Department of Industries & Commerce, Government of Andhra Pradesh

The MSME & Entrepreneur Development Policy 4.0 for 2024 to 2029 is the state's main route for micro, small and medium units. Each head is a reimbursement or subsidy paid after the unit has invested or paid, not an up-front grant. The policy was amended from 1 April 2025 to adopt the new central MSME size bands.

What you get

• Capital subsidy
• Reimbursement of technology upgradation or modernisation cost
• Fixed power-cost reimbursement
• Reimbursement of net state GST
• Reimbursement of skill-upgradation cost
• Reimbursement of energy and water audit cost
• Local procurement subsidy
• A top-up for quality-certification cost
• A separate schedule at higher rates for special-category enterprises, including a transport-services capital subsidy limited to SC/ST entrepreneurs. The amending order does not define the special category, so check the policy text.

Who can apply

• Micro, small and medium manufacturing units set up or expanding in Andhra Pradesh
• A state-registered unit within the size bands as amended from 1 April 2025
• A unit that starts commercial production within the policy period
• The portal also screens for notified locations, ineligible activities, second-hand machinery above a set share and expansion thresholds

How to apply: Register the enterprise on the department's Single Desk Portal, then file one Common Application Form plus the individual incentive form for each incentive on the Industrial Incentives portal. Forms are signed with a Digital Signature Certificate, and an Application Id is sent by SMS, email and on your dashboard.

The Industrial Development Policy 4.0 for 2024 to 2029 covers projects above the MSME range. It sorts them into four investment bands: sub-large, large, mega and ultra-mega.

What you get

• Capital or investment subsidy, released in annual instalments
• A top-up for projects approved under central production-linked incentive schemes
• An employment-creation subsidy, with projects showing a higher jobs-to-investment ratio rewarded more
• Local procurement subsidy for exporters
• Power-cost reimbursement and reimbursement of net state GST
• A decarbonisation subsidy
• An additional subsidy for enterprises wholly owned by women, or by BC, SC, ST or specially-abled investors domiciled in Andhra Pradesh
• Stamp duty and land-conversion reimbursements, described under their own entry

All the packages together are capped as a share of fixed capital investment.

Who can apply

• A new or expanding enterprise that obtains Consent for Operation and starts commercial production within the policy period
• Not the route for micro, small or medium units

How to apply: Register the enterprise on the department's Single Desk Portal, then file one Common Application Form plus the individual incentive form for each incentive on the Industrial Incentives portal. Forms are signed with a Digital Signature Certificate, and an Application Id is sent by SMS, email and on your dashboard.

The Early Bird scheme sits inside the Industrial Development Policy 4.0 and has two categories. The first is for the first 200 projects that meet the conditions and receive Consent for Establishment within 18 months of the policy's notification. The second is for value-added manufacturing in sectors and sub-sectors the central government has identified for promotion under its production-linked incentive schemes. Both categories carry an investment subsidy.

The policy order is dated 26 October 2024, so the first category's window ends in 2026 by its own terms. The department's pages do not say whether the window has closed, so ask before relying on it.

Who can apply

• Large industrial projects under the Industrial Development Policy 4.0
• Projects that receive Consent for Establishment within the stated window and begin commercial production within their band's investment period

How to apply: Register the enterprise on the department's Single Desk Portal, then file one Common Application Form plus the individual incentive form for each incentive on the Industrial Incentives portal. Forms are signed with a Digital Signature Certificate, and an Application Id is sent by SMS, email and on your dashboard.

The Food Processing Policy 4.0 for 2024 to 2029 is a separate schedule for agri, food-processing and allied units. Its incentives apply to specific investments made in those segments in Andhra Pradesh. A unit that claims here cannot claim the similar incentives under the Industrial Development Policy or the MSME policy.

What you get

• Capital subsidy for new units
• Support for technology upgradation, waste processing, modern abattoirs, meat processing and animal-feed units, and food-testing laboratories
• Reimbursement of net state GST, energy and water audit cost, skill upgradation and local procurement
• Reimbursement of the cost of certifications such as HACCP, GMP, ISO 9000, ISO 22000, GLP and TQM
• Stamp duty and land-conversion reimbursements, described under their own entry

The policy sets its own overall ceiling on the incentives one company can claim in total, which is lower than the ceiling in the Industrial Development Policy.

Who can apply

• Farmer producer organisations, self-help groups, federations, cooperatives and societies
• Micro, small, medium, large and mega food-processing units in Andhra Pradesh
• A new or expanding enterprise with Consent for Operation and commercial production in the policy period

How to apply: Register the enterprise on the department's Single Desk Portal, then file one Common Application Form plus the individual incentive form for each incentive on the Industrial Incentives portal. Forms are signed with a Digital Signature Certificate, and an Application Id is sent by SMS, email and on your dashboard.

The Food Processing Policy 4.0 adds state support on top of projects the central government has already sanctioned. It covers components of the central PMKSY scheme: agro-processing clusters, irradiation facilities, food safety and quality assurance, and Operation Greens. It also gives extra interest subvention on loans under the Animal Husbandry Infrastructure Development Fund and the Agriculture Infrastructure Fund.

The top-up applies only to projects that received central sanction, and only to the investment committed to the central scheme and the proportion made in Andhra Pradesh.

Who can apply

• Food-processing and farm-infrastructure projects in Andhra Pradesh that already hold a central-scheme sanction

How to apply: Register the enterprise on the department's Single Desk Portal, then file one Common Application Form plus the individual incentive form for each incentive on the Industrial Incentives portal. Forms are signed with a Digital Signature Certificate, and an Application Id is sent by SMS, email and on your dashboard.

These reimbursements are standard across the investment bands in the Industrial Development Policy 4.0 and the Food Processing Policy 4.0. The state pays back the charge after the enterprise has paid it.

What you get

• Reimbursement of stamp duty and transfer duty on the purchase of land meant for industrial use
• Reimbursement of stamp duty on lease, mortgage and hypothecation
• Reimbursement of land-conversion fees

Stamp duty is reimbursed only once on a piece of land.

Who can apply

• Units in Andhra Pradesh covered by the Industrial Development Policy 4.0 or the Food Processing Policy 4.0
• Enterprises that have already paid the duty or fee

How to apply: Register the enterprise on the department's Single Desk Portal, then file one Common Application Form plus the individual incentive form for each incentive on the Industrial Incentives portal. Forms are signed with a Digital Signature Certificate, and an Application Id is sent by SMS, email and on your dashboard.

The Single Desk Portal is a clearance service, not a payment scheme. It supports end-to-end processing with online payment and application status tracking. Investors can obtain clearances from 19 departments, covering pre-establishment approvals, pre-operation approvals and renewals. The policy document says it helps industries obtain more than 93 clearances in 21 days, which is the department's own claim.

Who can apply

• Any investor or entrepreneur setting up a unit in Andhra Pradesh

How to apply: Register on the Single Desk Portal and log in as an entrepreneur to file applications. The help-desk inbox is singledesk-inds@ap.gov.in. You also register here before applying for any incentive.