AP Investment Subsidy (MEDP 4.0)
Department of Industries & Commerce, Government of Andhra Pradesh · Central government
Subsidy scheme for new MSMEs in Andhra Pradesh: 25% of eligible Fixed Capital Investment, up to ₹7 crore.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- ₹25,00,000 – ₹7,00,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Paid in tranches
About this scheme
The Investment Subsidy under the Micro, Small, and Medium Enterprise Development Policy (MEDP 4.0) is an incentive provided by the Government of Andhra Pradesh. It is designed to support industrial growth and the formation of new businesses by reducing the burden of initial capital expenditure. The scheme is aimed at new Micro, Small, and Medium enterprises, offering direct financial assistance for their establishment and expansion.
By covering a portion of fixed capital investment, the policy intends to create a supportive environment for entrepreneurship, employment generation, and economic progress within the state. The initiative reflects the government's focus on MSMEs as key contributors to the national economy. Disbursement is structured over multiple years, ensuring continued support during the early operational period of these enterprises.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Andhra Pradesh
- Open to new Micro, Small, and Medium enterprises in Andhra Pradesh.
How to apply
- Consult the official policy document "OG-For-AP-IDP-MSME-EDP-FPP-(4.0)-2024-29.pdf" for the complete application instructions and eligibility criteria. - Assemble the required paperwork, generally comprising enterprise registration certificates, a comprehensive project report, evidence of fixed capital expenditure, and financial records. - File the duly filled application via the prescribed online platform or at the Andhra Pradesh Industries Department's designated branch, in line with the policy's specifications. - Wait for the authorities to contact you about the evaluation and sanction procedure.
How applications are assessed
The Andhra Pradesh Industries Department evaluates applications for the Investment Subsidy against the stated eligibility criteria, the soundness of the proposed project, and conformity with the policy provisions of MEDP 4.0. Approval is granted only after this review is complete.
Once an application is approved, the subsidy claim is settled following a detailed verification of the enterprise's qualifying Fixed Capital Investment. This check confirms that all regulatory conditions have been met before any payment is released.
Frequently asked questions
What is the maximum subsidy available under MEDP 4.0 Investment Subsidy?
The subsidy ceiling depends on the enterprise category: ₹25 Lakh for Micro, ₹1.5 Crores for Small, and ₹7 Crores for Medium units, each capped at 25% of the eligible Fixed Capital Investment.
What percentage of Fixed Capital Investment is subsidized?
The programme provides a flat 25% subsidy on eligible Fixed Capital Investment (FCI) for all Micro, Small, and Medium enterprises, capped by the applicable maximum limits for each category.
How is the subsidy disbursed?
Disbursement occurs in tranches spread over 2–4 years, with the schedule varying by enterprise category: micro enterprises receive the subsidy over 2 years, small over 3 years, and medium over 4 years.
Which types of enterprises are eligible for this subsidy?
Newly incorporated or established businesses that meet the MSME definition are eligible for this investment subsidy.
Is this an equity-based funding program?
No, this is an investment subsidy and does not involve equity dilution. It is a direct financial grant for fixed capital expenditure.
Is there an interest rate or repayment requirement for the subsidy?
No, the funding is a non-repayable, interest-free government subsidy, not a loan. It serves as a direct financial incentive rather than a borrowing facility.
Sectors
- Msme
- Industrialincentive
- Fixedcapital
- Andhrapradeshgovt
Details last verified on 8 September 2026. Source: the issuer's published information.