Technology Upgradation Cost Grant (MEDP 4.0) — Up to ₹5 Cr for AP MSMEs — Frequently Asked Questions

It depends on the size of your enterprise and on your eligible Fixed Capital Investment. The grant pays 20% of that investment, subject to a cap of ₹20 Lakhs for a Micro enterprise, ₹1 Crore for a Small enterprise and ₹5 Crores for a Medium enterprise. So ₹5 Crores is the highest amount available under the scheme.

It is a grant rather than an investment. Support is provided in cash under MEDP 4.0, and the scheme does not involve the government taking an equity stake in your business.

Micro, Small and Medium enterprises that are located in Andhra Pradesh and that are taking up an expansion, diversification, modernisation or technology upgradation project. Applicants also need to meet the MSME definitions laid down in Government of India guidelines and in the MEDP 4.0 policy.

Yes — MSME status matters here, since the scheme is built around Micro, Small and Medium enterprises, and proof of MSME Udyam registration is one of the documents typically required with the application. The classification you fall under also decides your grant ceiling.

No. This is a rolling scheme with no closing date, so applications can be submitted at any time during the policy period.

It is meant for technology upgradation, expansion, diversification and modernisation — for example investing in new machinery, upgrading production processes, or adopting software that changes how the business manufactures or what it makes. The grant is calculated against your eligible Fixed Capital Investment in the project.

The grant is released in tranches spread over 2 to 5 years. The exact schedule is tied to the approved project plan and the milestones it reaches, which means you receive the funds progressively instead of as a single payment at the start.

Yes. Since the grant covers 20% of the eligible Fixed Capital Investment, the enterprise is expected to bring in the remaining 80% as co-financing for the project.

You will typically need a detailed project proposal, cost estimates for the technology upgradation or expansion you are planning, proof of MSME Udyam registration, financial statements, and any other supporting evidence the policy asks for. It is worth reading Section 4.0 of the MEDP 4.0 policy document first, because it sets out the full documentation list and the eligibility criteria.

Applications go through the Andhra Pradesh Industries Department's online portal or your District Industries Centre (DIC); the state's incentives portal is at https://www.apindustries.gov.in/Incentives/Index.aspx. After submission, a committee of Industries Department officials and experts scrutinises the proposal, checks your eligibility and verifies the eligible Fixed Capital Investment. Shortlisted applicants may face further due diligence, including site visits. Once approved, a sanction letter is issued and the grant is disbursed in tranches.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Technology Upgradation Cost Grant (MEDP 4.0) — Up to ₹5 Cr for AP MSMEs, though having it can strengthen your application and unlock other benefits.

Technology Upgradation Cost Grant (MEDP 4.0) — Up to ₹5 Cr for AP MSMEs is offered by Department of Industries & Commerce, Government of Andhra Pradesh, a government body. It is provided as non-dilutive funding.