AP Textile Policy Land Conversion Reimbursement — 100% Subsidy
Andhra Pradesh's Textile Policy 2024-29 refunds 100% of the land conversion charges paid by new and expanding textile enterprises, from Micro up to Large scale, on a rolling basis.
- 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
The Land Conversion Charges Reimbursement is one of the incentives offered under Andhra Pradesh's Textile Policy for 2024-29, better known as AP TAG 4.0, and it is administered by the Department of Handlooms and Textiles, Government of Andhra Pradesh.
Getting land converted to industrial use is often the first sizeable bill a textile manufacturer faces. This scheme refunds that bill in full — 100% of the land conversion charges already paid — so the capital stays inside the project instead of leaving it before production even starts. The same support extends to units that are expanding or diversifying an existing operation, which makes it useful at both ends of a company's life: as an entry incentive for newcomers and as a growth incentive for established players.
Scale is deliberately not a filter here. Micro, Small, Medium, Sub-Large and Large enterprises are all covered, as long as the unit sits in Andhra Pradesh and works in the textile sector. The policy's stated purpose is to make setting up and running a textile unit in the state less cumbersome, bring in more investment, and generate employment along the way. The benefit is one-time, and it is framed as a reimbursement rather than a loan, so nothing has to be paid back. Applications are accepted continuously, with no fixed window to beat.
Highlights
- 100% reimbursement of land conversion charges, paid as a one-time benefit
- Open to Micro, Small, Medium, Sub-Large and Large textile enterprises
- Covers both new units and expansion or diversification projects
- Operates under the AP Textile Policy 2024-29 (AP TAG 4.0)
- No fixed deadline — applications are accepted on a rolling basis
- Non-repayable: it is a reimbursement, not a loan
Who can apply
Two broad groups of textile businesses can apply. The first is new enterprises establishing a unit in Andhra Pradesh. The second is existing enterprises putting in expansion or diversification at their current operation.
- The unit must be located in Andhra Pradesh.
- The enterprise must operate in the textile sector.
- Micro, Small, Medium, Sub-Large and Large enterprises are all covered — the policy sets no size band that rules a scale of operation out.
- The claim relates to land conversion charges the enterprise has actually paid.
- As the incentive flows from the AP Textile Policy 2024-29 (AP TAG 4.0), the general terms and conditions of that policy apply to every applicant.
AP Textile Policy Land Conversion Reimbursement — 100% Subsidy 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 Textile Policy Land Conversion Reimbursement — 100% Subsidy 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 core benefit is straightforward: an eligible enterprise receives 100% reimbursement of the land conversion charges it has paid. Nothing is deducted from the claim and nothing is repaid afterwards, because this is a subsidy-style, non-repayable support rather than a loan.
- The reimbursement is a one-time payment made to the enterprise.
- It offsets a capital cost that normally falls due before a unit begins production, which eases cash flow and lowers the total investment a promoter has to arrange.
- Funds are credited to the enterprise's bank account once verification and approval are complete.
- The value of the reimbursement tracks the fees the applicant has actually paid, so the amount differs from case to case.
- The incentive is delivered as cash, and the wider policy framework also extends regulatory support to assisted units.
All of this applies equally to a fresh unit being built from the ground up and to an existing unit adding capacity or diversifying its product line.
About the provider
AP Textile Policy Land Conversion Reimbursement — 100% Subsidy 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.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Applications move through a multi-stage check rather than a single approval.
- Initial screening: the submitted documents are examined for completeness and for basic eligibility under the AP Textile Policy 2024-29. A file that is short of paperwork or falls outside the policy's scope stops at this point.
- Detailed review: the enterprise's profile, the project details and the authenticity of the land conversion charge payments are studied closely, including the supporting records.
- Assessment against guidelines: a committee or designated authority within the Department of Industries evaluates the application against the policy's provisions.
- Approval and disbursement: the reimbursement is sanctioned and the amount released to the enterprise only after verification is found satisfactory and the applicant complies with all terms and conditions set out in the policy.
Documents you’ll need
Before you apply to AP Textile Policy Land Conversion Reimbursement — 100% Subsidy, 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
How much does the scheme pay out?
It covers the full bill. An eligible enterprise gets 100% of the land conversion charges it has paid reimbursed, with no share left for the unit to bear. Because the payout mirrors the fees actually paid in each case, the figure differs from applicant to applicant — the scheme does not carry one fixed sum. The reimbursement is granted once and is credited to the enterprise's bank account after verification and approval.
Who is eligible to apply for this reimbursement?
Two kinds of textile businesses qualify: new enterprises setting up in Andhra Pradesh, and existing enterprises going in for expansion or diversification. The unit has to be located in Andhra Pradesh and operating in the textile sector. Scale is not a barrier — Micro, Small, Medium, Sub-Large and Large enterprises are all covered by the incentive.
Is this a loan that I have to repay later?
No. The support is structured as a reimbursement, which functions like a subsidy, so the money is non-repayable. The enterprise is not taking on debt and nothing is recovered from it afterwards.
Is the benefit one-time or does it repeat every year?
It is a one-time reimbursement of land conversion charges for an eligible enterprise. There is no recurring annual payment under this incentive.
Which policy does the scheme sit under, and who runs it?
The incentive is part of the Andhra Pradesh Textile Policy 2024-29, also referred to as AP TAG 4.0. It is administered by the Department of Handlooms and Textiles, Government of Andhra Pradesh, with applications routed through the Department of Industries or a district-level industry facilitation centre.
Is the scheme limited to the textile industry and to Andhra Pradesh?
Yes on both counts. The incentive comes under the state's textile policy, so the focus is on textile-sector enterprises, and the unit must be based in Andhra Pradesh. The policy is designed to draw textile investment into the state and to support units already operating there.
Is there a size limit on the enterprise that can claim it?
No size band rules an applicant out. The policy covers Micro, Small, Medium, Sub-Large and Large enterprises, so both a small weaving unit and a large integrated textile plant can claim the same 100% reimbursement of the land conversion charges they have paid.
What documents will I need to submit?
The application typically calls for proof of enterprise registration, land ownership documents, official receipts showing the land conversion charges paid, and a project report for the new or expanding unit, along with any other forms named in the policy. Reading the policy guidelines first helps ensure the file is complete when it goes in.
How and where do I apply?
Fill in the prescribed application form for incentives under the AP Textile Policy and submit it, with all supporting documents, to the designated authority — usually the Department of Industries or a district-level industry facilitation centre in Andhra Pradesh. Submission may be online or in physical form, depending on the channel specified. The official portal is at https://www.apindustries.gov.in/Incentives/Index.aspx.
What is the last date to apply?
There is no closing date. The scheme runs on a rolling basis and remains open, so an enterprise can file its application whenever it is ready.
How is the application assessed?
Documents are first screened for completeness and basic eligibility under the policy. The enterprise profile, project details and the authenticity of the land conversion charge payments are then reviewed in detail, and a committee or designated authority within the Department of Industries assesses the claim against the policy's guidelines. Approval and disbursement follow only once verification is satisfactory and the terms of the policy are met.
Does AP Textile Policy Land Conversion Reimbursement — 100% Subsidy take equity?
No. AP Textile Policy Land Conversion Reimbursement — 100% Subsidy is subsidy and is non-dilutive — the provider does not take an equity stake in your startup.
Is DPIIT recognition required for AP Textile Policy Land Conversion Reimbursement — 100% Subsidy?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for AP Textile Policy Land Conversion Reimbursement — 100% Subsidy, though having it can strengthen your application and unlock other benefits.
How do I apply for AP Textile Policy Land Conversion Reimbursement — 100% Subsidy?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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