AP Industries Tech Upgradation Grant
By Department of Industries & Commerce, Government of Andhra Pradesh
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Quick Answer
Andhra Pradesh cash subsidy on technology upgradation, expansion or modernization for FPOs, SHGs, Federations, Co-operatives, Societies and Micro, Small, Medium and Large units, up to ₹10 Crore.
- Funding amount
- Up to ₹10Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Eligible stage
- Revenue
- Location
- Andhra Pradesh
About this subsidy
Andhra Pradesh pays a cash subsidy on technology upgradation costs to FPOs, SHGs, Federations, Co-operatives, Societies, and Micro, Small, Medium and Large units that are undergoing expansion, diversification or modernization. It is part of the Andhra Pradesh Industrial Development Policy (FPP 4.0) 2024-29.
The subsidy is a share of the upgradation cost, with a cap. FPOs, SHGs, Federations, Co-operatives and Societies get 35%, up to ₹3 Crore. Micro enterprises get 20%, up to ₹20 Lakhs. Small enterprises get 20%, up to ₹1 Crore. Medium enterprises get 20%, up to ₹5 Crore. Large enterprises get 10%, up to ₹10 Crore.
It is paid in tranches over 2 to 5 years, depending on the enterprise category.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Provider
Department of Industries & Commerce, Government of Andhra PradeshMangalagiri · Andhra Pradesh · India
The Department of Industries & Commerce is the Government of Andhra Pradesh's department for industrial and MSME policy. It runs the state's Single Desk Portal for regulatory clearances and the Industrial Incentives portal, where units apply for the state's subsidies and…
Learn moreBenefits & Funding
- Amount
- Up to ₹10Cr
What You Get
The program offers a substantial cash subsidy to eligible entities for their technology upgradation costs. The specific subsidy amount varies based on the enterprise type and the percentage of the cost covered, subject to a maximum cap.
- FPOs, SHGs, Federations, Co-operatives, and Societies are eligible for 35% of the upgradation cost, capped at ₹3 Crore.
- Micro enterprises can claim 20% of the cost, with a maximum of ₹20 Lakhs.
- Small enterprises also receive 20% of the cost, up to ₹1 Crore.
- Medium enterprises are granted 20% of the cost, capped at ₹5 Crore.
- Large enterprises are eligible for 10% of the cost, with a maximum limit of ₹10 Crore. This incentive is disbursed in tranches over a period of 2 to 5 years, depending on the enterprise category, providing sustained financial relief. Beyond the direct financial benefit, participants gain from improved operational efficiency, enhanced product capabilities, and a strengthened market position due to modernized infrastructure and diversified offerings.
- Disbursement
- Tranched
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for the Technology Upgradation incentive under FPP 4.0 will undergo a rigorous multi-stage selection process. Initially, submitted applications will be screened for completeness and adherence to basic eligibility criteria outlined in the policy, such as enterprise type and the nature of the proposed project (expansion, diversification, or modernization). Subsequently, a dedicated committee, comprising experts and officials from the Andhra Pradesh Industries Department, will evaluate the detailed project proposals. This evaluation will assess the technical feasibility, economic viability, and the overall impact of the proposed technology upgradation on the enterprise's productivity and growth. Projects demonstrating significant potential for industrial advancement and alignment with the state's development objectives will be prioritized. Shortlisted applicants may be invited for further discussions or site visits to validate their claims and project details. The final selection will be based on the committee's comprehensive assessment and recommendations.
Application Process
- 1
Review Guidelines
Applicants must thoroughly review the FPP 4.0 policy document for eligibility and application procedures.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary purpose of the Technology Upgradation Cost (FPP 4.0) incentive?
The incentive aims to encourage FPOs/SHGs/Federations/Co-operatives/Societies and Micro, Small, Medium, and Large units in Andhra Pradesh to undertake expansion, diversification, and modernization activities by providing financial support for technology upgradation costs.
Which types of entities are eligible for this incentive?
The program is open to FPOs, SHGs, Federations, Co-operatives, Societies, and registered Micro, Small, Medium, and Large industrial units that are planning or undergoing expansion, diversification, or modernization.
What is the maximum subsidy amount I can receive under this program?
The maximum subsidy varies by entity type, ranging from ₹20 Lakhs for Micro enterprises to ₹10 Crore for Large enterprises, and up to ₹3 Crore for FPOs/SHGs/Federations/Co-operatives/Societies.
Is the subsidy provided as a lump sum?
No, the incentive is disbursed in tranches over a period ranging from 2 to 5 years, depending on your enterprise category, ensuring sustained support for your project.
What kind of activities qualify for technology upgradation?
Activities related to modernization of machinery, adoption of new technologies, process improvements, capacity expansion, and diversification into new product lines or markets are generally covered, provided they contribute to the enterprise's growth and efficiency.
Do I need to co-finance the technology upgradation project?
Yes, the incentive covers a percentage of the total cost (10-35%), implying that the remaining portion of the project cost must be borne by the applicant enterprise.
Sources
Data on this page is compiled from official program and provider references.
