Andhra Pradesh DIC MSME Subsidies and Incentives

AP MSME & Entrepreneur Development Policy 4.0 (2024–2029)

Overview

The policy provides investment subsidy and other incentives for eligible new manufacturing and specified service enterprises in Andhra Pradesh. Policy period: 26 October 2024 – 25 October 2029. Nodal agency: AP Food Processing Society.

Eligibility & Special Category Benefit

New enterprises may be eligible for investment subsidy when they satisfy applicable policy conditions. An enhanced special category rate applies to enterprises wholly owned by eligible women, BC, SC, ST, minority, specially-abled or transgender entrepreneurs domiciled in Andhra Pradesh.

Investment Subsidy
MSME classificationMale / GeneralFemale / SC / ST
Micro25% up to ₹25 lakh45% up to ₹45 lakh
Small25% up to ₹1.50 crore45% up to ₹4.50 crore
Medium25% up to ₹7 crore35% up to ₹7 crore
MSME Classification (from 1 April 2025)
ClassificationPlant & machinery / equipmentAnnual turnover
MicroUp to ₹2.5 croreUp to ₹10 crore
SmallUp to ₹25 croreUp to ₹100 crore
MediumUp to ₹125 croreUp to ₹500 crore

When and Where to Apply: Complete registration and required approvals before or around project commissioning. Submit the investment subsidy claim within 6 months of the Date of Commencement of Commercial Production, through the Online Incentive Portal, to the General Manager, District Industries Centre. Approved subsidy may be disbursed over 2–5 years depending on MSME category and policy conditions.

Additional Benefits

  • 100% net SGST reimbursement for eligible MSMEs (subject to annual and overall caps)
  • Power cost reimbursement for eligible units
  • 100% stamp-duty reimbursement on eligible industrial transactions
  • Technology-upgradation support for eligible existing and expanding units
  • Special incentives for women and other eligible special-category entrepreneurs

Do not miss the six-month deadline. Eligible enterprises must submit their investment subsidy claim within six months of the Date of Commencement of Commercial Production.

Frequently Asked Questions (FAQs)

Within 6 months of the Date of Commencement of Commercial Production.

Through the Online Incentive Portal, to the General Manager, District Industries Centre.

Yes — an enhanced special-category rate applies.

2–5 years, depending on MSME category and policy conditions.

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