HYDERABAD: Micro, Small and Medium Enterprises (MSME) industries have been given a major boost in the Budget announced by Finance Minister T Harish Rao in the State Assembly on Sunday. The allocation for incentives for industrial promotion was increased from Rs 21.55 crore to Rs 1,132 crore.
A State government official said that majority of the funds for incentives would be earmarked for MSME, with a small portion going to a few big players in the IT industry.
Overall, according to the Budget document, the establishment expenditure for Industries and Commerce department, increased from Rs 178.74 crore in 2019-2020 to Rs 329.98 crore to 2020-2021. Similarly, the allocation for scheme expenditure for the department increased from Rs 172.28 crore to Rs 1,295.36 crore this year.
While establishment expenditure gives details into spending behind salaries and allowances, scheme expenditure talks about the various schemes and proposals of the State government regarding industries. Other than that, the State government has provided estimates for assistance to Telangana Khadi and Village Industries Board, ‘prevention of sickness to SMEs’ and so on.
The Budget has also earmarked funds for extension of Pavala Vaddi scheme to all food processing units. Harish Rao said, the Budget proposed Rs 1,500 crore towards industrial incentives and Rs 1,988 crore for development of industrial sector.
He added that apart from that Rs 338 crore worth industrial incentives was given to entrepreneurs in the financial year. "A special incentive is being provided to minority industrialists in the name of TS Prime," Harish Rao said.
He also apprised about State’s TS-iPass, through which 12,427 industries obtained permission. "Through this, Telangana attracted investments to the extent of Rs 2,04,000 crore. Employment was created for 14 lakh people," he said.
Substantial decrease in funds allocated to ITEC
HYDERABAD: Despite the massive hype around the State’s IT department, there has been a substantial decrease in the allocation to this department. The allocation decreased from Rs 63.30 crore in 2019-2020 to Rs 28.05 crore this year. While T-Hub was not allocated, We-Hub got Rs 1 crore.
The establishment expenditure for Information Technology and Electronics and Communications (ITEC), was decreased from Rs 38 crore last year to Rs 2.78 crore this year. On the other hand, scheme expenditure, remained the same as last year at Rs 25.30 crore.
State government officials said T-Hub did not receive any allocation this year, and We-Hub received meagre sums as they are able to raise money by themselves and are self-sustainable. Finance Minister said, "Due to IT policy framed by the State, investments in this sector are booming."