De-Carbonization Subsidy (AP)
By Department of Handlooms and Textiles, Government of Andhra Pradesh
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Quick Answer
A subsidy scheme by the Andhra Pradesh government for sub-large and large enterprises to support investments in climate-friendly plant, machinery, and equipment.
- Funding amount
- Varies
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Andhra Pradesh
About this subsidy
The De-Carbonization Subsidy, part of the AP TAG 4.0 policy (Textile Policy 2024-29), is designed to encourage sub-large and large enterprises in Andhra Pradesh to adopt more sustainable and climate-friendly industrial practices. This incentive directly supports investments in advanced plant, machinery, and equipment that significantly reduce pollution and emissions, conserve water, minimize waste, and improve energy efficiency, including the development of green buildings. By offsetting a portion of the project cost, the scheme aims to accelerate the transition towards a greener industrial ecosystem within the state. This initiative is crucial for fostering environmental responsibility while promoting economic growth among established enterprises.
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
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
What You Get
Enterprises can receive a subsidy ranging from 10% to 25% of their project cost for new, expansion, or diversification projects. This subsidy is capped at 6% of the eligible Fixed Capital Investment (FCI) and is disbursed over a period of 5 years. The incentive specifically targets investments in climate-friendly plant, machinery, and equipment, including those that reduce pollution and emissions, conserve water, minimize waste, enhance energy efficiency, or support green building initiatives. This financial support helps mitigate the capital expenditure for adopting sustainable technologies.
- Disbursement
- Tranched
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process typically involves a thorough review of the submitted project proposal by a committee from the Andhra Pradesh Industries Department. This committee evaluates the project's adherence to climate-friendly investment criteria, financial viability, and alignment with the objectives of the AP TAG 4.0 policy. Technical experts may also assess the proposed plant, machinery, and equipment for their environmental impact and efficiency. Projects meeting all eligibility and technical requirements will be approved for subsidy disbursement.
Application Process
- 1
Submit Application
Submit detailed project proposal and required documents to the Andhra Pradesh Industries Department.
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 the De-Carbonization Subsidy?
Sub-Large and Large enterprises undertaking new, expansion, or diversification projects are eligible to claim this subsidy.
What kind of investments qualify for this subsidy?
Investments in climate-friendly plant, machinery, and equipment that reduce pollution, conserve water, minimize waste, save energy, or involve green buildings are eligible for the subsidy.
What is the subsidy amount?
The subsidy ranges from 10% to 25% of the project cost, depending on the industry category (Red or Non-Red) and the size of the enterprise (Sub-Large or Large).
Is there a maximum limit for the subsidy?
Yes, the total subsidy amount for a project is capped at 6% of the eligible Fixed Capital Investment (FCI).
How is the subsidy disbursed?
The approved subsidy amount is disbursed in tranches over a period of 5 years following project approval.
Is co-financing required for this subsidy?
Yes, as the subsidy covers a percentage of the project cost, the remaining portion of the investment must be borne by the enterprise.
Sources
Data on this page is compiled from official program and provider references.
