Department of Handlooms and Textiles, Government of Andhra Pradesh
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Rebate on Land Cost (SC/ST) — 75% Up to ₹25 Lakh in AP

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Quick answer

A 75% rebate on land cost, capped at ₹25 lakh, for new SC/ST-led Micro and Small Enterprises set up in Industrial Estates or Industrial Parks in Andhra Pradesh.

Funding amount
₹25L (subsidy)
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

This is a land-linked incentive run by the Department of Handlooms and Textiles, Government of Andhra Pradesh, as one of the support measures under the Andhra Pradesh Textile Policy 2024-29. Its purpose is straightforward: make land affordable enough that entrepreneurs from the Scheduled Caste and Scheduled Tribe communities can actually get a manufacturing unit off the ground.

The scheme exists because land is usually the heaviest line item in a new industrial project. By returning a large share of what a promoter pays for land inside a recognised Industrial Estate or Industrial Park, the government pulls down the entry cost of setting up shop in the state. Capital that would otherwise be locked into real estate can then go into plant, machinery, technology and working operations.

Eligibility is deliberately narrow. The unit has to be a new Micro or Small Enterprise, its proprietor must belong to the SC or ST category, and it must be located inside a designated industrial estate or park. Existing businesses do not qualify, and the benefit can be drawn only once in a unit's lifetime. Being part of the Textile Policy 2024-29, the incentive is directed at textile-sector units.

Applications are accepted on a rolling basis, so there is no closing date to race against — but every claim is scrutinised and verified before sanction.

Highlights

  • 75% rebate on land cost for eligible units
  • Total benefit capped at ₹25 lakh
  • Open only to SC/ST proprietors
  • Limited to new Micro and Small Enterprises
  • Unit must be in an AP Industrial Estate or Industrial Park
  • Rolling applications — part of the AP Textile Policy 2024-29

Who can apply

The rebate is reserved for a specific kind of promoter and a specific kind of unit. Both conditions have to be met together.

  • Proprietor category: the enterprise must be led by a proprietor belonging to the Scheduled Caste (SC) or Scheduled Tribe (ST) category.
  • Enterprise size: the unit must fall under the Micro and Small Enterprise bracket.
  • Age of unit: only new units can apply. A business that was already set up and running does not qualify.
  • Location: the unit must be established inside a designated Industrial Estate or Industrial Park in Andhra Pradesh.
  • Sector: the incentive flows from the Andhra Pradesh Textile Policy 2024-29, so new textile-sector manufacturing units are the intended beneficiaries.
  • Usage limit: an enterprise can claim this rebate only once in its lifetime.

If the unit is new, micro or small in size, SC/ST-led and based in an approved industrial estate or park, it fits the profile this scheme is built for.

Rebate on Land Cost (SC/ST) — 75% Up to ₹25 Lakh in AP 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 (SC/ST) — 75% Up to ₹25 Lakh in AP 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 financial support comes as a 75% rebate on land cost, subject to a ceiling of ₹25 lakh per eligible unit.

  • The rebate is calculated against what the unit pays for land inside an Industrial Estate or Industrial Park.
  • The ₹25 lakh cap applies regardless of the actual land price, so a higher purchase value does not lift the ceiling.
  • The benefit is typically released as a reimbursement, processed after the land has been acquired or paid for.
  • It is a direct cash incentive that reduces the promoter's upfront capital outlay rather than adding debt or dilution.

By shrinking the cost of acquiring land, the scheme leaves more room in the project budget for machinery, technology and day-to-day operating needs, which improves the viability of a young unit and supports job creation in the state.

About the provider

Rebate on Land Cost (SC/ST) — 75% Up to ₹25 Lakh in AP 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

Every claim goes through a structured review rather than an automatic sanction.

  • Eligibility screening: the Department of Industries checks whether the applicant is genuinely a new Micro or Small Enterprise with SC/ST proprietors and whether the unit sits in an approved Industrial Estate or Park.
  • Technical and financial assessment: a committee may examine the project proposal for technical feasibility, financial viability and how well it aligns with the objectives of the textile policy.
  • Document verification: incorporation certificates, MSME registration, caste certificates and proof of land acquisition are verified in detail.
  • Recommendation and approval: on the basis of the assessment and verification, the file is recommended to the competent authority — such as the State Level Sanctioning Committee — for final approval and sanction of the rebate.

Approval, once granted, is followed by disbursement of the sanctioned rebate amount.

Documents you’ll need

Before you apply to Rebate on Land Cost (SC/ST) — 75% Up to ₹25 Lakh in AP, 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 (SC/ST) — 75% Up to ₹25 Lakh in AP 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 money does this rebate actually give me?

Eligible units receive a rebate covering 75% of their land cost, with the total payout capped at ₹25 lakh. The cap stays at ₹25 lakh even if the land was more expensive, and the amount is generally released as a reimbursement after the land has been acquired or paid for.

Who qualifies as an eligible applicant?

The scheme is for new Micro and Small Enterprises whose proprietor belongs to the Scheduled Caste or Scheduled Tribe category, and which are set up inside an Industrial Estate or Industrial Park in Andhra Pradesh. As part of the AP Textile Policy 2024-29, it is aimed at textile-sector units.

Is there a last date to apply?

No fixed closing date has been notified for this incentive — applications run on a rolling basis, which means the window is always open. The practical constraint is the one-time-per-unit rule, so it is worth applying as early as your unit and land details are ready.

Does the government take equity or a stake in my company for this rebate?

No. This is a subsidy-style rebate, not an investment, so it is non-dilutive — you do not give up any equity, shares or ownership in your enterprise in exchange for the support.

Can a business that is already running apply for this rebate?

No. The benefit is restricted to new units. An enterprise that was already established and operating before the policy's applicability for new units does not qualify, so this is not a route for an existing textile business to refinance land it already owns.

Can I claim the rebate more than once?

Each eligible enterprise can use this rebate only once during its lifetime. It is a single, one-time benefit per unit, so the full eligible amount should be claimed in one application rather than split across multiple claims.

What documents are needed to apply?

Applicants typically submit proof of enterprise registration or incorporation, MSME Udyam registration, the SC/ST caste certificate(s) of the proprietor(s), documents showing land allocation or purchase inside an Industrial Estate or Park, and a detailed project report for the textile unit. Exact requirements are set out in the application guidelines.

Do I need MSME registration to be considered?

MSME Udyam registration appears in the standard document checklist for this incentive, so it is advisable to have it completed before you submit. It also helps establish that your unit falls in the Micro or Small Enterprise bracket, which is a core eligibility condition.

How and where do I submit the application?

Applications are made as part of the wider incentive process under the Textile Policy 2024-29, either through the official state portal at https://www.apindustries.gov.in/Incentives/Index.aspx where online filing is available, or physically at the district-level or state-level industry facilitation centre. Once submitted, you receive an acknowledgement and the file moves into scrutiny, with a site visit possible if officials need to verify the unit's location in the designated industrial area.

Which industries can use this land cost rebate?

This particular rebate sits within the Andhra Pradesh Textile Policy 2024-29, so it is primarily intended for new Micro and Small Enterprises operating in the textile sector in the state. Businesses outside that policy's scope are not the target of this incentive.

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

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

Who is eligible to apply for Rebate on Land Cost (SC/ST) — 75% Up to ₹25 Lakh in AP?

Rebate on Land Cost (SC/ST) — 75% Up to ₹25 Lakh in AP is open to startups at any stage. It is open to startups registered anywhere in India.

Who offers Rebate on Land Cost (SC/ST) — 75% Up to ₹25 Lakh in AP?

Rebate on Land Cost (SC/ST) — 75% Up to ₹25 Lakh in AP is offered by Department of Handlooms and Textiles, Government of Andhra Pradesh, a government body. It is provided as non-dilutive funding.

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

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 Handlooms and Textiles, Government of Andhra Pradesh

Department of Handlooms and Textiles, Government of Andhra Pradesh runs 6 other programs listed on startupfunds — compare them before you decide where to apply.

Andhra Pradesh Textile Investment Subsidy — Up to ₹50 Cr for Textile Units₹50CrA rolling capital subsidy from the Government of Andhra Pradesh covering 25% to 55% of Fixed Capital Investment for new and expanding textile units, with up to ₹50 crore for large enterprises.RollingSubsidyTechnology Upgradation Subsidy (Special Category) — Up to ₹7.5 Cr for AP MSMEs₹7.5CrA 45% capital subsidy on eligible Fixed Capital Investment, capped at ₹7.5 Crores, for textile MSMEs in Andhra Pradesh whose proprietors belong to BC, SC, ST, minority, transgender, specially abled or women's categories.RollingSubsidyAP Textile Power Reimbursement — ₹2/Unit Subsidy up to ₹2 Crore₹2L – ₹2CrAndhra Pradesh reimburses textile enterprises ₹2 per unit of electricity consumed, with size-based caps from ₹2 Lakh to ₹2 Crore for units run by women or special category proprietors.RollingSubsidyAP Electricity Duty Reimbursement — 50% Subsidy for Special Category MSMEsVariesAndhra Pradesh refunds half of a textile MSME's electricity duty for five years, provided the proprietor is a woman, or belongs to the BC, SC, ST, minority, transgender or specially-abled categories.RollingSubsidyAP Land Duty Reimbursement Scheme — 100% Stamp Duty & Transfer Duty ReliefVariesAndhra Pradesh refunds 100% of stamp duty and transfer duty paid on land bought for industrial use under the Textile Policy 2024-29.RollingSubsidyAP Textile Stamp Duty Reimbursement — 100% Refund for Textile UnitsVariesAndhra Pradesh refunds the full stamp duty paid by special category textile industries on land and building leases, mortgages and hypothecations under the Textile Policy 2024-29.RollingSubsidy

Alternatives to Rebate on Land Cost (SC/ST) — 75% Up to ₹25 Lakh in AP

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

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