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

It depends on the category. Micro and Small enterprises get 45% of eligible Fixed Capital Investment up to ₹3 crore; Medium enterprises get 45% up to ₹10 crore; units in Value Added Activities get 55% up to ₹20 crore; Sub-Large units get 25% up to ₹20 crore; and Large units get 30% up to ₹50 crore. Value Added Activity units receive the highest rate regardless of their MSME classification, while the single largest ceiling of ₹50 crore goes to Large units.

Neither. This is a subsidy, so the government does not take equity in your business and the amount is not repayable the way a loan would be. It is paid out in tranches against the eligible Fixed Capital Investment you have actually made and the project milestones you have met.

New Micro, Small and Medium textile enterprises in Andhra Pradesh can apply, as can Sub-Large and Large textile units setting up a new facility, expanding an existing one or diversifying into a new line. The activity has to be textile manufacturing or a value-added textile activity located in the state.

It is the policy's inclusive-growth track, aimed at opening up textile entrepreneurship to groups that have historically had less access to capital. Units whose proprietor is from a Backward Class (BC), Scheduled Caste (SC), Scheduled Tribe (ST) or Minority community, or is a Transgender or specially abled person, or a woman, come under these provisions. Applicants claiming it need to submit the relevant supporting certificates.

No fixed deadline is set out in the policy — applications run on a rolling basis under Textile Policy 2024-29. That said, it is worth checking the official portal for any announced windows or procedural updates before you file.

Applications are submitted through the designated online portal or to the District Industries Centre (DIC) / Department of Industries in Andhra Pradesh. The official incentives page is at https://www.apindustries.gov.in/Incentives/Index.aspx. The full application procedure and the documentation checklist sit in the Textile Policy 2024-29 (GO 55) guidelines, which applicants should read before starting.

Expect to file a detailed project proposal covering your business plan and financial projections, proof of incorporation, and — where you are claiming the special category — certificates establishing that eligibility, such as caste, gender or disability certificates. The guidelines document lists the complete set.

For the Micro, Small and Medium categories, MSME registration is indicated as a requirement. If your unit falls under the Sub-Large or Large categories, the registration requirement does not apply in the same way. Confirm your specific case against the policy guidelines or with the District Industries Centre before submitting.

A selection committee drawn mainly from the Department of Industries reviews each proposal. It looks at the project's viability, its contribution to the textile sector, its employment generation potential and its fit with the policy's objectives, and it verifies special category claims. The process runs through initial eligibility screening, a detailed financial and technical assessment, and a final approval recommendation, and applicants may be asked for clarifications or to make a presentation.

Only after approval, and then in instalments. Disbursement is spread over 2 to 5 years depending on your category, and each tranche is released once the Fixed Capital Investment is verified and the project's milestones are met.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Andhra Pradesh Textile Investment Subsidy — Up to ₹50 Cr for Textile Units, though having it can strengthen your application and unlock other benefits.

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. 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.