HYDERABAD: Despite attracting a substantial Rs 2.6 lakh crore worth of investments since 2014, the Telangana government is yet to provide subsidy incentives amounting to Rs 3,300 crore to Micro, Small and Medium Enterprises (MSMEs). This delay of over six years has severely impacted more than 15,000 industries, primarily micro-enterprises. These enterprises, which predominantly deal with engineering products and components, were anticipating these incentives to enhance their performance.
Industry leaders have been urging the State government to fulfil its promises of offering subsidy incentives related to power, land, investments, and ‘pavalla vaddi’ over the past six years. “We request the State government to clear the subsidy due to 15,000 MSMEs as their situation went from bad to worse after the Covid-19 pandemic,” an industrialist said.
M Ramana Reddy from Laxmi Industries in Pashamylaram said that after the pandemic, the costs of raw materials and bank interest rates have surged. He emphasised that the release of the long-awaited subsidy dues by the State would play a pivotal role in helping micro-industries repay bank loans and secure essential raw materials.
“The State government has released Rs 900 crore (towards subsidy incentives) in March, but many of us are waiting for the remaining subsidies,” he said.In contrast, small and medium enterprises in the manufacturing sector in the State have demonstrated resilience, rebounding strongly from the challenges posed by the pandemic.
Notably, industries related to automobile components, plastics, pharmaceuticals, aeronautical & defence, as well as sectors such as IT&ITeS, tourism and entertainment have experienced significant growth in Telangana, said Srinivas Garimella, chairman of the Industrial Development Committee at the Federation of Telangana Chambers of Commerce and Industry (FTCCI).
In terms of employment, the State’s manufacturing and service sectors collectively employ around 17.8 lakh individuals, according to the TS-iPASS (Telangana State Industrial Project Approval and Self-Certification System) portal. This workforce is distributed across more than 23,000 industries, with the manufacturing sector leading with 21,304 industries.
Since the formation of Telangana, the State has witnessed a surge in investment, particularly between 2016 and 2019. The year 2017–18 stood out as the most promising for industries, with a substantial Rs 57,866 crore investment flowing into the State. Although there was a dip in investment during 2020–21 and 2021–22 due to the pandemic, the State managed to recover in 2022–23 and attracted investments worth Rs 26,568 crore.
