Technology Upgradation Subsidy (Special Category) — Up to ₹7.5 Cr for AP MSMEs — Frequently Asked Questions

The subsidy is calculated as 45% of the eligible Fixed Capital Investment in the project. The ceiling depends on the size of your enterprise: a Micro enterprise can receive up to ₹2 Crores, a Small enterprise up to ₹2 Crores, and a Medium enterprise up to ₹7.5 Crores. The most any unit can get through this scheme is therefore ₹7.5 Crores.

Micro, Small and Medium enterprises in the textile sector qualify, provided the business is led by a proprietor from a special category. The project also has to involve expansion or diversification for technology upgradation, and the unit must hold MSME Udyam registration.

Backward Classes (BC), Scheduled Castes (SC), Scheduled Tribes (ST), minorities, transgender persons, persons with disabilities, and women proprietors all fall under this category. The enterprise needs to be led by a proprietor from one of these groups.

No. The scheme runs on a rolling basis and the window stays open throughout the year, so there is no fixed deadline to meet. You can file once your expansion or technology upgradation project and its investment figures are ready.

Yes. MSME Udyam registration is a requirement for this subsidy, and proof of that registration is among the documents you will need to submit along with your application.

Neither. This is a capital subsidy — it is not a loan and not an equity investment, so no shares are issued to the state and nothing has to be repaid. What is expected is that your enterprise makes the capital investment first and then claims the subsidy on the eligible portion of it.

Expansion or diversification projects that involve technology upgradation in the textile sector. The subsidy is worked out on the eligible Fixed Capital Investment made for that purpose, which typically means new machinery and upgraded processes rather than everyday operating expenses.

Disbursement is spread across a period of 2 to 4 years, and the length of that spread is linked to the size of the enterprise. The support reaches the unit in instalments rather than as a single payment.

You will generally need proof of MSME registration, business incorporation documents, a project proposal covering the technology upgradation or expansion, detailed financial projections, and proof that the proprietor belongs to a special category. All Fixed Capital Investment figures should be accurate and verifiable.

The detailed guidelines and application form are available on the official website of the Department of Industries, Government of Andhra Pradesh, in its incentives section at https://www.apindustries.gov.in/Incentives/Index.aspx. The completed form is submitted with all supporting documents to the designated authority or through the online portal.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Technology Upgradation Subsidy (Special Category) — Up to ₹7.5 Cr for AP MSMEs, though having it can strengthen your application and unlock other benefits.

Technology Upgradation Subsidy (Special Category) — Up to ₹7.5 Cr for AP MSMEs is offered by Department of Handlooms and Textiles, Government of Andhra Pradesh, a government body. It is provided as non-dilutive funding.