Andhra Pradesh Textile Investment Subsidy — Up to ₹50 Cr for Textile Units

Andhra Pradesh supports textile manufacturing through a capital subsidy scheme delivered under its Textile Policy 2024-29 (GO 55) and administered by the state's Department of Handlooms and Textiles. Instead of one flat grant, the incentive is graded: the rate and the ceiling a unit can claim shift with its size category and the kind of activity it undertakes, topping out at ₹50 crore.

The scheme spans the whole size spectrum. A first-time Micro or Small textile venture setting up in the state qualifies, and so does a Sub-Large or Large company investing in a fresh plant, an expansion or a diversification project. Support is calculated against eligible Fixed Capital Investment, so it offsets the cost of building productive assets rather than routine operating expenses.

What sets this version apart is its special category. Units whose proprietor comes from a Backward Class, Scheduled Caste, Scheduled Tribe, Minority, Transgender or specially abled background, or is a woman, fall under the policy's inclusive-growth provisions. Applications are not tied to a fixed window — the scheme stays open on a rolling basis through the policy period.

• Subsidy on Fixed Capital Investment of up to ₹50 crore
• Rates range from 25% to 55% depending on unit category and activity
• Open to new MSMEs plus new, expanding or diversifying Sub-Large and Large units
• Special category provisions for BC, SC, ST, Minority, Transgender, specially abled and women proprietors
• No fixed deadline — applications are accepted on a rolling basis under Textile Policy 2024-29
• Funds released in tranches over 2 to 5 years against milestones

The scheme is limited to textile enterprises operating within Andhra Pradesh, and it is open to two broad groups:

• MSMEs — new Micro, Small and Medium textile enterprises.
• Larger units — Sub-Large and Large textile enterprises, whether the project is a fresh unit, an expansion or a diversification.

Alongside the standard route, the policy carries a special category aimed at inclusive growth. Units whose proprietor belongs to a Backward Class (BC), Scheduled Caste (SC), Scheduled Tribe (ST) or Minority community, or who is a Transgender or specially abled person, or a woman, are covered by these provisions. Such applicants are expected to produce the corresponding certificates — caste, gender or disability documentation — as part of the application.

For the MSME categories, MSME registration is indicated as a requirement. The policy document does not set out separate entity-type or additional state restrictions beyond operating in Andhra Pradesh, so applicants should confirm the finer points against the Textile Policy 2024-29 (GO 55) guidelines before filing.

Andhra Pradesh Textile Investment Subsidy — Up to ₹50 Cr for Textile Units is open to startups at any stage. It is open to startups registered anywhere in India.

Andhra Pradesh Textile Investment Subsidy — Up to ₹50 Cr for Textile 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.

Support is a percentage of eligible Fixed Capital Investment (FCI), and the applicable rate and ceiling depend on the category the unit falls into:

• Micro and Small enterprises: 45% of eligible FCI, capped at ₹3 crore, released across 2 to 3 years depending on which of the two the unit is.
• Medium enterprises: 45% of eligible FCI, up to ₹10 crore, over 4 years.
• Value Added Activities: the most generous rate at 55% of eligible FCI, up to ₹20 crore, over 4 years — available irrespective of the enterprise's MSME classification.
• Sub-Large units: 25% of eligible FCI, up to ₹20 crore, over 4 years.
• Large units: 30% of eligible FCI, up to ₹50 crore, spread over 5 years.

Across every category the money reaches the applicant in tranches rather than as a lump sum, and each tranche is linked to proof of the Fixed Capital Investment made and to progress against project milestones. The intended effect is to lower the capital burden of setting up, expanding or diversifying a textile unit and to make long-term operations in the state more sustainable.

Andhra Pradesh Textile Investment Subsidy — Up to ₹50 Cr for Textile 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.

A selection committee, made up largely of officials from the Department of Industries along with other concerned state departments, examines each application.

The committee's judgement rests on how viable the proposed project is, what it contributes to the growth of the state's textile sector, the employment it is expected to generate, and how closely it aligns with the objectives set out in the policy. Where an applicant claims special category treatment, the demographic criteria behind that claim are scrutinised specifically.

The review moves through stages:

• Initial screening to confirm eligibility and that the application is complete.
• A detailed financial and technical assessment of the project.
• A final recommendation on whether the subsidy should be approved.

Applicants may be asked for further clarifications, or to appear for an interview or presentation if the committee considers it necessary. Even after approval, release of funds depends on verification of the Fixed Capital Investment actually made and on the achievement of project milestones.

Before you apply to Andhra Pradesh Textile Investment Subsidy — Up to ₹50 Cr for Textile 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.

Andhra Pradesh Textile Investment Subsidy — Up to ₹50 Cr for Textile Units is best suited for startups in India seeking non-dilutive funding of ₹50Cr. If that describes your startup, review the eligibility criteria above before applying.