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| Scheme Policy | Details |
|---|---|
| Policy Name | Telangana Textile & Apparel Policy (T-TAP) |
| State | Telangana |
| Nodal Department | Industries & Commerce Department / Handlooms & Textiles Department |
| Application / Incentive Platform | TG-iPASS |
| Policy Objective | Develop Telangana as an integrated textile and apparel manufacturing hub |
| Value Chain Covered | Ginning, spinning, weaving, knitting, processing, garment manufacturing, made-ups, technical textiles and textile machinery |
| Eligible Projects | New units + eligible existing-unit expansion/modernisation/diversification |
| Major Incentive Categories | Capital assistance, operational assistance, infrastructure support, skill/capacity-building |
| Major Textile Parks | Kakatiya Mega Textile Park, Sircilla Textile & Apparel Park and other textile/apparel parks |
| Major Benefits | Capital subsidy, interest subsidy, power subsidy, SGST reimbursement, stamp-duty reimbursement, transport subsidy, CETP support and skill-development assistance |
T-TAP covers:
New units
Existing units
Existing textile units can receive support for:
The policy specifically states that capital assistance is available to new units and existing units in the relevant textile activities.
Textile value chain
Cotton / primary processing
Yarn
Fabric
Processing
Apparel
Advanced textiles
Ancillary industries
The official T-TAP document specifically includes technical textiles and manufacturers of textile machinery.
T-TAP uses a graded structure based on the combination of investment and employment.
| Category | Investment / Employment criterion |
|---|---|
| A1 | Investment < USD 1.5 million AND employment 50 |
| A2 | USD 1.5–7.5 million AND employment 50 |
| A3 | USD 7.5–15 million OR employment 300 |
| A4 | USD 15–30 million OR employment 500 |
| A5 | > USD 30 million OR employment 1,000 |
The higher categories are intended for projects having greater investment and/or employment impact.
Note: The policy's original classification is expressed in USD. For an actual current application, the competent authority's applicable INR conversion/interpretation should be confirmed.
New conventional textile units
T-TAP provides:
Up to 25% capital subsidy
subject to:
Maximum ₹20 crore per unit.
Eligible activities include:
Technical textiles receive enhanced capital support.
Benefit
Up to 35% of eligible investment
Maximum
₹40 crore per unit
This is one of the key differences between conventional textile and technical-textile projects under T-TAP.
Existing eligible textile units undertaking modernization can receive:
Capital subsidy
20% of eligible Plant & Machinery cost
Maximum
₹5 crore per unit.
The policy specifically extends this support to existing units.
For eligible textile-processing projects:
Subsidy
50% of project cost
Maximum
₹10 crore
This is particularly relevant for:
The purpose is to support environmental compliance and wastewater treatment.
T-TAP provides:
Interest subsidy
75% of the interest rate
subject to:
In practical terms, the State support is calculated against the eligible interest component subject to the policy ceiling.
Power subsidy is one of the important operational incentives.
Ginning & pressing
₹1.00/unit
Other textile units
| Category | Power subsidy |
|---|---|
| A1 | ₹1.00/unit |
| A2 | ₹1.00/unit |
| A3 | ₹1.50/unit |
| A4 | ₹1.75/unit |
| A5 | ₹2.00/unit |
Technical textiles
Technical-textile units receive an additional ₹0.50/unit over the applicable category subsidy.
Validity
The power subsidy is available for:
5 years from commencement of commercial production.
T-TAP provides substantial indirect-tax support.
Benefit
100% reimbursement of eligible Net SGST
Period
7 years from commencement of commercial production
OR
until realization of 100% of eligible fixed capital investment, whichever is earlier.
This applies across the textile/apparel value chain, including technical textiles and man-made-fibre units.
Condition
The unit is required to maintain/report relevant:
to the competent authority periodically.
Eligible textile units receive:
Benefit
100% reimbursement of stamp duty and transfer duty
for:
The official policy explicitly includes reimbursement relating to land purchase/lease and mortgage/hypothecation.
T-TAP provides reimbursement of freight/transport costs associated with:
between the project location and:
Reimbursement structure
| Period | Reimbursement |
|---|---|
| Year 1–2 | 75% |
| Year 3–4 | 50% |
| Year 5 | 25% |
The policy allows transportation through rail/road under the specified conditions.
For units using a Common Effluent Treatment Plant (CETP):
| Period | O&M reimbursement |
|---|---|
| Year 1–2 | 75% |
| Year 3–4 | 50% |
| Year 5 | 25% |
This is especially relevant for textile-processing clusters where common wastewater treatment infrastructure is used.
Current Invest Telangana material also highlights CETP O&M reimbursement up to 75% as a T-TAP support measure.
T-TAP provides support for development of local textile manpower.
Benefit
₹3,000 per employee
as one-time support towards:
Current Invest Telangana material confirms the ₹3,000-per-employee training support.
This is particularly relevant for:
T-TAP contains a separate Scheme for Infrastructure Support (S-IP).
It supports creation of common infrastructure for textile clusters, including facilities such as:
The policy was designed not only as an individual-unit subsidy but also as a cluster-development framework.
T-TAP includes S-CAD — Scheme for Capacity Building & Skill Development.
The objective is to develop:
The State's policy description specifically identifies S-CAD as one of the four major T-TAP support pillars.
For very large projects, T-TAP provides a customized incentive package.
Category
A5 / Mega Projects
The package can be structured based on:
The official T-TAP material states that A5 mega projects can receive additional customized incentives.
Invest Telangana currently states that mega projects can receive a customized package intended to meet or exceed competing incentive packages, subject to the applicable framework.
| Incentive | Benefit |
|---|---|
| New conventional textile | Up to 25% capital subsidy |
| Conventional textile cap | ₹20 crore |
| Technical textile | Up to 35% capital subsidy |
| Technical textile cap | ₹40 crore |
| Existing unit modernization | 20% P&M cost |
| Existing-unit cap | ₹5 crore |
| ETP | 50% project cost |
| ETP maximum | ₹10 crore |
| Interest subsidy | 75% of interest, subject to 8% p.a. ceiling |
| Interest period | Up to 8 years |
| Power subsidy | ₹1–₹2/unit depending on category |
| Technical textile additional power support | ₹0.50/unit |
| Power period | 5 years |
| Net SGST | 100% reimbursement |
| SGST period | 7 years / 100% FCI realization, whichever earlier |
| Stamp/transfer duty | 100% reimbursement |
| Transport subsidy | 75% → 50% → 25% |
| CETP O&M | 75% → 50% → 25% |
| Skill training | ₹3,000/employee |
Important conditions include:
The project must fall within the eligible textile/apparel value chain.
Benefits can be available for:
subject to the specific incentive conditions.
Several operational incentives are linked to the date of commencement of commercial production.
The unit must substantiate eligible investment through:
For SGST reimbursement, production, sales, power consumption and relevant tax details need to be reported to the competent authority as prescribed.
Processing/dyeing units must comply with applicable pollution-control requirements.
Existing units undertaking expansion/modernisation/diversification may need to maintain separate records for the additional investment and production attributable to the eligible expansion.
| Point | TG Textile — T-TAP |
|---|---|
| Policy | Telangana Textile & Apparel Policy (T-TAP) |
| Nodal departments | Industries & Commerce / Handlooms & Textiles |
| Application | TG-iPASS |
| New conventional textile | Up to 25% capital subsidy |
| Maximum conventional subsidy | ₹20 crore |
| Technical textile | Up to 35% capital subsidy |
| Maximum technical textile subsidy | ₹40 crore |
| Existing unit modernization | 20% P&M, max ₹5 crore |
| ETP | 50%, max ₹10 crore |
| Interest subsidy | 75%, subject to 8% p.a. ceiling |
| Interest period | Up to 8 years |
| Power subsidy | ₹1–₹2/unit |
| Technical textile extra | ₹0.50/unit |
| Power period | 5 years |
| SGST | 100% Net SGST reimbursement |
| SGST period | 7 years / 100% FCI realization, whichever earlier |
| Stamp/transfer duty | 100% reimbursement |
| Transport | 75% / 50% / 25% over 5 years |
| CETP O&M | 75% / 50% / 25% over 5 years |
| Skill support | ₹3,000/employee |
| Mega projects | Customized package |
| Covered activities | Ginning → spinning → weaving → knitting → processing → garments → technical textiles → textile machinery |
| Existing units | Expansion / modernization / diversification supported |
| Main textile parks | Kakatiya Integrated Mega Textile Park, Sircilla Textile & Apparel Park |
| Current portal | TG-iPASS |