AP Early Bird Investment Subsidy for Textile Enterprises
Department of Handlooms and Textiles, Government of Andhra Pradesh · Central government
Textile enterprises with FCI above ₹50 crore can receive an investment subsidy of up to ₹80 crore under this scheme.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹80,00,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Paid in tranches
About this scheme
The Early Bird Investment Subsidy falls under the Andhra Pradesh Textile and Apparel Policy (AP TAG 4.0) 2024-29. Only the textile sector may apply for this incentive.
Its purpose is to draw large-scale investment into Andhra Pradesh's textile industry. The scheme supports the state's goals of faster industrial growth, job creation, and recognition as a centre for textile manufacturing, processing, garments, and technical textiles.
Financial incentives of a substantial nature are offered to new enterprises, as well as existing units going in for expansion, so that they set up or modernise their facilities within the timeframes laid down. The design of the subsidy favours those who invest early and those whose investments are strategically planned.
The wider objective is economic development of the region — enlarging its industrial base and improving its standing in both domestic and international textile markets.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, Partnership firm
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Andhra Pradesh
- Sub-Large and above enterprises qualify, including those receiving tailor-made benefits. - Eligible Fixed Capital Investment (FCI) must exceed INR 50 Crore. - Category I: the first 200 general enterprises granted Common Facility Exemption (CFE) within 18 months of the policy launch date. - Category II: enterprises with investment in weaving, processing, garments, or technical textiles sectors, granted CFE within 24 months of the policy launch date.
How to apply
Applications for the Early Bird Investment Subsidy are handled through a multi-stage procedure administered by the Department of Industries, Government of Andhra Pradesh, in accordance with the AP TAG 4.0 policy. Enterprises that wish to apply should:
- Download the official document titled 'textile policy 2024-29 -go 55- guidelines.pdf', which sets out the application procedure in detail, along with the forms to be used and the supporting documents required. - Assemble a full project proposal, a detailed project report (DPR), and financial statements that set out the proposed investment and demonstrate how it fits with the objectives of the policy. - File an application for Common Facility Exemption (CFE) within the prescribed period (18 or 24 months, depending on the category). - After CFE has been granted and the project satisfies every eligibility criterion, file the formal investment subsidy application together with evidence of eligible Fixed Capital Investment (FCI). - Liaise with the concerned state authorities for the verification and approval stages. Additional information on application forms and submission portals would be made available either within the policy guidelines or through the implementing agency.
How applications are assessed
Under the AP Textile and Apparel Policy (TAG 4.0), the Early Bird Investment Subsidy operates through a compliance-based approval route rather than a competitive selection. The concerned department — in all likelihood the Department of Industries — examines each application against the policy's eligibility conditions, assessing the project proposal, financial documentation and evidence of Fixed Capital Investment (FCI). Enterprises are placed in Category I or II according to the nature of their investment and when their Common Facility Exemption (CFE) was obtained.
Approval ultimately rests on three things: conformity with every policy provision, satisfactory verification of the investment, and the availability of funds. No pitching or jury rounds are involved at any stage.
Frequently asked questions
What is the Early Bird Investment Subsidy?
The Government of Andhra Pradesh offers this financial incentive under the AP Textile and Apparel Policy (TAG 4.0) to draw large-scale investment into the textile sector, paying out a percentage of the Fixed Capital Investment as a subsidy.
Who is eligible for this subsidy?
Enterprises classified as Sub-Large and above, meaning those with an eligible Fixed Capital Investment exceeding ₹50 Crore, fall under this provision. They are further divided into two categories according to the nature of the enterprise and when Common Facility Exemption (CFE) was received.
What is the maximum subsidy amount one can receive?
The cap depends on enterprise size and category: Category I enterprises can receive up to ₹30 Crore (Sub-Large) to ₹60 Crore (Large), while Category II enterprises can receive up to ₹40 Crore (Sub-Large) to ₹80 Crore (Large). Mega enterprises in either category are instead limited to a percentage of their eligible FCI, with no specified ceiling.
How is the subsidy disbursed?
The subsidy is paid out in instalments across 5, 7, or 10 years, with the duration set by enterprise size — Sub-Large, Large, or Mega respectively.
Which industries within the textile sector are specifically covered under Category II?
Category II covers enterprises that invest in weaving, processing, garments and technical textiles, with the aim of strengthening these segments of the textile value chain.
Is there a specific application deadline for this subsidy?
The policy runs from 2024-29, but Early Bird benefits depend on obtaining your Common Facility Exemption (CFE) within 18 or 24 months, according to your category. Enterprises interested in applying should therefore refer to the full policy guidelines for procedures and timelines.
Sectors
- Manufacturing Industrial
- Textile
- Investment
- Subsidy
- Andhra Pradesh
- Manufacturing
Details last verified on 18 September 2026. Source: the issuer's published information.