PMKSY Agro Processing Cluster Top-up
Department of Industries & Commerce, Government of Andhra Pradesh · Central government
A top-up incentive for PMKSY-sanctioned agro-processing clusters, funding 15% of eligible project cost up to ₹1 Crore.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹1,00,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Paid in tranches
About this scheme
Andhra Pradesh extends a top-up incentive under PMKSY - Agro Processing Cluster (FPP 4.0). It sits within the state's Industrial Development Policy (IDP), MSME & EDP Policy, and Food Processing Policy (FPP 4.0) 2024-29.
The top-up applies to projects that already hold sanction under the Central Government's Pradhan Mantri Kisan Sampada Yojana (PMKSY), administered by the Ministry of Food Processing Industries (MoFPI). It provides additional financial support to food processing ventures in the state.
Its purpose is to lower the capital expenditure burden on businesses setting up or expanding agro-processing units in designated clusters. By supplementing central assistance, the state seeks to draw in more investment, support the uptake of modern processing technologies, increase value addition to agricultural produce, and generate employment in rural areas.
Through this support, larger food processing projects receive enhanced backing, which the state expects to build a competitive food processing ecosystem.
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
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Andhra Pradesh
- Sanction under the Pradhan Mantri Kisan Sampada Yojana (PMKSY) from the Ministry of Food Processing Industries (MoFPI), Government of India, is required. - The project must relate to the establishment or development of Agro Processing Clusters. - The applicant must be a business entity engaged in food processing — a private limited company, LLP, proprietorship or partnership — carrying out an eligible project in Andhra Pradesh.
How to apply
**Step 1: Secure PMKSY Sanction** Your agro-processing cluster project must already hold official sanction from the Ministry of Food Processing Industries (MoFPI) under the Pradhan Mantri Kisan Sampada Yojana (PMKSY). Without this, you cannot apply for the state top-up.
**Step 2: Study the Policy Document** From the Andhra Pradesh Industries website, download "OG-For-AP-IDP-MSME-EDP-FPP-(4.0)-2024-29.pdf" and read it in full. Give particular attention to Section 5.2e, along with any application forms or annexures attached to this incentive.
**Step 3: Assemble Your Application** Gather every document required. These usually comprise the PMKSY sanction letter, a detailed project report, financial statements, proof of incorporation, land records, and other applicable clearances.
**Step 4: File the Application** Send the completed application to the designated department within the Andhra Pradesh Department of Industries. Filing typically takes place either through an online portal or by physical submission to the District Industries Centre (DIC) or the relevant state-level authority.
**Step 5: Scrutiny and Approval** The department will examine the application you have submitted. Projects found eligible are then forwarded to the competent authority for approval.
**Step 6: Disbursement** Once approved, the subsidy is released in tranches across a 5-year period, in line with policy guidelines. Payments are generally tied to project milestones or to the commencement of operations.
Frequently asked questions
What is the purpose of this top-up incentive?
Andhra Pradesh agro-processing cluster projects already sanctioned under the Central Government's PMKSY scheme can receive this incentive, which lowers capital costs and supports growth in the food processing sector.
Who is the administering authority for this incentive?
The Andhra Pradesh Department of Industries runs this incentive under its state industrial and food processing policies.
What is an 'Agro Processing Cluster' in this context?
An Agro Processing Cluster is a geographically concentrated group of food processing units sharing common infrastructure, intended to raise value addition, cut wastage and lift farmers' incomes. The precise definition follows PMKSY guidelines.
What types of projects are eligible for this top-up?
Eligibility is limited to projects tied to agro-processing clusters that the Ministry of Food Processing Industries (MoFPI) has officially sanctioned under the Pradhan Mantri Kisan Sampada Yojana (PMKSY).
How is the subsidy disbursed?
The subsidy is capped at ₹1 Crore and paid out in instalments across 5 years, once the project is completed and made operational in line with the policy conditions.
Are there any minimum project cost requirements?
The incentive is 15% of the eligible project cost, subject to a ceiling of ₹1 Crore, and no minimum eligible project cost is stipulated in the policy document; however, the project must be substantial enough to have secured PMKSY sanction.
Sectors
- Agri Food Rural
- Agro Processing
- Food Processing
- Cluster Development
- Capital Subsidy
Details last verified on 14 September 2026. Source: the issuer's published information.