AP Skill Upgradation Reimbursement for MSMEs (MEDP & FPP 4.0)
Department of Industries & Commerce, Government of Andhra Pradesh · Central government
MEDP 4.0 and FPP 4.0 reimburse skill training costs or the employer EPF share for MSMEs, FPOs and SHGs.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- ₹5,000 – ₹3,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 3 years
About this scheme
The Skill Upgradation Costs Reimbursement scheme is run by the Government of Andhra Pradesh under the Micro and Small Enterprise Development Policy (MEDP) 4.0 and the Food Processing Policy (FPP) 4.0 (2024-29). It covers part of the cost that eligible enterprises bear when upgrading employee skills, with the aim of improving competitiveness and growth in the state's industry.
Support varies by enterprise size and type. Micro and Small enterprises may claim one-time reimbursements for skill upgradation. Medium enterprises may claim support towards the employer's contribution to the Employees' Provident Fund (EPF). Under MEDP 4.0 and FPP 4.0, EPF reimbursement of up to ₹1 Lakh a year is available for 3 years.
Through these reimbursements, the state government seeks to build a skilled workforce, raise industrial productivity and encourage formal employment practices.
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
- MSMEs registered under MEDP 4.0 and FPP 4.0 - FPOs, SHGs, Federations, and Cooperatives, subject to their investment size
How to apply
- Consult the official policy document (MEDP 4.0 and FPP 4.0 (2024-29)) hosted on the Andhra Pradesh Industries Department website to obtain the detailed application guidelines and forms. - Assemble the required paperwork: evidence of enterprise registration, documentation of skill upgradation expenditure (invoices, training certificates), or EPF contribution records. - Fill in and file the completed claim application with the authority or department named in the policy document. - Wait for the implementing agency to verify and approve the claim.
How applications are assessed
The designated authority screens every reimbursement application. It checks that the applicant qualifies as an MSME, FPO, SHG, Federation, or Cooperative under MEDP 4.0 and FPP 4.0, and examines the documents submitted — proof of expenditure on skill upgradation or EPF contributions — for authenticity and conformity with the scheme's guidelines. Reimbursement follows only after verification and approval confirm that all policy stipulations have been met.
Frequently asked questions
Who is eligible for this reimbursement?
MSMEs qualify, along with FPOs, SHGs, federations and cooperatives, subject to their investment size. The MEDP 4.0 and FPP 4.0 policies of Andhra Pradesh set the eligibility criteria.
What costs are covered by the reimbursement?
For Micro and Small enterprises, the scheme meets skill upgradation costs for employees, while for Medium enterprises it covers the employer's entire EPF contribution, subject to a stated annual ceiling, with the aim of encouraging workforce development and formal employment.
What is the maximum reimbursement for Micro Enterprises?
Micro enterprises are eligible for a one-time reimbursement of ₹5,000 per person, covering up to 10 persons and capped at ₹50,000 in total, to support initial skill development within smaller businesses.
What is the maximum reimbursement for Small Enterprises?
Small enterprises are eligible for ₹10,000 per person, covering up to 20 persons, subject to an overall ceiling of ₹2,00,000.
How long is the benefit available for Medium Enterprises?
Medium enterprises may claim reimbursement of the full employer EPF contribution, subject to a ceiling of ₹1 lakh per annum, once every year for three years. The three-year duration is intended to give continuing relief and to promote formal employment over the longer term.
Is this program equity-free?
The programme provides direct reimbursement or subsidy for specified costs and takes no equity stake in the applicant enterprise; it functions solely as a financial incentive for business development.
Sectors
- Skill Development
- Msme
- Andhra Pradesh
- Reimbursement
- Epf Contribution
Details last verified on 18 September 2026. Source: the issuer's published information.