AP Textile Stamp Duty Reimbursement

## Reimbursement of Stamp Duty for Lease, Mortgages and Hypothecations

Under the Andhra Pradesh Textile Policy 2024-29, the Reimbursement of Stamp Duty for Lease, Mortgages and Hypothecations scheme extends a 100% reimbursement of stamp duty to industries falling within the textile sector's designated 'special category'. The scheme is intended to improve these units' financial viability and their capacity to expand.

Stamp duty paid on leases of land, sheds or industrial buildings — transactions that underpin the setting up or expansion of manufacturing operations — qualifies for reimbursement. So does stamp duty on mortgages and hypothecations, which supports these enterprises in raising capital and obtaining secured lending.

Through this relief, the Government of Andhra Pradesh aims to make investing in and running textile units in the state more attractive. The measure serves the Textile Policy's wider goals of industrial growth, job creation, and positioning Andhra Pradesh as a leading centre for textile manufacturing and innovation, and reflects the state's effort to maintain a supportive and competitive environment for its industrial sector, especially enterprises that contribute substantially to the textile value chain.

To receive this reimbursement, qualifying industries need to follow the application procedure set out in the Andhra Pradesh Textile Policy 2024-29 guidelines. In general, this entails filing a carefully completed application form with the nominated authority in the Department of Industries, Government of Andhra Pradesh. Together with the application, the applicant must submit documentary proof of the stamp duty paid — for example, copies of registered lease deeds, mortgage agreements, or hypothecation documents. It is also mandatory for applicants to attach documentation that clearly establishes their standing as an 'industry in a special category', as laid down in sections 15.1-15.2 of the Textile Policy. Every application received is examined in detail to confirm it meets the policy's guidelines and criteria. Once all documents have been verified and the claim is found eligible, the reimbursement is processed and paid out to the qualifying industry.

The Government of Andhra Pradesh's concerned department scrutinises each reimbursement application. It checks whether the applicant qualifies as a 'special category' industry, whether the claim falls within the covered transactions — lease, mortgage, or hypothecation — and whether the stamp duty has been paid as required. Once all documents submitted are verified and the policy's terms and conditions are met, the reimbursement is taken forward for processing.