AP Skill Upgradation Reimbursement for MSMEs (MEDP & FPP 4.0)
By Department of Industries & Commerce, Government of Andhra Pradesh
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Quick Answer
MSMEs, FPOs and SHGs under MEDP 4.0 and FPP 4.0 get skill training costs or employer EPF share back.
- Funding amount
- ₹5,000 – ₹3L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Andhra Pradesh
- Registrations needed
- Udyam registration
About this subsidy
This version sits under MEDP 4.0 and FPP 4.0 and also offers EPF reimbursement of up to ₹1 Lakh a year for 3 years.
The Government of Andhra Pradesh reimburses skill upgradation costs under the Micro and Small Enterprise Development Policy (MEDP) 4.0 and Food Processing Policy (FPP) 4.0 (2024-29). Support depends on enterprise size.
Micro enterprises get ₹5,000 per person for up to 10 persons, capped at ₹50,000 (one-time).
Small enterprises get ₹10,000 per person for up to 20 persons, capped at ₹2,00,000 (one-time).
Medium enterprises get 100% of the employer's EPF contribution, capped at ₹1,00,000 per annum, for 3 years.
MSMEs registered under MEDP 4.0 and FPP 4.0 are eligible. Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), Federations and Cooperatives are also eligible, depending on their investment size.
Eligibility
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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
- ₹5,000 – ₹3L
What You Get
Micro Enterprises: Reimbursement of ₹5,000 per person for skill upgradation costs, up to a maximum of 10 persons. The total reimbursement is capped at ₹50,000 (one-time).
Small Enterprises: Reimbursement of ₹10,000 per person for skill upgradation costs, up to a maximum of 20 persons. The total reimbursement is capped at ₹2,00,000 (one-time).
Medium Enterprises: Reimbursement of 100% of the employer's contribution to EPF, capped at ₹1,00,000 per annum. This benefit is available on an annual basis for 3 years. The program aims to alleviate financial burdens and encourage formal employment and skill development.
- Disbursement
- Reimbursement
- Duration
- 37 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for reimbursement will undergo a thorough screening process by the designated authority. This typically involves verifying the applicant's eligibility as an MSME, FPO, SHG, Federation, or Cooperative under the MEDP 4.0 and FPP 4.0 policies. The submitted documents, including proof of expenditure for skill upgradation or EPF contributions, will be scrutinized for authenticity and adherence to the scheme's guidelines. Reimbursement will be processed upon successful verification and approval, ensuring compliance with all policy stipulations.
Application Process
- 1
Submit Application
Applicants submit their detailed reimbursement claims with supporting documents.
You - 2
- 3
- 4
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
Who is eligible for this reimbursement?
Micro, Small, and Medium Enterprises (MSMEs) are eligible, as well as Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), Federations, and Cooperatives, depending on their investment size. Eligibility is governed by the MEDP 4.0 and FPP 4.0 policies of Andhra Pradesh.
What costs are covered by the reimbursement?
The scheme covers costs related to skill upgradation for employees in Micro and Small enterprises. For Medium enterprises, it covers 100% of the employer's contribution to the Employees' Provident Fund (EPF), up to a specified annual limit. The intent is to support workforce development and formal employment.
What is the maximum reimbursement for Micro Enterprises?
Micro enterprises can receive ₹5,000 per person for a maximum of 10 persons, with a total cap of ₹50,000. This is a one-time reimbursement designed to support initial skill development efforts within smaller businesses.
What is the maximum reimbursement for Small Enterprises?
Small enterprises can receive ₹10,000 per person for a maximum of 20 persons, with a total cap of ₹2,00,000. This higher cap reflects the larger scale of operations and potential training needs of small businesses.
How long is the benefit available for Medium Enterprises?
Medium enterprises can claim 100% of their employer's EPF contribution (capped at ₹1 Lakh per annum) on an annual basis for 3 years. This extended support aims to provide sustained relief and encourage long-term formal employment.
Is this program equity-free?
Yes, this program offers direct reimbursement/subsidy for specified costs and does not require any equity stake from the applicant enterprise. It is purely a financial incentive program to support business development.
Sources
Data on this page is compiled from official program and provider references.
