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| Scheme Policy | Details |
|---|---|
| Policy Name | Andhra Pradesh Textile, Apparel and Garments Policy 4.0 (2024–29) |
| Government Order | G.O.Ms.No.89, Industries & Commerce (Prog-II), dated 11-12-2024 |
| Amendment | G.O.Ms.No.24, Industries & Commerce (Prog-II), dated 17-02-2025 |
| Nodal Departments | Industries & Commerce Department / Handlooms & Textiles Department |
| Implementing Authorities | Director of Industries, AP and Commissioner of Handlooms & Textiles; larger/mega projects involve SIPC/SIPB |
| Main Objective | Build an end-to-end textile value chain in Andhra Pradesh, encourage value addition, technical textiles, apparel/garments, employment and exports |
| Policy Period | 5 years from date of notification, or until a new policy is announced, as applicable |
| Investment Target | ₹10,000 crore additional investment |
| Employment Target | More than 2 lakh direct and indirect employment opportunities |
| Export Target | Textile exports targeted at approximately USD 1 billion |
The policy specifically seeks to support weaving, knitting, preparatory processing, processing, garmenting, apparel, technical textiles and integrated textile units.
The policy is designed for textile and textile-related enterprises establishing new units or undertaking eligible expansion/upgradation.
Broadly eligible applicants
The policy covers enterprises across the textile value chain, subject to the activity being eligible under the policy and the applicable operational guidelines.
Special Category
The policy provides enhanced incentives for eligible enterprises owned/led by specified categories, including:
The applicable ownership/domicile conditions must be satisfied.
The policy is particularly focused on activities that add value to the textile chain.
Covered areas include:
Textile manufacturing
Apparel
Advanced textiles
Integrated units
The policy's stated focus includes weaving, knitting, preparatory processing, technical textiles and integrated units.
For new enterprises, the original policy provides:
| Enterprise | General Category | Special Category |
|---|---|---|
| Micro | 30% of eFCI, max ₹3 crore | 45% of eFCI, max ₹3 crore |
| Small | 30% of eFCI, max ₹3 crore | 45% of eFCI, max ₹3 crore |
| Medium | 30% of eFCI, max ₹10 crore | 45% of eFCI, max ₹10 crore |
| Value-added activities – MSME | 40%, max ₹20 crore | 55%, max ₹20 crore |
eFCI = eligible Fixed Capital Investment.
Value-added textile activities receive the higher subsidy structure.
For eligible existing enterprises undertaking technology upgradation, expansion or diversification:
| Enterprise | General | Special Category |
|---|---|---|
| Micro | 30% eFCI, max ₹2 crore | 45%, max ₹2 crore |
| Small | 30% eFCI, max ₹2 crore | 45%, max ₹2 crore |
| Medium | 30% eFCI, max ₹7.5 crore | 45%, max ₹7.5 crore |
This is particularly relevant for modernization of textile machinery and production technology.
This is an important area where the 2025 amendment must be considered.
Under G.O.Ms.No.24 dated 17 February 2025, eligible MSMEs can claim:
| Category | Power Subsidy | Maximum Annual Cap | Period |
|---|---|---|---|
| Micro | ₹2/unit | ₹2 lakh/year | 5 years from DCP |
| Small | ₹2/unit | ₹10 lakh/year | 5 years from DCP |
| Medium | ₹2/unit | ₹30 lakh/year | 5 years from DCP |
The amendment specifically changed the provision to ₹2 per unit and five years from DCP.
DCP = Date of Commercial Production.
The 2025 amendment provides:
MSMEs
50% exemption on electricity duty for 5 years from DCP.
This is separate from the ₹2/unit power-cost subsidy.
The policy also provides a separate incentive structure for larger textile projects.
Investment categories
| Category | Investment |
|---|---|
| Sub-Large | Above ₹50 crore up to ₹100 crore |
| Large | Above ₹100 crore up to ₹200 crore |
| Mega | Above ₹200 crore |
For Sub-Large and Large projects, the investment subsidy structure is:
| Category | General | Special Category | Maximum |
|---|---|---|---|
| Sub-Large | 20% of eFCI | 25% | ₹20 crore |
| Large | 25% of eFCI | 30% | ₹50 crore |
The 2025 amendment changed the power subsidy for these categories to:
| Category | Power Subsidy | Maximum | Period |
|---|---|---|---|
| Sub-Large | ₹2/unit | ₹1 crore | 5 years from DCP |
| Large | ₹2/unit | ₹2 crore | 5 years from DCP |
The amendment also provides 50% electricity-duty exemption for five years from DCP for Sub-Large and Large enterprises.
Projects with investment above ₹200 crore are treated as Mega projects under the textile policy.
Rather than a fixed standard subsidy slab, these projects can receive tailor-made incentives on a case-to-case basis, considering factors such as:
Mega-project proposals are considered through the State's investment-promotion mechanism.
The policy provides support for skill development.
| Enterprise | Benefit |
|---|---|
| Micro | ₹5,000/person for maximum 10 persons |
| Small | ₹10,000/person for maximum 20 persons |
| Medium | 100% employer EPF contribution, capped at ₹1 lakh/year for 3 years |
This is particularly relevant to apparel/garment units because labour skill development is an important component of textile-sector expansion.
For MSMEs:
Water Audit
75% of audit cost, subject to a maximum of ₹1 lakh.
Energy Audit
75% of audit cost, subject to a maximum of ₹2 lakh.
Equipment recommended by audit
| Enterprise | Assistance |
|---|---|
| Micro | 25%, max ₹20 lakh |
| Small | 25%, max ₹40 lakh |
| Medium | 25%, max ₹50 lakh |
The objective is to improve energy efficiency, water efficiency and adoption of cleaner technology.
Eligible exporting units can receive a local procurement incentive.
For MSMEs, the broad structure is:
| Enterprise | Benefit | Period / Cap |
|---|---|---|
| Micro | 1% of annual turnover | 3 years; overall cap ₹15 lakh |
| Small | 1% of annual turnover | 3 years; overall cap ₹1.5 crore |
| Medium | 1% of annual turnover | 3 years; overall cap ₹7 crore |
For larger projects, separate conditions/caps apply.
The benefit is linked to exporting units and domestic sourcing requirements.
Eligible enterprises can receive assistance towards quality certification.
The policy provides reimbursement for eligible balance expenditure, subject to the applicable Government of India assistance and policy conditions.
This can be relevant for textile units seeking recognised quality/certification standards for domestic and export markets.
For Sub-Large and Large textile projects, employment generation can affect the incentive available.
The Employment-to-Investment ratio is used:
| E/I Ratio | Incentive |
|---|---|
| 5 or above | 10% of FCI |
| 3 to <5 | 9% of FCI |
| 1 to <3 | 8% of FCI |
| Below 1 | Nil |
The incentive is linked to employment creation and is released according to the prescribed schedule.
Eligible Sub-Large and Large projects can receive assistance for eligible decarbonisation measures.
Indicative structure:
| Category | Non-Red | Red | Overall limitation |
|---|---|---|---|
| Sub-Large | 10% | 15% | Up to 6% of FCI |
| Large | 20% | 25% | Up to 6% of FCI |
Eligible areas can include:
Eligible textile enterprises can receive:
100% reimbursement of stamp duty and transfer duty
on purchase of land for industrial use.
Also covered, subject to the policy:
The reimbursement is subject to the applicable conditions and is generally available only once for the relevant land transaction.
Eligible units can receive:
100% reimbursement of land-conversion charges
subject to the applicable policy conditions.
This can substantially reduce the initial statutory cost where agricultural/non-industrial land requires conversion for industrial use.
The 2025 amendment introduced a specific land-cost benefit for eligible SC/ST-led MSMEs.
Benefit
75% rebate in land cost, limited to ₹25 lakh, for:
The incentive can be availed only once on the land.
For practical classification, the policy uses MSME definitions as applicable under the Government of India's MSME framework.
The AP district government information currently describes:
| Category | Investment in Plant & Machinery/Equipment | Turnover |
|---|---|---|
| Micro | ≤ ₹1 crore | ≤ ₹5 crore |
| Small | ≤ ₹10 crore | ≤ ₹50 crore |
| Medium | ≤ ₹50 crore | ≤ ₹250 crore |
However, the policy's textile-specific investment bands for larger projects are:
Some of the key conditions are:
The project must be established in Andhra Pradesh and comply with applicable industrial/location requirements.
The activity must fall within the eligible textile/apparel/garment activities covered by the policy.
The enterprise must satisfy the applicable commercial production/DCP requirement.
The enterprise must obtain applicable:
Only eligible investment/eFCI as defined under the policy can be used for calculating incentives.
This distinction is critical:
Enhanced benefits require compliance with the applicable ownership/category/domicile requirements.
The enterprise must comply with the policy's provisions regarding overlapping incentives and benefits from other Government schemes.
For a textile manufacturing project, the potential State benefits can therefore include:
| Benefit | Potential Support |
|---|---|
| Investment subsidy – Micro | 30% eFCI / 45% special category |
| Investment subsidy – Small | 30% / 45% |
| Investment subsidy – Medium | 30% / 45% |
| Value-added MSME subsidy | 40% / 55%, cap ₹20 crore |
| Technology upgradation | 30% / 45% |
| Power subsidy – MSME | ₹2/unit |
| Power subsidy – Sub-Large | ₹2/unit |
| Power subsidy – Large | ₹2/unit |
| Electricity duty | 50% exemption |
| Stamp duty | 100% reimbursement, subject to conditions |
| Land conversion | 100% reimbursement |
| Skill development | Prescribed per-person/EPF support |
| Energy audit | 75%, subject to cap |
| Water audit | 75%, subject to cap |
| Green equipment | 25%, subject to cap |
| Local procurement | 1% turnover-linked incentive, subject to caps |
| Employment incentive | Up to 10% FCI for qualifying larger projects |
| De-carbonisation | Eligible percentage, subject to limits |
| Mega projects | Tailor-made package |
| SC/ST-led MSME land rebate | 75%, max ₹25 lakh, subject to conditions |