Technology Upgradation Subsidy (Special Category)
Department of Handlooms and Textiles, Government of Andhra Pradesh · Central government
A 45% capital subsidy (up to ₹7.5 Crores) funds technology upgradation and expansion for MSMEs led by special category proprietors.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹7,50,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Released against milestones
About this scheme
The Technology Upgradation Subsidy (Special Category) operates as an incentive within the Andhra Pradesh Textile Policy 2024-29. It is directed at Micro, Small, and Medium Enterprises (MSMEs) whose proprietors belong to Backward Classes (BC), Scheduled Castes (SC), Scheduled Tribes (ST), Minorities, transgender individuals, specially abled persons, or women.
The subsidy supports expansion or diversification projects that involve technology upgradation. Financial assistance is provided on eligible Fixed Capital Investment (FCI), which lowers the capital burden for these businesses and enables the adoption of advanced machinery and processes. This support is intended to improve competitiveness in the textile market, drive productivity, and generate sustainable employment in Andhra Pradesh, in line with the state’s industrial development and inclusive growth objectives.
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
- Proprietors must belong to BC, SC, ST, Minority, Transgender, specially abled, or women categories. - Enterprises must be classified as Micro, Small, or Medium (MSMEs). - Projects must pertain to expansion or diversification, specifically for technology upgradation in the textile sector. - MSME Udyam registration is mandatory.
How to apply
Applications under the Technology Upgradation Subsidy are handled by the Department of Industries, Government of Andhra Pradesh, in line with the Textile Policy 2024-29. MSMEs seeking the subsidy are advised to follow these steps:
- Download the application form and detailed guidelines from the Department of Industries’ official website. - Compile the required paperwork, including MSME registration proof, incorporation documents, a project proposal covering technology upgradation or expansion, financial projections, and, where applicable, proprietorship evidence from a special category. - Submit the duly filled form and all annexures to the authorised office or through the online portal, respecting any specified application window. Confirm that Fixed Capital Investment (FCI) figures are precise and verifiable.
How applications are assessed
The Department of Industries, Government of Andhra Pradesh, constitutes a committee to screen all applications. This committee assesses enterprise eligibility, the project's technology upgradation or expansion scope, the eligible Fixed Capital Investment amount, and the project's likely effect on the textile sector.
Preference for subsidy allocation goes to projects showing sound financial health and a clear fit with the policy's aims of modernisation and inclusive growth.
Frequently asked questions
What is the Technology Upgradation Subsidy (Special Category)?
It is a capital subsidy under the Andhra Pradesh Textile Policy 2024-29, provided to Micro, Small, and Medium enterprises for technology upgradation, expansion, or diversification projects, with a particular focus on those led by proprietors from special categories.
Who is eligible to claim this subsidy?
MSMEs led by proprietors from Backward Classes, Scheduled Castes, Scheduled Tribes, Minorities, transgender individuals, specially abled persons, or women are eligible, provided the enterprise is registered as an MSME.
What is the maximum subsidy an enterprise can receive?
The subsidy ceiling is ₹2 Crores for Micro enterprises, ₹2 Crores for Small enterprises, and ₹7.5 Crores for Medium enterprises, computed at 45% of the eligible Fixed Capital Investment.
What type of investments does this subsidy cover?
The subsidy applies to eligible Fixed Capital Investment (FCI) incurred by enterprises for expansion or diversification, provided the investment is directed towards technology upgradation in the textile sector.
Is co-financing required for this subsidy?
Yes, the subsidy is calculated as a percentage of the eligible Fixed Capital Investment, so you must first make the full investment and then claim the subsidy for a portion of it.
Sectors
- Manufacturing Industrial
- Textile
- Msme
- Capital Subsidy
- Technology Upgradation
- Andhra Pradesh
Details last verified on 8 September 2026. Source: the issuer's published information.