Land Conversion	13	0	3	0
4	Land Cost	29	2	2	0
5	Stamp Duty	67	3	15	1
6	Mortgage Duty	5	0	3	0
7	Interest Subsidy	-	-	-	-
8	Skill Up-gradation and Training Cost	-	-	1	0
9	Pavala Vaddi	1,092	75	482	37
10	Power Cost	1,152	215	480	151
Grand Total		2,891	467	1,187	409

Source: Commissioner of Industries, Government of Telangana.

As mentioned in Table 4.8, about 2,891 incentives were availed under different schemes by the industrial units amounting to Rs. 467 crore during 2014-15 in the State. About 1,152 units availed power subsidy amounting to Rs. 215 crore and about 267 units availed reimbursement of sales tax amounting to Rs. 130 crore in 2014-15. In the financial year 2015-16, main incentives availed are reimbursement of sales tax, followed by power subsidy.

T-PRIDE Scheme for Encouraging Entrepreneurship among SCs and STs

Historically marginalized sections such as SCs and STs may not have the economic capacity to start an enterprise; they need to be supported by way of subsidies and preferences to bring them on par with the mainstream. In this direction, Government of Telangana has launched a novel scheme called T-PRIDE, extending various incentives for the encouraging establishment of new industrial enterprises by these sections. The Telangana State Programme for Rapid Incubation of Dalit Entrepreneurs (T-PRIDE) scheme is aimed at developing entrepreneurship among Scheduled Castes and Scheduled Tribes by extending following incentives:

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

• 100 percent reimbursement of Stamp duty for Lease of Land/Shed/ Buildings

• 33.3 percent rebate in land cost (limited to Rs.10 lakhs) in industrial estates / industrial parks

• 25percent land conversion charges for the industrial use (limited to Rs.10lakhs).

• Fixed power cost @ Rs. 1.50 per Energy unit for a period of 5 years.

• Seed capital assistance to first generation entrepreneurs to set-up micro enterprises @ 20percent of the machinery cost.

• 35percent investment subsidy on fixed capital Investment (limited to Rs. 75 lakh per unit). Additional 5percent investment subsidy for units set up in Scheduled Areas by ST entrepreneurs (limited to Rs.75 lakh per unit).

Other initiatives to promote entrepreneurship among the SCs and STs include allotment of land in proportion to their population share, providing investment subsidy under SC/ST Sub-plan etc. During the period from 02.06.2014 to 30.10.2015, about 1086 units started by SCs and 890 units by STs were provided with investment subsidy of Rs. Rs.51.39crore and Rs. 40.77 crore under SCSP and TSP, respectively.

Telangana State Industrial Infrastructure Corporation (TSIIC): TSIIC was established in 2004 for identifying and developing potential industrial growth centers and to develop infrastructure in these centers. Following are some of the initiatives undertaken by TSIIC:

Establishment of Hyderabad Pharma-City: A World Class ‘Pharma City’ with an estimated project cost of Rs. 13,064 crore is being developed in Rangareddy and Mahabubnagar districts. The Project is conceptualized as an integrated Pharma City, including a university, R&D Lab and Township apart from the creation of all the required common utilities like CETP, STP etc.

National Investment and Manufacturing Zones (NIMZ): The Department of Industrial Policy and Promotion, Ministry of Commerce and Industries, Government of India has accorded approval for the establishment of NIMZ project at Zaheerabad, Medak district. It is estimated that the NIMZ will generate employment to 2.4 lakh persons (direct- 96,200 and indirect-1.45 lakh) and Rs. 17,303 crore are estimated to be invested in NIMZ by the end of phase III in the year 2040.

Aerospace and Precision Engineering SEZ at Adibatla: The Aerospace SEZ at Adibatla, Ibrahimpatnam Mandal of Rangareddy is being developed hosting 10 operational units manufacturing aerospace components. The SEZ is near to the new Green Field International RGIA Airport.

Genome Valley: Genome Valley is the largest organized cluster in the country for biotechnology spreading over 1500 acres and being developed in 4 phases: Biotech Park Phase-1 at Turkapally, Biotech Park, Phase II and Park Phase II extension at Lalgadi Malakpet, and Biotech Park Phase III at Karkapatla. With a perfect blend of knowledge parks, special economic zones, multi-tenanted wet laboratories, incubation facilities, office space and outstanding support facilities, the cluster has over 150 life science companies, with direct and indirect employment strength of over 50,000 people. Biotech Park Phase – IV is being developed at Mulugu. This will provide an opportunity to more biotechnology companies to locate their manufacture/R&D facilities in this cluster and to benefit from the high-quality eco-system that has emerged.

G.Rajendera Kumar