DEPARTMENT OF INDUSTRIES AND COMMERCE,
GOVERNMENT OF TELANGANA

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Why one should invest in Telangana?
Telangana is the fastest growing State in India recording 14.9% Gross State Domestic Product (GSDP) growth in 2018-19. Our State Industrial policy TS i-PASS is rated amongst the best in the country.
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Industry outlook, Opportunity in Telangana
India
India is expected to be the world's third-largest automotive market in terms of volume by 2026. The industry currently manufactures 25 mn vehicles, of which 3.5 mn are exported. India holds a strong position in the international heavy vehicles arena as it is the largest tractor manufacturer, second-largest bus manufacturer and third largest heavy trucks manufacturer in the world.
Sale of passenger vehicles has increased by 2.7%, two-wheeler by 4.86% and three-wheeler by 10.27% during 2018-19 viz-a-viz 2017-18. In April-March 2019, overall automobile exports grew by 14.5%. The overall Commercial Vehicles segment registered a growth of 17.6% in April- March 2019. The sector attracted $22.4 bn FDI during April 2000 – June 2019; accounting for 5.1% of the total FDI inflows.
All this combined with a young populace, increasing vehicle penetration, growing income and higher interests in automotive R&D is set to make India an attractive spot for investments in this sector.
Telangana
Telangana has a long history of auto sector presence with the likes of Hyderabad Allwyn limited and HMT bearings. The current auto sector presence in the state is led by Mahindra group, Hyundai and MRF tyres. A factor that works in favour of Telangana to emerge as the auto hub is the shift from IC engines to Electric mobility. This requires new infrastructure altogether and Telangana is well poised to provide the same.
Telangana has been one of the early stages to understand EV adoption and has put in place many enablers for EV adoption. The government has been proactive in implementing central government schemes while also taking help from private sector to ensure creation of charging infrastructure. Electricity tariffs have been rationalized to incentivise users and charging station operators. The state is also aware that adoption of EV will create huge opportunity in manufacturing of vehicles, batteries and other components. The state has already received many investment offers from global companies to set up their units in Telangana.
Major Investments





Government Support
- Draft EV policy submitted to government for approval – The policy will take care of the supply side, demand side and infrastructure issues related to EV ecosystem.
- Utilizations of FAME II scheme incentives.
- Policy to provide preference to Local EV manufacturers in govt procurement.
TASK (Telangana Academy for Skill & Knowledge) – Not for profit organization created by Govt. of Telangana for providing customized industry specific training to youth at highly subsidized rates.
100,000 + students trained with 588 partner institutions & 3000+ trained faculty.
Finishing Courses: Short-term (4-6 months) finishing course post completion of graduate Engineering courses will be introduced in select Engineering Colleges and Premier Technical Institutes.
PG Courses on EVs: 2-year PG course on EV Technology with scholarship assistance will be initiated in partnership with premier institutes.
- Under FAME II, government has allocated total 325 buses for the city of Hyderabad and Warangal along with 138 charging stations.
- To attract investment in EV space, a dedicated Industrial Park may be developed that provides readily available land for allotment. The park should cover the entire EV value chain i.e battery, engineering, assembly etc.
- A designated EV cluster spread over 1500-2000 acres catering to EV/EV component manufacturing for two-wheelers, Cars, Buses, and Trucks will be integrated with the Automotive Park plan.
- Electronics constitute a major chunk of an EV with battery at the core of the product. An Automotive Electronics Cluster will be developed within the proposed Electronics city near Hyderabad where special status and incentives will be accorded to units manufacturing electronic components including batteries cells/Packs for EVs.
TSREDCO has been nominated as the State Nodal Agency for “Setting up of EV Charging Infrastructure”
EV cluster proposal – A common facility for Design, prototyping, and testing available to all units in the cluster along with staffing and training grounds.
Smart Mobility Technologies Cluster (SMT): T-Hub has launched a start-up incubation programme named Smart Mobility Technologies cluster, to promote innovation in advance mobility space, particularly EVs.
Mobility Engineering Cluster: A Mobility Engineering Cluster (along the lines of the MCity at Univ. of Michigan, US) will be developed with Industry partnership.
Centres of excellence, Ev research hub, Telangana EV fund, EV testing facility, Automotive prototyping centre are a few of the other proposals being considered.
Partner Organizations
- TASK (Telangana Academy for Skill & Knowledge) – Not for profit organization created by Govt. of Telangana for providing customized industry specific training to youth at highly subsidized rates.
- Telangana State Renewable Energy Development Corporation Ltd – It acts as Nodal Agency for implementing all New and Renewable Energy Programmes and also nominated as State Designated Agency (SDA) for implementing all Energy Conservation activities in the state respectively for Energy Security of the State.
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Address:
Invest Telangana Cell,
Industries & Commerce (I&C) Department,
5th Floor, BRKR Bhavan, Hyderabad,
Telangana, India.
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