Department of Industries & Commerce, Government of Andhra Pradesh
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Rebate on Land Cost (AP) — 75% Subsidy Up to ₹25L for SC/ST MSMEs

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A 75% rebate on land cost, capped at ₹25 lakhs, for new SC/ST-led Micro and Small Enterprises setting up inside Andhra Pradesh's Industrial Estates and Industrial Parks. Applications are accepted on a rolling basis.

Funding amount
₹25L (subsidy)
Funding type
Subsidy
Provider
Department of Industries & Commerce, Government of Andhra Pradesh (government)
Application deadline
Rolling
Eligible stage
Any stage
Location
Open to startups registered in India

Overview

The Rebate on Land Cost is a state incentive administered by the Department of Industries & Commerce, Government of Andhra Pradesh. It sits under the Andhra Pradesh Industrial Development Policy for MSME, EDP and FPP (4.0) 2024-29, and it targets one of the heaviest entry barriers a first-time industrial promoter faces — the price of land.

Through this incentive, a Micro or Small Enterprise promoted by an entrepreneur from the Scheduled Caste (SC) or Scheduled Tribe (ST) community can recover a large share of what it pays for a plot located inside a notified Industrial Estate or Industrial Park in the state. A ceiling applies to the payout, which keeps the support predictable for both the applicant and the government.

Only new units qualify, and the benefit can be taken once against a given piece of land. By absorbing a significant part of the upfront land outlay, the policy aims to make industrial ventures practical for SC/ST entrepreneurs, draw fresh investment and job creation into the state, and steer that growth towards planned industrial estates and parks.

Highlights

  • 75% rebate on the cost of land for eligible units
  • Payout capped at ₹25 lakhs
  • Open only to SC/ST-led Micro and Small Enterprises
  • New units inside Andhra Pradesh Industrial Estates and Parks
  • One-time benefit; applications accepted on a rolling basis

Who can apply

  • Promoter category: the enterprise must be led by an individual belonging to the Scheduled Caste (SC) or Scheduled Tribe (ST) category.
  • Enterprise size: only Micro and Small Enterprises qualify.
  • Unit status: the incentive is for new units being set up. Existing units do not qualify.
  • Location: the unit must come up inside a designated Industrial Estate or Industrial Park in Andhra Pradesh.
  • One-time benefit: the rebate can be availed only once on the land, so a single land parcel or unit cannot be used to claim it again.

Rebate on Land Cost (AP) — 75% Subsidy Up to ₹25L for SC/ST MSMEs 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

Rebate on Land Cost (AP) — 75% Subsidy Up to ₹25L for SC/ST MSMEs 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

Eligible SC/ST-led Micro and Small Enterprises receive a 75% rebate on land cost, subject to a maximum of ₹25 lakhs.

What this means in practice:

  • The rebate is a direct cash subsidy against the price paid for land in a designated Industrial Estate or Industrial Park.
  • The 75% is not open-ended — ₹25 lakhs is the ceiling on the amount payable.
  • Being a subsidy, it is non-dilutive: the government does not take a stake in the enterprise, and the rebate does not have to be returned.
  • The benefit attaches to the land and is one-time, so the same plot cannot be used to claim it a second time.
  • The net effect is a lower effective cost of land, which trims the initial capital expenditure needed to start the new unit.

About the provider

Rebate on Land Cost (AP) — 75% Subsidy Up to ₹25L for SC/ST MSMEs is offered by Department of Industries & Commerce, Government of Andhra Pradesh, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

How to apply

Applications are submitted on the . Confirm the current deadline and document checklist there before you start.

Selection process

Every application is examined by the Department of Industries & Commerce before any amount is released. The scrutiny looks at:

  • Whether the enterprise is classified as Micro or Small.
  • Whether the promoters belong to the SC/ST category.
  • Whether the unit is new and is located in an Industrial Estate or Park that has been approved.
  • The land allocation and land cost documents, which are checked for accuracy.

Only enterprises that satisfy the policy conditions are approved. Once verification is complete, the entitled rebate is processed and paid to the enterprise, which brings down the effective price it paid for the land.

Documents you’ll need

Before you apply to Rebate on Land Cost (AP) — 75% Subsidy Up to ₹25L for SC/ST MSMEs, 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.

Who this is best for

Rebate on Land Cost (AP) — 75% Subsidy Up to ₹25L for SC/ST MSMEs is best suited for startups in India seeking non-dilutive funding of ₹25L. If that describes your startup, review the eligibility criteria above before applying.

Frequently asked questions

How much does the Rebate on Land Cost pay out?

An eligible enterprise gets 75% of its land cost back. The payout is capped at ₹25 lakhs, so that is the maximum any single qualifying unit can receive under this incentive.

Who is eligible to apply?

The scheme is meant for Micro and Small Enterprises led by promoters from the Scheduled Caste (SC) or Scheduled Tribe (ST) communities. The enterprise must be a new unit and must be set up within a designated Industrial Estate or Industrial Park in Andhra Pradesh.

Can an existing unit apply for this rebate?

No. The incentive is specifically for new units being set up, and existing units do not qualify.

Can I claim the rebate more than once?

No. The incentive can be availed only once on the land, so a unit or land parcel cannot be used to claim it a second time.

Does the scheme take equity in my enterprise or require repayment?

This is a subsidy, not an investment. The government does not take any stake in your enterprise in return for the rebate.

Is there an application deadline?

No fixed deadline applies — applications are accepted on a rolling basis, so you can apply once your unit and land documents are ready.

Is MSME registration needed?

Your enterprise has to qualify as a Micro or Small Enterprise, and the standard documentation includes proof of MSME Udyam registration, along with the SC/ST caste certificates of the lead promoters.

What documents do I need to submit?

Typically you will need proof of MSME Udyam registration, caste certificates for the SC/ST lead founders, documents relating to the land allocation or purchase within an approved Industrial Estate or Park, and a detailed project report for the new unit.

How and where do I apply?

Begin with the AP IDP-MSME-EDP-FPP (4.0) 2024-29 policy document on the Andhra Pradesh Industries website, which sets out the conditions and the application procedure for this rebate. Applications are then submitted through the Department of Industries' official online portal (https://www.apindustries.gov.in/Incentives/Index.aspx) or at designated district industry centres. Make sure all forms and supporting documents are complete before you submit.

Which policy does this incentive come under?

It is one of the incentives offered under Andhra Pradesh's Industrial Development Policy for MSME, EDP and FPP (4.0) 2024-29, administered by the Department of Industries & Commerce.

Is DPIIT recognition required for Rebate on Land Cost (AP) — 75% Subsidy Up to ₹25L for SC/ST MSMEs?

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Rebate on Land Cost (AP) — 75% Subsidy Up to ₹25L for SC/ST MSMEs, though having it can strengthen your application and unlock other benefits.

Who offers Rebate on Land Cost (AP) — 75% Subsidy Up to ₹25L for SC/ST MSMEs?

Rebate on Land Cost (AP) — 75% Subsidy Up to ₹25L for SC/ST MSMEs is offered by Department of Industries & Commerce, Government of Andhra Pradesh, a government body. It is provided as non-dilutive funding.

How do I apply for Rebate on Land Cost (AP) — 75% Subsidy Up to ₹25L for SC/ST MSMEs?

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.

More funding from Department of Industries & Commerce, Government of Andhra Pradesh

Department of Industries & Commerce, Government of Andhra Pradesh runs 6 other programs listed on startupfunds — compare them before you decide where to apply.

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Alternatives to Rebate on Land Cost (AP) — 75% Subsidy Up to ₹25L for SC/ST MSMEs

Not sure Rebate on Land Cost (AP) — 75% Subsidy Up to ₹25L for SC/ST MSMEs is the right fit, or already applied? These are other subsidies open to Indian startups that founders shortlist alongside it.

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