Telangana Electronics Policy
The Telangana Electronics Policy (originally introduced in 2016, updated recently through 2025):
Objective & Scope
Promote Electronics System Design & Manufacturing (ESDM), ranging from mobile & consumer electronics to semiconductors,
LEDs, medical devices, aerospace electronics, and EV-related electronics.
Position Telangana as a global electronics hub, targeting mega-projects and cluster development.
Key Financial Incentives
- Capital Subsidy
Core/Mobile/Consumer Electronics: 20% reimbursement (cap ₹2–15 Cr).
LED/PCBA: 20–25%, cap ₹2–5 Cr.
Mega Projects: Customized up to 20%, cap ₹30 Cr.
- Land & Rental
Land rebate: 60% discount on market price.
Lease rental subsidy: 25% for 10 years (caps vary)
- SGST/VAT Reimbursement
100% net SGST reimbursed:
5 years for MSMEs (cap ₹5 Cr),
7 years for medium/large/mega units.
- Power & Electricity Duty
Power subsidy: 25% for 3 years or ₹30 L cap.
Electricity duty waiver: 100% for 5 years (₹50 L cap).
- Transport
Freight subsidy: 60% in Year 1, tapering 10% annually, over 5 years (cap ₹5 Cr).
- Stamp Duty & Fees
100% reimbursement on first transaction, 50% on second.
- Quality, Patent & Certification
Certification cost: 50% reimbursed (cap ₹2 L).
Patent filing support:
50% (₹2 L) for core/consumer/LED/PCBA,
100% up to ₹5 L for mobile, mega, strategic electronics.
- Skill & Cleaner Practices
Funds for skill development (via TASK).
Cleaner production grants: 25% up to ₹5 L.
Exhibition support: 50% cost up to ₹5 L.
Cluster & Infrastructure Support
Development of Electronics Manufacturing Clusters (EMCs), hardware parks, and an upcoming 1,000-acre "Electronic City" near Hyderabad.
Infrastructure support includes plug-and-play facilities, reliable power, and common facilities centres.
In a Nutshell
Telangana’s Electronics Policy offers a comprehensive incentives package including:
Incentive Type |
Coverage & Duration |
Capital Subsidy |
20–25%, up to ₹30 Cr (custom projects) |
Lease Rental |
25% for 10 years |
SGST/VAT Reimbursement |
5–7 years, up to ₹5 Cr |
Power & Electricity |
25% power subsidy + 100% duty waiver |
Transport |
60% subsidy tapering over 5 years |
Stamp Duty / Fees |
Full/half reimbursement |
Quality & Patent |
50–100% reimbursement |
Skill & Green Practices |
Grants for training and clean tech |
Added perks: Cluster development, single-window approvals (TS-iPASS),
equity support for women & SC/ST entrepreneurs, and tailored mega-project incentives.of the Telangana Clean & Green Energy Policy (also known as the Energy Policy 2025):
Renewable Energy Targets
- Add 20,000 MW of renewable power capacity (solar, wind, hydro, energy storage) by 2030, with further expansion to 40,000 MW by 2035
- Increase total renewable & storage capacity from ~11,400 MW (as of early 2025) to over 30,500 MW by FY2030 and ~47 GW by FY2035
Strategic Focus Areas
- Massive development of grid-scale solar (including floating solar), wind, pumped hydro storage, battery energy storage systems (BESS), and hybrid RE projects
- Promotion of green hydrogen production and refuelling infrastructure
- Expansion of electric vehicle (EV) charging stations: 6,000 by FY30 and 12,000 by FY35
Incentives & Subsidies
- 100% reimbursement of Net SGST, stamp duty, T&D charges, and electricity duty for eligible projects
- No NOC required from Pollution Control Board; water charges reimbursed for solar plants
- Land incentives: Free lease or lease at nominal rates; land reclassified as non-agricultural
- Manufacturing incentives: Reimbursements for solar-panel, turbine, BESS manufacturing units
- Support for rooftop solar, community solar plants (500 kW–2 MW) via self-help groups
Regulatory & Institutional Framework
- Single-window clearances through TS iPASS and TGREDCO/TGGENCO support
- Projects must be completed within 2 years of allocation or PPA award
- Grid and EV infrastructure modernization: 250 MW/500 MHz BESS at Shankar ally; solar along ORR; smart poles; underground cables in Hyderabad
Checklist for Subsidies
- Company PAN
- Plant and Machinery statement and Machinery Invoices
- PAN & Aadhar Card of the Entrepreneurs
- 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
- Factory License, Plan Approval from Director of Factories
- Factory/Building Plan approval from DTCP / UDA / IALA
- Consent for Operation from TGPCB / Acknowledgement from the General Manager, DIC Concerned
- Power Release Certificate from TGTRANSCO/DISCOM
- Udyam Certificate
- Project Report
- Term Loan Sanction Letters and Loan Account Statement
- Board Resolution authorizing to sign and file claim, etc., in case of Pvt./Ltd., companies, partnership firms
- Registered Land Sale Deed / Lease Deed (10 Years)
- GST Certificate
- First Sale Bill
- Form – B
- Civil Valuation Certificate
- Land Payment Proof (if it is a Sale Deed)
- Boiler Certificate, if any