AP Technology Upgradation Subsidy
Department of Handlooms and Textiles, Government of Andhra Pradesh · Central government
Andhra Pradesh offers MSMEs in textiles a financial incentive for technology upgradation, expansion, diversification and modernisation.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- ₹2,00,00,000 – ₹7,50,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Paid in tranches
About this scheme
The Technology Upgradation Subsidy is an incentive offered under the Andhra Pradesh Textile Policy 2024-29 (AP TAG 4.0). It is intended to strengthen the competitiveness and sustainability of Micro, Small, and Medium Enterprises (MSMEs) within the state's textile industry.
The scheme extends support to existing enterprises that put money into advanced machinery, processes, and infrastructure for the purposes of expansion, diversification, and modernisation. New ventures are not covered by this scheme.
By granting a substantial subsidy on Fixed Capital Investment (FCI), the government aims to ease the financial load on MSMEs. This is meant to help them take up modern technologies and compete more effectively in national and international markets.
The initiative is expected to encourage innovation, raise productivity, generate employment opportunities, and improve the overall value chain in Andhra Pradesh's textile sector, thereby contributing to industrial growth and economic development.
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, Small, and Medium Enterprises (MSMEs) are eligible. - Registration and operations must be based in Andhra Pradesh. - The enterprise must be undertaking expansion, diversification, or modernisation. - New enterprises are excluded from the scheme.
How to apply
Applications under the Technology Upgradation Subsidy are handled through the main application framework established for the AP Textile Policy 2024-29 (AP TAG 4.0). Enterprises that qualify generally need to file a comprehensive project proposal setting out their expansion, diversification, or modernisation plans, together with papers establishing their MSME status and details of current operations. Submission is ordinarily made via an online application portal or through the District Industries Center. For the prescribed forms, checklists, and deadlines, applicants should consult the official guidelines document. Once submitted, each application is subject to detailed scrutiny and verification, after which approval is granted and the subsidy is released in instalments.
How applications are assessed
A committee of officials from the Department of Industries & Commerce, Government of Andhra Pradesh, generally screens the applications received. During evaluation, the panel checks whether applicants meet the eligibility criteria, reviews the viability of the proposed project, considers how far it aligns with the policy's objectives, and works out the eligible Fixed Capital Investment.
Those who make the shortlist may face additional due diligence or site visits. A final decision then follows, taken on the basis of compliance with the guidelines and the availability of budget.
Frequently asked questions
What is the primary objective of the Technology Upgradation Subsidy?
The scheme aims to help existing textile MSMEs in Andhra Pradesh upgrade technology and take up expansion, diversification and modernisation, so that their productivity and competitiveness improve.
Which types of enterprises are eligible for this subsidy?
Established MSMEs already operating in Andhra Pradesh qualify for this scheme, which is intended for existing businesses seeking to modernise or expand rather than for new enterprises.
What is the maximum subsidy amount an enterprise can receive?
The maximum subsidy depends on enterprise size: Micro and Small enterprises may receive up to ₹2 crore, and Medium enterprises up to ₹7.5 crore, in each case limited to 30% of the eligible Fixed Capital Investment.
Is this subsidy applicable to new businesses?
The Technology Upgradation Subsidy is not available to new enterprise setups. Only existing Micro, Small, and Medium enterprises undertaking expansion, diversification, or modernization can apply.
How is the subsidy disbursed?
Micro enterprises receive the subsidy in tranches across 2 years, Small enterprises across 3 years, and Medium enterprises across 4 years, with the precise schedule set out during the application process.
What kind of support is offered beyond the financial subsidy?
The main benefit is financial, but since the programme forms part of a government policy, it also covers grants facilitation, helping eligible enterprises work through the application and claim process so they can obtain the benefits meant for them.
Sectors
- Manufacturing Industrial
- Textileindustry
- Msmesupport
- Andhrapradeshincentive
- Capitalsubsidy
- Technologyupgradation
Details last verified on 18 September 2026. Source: the issuer's published information.