Local Procurement Subsidy (AP)
Department of Handlooms and Textiles, Government of Andhra Pradesh · Central government
Andhra Pradesh reimburses export-oriented textile enterprises 1% of annual export turnover, capped at ₹7 crore yearly for three years, based on local procurement.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- ₹15,00,000 – ₹7,00,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 3 years
About this scheme
The Local Procurement Subsidy falls under the Andhra Pradesh Textile Policy 2024-29. It offers financial assistance to export-oriented textile enterprises that satisfy specified conditions tied to their export turnover and to the inputs they source from within Andhra Pradesh.
Through this incentive, the state government aims to reinforce backward linkages in the textile industry, encourage local sourcing, and expand exports. The intended outcomes include economic growth and additional employment opportunities.
Enterprises of every scale — micro, small, medium and large — are eligible under this initiative, allowing a wide range of businesses to draw on the policy's support framework.
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
- Export-oriented textile sector enterprises registered in Andhra Pradesh, across the Micro, Small, Medium, Sub-Large and Large categories. - At least 60% of annual turnover must come from exports. - At least 60% of input requirement must be procured from within the state. - Open to new as well as existing enterprises.
How to apply
Claims are ordinarily filed with the concerned department of the Government of Andhra Pradesh, in most cases the Department of Industries, Commerce, and Export Promotion. An application form must be submitted together with documents that establish the enterprise's registration, export turnover and local procurement particulars — audited financial statements, export invoices and procurement records, for instance. Processing of claims generally takes place annually. Forms and submission guidelines specific to the Andhra Pradesh Textile Policy 2024-29 can be obtained from the official state government portals or offices.
How applications are assessed
The Department of Industries, Government of Andhra Pradesh, entrusts a designated committee or authority with the scrutiny of Local Procurement Subsidy applications. Verification covers the eligibility conditions — enterprise registration, the minimum export turnover threshold, and the share of inputs procured locally — with each claim measured against the policy guidelines to confirm compliance prior to approval and disbursement.
Frequently asked questions
What is the Local Procurement Subsidy (AP)?
The Local Procurement Subsidy, offered under the Andhra Pradesh Textile Policy 2024-29, reimburses export-oriented textile enterprises a share of their annual export turnover if they source a substantial part of their inputs locally.
Who is eligible to apply for this subsidy?
Applicants must be export-oriented textile enterprises of any size — Micro, Small, Medium, Sub-Large or Large — registered in Andhra Pradesh, with exports accounting for at least 60% of annual turnover and at least 60% of input requirements sourced from within the state.
What is the maximum subsidy amount I can receive?
The subsidy amounts to 1% of annual export turnover, capped by enterprise size: ₹15 lakhs for Micro, ₹1.5 crores for Small, ₹7 crores for Medium, and ₹2 crores for Sub-Large/Large enterprises.
How often is the subsidy disbursed?
The subsidy is paid annually over three years, starting from the date on which eligibility is established.
Are new and existing enterprises eligible for this subsidy?
New and existing export-oriented textile enterprises are both eligible for the Local Procurement Subsidy, provided they satisfy the specified criteria.
What documents are typically required for the application process?
Applicants would ordinarily submit an application form, proof of enterprise registration, audited financial statements establishing export turnover, and procurement records showing local sourcing, though the Andhra Pradesh Textile Policy 2024-29 official guidelines will set out the exact requirements.
Sectors
- Manufacturing Industrial
- Textile
- Export
- Local Procurement
- Government Scheme
- Andhra Pradesh
Details last verified on 15 September 2026. Source: the issuer's published information.