The Telangana government has announced plans to invest Rs 4,000 crore over the next five years in various initiatives aimed at the development of Micro, Small, and Medium Enterprises (MSMEs) in the state. Unveiling the “Telangana MSME Policy 2024” on Wednesday, Chief Minister A Revanth Reddy outlined the government’s strategic focus on fostering the growth and sustainability of the MSME sector.

According to the new policy, the state has identified six key areas for improvement to accelerate MSME growth:

  1. Improving availability, accessibility, and affordability of land.
  2. Facilitating access to finance.
  3. Ensuring easy access to raw materials.
  4. Increasing flexibility in labour markets.
  5. Promoting the adoption of advanced technology.
  6. Enhancing access to domestic and global markets.

The government aims to establish over 25,000 new MSMEs in Telangana over the next five years. Additionally, the policy emphasizes support for self-help groups (SHGs), helping them transition into MSMEs by providing comprehensive support structures. The state also aims to strengthen its position as a leading exporter by focusing on import substitution.

A key element of the policy is the drafting of a procurement policy that gives preferential treatment to MSMEs, particularly those owned by SC/ST communities and women entrepreneurs. The Department of Industries and Commerce will, within three months of the policy’s notification, establish a mechanism to monitor the implementation of the preferential procurement scheme.

To encourage the adoption of green technologies, the policy offers various incentives, including:

  • An additional 15% floor area for MSMEs that install solar photovoltaic plants or solid waste management systems.
  • Incentives for buildings that receive a 3 to 5-star rating under the Green Building for Integrated Habitat Assessment (GRIHA).

The policy also includes the construction of five MSME parks between the Outer Ring Road (ORR) and Regional Ring Road (RRR), with at least one park dedicated to helping MSMEs obtain Zero Defect Zero Effect (ZED) bronze certification.

To boost e-commerce participation, the government will encourage MSMEs to engage with the Open Network for Digital Commerce (ONDC) and the Government e-Marketplace (GeM) portals. In collaboration with industry associations and the Government of India, Telangana will conduct awareness workshops to educate entrepreneurs and small businesses about these platforms.

This comprehensive policy aims to make Telangana a hub for MSME innovation, sustainability, and growth over the coming years.

(With agency inputs)