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| Scheme Policy | Details |
|---|---|
| Policy / Scheme Name | Andhra Pradesh MSME & Entrepreneur Development Policy 4.0 (2024–29), issued through G.O.Ms.No.69, Industries & Commerce (Programme-I), dated 26-10-2024. |
| Implementing Department | Industries & Commerce Department, Government of Andhra Pradesh |
| District Implementing Agency | District Industries Centre (DIC). DICs facilitate entrepreneurs, process/sanction eligible incentives and support industrial development at district level. |
| Policy Objective | Promote MSMEs, entrepreneurship, investment, employment, competitiveness, technology adoption, formalisation and inclusive industrial development in Andhra Pradesh. |
| Validity / Applicable Period | 5 years from notification, i.e. the 2024–29 policy period, or until a new policy is announced. |
The policy is principally intended for eligible Micro, Small and Medium Enterprises and entrepreneurs undertaking eligible manufacturing/service activities in Andhra Pradesh.
Eligibility generally depends on:
The policy provides separate treatment for general-category enterprises and special-category enterprises. Special categories include enterprises wholly owned by eligible women, BC, SC, ST, minority, specially-abled and transgender entrepreneurs, subject to the applicable conditions.
The AP DIC/MSME incentive framework covers eligible manufacturing and service activities, subject to the respective policy's eligible-sector list and operational guidelines.
Examples of sectors covered through AP's industrial policy framework include:
Important: A unit should not assume that every activity qualifies under every incentive. The exact eligible activity and exclusions have to be checked against the relevant operational guidelines.
For eligible new enterprises under the amended MSME incentive structure, the capital subsidy is broadly:
| Category | General | Special Category |
|---|---|---|
| Micro | 25% of FCI, capped at ₹25 lakh | 45% of FCI, capped at ₹45 lakh |
| Small | 25% of FCI, capped at ₹1.5 crore | 45% of FCI, capped at ₹4.5 crore |
| Medium | 25% of FCI, capped at ₹7 crore | 35% of FCI, capped at ₹7 crore |
FCI = Fixed Capital Investment.
The subsidy is applicable to new enterprises, with payment structured in annual instalments as prescribed.
For eligible expansion/diversification units:
| Category | General | Special Category |
|---|---|---|
| Micro | 20% of FCI, cap ₹20 lakh | 40%, cap ₹40 lakh |
| Small | 20%, cap ₹2 crore | 40%, cap ₹4 crore |
| Medium | 20%, cap ₹5 crore | 30%, cap ₹5 crore |
The incentive is intended for eligible technology upgradation/modernisation associated with expansion/diversification.
For eligible manufacturing/service enterprises:
The policy provides 100% reimbursement of eligible net SGST, generally for 5 years, subject to the prescribed annual and overall limits.
The total SGST incentive is subject to a ceiling of 100% of FCI.
For eligible industrial investment:
Eligible enterprises can receive 100% reimbursement of applicable land-conversion charges, subject to the policy conditions.
The AP MSME policy framework also provides/addresses incentives and support relating to:
AP district industrial pages specifically identify these as part of the industrial incentive framework.
The applicable investment limit depends on the MSME classification and the particular incentive.
For the AP MSME capital subsidy structure, the important practical limits are the subsidy ceilings:
| Enterprise | Maximum Capital Subsidy – General | Maximum – Special Category |
|---|---|---|
| Micro | ₹25 lakh | ₹45 lakh |
| Small | ₹1.50 crore | ₹4.50 crore |
| Medium | ₹7 crore | ₹7 crore |
The FCI-based percentage and monetary ceiling are both relevant; therefore, an enterprise cannot simply claim the percentage without reference to the applicable cap.
For large/sub-large/mega investments, different incentives are available under the AP Industrial Development Policy 4.0, rather than treating them as ordinary MSME capital subsidy cases.
An eligible unit may potentially receive a combination of benefits such as:
The actual combination depends upon the nature of the unit, investment, location, enterprise category, activity, new/expansion status and applicable policy.
The AP framework gives enhanced support to specified special-category entrepreneurs.
The special category includes, subject to the policy's ownership/domicile requirements:
For example, the amended capital subsidy structure provides substantially higher percentages for eligible special-category Micro and Small enterprises.
Important conditions generally include:
Enterprise conditions
Investment conditions
New-unit conditions
Capital subsidy under the amended MSME structure is specifically applicable to new enterprises.
Expansion/diversification
Technology-upgradation subsidy is linked to eligible expansion/diversification rather than an ordinary new-unit claim.
Special-category conditions
For enhanced special-category incentives, the enterprise must satisfy the ownership and other requirements prescribed by the policy.