AP PLI Top-up Capital Subsidy (IDP 4.0) — 10% of GoI Incentive — Frequently Asked Questions

It is a supplementary capital subsidy under Andhra Pradesh's Industrial Development Policy 4.0, which covers 2024 to 2029. The Department of Industries & Commerce offers it to industrial projects that have already been approved under a Government of India Production Linked Incentive (PLI) scheme or another recognised central industrial scheme, giving them an additional state-level incentive on top of the central one.

A qualifying project gets a top-up equal to 10% of the incentive already sanctioned under its PLI or other Government of India scheme. That amount is capped at 5% of the project's eligible Fixed Capital Investment (FCI) — broadly the investment in fixed assets such as land and site development, buildings and civil works, plant and machinery and other capital equipment. So a project with eligible FCI of ₹100 crore can receive at most ₹5 crore as a top-up, even if 10% of its central incentive is higher.

Two things decide eligibility. First, the project must already hold approval and sanction under a PLI scheme or another Government of India industrial scheme recognised by the state. Second, it must fall in one of the policy's larger size bands — Sub-Large, Large, Mega or Ultra-Mega. The unit also has to be established and operating inside Andhra Pradesh.

It is not paid in a single instalment. Sub-Large projects receive the subsidy across 5 years, Large projects across 7 years, and Mega and Ultra-Mega projects across 10 years, with payments released in tranches. The schedule is fixed by the project's size category under IDP 4.0.

No fixed closing date applies — the scheme is rolling and always open. Applications for industrial incentives under IDP 4.0 can be filed while the policy is in force, which is 2024 to 2029. It is still worth checking the current process with the Industries Department before you submit.

No. This is a capital subsidy, so the state does not take shares, a stake or board rights in exchange for the money. The benefit is non-dilutive and promoters keep full ownership of the business.

You will generally need proof of approval under the relevant Government of India PLI or central scheme, a detailed project report, financial projections, and the incorporation and compliance documents of the industrial entity. Because the 5% ceiling is calculated on Fixed Capital Investment, paperwork substantiating your eligible FCI should also be ready. The IDP 4.0 policy document lists the full documentation set and application guidelines.

Start by reading the Andhra Pradesh Industrial Development Policy 4.0 (2024–29) document, especially the section dealing with the PLI/GoI schemes top-up, to confirm the criteria and paperwork. Applications for industrial incentives, including this capital subsidy top-up, are then submitted to the Department of Industries & Commerce through its designated online portal or in physical form. The department's incentives page is at https://www.apindustries.gov.in/Incentives/Index.aspx.

Yes. This is an incentive under the Andhra Pradesh Industrial Development Policy, so the project must be established and operational within the geographical boundaries of Andhra Pradesh to qualify for the top-up.

Those are not listed among the eligibility conditions for this top-up. What matters is that your project has been approved under a PLI or other Government of India scheme and that it is classified as Sub-Large, Large, Mega or Ultra-Mega under IDP 4.0. The department verifies the project's eligibility, including its classification, during scrutiny of the application.

AP PLI Top-up Capital Subsidy (IDP 4.0) — 10% of GoI Incentive is offered by Department of Industries & Commerce, Government of Andhra Pradesh, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.