AP TAG 4.0 Employment Subsidy

The Employment-Based Subsidy is a component of the Andhra Pradesh Textile Policy 2024-29 (AP TAG 4.0), aimed at encouraging job creation in the textile and apparel sector. It applies to Sub-Large and Large enterprises setting up new projects, expanding, or diversifying within Andhra Pradesh. Financial assistance under the scheme is tied directly to the employment-to-investment ratio of eligible projects.

The subsidy is intended to promote capital investment that goes hand in hand with job creation, supporting balanced economic development. Through it, the state seeks to draw in and retain large-scale industrial units capable of adding substantially to the workforce and economic output, and to establish Andhra Pradesh as a hub for textile manufacturing and related industries.

By backing enterprises with strong employment generation potential, the government aims to advance sustainable industrialisation and improve livelihoods. Benefits are disbursed over five years, providing a structured framework for long-term growth and encouraging sustained operational stability and employment commitment from beneficiary enterprises.

- Go through the eligibility and application conditions set out in the detailed guidelines of the Andhra Pradesh Textile Policy 2024-29 (GO 55). - Assemble the project proposals, financial statements and employment generation projections that the policy requires. - File the application with the designated authority in the Andhra Pradesh Industries Department, using the official procedure for claiming incentives under AP TAG 4.0. - The relevant departmental committee will screen and evaluate each application. - Once approved, the subsidy is released in tranches across five years, contingent on meeting the committed employment and investment milestones.

The Andhra Pradesh Industries Department convenes a committee to screen Employment-Based Subsidy applications, checking that each applicant meets the eligibility criteria — enterprise size, project type (new, expansion or diversification), and the projected creation of new employment. Projects then undergo detailed evaluation of their Fixed Capital Investment (FCI) and the proposed Employment to Investment (E/I) ratio.

Approval decisions, along with the percentage and maximum amount of subsidy granted, rest on how closely a project aligns with the policy objectives and on the verified E/I ratio.