Department of Handlooms and Textiles, Government of Andhra Pradesh
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AP Stamp Duty Reimbursement Scheme — 100% Back for Industrial Units

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Quick answer

An AP TAG 4.0 incentive that refunds 100% of the stamp duty an eligible industrial unit pays on land purchase, land/shed/building leases and mortgage deeds for term loans.

Funding amount
Varies by program
Funding type
Subsidy
Provider
Department of Handlooms and Textiles, Government of Andhra Pradesh (Government)
Application deadline
Rolling
Eligible stage
Any stage
Location
Open to startups registered in India

Overview

This is one of the headline incentives bundled into Andhra Pradesh's Textile, Apparel and Garments Policy for 2024-29 — widely referred to as AP TAG 4.0 — and it is administered by the Department of Handlooms and Textiles. The promise is straightforward: a qualifying industrial unit pays stamp duty on the property and loan paperwork it needs to build or grow, and the state pays that amount back in full.

Getting a plant off the ground means clearing heavy registration charges before production even starts. Stamp duty is levied on land bought for the project, on land, a shed or a building taken on lease, and on the mortgage or hypothecation deeds a lender insists on before releasing a term loan. Stacked together for a fresh unit or a sizeable expansion, those charges represent real money. This scheme exists to lift that cost off the promoter's balance sheet.

The payment is one-time, not a recurring annual support. It is open to New Industrial Enterprises and to Expansion or Diversification projects, and it spans every size band the parent policy recognises — Micro, Small, Medium, Sub-Large and Large. Since the policy it sits inside is built around textiles and garments, units in that sector are the natural audience, while the incentive wording itself is framed around industrial enterprises.

The scheme provides a cash reimbursement and is grouped with the state's regulatory-support offerings, so a founder treats it as relief on entry costs rather than as working capital or project funding.

Highlights

  • 100% reimbursement of stamp duty paid — the full amount, not a share
  • Offered under the AP Textile, Apparel and Garments Policy 2024-29 (AP TAG 4.0)
  • Covers land purchase, land/shed/building leases, and mortgage or hypothecation deeds for term loans
  • Open to New Industrial Enterprises and Expansion/Diversification projects, Micro through Large
  • A one-time benefit, with applications accepted on a rolling basis

Who can apply

Two broad groups can claim this incentive:

  • New Industrial Enterprises setting up fresh capacity in Andhra Pradesh.
  • Expansion or Diversification projects by units that are already operating.

The window is deliberately wide on size — units across the Micro, Small, Medium, Sub-Large and Large categories all fall within the eligible set, provided they satisfy the conditions laid down in the AP TAG 4.0 policy.

The reimbursement attaches to specific transactions rather than to the unit generally. To qualify, the stamp duty must have been paid on:

  • purchase of land;
  • lease of land, a shed, or a building;
  • a mortgage or hypothecation executed to secure a term loan against the project's assessed Fixed Capital Investment.

Because the parent policy is the Textile, Apparel and Garments Policy 2024-29, textile and garment enterprises are the core constituency, and applicants should confirm their specific project against the detailed guidelines before filing a claim.

AP Stamp Duty Reimbursement Scheme — 100% Back for Industrial Units is open to startups at any stage. It is open to startups registered anywhere in India.

Eligible stage
Any stage
Location
Open to startups registered in India

Deadline & timing

AP Stamp Duty Reimbursement Scheme — 100% Back for Industrial Units 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.

What the funding covers

The scheme refunds 100% of the stamp duty fees paid — the entire amount, with no partial sharing.

What that covers:

  • Stamp duty on the purchase of land for the project.
  • Stamp duty on the lease of land, a shed, or a building.
  • Stamp duty on mortgages or hypothecations created to obtain term loans, where the borrowing is against the assessed Fixed Capital Investment.

The relief is a one-time benefit for each eligible new enterprise or expansion project, so it is designed to blunt the initial setup or expansion outlay rather than to fund operations over time. Because the payout is pegged to the duty actually paid, the value differs from project to project; the policy text available here does not state a rupee ceiling.

About the provider

AP Stamp Duty Reimbursement Scheme — 100% Back for Industrial Units is offered by Department of Handlooms and Textiles, Government of Andhra Pradesh, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

Documents you’ll need

Before you apply to AP Stamp Duty Reimbursement Scheme — 100% Back for Industrial Units, 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.

Frequently asked questions

What does the AP Stamp Duty Reimbursement Scheme actually pay for?

It refunds the stamp duty you have paid on three kinds of transactions: buying land for your project, taking land, a shed or a building on lease, and creating a mortgage or hypothecation in favour of a lender to secure a term loan against your assessed Fixed Capital Investment. If the duty was paid on any of these, it falls within the scheme's scope.

How much money will I get back?

The scheme reimburses 100% of the fees paid, so the payout equals the stamp duty you actually incurred on the qualifying transactions. That is why the amount varies from case to case rather than sitting at a fixed figure — a larger land purchase or a bigger term loan means a larger refund. The policy details available do not specify a maximum rupee cap, so it is worth checking the detailed guidelines for any ceiling that may apply.

Who is eligible to claim this incentive?

Eligibility runs across two groups: New Industrial Enterprises, and existing units carrying out Expansion or Diversification projects. On size, there is no narrowing — Micro, Small, Medium, Sub-Large and Large enterprises are all within the eligible set, subject to meeting the conditions of the AP TAG 4.0 policy.

Which industries does the scheme apply to?

The incentive sits under the Andhra Pradesh Textile, Apparel and Garments Policy 2024-29, so textile and garment manufacturing is the sector the parent policy is built around. The eligibility language itself speaks of industrial enterprises and expansion projects generally, so the safest approach is to check your specific project against the policy guidelines.

Can I claim this reimbursement more than once?

No. It is structured as a one-time benefit for each eligible new industrial enterprise or expansion project. The idea is to soften the upfront regulatory cost at the point of establishment or growth, not to provide an ongoing annual payout.

Is there an application deadline?

There is no closing date — the scheme runs on a rolling, always-open basis. You can file your claim once the qualifying stamp duty has been paid and your documentation is in order.

Does the government take equity or a stake in my company for this?

No. This is a subsidy-style reimbursement, so it is non-dilutive: the state refunds money you have already spent and takes no shares, no equity and no ownership in your business in return.

Do I need DPIIT recognition or MSME registration to apply?

The details available for this scheme do not list DPIIT recognition or MSME registration as a stated condition. Eligibility is framed around being a New Industrial Enterprise or an Expansion/Diversification project within the eligible size bands. Confirm the current documentary requirements in the policy guidelines before you file.

What documents will I need for the claim?

You will need proof of the stamp duty paid, covering whichever transaction applies to you — land or building or shed purchase, a lease deed, or a mortgage or hypothecation deed linked to a term loan. Project details supporting the claim are also part of the submission, and the application procedure itself is set out in the 'textile policy 2024-29 -go 55- guidelines.pdf' document referenced by the policy.

Where do I submit the application?

Claims go to the designated authority within the Andhra Pradesh Industries Department, following the incentive process laid out in the policy guidelines. The state's incentives portal at https://www.apindustries.gov.in/Incentives/Index.aspx is the starting point for the application route.

Who offers AP Stamp Duty Reimbursement Scheme — 100% Back for Industrial Units?

AP Stamp Duty Reimbursement Scheme — 100% Back for Industrial Units is offered by Department of Handlooms and Textiles, Government of Andhra Pradesh, a government body. It is provided as non-dilutive funding.

How do I apply for AP Stamp Duty Reimbursement Scheme — 100% Back for Industrial Units?

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

More funding from Department of Handlooms and Textiles, Government of Andhra Pradesh

Department of Handlooms and Textiles, Government of Andhra Pradesh runs 6 other programs listed on startupfunds — compare them before you decide where to apply.

Andhra Pradesh Textile Investment Subsidy — Up to ₹50 Cr for Textile Units₹50CrA rolling capital subsidy from the Government of Andhra Pradesh covering 25% to 55% of Fixed Capital Investment for new and expanding textile units, with up to ₹50 crore for large enterprises.RollingSubsidyTechnology Upgradation Subsidy (Special Category) — Up to ₹7.5 Cr for AP MSMEs₹7.5CrA 45% capital subsidy on eligible Fixed Capital Investment, capped at ₹7.5 Crores, for textile MSMEs in Andhra Pradesh whose proprietors belong to BC, SC, ST, minority, transgender, specially abled or women's categories.RollingSubsidyRebate on Land Cost (SC/ST) — 75% Up to ₹25 Lakh in AP₹25LA 75% rebate on land cost, capped at ₹25 lakh, for new SC/ST-led Micro and Small Enterprises set up in Industrial Estates or Industrial Parks in Andhra Pradesh.RollingSubsidyAP Textile Power Reimbursement — ₹2/Unit Subsidy up to ₹2 Crore₹2L – ₹2CrAndhra Pradesh reimburses textile enterprises ₹2 per unit of electricity consumed, with size-based caps from ₹2 Lakh to ₹2 Crore for units run by women or special category proprietors.RollingSubsidyAP Electricity Duty Reimbursement — 50% Subsidy for Special Category MSMEsVariesAndhra Pradesh refunds half of a textile MSME's electricity duty for five years, provided the proprietor is a woman, or belongs to the BC, SC, ST, minority, transgender or specially-abled categories.RollingSubsidyAP Land Duty Reimbursement Scheme — 100% Stamp Duty & Transfer Duty ReliefVariesAndhra Pradesh refunds 100% of stamp duty and transfer duty paid on land bought for industrial use under the Textile Policy 2024-29.RollingSubsidy

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