Hyderabad: With yet another budget around the corner, Telangana Inc has urged the state govt to clear the pending dues of incentives and subsidies that were promised to investors under the T-IDEA and T-PRIDE industrial policies. These dues have piled up to over 3,000 crore over the years and are hampering the competitiveness of Telangana Inc, especially its micro, small and medium enterprises (MSMEs), that are considered the backbone of the economy.
Pointing out that many investors and entrepreneurs set up their facilities in the state based on the incentives promised, Federation of Telangana Chambers of Commerce & Industry (FTCCI) president Suresh Kumar Singhal said investors factored in these incentives to buy larger capacity machines and finalise their working capital requirements.
“Not receiving their incentives and subsidies since 2015 sent their financial planning awry, adding to their woes, particularly at a time when markets were unpredictable, firstly due to Covid-19 and later due to the worsening geopolitical situation,” Singhal said.
Agreeing, Confederation of Indian Industry’s (CII) newly elected Telangana council chairman Sivaprasad Reddy Rachamallu said the incentives were pending for such a long time that most players almost lost all hope of ever getting them.
“MSMEs are definitely badly affected as they take these incentives into account as part of their project cost, and when they don’t come as per schedule, the project gets affected, and they have to put in their own funds,” said Reddy, who is also the managing director of Rachamallu Forgings Private Limited, an MSME unit.
Singhal also pointed out that though the current dispensation released around 440 crore towards pending subsidies and incentives in Feb 2025, since then, some amount may have got added to the outstanding amount due to new projects coming up.
