Department of ITE &C, Government of Telangana

tsic@telangana.gov.in

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Funding and Incentives

Home Funding and Incentives

Reimbursement
of
SGST

 Reimbursement of  International Marketing

Reimbursement of the Patent Registration expenses

Reimbursement of Recruitment
Assistance

Performance
related
grant

Grants for the startups with grassroot/rural impact

Public Procurement incentives for startups with grassroot/rural impact

T-Fund Initiative

T-Spark Initiative

Telangana State Innovations with Rural Impact (TSIRI) Incentives

Reimbursement of SGST

Eligibility

All eligible startups shall submit their claims in the prescribed application form and attach the documents mentioned on the portal given at Annexure – II for Reimbursement of SGST within six months after completion of every half year i.e., last date for filing claim application is 31st of March for first half-year and 30th of September for the second half-year.

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Evaluation Process

The Nodal Office, Telangana Innovation cell, on receipt of the required documents, will scrutinize and perform necessary due diligence. On confirmation of the Startup eligibility, an assessment of the eligible reimbursement shall be recommended by the nodal office.

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Reimbursement of International Marketing Costs Trade Shows

Eligibility

All eligible startups shall submit their claims in the prescribed application form and attach the documents mentioned on the portal given at Annexure – III for Reimbursement of 30% of the annual cost in International marketing through trade shows, limited to a subsidy of INR 5 lacs per company during the first 3 years of incorporation.

Additionally to claim the reimbursement under this incentive, the startup application needs to be endorsed by one of the state supported incubators (Format of endorsement Annexure – VI).

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Evaluation Process

The Nodal Office, Telangana Innovation cell, on receipt of the required documents, will scrutinize and perform necessary due diligence. On confirmation of the Startup eligibility, an assessment of the eligible reimbursement shall be recommended by the nodal office.

All reimbursement recommendations will be presented to the startup council who shall then make a decision on sanction/disbursement keeping in view the available budget for the year. The decision of the startup council in this regard to sanctioning of any reimbursement under this incentive will be final

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Reimbursement of the expenses incurred for Patent Registration

Eligibility

All eligible startups shall submit their claims in the prescribed application form given at Annexure – IV for Reimbursement of the expenses incurred for patent registration within six months from the date of obtaining patent along with required documents mentioned in the Application on the portal.

Eligible startups should have already filed or been granted a patent with the concerned authority and would have paid all the mandatory fees/expenses in this regard.100% Reimbursement of the expenses incurred for patent registration limited to Rs.2.00 Lakhs for Indian patent awarded. 

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Evaluation Process

The Nodal Office, Telangana Innovation cell, on receipt of the required documents, will scrutinize and perform necessary due diligence. On confirmation of the Startup eligibility, an assessment of the eligible reimbursement shall be recommended by the nodal office.

All reimbursement recommendations will be presented to the startup council who shall then make a decision on sanction/disbursement keeping in view the available budget for the year. The decision of the startup council in this regard to sanctioning of any reimbursement under this incentive will be final.

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Reimbursement of Recruitment Assistance

Eligibility

All eligible startups shall submit their claims in the prescribed application form given at Annexure – V for Reimbursement of reimbursement of recruitment assistance for an amount of INR 10,000 per employee for the first year of commercial operations.

The startup should submit the list of Telangana domiciled employees who have been employed with the company for at least a period of 8 months as on the date of the appointment along with their appointment letters, domicile proof duly certified by the promoter.

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Evaluation Process

The Nodal Office, Telangana Innovation cell, on receipt of the required documents, will scrutinize and perform necessary due diligence. On confirmation of the Startup eligibility, an assessment of the eligible reimbursement shall be recommended by the nodal office.

All reimbursement recommendations will be presented to the startup council who shall then make a decision on sanction/disbursement keeping in view the available budget for the year. The decision of the startup council in this regard to sanctioning of any reimbursement under this incentive will be final.

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Performance Related Grant

Eligibility

All eligible startups shall submit their claims in the prescribed application form given at Annexure – VI for Performance related grant within nine months from the date of closing of a financial year.

Startups that record a year-on-year growth rate of 15%, as per audited accounts, shall be eligible to get a grant of 5% on Annual Turnover, subject to a limit of INR 10 Lakhs within a period of three years from the date of incorporation

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Evaluation Process

The Nodal Office, Telangana Innovation cell, on receipt of the required documents, will scrutinize and perform necessary due diligence. On confirmation of the Startup eligibility, an assessment of the eligible reimbursement shall be recommended by the nodal office.

All reimbursement recommendations will be presented to the startup council who shall then make a decision on sanction/disbursement keeping in view the available budget for the year. The decision of the startup council in this regard to sanctioning of any reimbursement under this incentive will be final

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Grants for the startups with grassroot/rural impact

PROCEDURE FOR CLAIMING GRANT OFFERED UNDER THE SCHEME:

Preconditions for availing this incentive

  • Recognized as a startup by Government of Telangana AND 
  • Recognized as a “Startup with Grassroot/Rural Impact” as per the definition mentioned in G.O.Ms.No. 8 dated 27-07-2021.
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Evaluation Process

The Nodal Office, Telangana Innovation Cell, on receipt of the applications, will scrutinize and perform necessary due diligence. On confirmation of the Startup eligibility, an assessment of the eligible grants shall be recommended by the nodal office.

All grants recommendations will be presented to the Grassroot Advisory Council who shall then make a decision on sanction/work order/disbursement keeping in view the available budget for the year. The decision of the Grassroot Advisory Council in this regard to sanctioning of any work order/purchase order under this incentive will be final.

Process of Application
  • All eligible startups with grassroot/rural impact shall apply in the prescribed application form given below on the portal for Procurement related grant.
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Public Procurement incentives for startups with grassroot/rural impact

PROCEDURE FOR CLAIMING PROCUREMENT GRANT OFFERED UNDER THE SCHEME:

Preconditions for availing this incentive

  • Recognized as a startup by Government of Telangana AND 
  • Recognized as a “Startup with Grassroot/Rural Impact” as per the definition mentioned in G.O.Ms.No. 8 dated 27-07-2021.
  • A letter of intent must be submitted by the competent authorities of the concerned government departments or district administrations. The startup may directly work with TSIC to source this letter of intent, if all other eligibility criteria are fulfilled.
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Evaluation Process

The Nodal Office, Telangana Innovation Cell, on receipt of the applications, will scrutinize and perform necessary due diligence. On confirmation of the Startup eligibility, an assessment of the eligible grants shall be recommended by the nodal office.

All grants recommendations will be presented to the Grassroot Advisory Council who shall then make a decision on sanction/work order/disbursement keeping in view the available budget for the year. The decision of the Grassroot Advisory Council in this regard to sanctioning of any work order/purchase order under this incentive will be final.

Process of Application

All eligible startups with grassroot/rural impact shall apply in the prescribed application form given below on the portal for Procurement related grant.

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T-FUND Initiative

T-Fund’s objective is to support the startup ecosystem of Telangana by investing in promising early-stage startups from the state of Telangana by primarily investing into equity, equity-linked instruments, compulsory convertible debt instruments, and other instruments such as compulsory convertible preference shares, compulsorily convertible debentures of enterprises engaged across sectors including with a horizontal theme of technology and innovation. T-Fund is primarily

Co-Investment Fund where it shall invest alongside established Angels, Angel Networks, VC’s. T-Fund shall not invest more than 20% of its investible funds in any single portfolio company.

T-Spark Initiative

The Government of Telangana, through the Telangana Innovation Cell, launched the T-Spark initiative to provide funding and grant support for 155 startups at the early and seed stages. This grant intends to accelerate key aspects of their growth, including prototype building, talent development, R&D, and marketing efforts. In addition to financial support, the selected startups will gain access to mentoring, funding readiness guidance, and GTM (Go-To-Market) strategy support as they evolve. This initiative is a core component of the state’s larger vision to fuel a thriving entrepreneurship and innovation ecosystem.

Telangana State Innovations with Rural Impact (TSIRI) Incentives

The state government has decided to give incentives to startups and innovations that solve the problems in rural areas. For this, the ITE&C department issued orders with G.O.Ms.No. 8 dated 27-07-2021. Accordingly, a total of Rs. 30 lakh corpus fund has been earmarked for 18 startups and innovators to support seed, prototype, pilot, and procurement grants.

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