AP TAG 4.0 Employment Subsidy — Up to ₹20 Cr for Textile Units — Frequently Asked Questions

The subsidy works out to between 8% and 10% of your project's eligible Fixed Capital Investment, with the exact rate decided by your Employment to Investment ratio. In rupee terms, a Large enterprise can receive as much as ₹20 crore and a Sub-Large enterprise up to ₹10 crore if its ratio reaches 5 or above. Awards under this window are listed in the ₹8 crore to ₹20 crore range.

Only Sub-Large and Large enterprises working in the textile and apparel sector are covered. Your project also has to be located in Andhra Pradesh and must fall into one of three categories: a brand-new project, an expansion of an existing unit, or a diversification initiative.

The E/I ratio is the relationship between the new jobs your project creates and the capital it invests. The state uses it because it wants capital that comes with employment attached, so a project that generates more jobs per rupee invested is treated more favourably. Eligible projects sit in a ratio band running from 1 up to 5 and above, and the higher your band, the higher the percentage of Fixed Capital Investment you receive.

No. The scheme is built around newly created employment only, so the workforce you already had before the project will not be counted when your ratio is assessed. Only the fresh positions the project generates are taken into account.

Neither. It is a non-repayable cash subsidy, so there is nothing to return and no interest to service. The Andhra Pradesh government also does not take any equity stake in the enterprise in exchange for the money.

There is no fixed closing date — the window is rolling and always open, so applications can be filed at any point. That said, the subsidy is tied to investment and employment milestones, so submitting early enough to align with your project timeline is sensible.

The approved amount is released in tranches across a five-year period rather than as a lump sum. Each tranche is linked to your unit meeting the employment and investment milestones it committed to, which means the support continues only as long as the project performs as proposed.

You will need the project proposal, financial statements and employment generation projections that the policy stipulates, along with any other material the official application process for AP TAG 4.0 incentives requires. The detailed guidelines are set out in the Andhra Pradesh Textile Policy 2024-29 (GO 55), so review those before you start assembling your file.

Applications go to the designated authority in the Andhra Pradesh Industries Department through the state's official incentives portal at apindustries.gov.in. Once submitted, the application is screened by a departmental committee before any decision on approval and the applicable subsidy percentage is taken.

The scheme is aimed at the textile and apparel sector, and it is open to three project routes: a completely new unit, an expansion of an existing facility, or a diversification into new products. All three are treated as eligible project types under AP TAG 4.0.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for AP TAG 4.0 Employment Subsidy — Up to ₹20 Cr for Textile Units, though having it can strengthen your application and unlock other benefits.

AP TAG 4.0 Employment Subsidy — Up to ₹20 Cr for Textile Units is open to startups at any stage. It is open to startups registered anywhere in India.

AP TAG 4.0 Employment Subsidy — Up to ₹20 Cr for Textile Units is offered by Department of Handlooms and Textiles, 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.