Telangana unveils MSME 2024 policy

The policy focuses on addressing six key areas: land acquisition, finance, raw materials, skilled labour, market access, and technology.

Hyderabad: Chief Minister A Revanth Reddy on Wednesday launched the Telangana MSME 2024 policy, for which the government has allocated Rs 600 crore over the next five years.

Unveiled at Shilpa Kala Vedika, the policy focuses on addressing six key areas: land acquisition, finance, raw materials, skilled labour, market access, and technology. The launch was attended by Deputy Chief Minister Mallu Bhatti Vikramarka and Industries and IT Minister D Sridhar Babu.

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The MSME 2024 policy introduces 40 measures to support MSMEs through every phase of their growth. Notably, five out of 10 new industrial parks, planned between the Outer Ring Road and the proposed Regional Ring Road, will be exclusively for MSMEs. One park will be reserved for women-owned enterprises, and another for innovative start-ups. The policy also reserves five per cent of plots in new industrial parks for women and 15 per cent for SC/ST entrepreneurs, who will receive a 50 per cent subsidy on land costs.

To address financial barriers, the policy introduces a capital investment subsidy scheme where SC/ST entrepreneurs are eligible for a 50 per cent subsidy for manufacturing units, while other MSMEs will receive a 25 per cent subsidy. Women entrepreneurs will get an additional 20 per cent subsidy. Pilot programmes will also be introduced to allow MSMEs to access credit based on future sales. The policy emphasises technological advancement through the establishment of a Rs 100 crore Yantram Fund to support MSME adoption of new technologies. It mandates that 25 per cent of government procurement will be sourced from MSMEs to further stimulate growth.

Labour market reforms under the policy include the establishment of the Telangana Skilling University and the Digital Employment Exchange of Telangana (DEET), besides streamline labour compliance and provide flexible working hours. The MSME 2024 policy also supports Self-Help Groups (SHGs) transitioning into MSMEs and focuses on strengthening Telangana’s role as a key exporter, with an emphasis on import substitution.

Revanth Reddy said the new policy would be central to Telangana’s goal of becoming a $1 trillion economy.