AP Investment Subsidy (MEDP 4.0) — Up to ₹7 Cr for New MSMEs

MEDP 4.0's Investment Subsidy is Andhra Pradesh's capital-expenditure incentive for newly set-up industrial units. It is administered by the Department of Industries & Commerce, Government of Andhra Pradesh, and its aim is to lighten the cost of building capacity rather than to fund day-to-day operations.

The state refunds 25% of the fixed capital a qualifying unit invests, subject to a ceiling that depends on the size of the enterprise. A micro unit can claim up to ₹25 lakh, a small unit up to ₹1.5 crore, and a medium unit up to ₹7 crore.

The money is not handed over in one go. It is released in instalments across 2 to 4 years, which keeps support flowing through the early operating period when a new plant is still absorbing heavy capital costs.

There is no application window to chase — the scheme stays open on a rolling basis. It is also non-dilutive: no equity is taken, no interest is charged and nothing has to be repaid. The complete procedure and the detailed conditions are laid out in the policy document OG-For-AP-IDP-MSME-EDP-FPP-(4.0)-2024-29.pdf.

• Subsidy worth 25% of eligible Fixed Capital Investment
• Maximum payout ₹25 lakh (micro), ₹1.5 crore (small) or ₹7 crore (medium)
• For new Micro, Small and Medium enterprises in Andhra Pradesh
• No equity dilution, no interest and no repayment
• Rolling applications — the scheme never closes
• Released in instalments over 2 to 4 years

The subsidy is reserved for new Micro, Small and Medium enterprises that are setting up in Andhra Pradesh.

• Only fresh units qualify — the incentive is built to support newly created industrial capacity.
• The payout is worked out on the fixed capital a unit invests, and only the portion the department accepts as eligible is counted.
• That investment must be verified before any claim moves ahead, so the expenditure has to be real and documented.
• Which ceiling applies, and how long the disbursal stretches, follows from whether the unit is classified micro, small or medium.

Applications are examined by the Andhra Pradesh Industries Department against the MEDP 4.0 guidelines.

AP Investment Subsidy (MEDP 4.0) — Up to ₹7 Cr for New MSMEs is open to startups at any stage. It is open to startups registered anywhere in India.

AP Investment Subsidy (MEDP 4.0) — Up to ₹7 Cr for New MSMEs accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

25% of eligible Fixed Capital Investment is subsidised, with the rupee ceiling varying by category:

• Micro enterprise — up to ₹25 lakh
• Small enterprise — up to ₹1.5 crore
• Medium enterprise — up to ₹7 crore

The amount is paid in instalments rather than as a single release: micro units over 2 years, small units over 3 years, and medium units over 4 years.

Nothing is taken in return. The subsidy is non-repayable, interest-free and does not dilute equity, so promoters keep full ownership of the business. Because the money offsets capital expenditure, it directly lowers the upfront cost of infrastructure and machinery.

AP Investment Subsidy (MEDP 4.0) — Up to ₹7 Cr for New MSMEs is offered by Department of Industries & Commerce, Government of Andhra Pradesh, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

There is no competitive pitch or ranking round. Applications go to the Andhra Pradesh Industries Department, which approves them on three counts: how well the enterprise fits the stated eligibility criteria, the viability of the project being proposed, and how strictly the application follows the MEDP 4.0 policy guidelines.

Approval at the application stage does not trigger payment. The subsidy claim is processed only after the department verifies the eligible Fixed Capital Investment the enterprise has actually made and confirms that all regulatory requirements are satisfied.

Approved amounts then flow in tranches across the 2 to 4 year disbursal period that applies to the enterprise's category.

Before you apply to AP Investment Subsidy (MEDP 4.0) — Up to ₹7 Cr for New MSMEs, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

AP Investment Subsidy (MEDP 4.0) — Up to ₹7 Cr for New MSMEs is best suited for startups in India seeking non-dilutive funding of ₹25L – ₹7Cr. If that describes your startup, review the eligibility criteria above before applying.