AP TAG 4.0 Employment Subsidy
By Department of Handlooms and Textiles, Government of Andhra Pradesh
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Quick Answer
An employment-based subsidy from the Andhra Pradesh government for Sub-Large and Large enterprises in the textile sector, rewarding new job creation.
- Funding amount
- ₹8Cr – ₹20Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Andhra Pradesh
About this subsidy
The Employment-Based Subsidy is an initiative under the Andhra Pradesh Textile Policy 2024-29 (AP TAG 4.0) designed to incentivize job creation in the textile and apparel sector. This scheme targets Sub-Large and Large enterprises undertaking new projects, expansions, or diversification efforts within the state of Andhra Pradesh. Its primary goal is to foster industrial growth and generate significant employment opportunities by providing financial assistance linked directly to the employment-to-investment ratio of eligible projects.
This subsidy aims to encourage greater capital investment that is also strongly aligned with job creation, thereby ensuring a balanced economic development. The policy seeks to attract and retain large-scale industrial units that can contribute substantially to the state's workforce and economic output, positioning Andhra Pradesh as a key hub for textile manufacturing and associated industries. By supporting enterprises that demonstrate a high employment generation potential, the government intends to drive sustainable industrialization and improve the livelihood of its citizens. The scheme also provides a structured framework for long-term growth by ensuring that the benefits are disbursed over a period of five years, thereby encouraging sustained operational stability and employment commitment from the beneficiary enterprises.
Eligibility
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Subsidy providers
The Department of Handlooms & Textiles is the Government of Andhra Pradesh's department for the state's handloom and textile sector. It runs state and central schemes for handloom weavers, powerloom units and weavers' co-operative societies, and is based at Mangalagiri. Most of…
Learn moreBenefits & Funding
- Amount
- ₹8Cr – ₹20Cr
What You Get
Eligible enterprises can receive a significant employment-based subsidy, calculated as a percentage of their eligible Fixed Capital Investment (FCI). The subsidy amount varies based on the Employment to Investment (E/I) ratio, ranging from 8% to 10% of FCI. Maximum subsidy can be up to ₹20 crore for Large enterprises with an E/I ratio of 5 and above, and up to ₹10 crore for Sub-Large enterprises in the same category. These funds are disbursed over a period of five years, providing sustained financial support for job creation and project stability.
- Disbursement
- Tranched
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for the Employment-Based Subsidy will be screened by a committee from the Andhra Pradesh Industries Department to verify compliance with the eligibility criteria, particularly regarding enterprise size, project type (new, expansion, diversification), and the projection of new employment generation. A detailed evaluation will be conducted on the project's Fixed Capital Investment (FCI) and the proposed Employment to Investment (E/I) ratio. Decisions on subsidy approval and the applicable percentage/maximum amount will be based on the project's alignment with the policy objectives and the verified E/I ratio.
Application Process
- 1
Review Guidelines
Applicants must thoroughly review the Andhra Pradesh Textile Policy 2024-29 (GO 55) guidelines.
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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 objective of the Employment-Based Subsidy?
The primary objective is to incentivize Sub-Large and Large enterprises to generate new employment in the textile sector in Andhra Pradesh by offering financial subsidies tied to their Employment to Investment ratio.
Which types of enterprises are eligible for this subsidy?
Sub-Large and Large enterprises undertaking new projects, expansions, or diversification projects are eligible.
How is the subsidy amount determined?
The subsidy is calculated as a percentage of eligible Fixed Capital Investment (FCI) and depends on the Employment to Investment (E/I) ratio. It ranges from 8% to 10% of FCI, with maximum caps depending on enterprise size and E/I ratio.
What is the maximum subsidy an enterprise can receive?
The maximum subsidy can go up to ₹20 crore for Large enterprises and ₹10 crore for Sub-Large enterprises, contingent on achieving a higher E/I ratio.
Over what period is the subsidy disbursed?
All eligible subsidy amounts are disbursed over a period of five years.
Does this subsidy require equity participation from the government?
No, this is a non-repayable cash subsidy and does not involve any government equity participation in the enterprise.
Sources
Data on this page is compiled from official program and provider references.
