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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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