Telangana Logistics Subsidy | State Logistics Policy

State Logistics Policy of Telangana aims to enhance the logistic, transportation and supply chain infrastructure of Telangana. The goal of the Telangana Logistics Subsidy is to help boost the economic condition of the state, avail moving of goods across regions seamlessly, increase export and reduce transportation costs. The Telangana Logistics Policy helps industries and promotes commerce by giving job opportunities through improvement of the road, railway, and port linkages. Telangana State Logistics Subsidy attracts investment, streamlines business activities and increases competitiveness in the state with compliance to the National Logistics Policy.

The State Logistics Subsidy in Telangana offers several benefits to enhance the logistics sector and overall economic growth of the state which are listed below:

• Reduced Logistics Costs: Companies benefit from lower transport costs through better supply systems that enhance transport, thus increasing competition in domestic and export markets.
• Improve Infrastructure: The Telangana Logistics Policy is primarily focused on enhancing logistics that involve Roads, Ports, and Airports to undertake easy and effective movement of goods.
• Attract Investment: The Telangana Logistics Subsidy improves physical facilities and gives incentives to businesses, which in turn brings investment in manufacturing and trade segments.
• Job Creation: The State Logistics Policy in Telangana makes progress in the logistics transport system, enhancing employment in logistics transport warehouses and related sectors.
• Sustainability: The State Logistics Subsidy in Telangana makes a shift toward better practices that have the least negative impacts on the environment in terms of the development of the state.

The Telangana Logistics Policy provides maximum subsidy rates and amount to businesses to ensure prevention of exploitation or unfairness of the intermediary. The State Logistics Subsidy in Telangana is categorized under 6 programs which are listed below:

• Interest Subsidy for Development of Integrated Logistics Parksy

  Subsidy Rate	Subsidy Amount	Limitations
  35% of annual interest payable	Up to Rs 50 lakhs/year/unit	For 3 years from the date of commencement of commercial operations.

• Capital Subsidy for Development of Integrated Logistics Parks

  Subsidy Rate	Subsidy Amount	Limitations
  10% of fixed capital invested in plant and machinery	Up to Rs 50 lakhs/unit	After the date of commencement of commercial operations.

• Incentives for Projects Developed on Government Land

  Subsidy Rate	Subsidy Amount	Limitations
  35% of annual interest payable	Up to Rs 50 lakhs/year/unit	For 3 years from the date of commencement of commercial operations.

• Interest Subsidy

  Subsidy Rate	Subsidy Amount	Limitations
  35% of annual interest payable	Up to Rs 50 lakhs/year/unit	For 7 years from the date of commencement of commercial operations.

• Capital Subsidy for Large Warehouse and Cold Storages

  Subsidy Rate	Subsidy Amount	Limitations
  10% of fixed capital invested in plant and machinery	Up to Rs 50 lakhs/unit	After the date of commencement of commercial operations.

• Providing Assistance in Implementation of Quality Management System

  Subsidy Rate	Subsidy Amount	Limitations
  50% of the cost incurred for implementing Quality Management Systems	Up to Rs 5 lakhs	One-time cost reimbursement for cold storage, warehouse, integrated logistics parks, MMLP, or any other logistics infrastructure.