The TSiPASS industrial policy in Telangana, introduced by the previous government, promised big benefits to investors but did not deliver. The government owed a total of Rs 3736 crore in incentives to investors who had set up manufacturing units under the policy since 2014. Most of this amount, Rs 3007 crore, was owed to the MSME sector. Additionally, cheques worth Rs 684 crore given to investors in 2023-2024 had expired.
The current Congress government is investigating why these incentives were not released to investors. There are concerns about whether the previous government showed bias in giving out incentives. The present government has identified flaws in the TSiPASS policy, which may have hindered the state from attracting the investments it needed.
Despite attracting investments worth Rs 3.30 lakh crore under TSiPASS, the state is still evaluating the impact of these investments. The self-certification system and single-window clearance for setting up industries did not receive enough attention due to involvement from top BRS leaders, causing some investors to hold back. About 30 lakh jobs were created under the previous government’s industrial policy.
The state government is now working on a new industrial policy to boost manufacturing and attract global investments. This policy will be announced soon, along with a report on the implementation of TSiPASS. This report will help investors understand the differences between the two policies and choose the best option for them.
