AP Early Bird Investment Subsidy — Up to ₹80 Cr for Textile Units — Frequently Asked Questions

It depends on your category and size. Category I enterprises receive 30% of eligible Fixed Capital Investment, capped at ₹30 crore for Sub-Large and ₹60 crore for Large units. Category II enterprises — those in weaving, processing, garments or technical textiles — receive 40% of eligible FCI, capped at ₹40 crore for Sub-Large and ₹80 crore for Large units. Mega enterprises in both categories are supported up to their eligible FCI rather than a fixed cap.

The scheme is open to Sub-Large, Large and Mega enterprises in the textile sector, including those receiving tailor-made benefits, as long as their eligible Fixed Capital Investment exceeds ₹50 crore. Beyond size, eligibility hinges on when you secure your Common Facility Exemption: within 18 months of the policy launch date to fall under Category I as one of the first 200 general enterprises, or within 24 months if you are investing in weaving, processing, garments or technical textiles under Category II.

Category I covers the first 200 general enterprises that obtain their Common Facility Exemption within 18 months of the policy launch. It carries a 30% subsidy on eligible FCI. Category II is reserved for enterprises investing in weaving, processing, garments or technical textiles, gives them 24 months to secure CFE, and carries a higher 40% subsidy rate.

The scheme is rolling and always open rather than tied to a single closing date. However, the early-bird benefit itself is time-bound: your category depends on receiving your Common Facility Exemption within 18 months (Category I) or 24 months (Category II) from the policy launch date. Enterprises should therefore treat the CFE window, not a submission deadline, as the real clock.

The approved amount is disbursed in tranches spread over 5, 7 or 10 years, matched to enterprise size — Sub-Large, Large and Mega respectively. This spreads the support across the life of the project and aligns it with milestones and long-term operations.

No. This is a subsidy, which means it is a non-dilutive incentive — you are not giving away shares or ownership in return for the funding. The support is calculated as a percentage of your eligible Fixed Capital Investment and released over time.

The policy details available do not list DPIIT or MSME registration as a condition. Eligibility is framed around enterprise size (Sub-Large and above), the eligible Fixed Capital Investment crossing ₹50 crore, and the timing of your Common Facility Exemption. It is still worth confirming the current paperwork checklist in the official policy guidelines before applying.

The scheme covers textile enterprises broadly, with particular emphasis on weaving, processing, garments and technical textiles — these four areas form Category II and attract the higher 40% subsidy rate. The policy's overall focus is on textile manufacturing, processing and garments.

Applicants typically prepare a comprehensive project proposal, a detailed project report (DPR) and financial statements setting out the proposed investment and its alignment with policy objectives. You will also need your Common Facility Exemption and proof of eligible Fixed Capital Investment. The official 'textile policy 2024-29 - go 55 - guidelines' document sets out the full application procedure, forms and supporting documentation.

Applications are managed by the Government of Andhra Pradesh through its industries department, under the AP TAG 4.0 policy framework. The state's incentives portal at apindustries.gov.in is the place to start, and the policy guidelines document should be consulted for the exact forms and submission process.

AP Early Bird Investment Subsidy — Up to ₹80 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.