Local Procurement Subsidy (AP) — 1% Export Turnover Reimbursement up to ₹7Cr — Frequently Asked Questions

The payout is 1% of your annual export turnover. That figure is then held to an annual ceiling that depends on how your enterprise is classified: up to ₹15 lakh for a Micro unit, up to ₹1.5 crore for Small, up to ₹7 crore for Medium, and up to ₹2 crore for Sub-Large or Large units.

You need to be a registered textile sector enterprise in Andhra Pradesh, operating at any scale from Micro through Small, Medium, Sub-Large or Large. On top of registration, at least 60% of your annual turnover has to come from exports, and at least 60% of your input requirement has to be sourced from within the state.

Both are covered. New enterprises and existing enterprises are equally eligible, as long as they meet the export turnover share and the local procurement share for the year they are claiming.

No fixed closing date is attached to the scheme — it operates on a rolling, always-open basis, and claims are handled annually. That said, because the claim relates to a particular year's export and procurement numbers, you should work to the annual claim cycle set out in the policy guidelines.

The published eligibility conditions turn on three things: that you are a registered textile sector enterprise in Andhra Pradesh, that exports make up at least 60% of annual turnover, and that at least 60% of inputs are procured inside the state. DPIIT recognition and MSME registration are not listed among the criteria, so the two 60% thresholds and state registration are what determine your eligibility.

No. This is a cash subsidy paid as a reimbursement of export turnover, so it is non-dilutive — the state does not acquire shares, a stake or any ownership rights in your business, and there is nothing to repay.

The reimbursement is available annually for a period of three years, so you can lodge a claim in each of those years rather than receiving a single one-time payment.

You should expect to file the prescribed application form along with proof of enterprise registration, audited financial statements that establish your export turnover, export invoices, and procurement records that demonstrate your local sourcing. The exact formats and the detailed checklist are laid out in the official Andhra Pradesh Textile Policy 2024-29 guidelines.

Claims go to the relevant department of the Government of Andhra Pradesh, with forms and detailed submission guidelines available through the official state government portals and offices. The state's incentives page at https://www.apindustries.gov.in/Incentives/Index.aspx is the starting point for the application and related documentation.

The entire incentive is tied to buying locally. The state's objective is to strengthen backward linkages in its textile industry — when exporters purchase inputs from within Andhra Pradesh, that spending circulates through the local supply chain and supports economic growth and employment in the state.

Local Procurement Subsidy (AP) — 1% Export Turnover Reimbursement up to ₹7Cr is open to startups at any stage. It is open to startups registered anywhere in India.

Local Procurement Subsidy (AP) — 1% Export Turnover Reimbursement up to ₹7Cr 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.