AP Skill Upgradation Reimbursement for Textile Units
Department of Handlooms and Textiles, Government of Andhra Pradesh · Central government
Micro and small textile enterprises can claim a one-time reimbursement of local staff skill training costs, up to ₹2 lakh.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- ₹5,000 – ₹2,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Single lump sum
About this scheme
The Skill Upgradation Cost Reimbursement scheme sits within the Andhra Pradesh Textile Policy 2024-29 (AP TAG 4.0). It applies to micro and small enterprises that train workers drawn from the local area.
Under this incentive, the Government of Andhra Pradesh reimburses part of the expense these enterprises incur on skilling their local workforce. The purpose is to raise the competitiveness of the state's textile industry by building a labour pool with stronger and more current capabilities, which in turn supports productivity, innovation and growth in the sector.
Enterprises that are new, expanding or diversifying are the intended beneficiaries. The scheme treats investment in human capital as central to industrial development that can be sustained, and it is meant to close skill gaps so that local talent holds competencies aligned with current industry requirements.
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
- Micro and Small enterprises that are new, or undertaking expansion or diversification, qualify. - The reimbursement applies to the training of local manpower.
How to apply
Applications for the Skill Upgradation Cost Reimbursement scheme are handled by the concerned department under the Government of Andhra Pradesh, operating within the framework of the AP Textile Policy 2024-29. A Micro or Small enterprise that meets the eligibility criteria generally has to file a formal application covering its training plan, the count of persons proposed for training, and the costs involved. The paperwork commonly sought comprises evidence of enterprise registration, MSME classification, particulars of the training programme, invoices or receipts against training expenditure, and information on the local manpower undergoing training. Review of applications is ordinarily carried out to confirm compliance with the policy guidelines, and applicants who clear the review are paid the sanctioned reimbursement straightaway. The application portal and the precise submission requirements are set out in greater detail in the comprehensive policy guidelines document.
How applications are assessed
The Andhra Pradesh Industries Department, which administers the AP Textile Policy 2024-29, entrusts the scrutiny of Skill Upgradation Cost Reimbursement applications to a committee or designated authority. Assessment hinges on whether the applicant qualifies as a 'Micro' or 'Small' enterprise, whether the training programme serves skill upgradation objectives, and whether the manpower undergoing training is genuinely local. Compliance with the prescribed caps and per-person limits is verified without exception.
Selection is an administrative exercise resting on documentation and eligibility rather than a competitive jury or pitch event.
Frequently asked questions
Who is eligible for the Skill Upgradation Cost Reimbursement scheme?
New, expanding or diversifying Micro and Small enterprises in Andhra Pradesh that fall under the AP Textile Policy 2024-29 may apply, and the scheme's main purpose is to help them train local manpower.
What is the maximum reimbursement amount an enterprise can receive?
Micro enterprises can claim up to ₹50,000, at ₹5,000 per person for a maximum of 10 persons, while small enterprises can claim up to ₹2,00,000, at ₹10,000 per person for a maximum of 20 persons.
How is the reimbursement calculated?
Micro enterprises are reimbursed ₹5,000 per person for up to 10 persons, subject to a ₹50,000 cap, while small enterprises receive ₹10,000 per person for up to 20 persons, capped at ₹2,00,000.
What kind of training is covered by this reimbursement?
Skill upgradation training for local manpower is reimbursed, covering programmes that build technical skills, operational efficiency and other textile-related competencies as set out in the Andhra Pradesh Textile Policy 2024-29.
Is this a one-time benefit?
Yes — the reimbursement is a one-time payment to eligible enterprises, covering the cost of a single skill upgradation training instance or cycle, in line with the policy guidelines.
Is MSME registration mandatory for applying to this scheme?
Although the policy does not name MSME registration outright, it defines eligibility around Micro and Small enterprises, so a valid Udyam registration is strongly advisable and in practice necessary for recognition as such an enterprise under the scheme.
Sectors
- Manufacturing Industrial
- Skill Development
- Reimbursement
- Textile Industry
- Msme
- Andhra Pradesh
Details last verified on 18 September 2026. Source: the issuer's published information.