Technology Upgradation Subsidy (Special Category)
By Department of Handlooms and Textiles, Government of Andhra Pradesh
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Quick Answer
Capital subsidy of 45% of eligible Fixed Capital Investment, up to ₹7.5 Crores, for textile MSMEs in Andhra Pradesh led by special category proprietors, for technology upgradation and expansion.
- Funding amount
- Up to ₹7.5Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Eligible stage
- Revenue
- Location
- Andhra Pradesh
- Registrations needed
- Udyam registration
About this subsidy
Textile MSMEs in Andhra Pradesh led by proprietors from BC, SC, ST, Minorities, Transgender, specially abled categories or women get a capital subsidy of 45% of eligible Fixed Capital Investment (FCI). The project must be an expansion or diversification involving technology upgradation, and you need MSME Udyam registration.
The cap is up to ₹2 Crores for Micro enterprises, ₹2 Crores for Small enterprises and ₹7.5 Crores for Medium enterprises. The subsidy is paid over 2 to 4 years, depending on enterprise size. It is part of the Andhra Pradesh Textile Policy 2024-29.
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
- Amount
- Up to ₹7.5Cr
What You Get
This program offers a substantial capital subsidy equivalent to 45% of the eligible Fixed Capital Investment (FCI). The maximum subsidy amount is capped based on the enterprise size: up to ₹2 Crores for Micro enterprises, up to ₹2 Crores for Small enterprises, and up to ₹7.5 Crores for Medium enterprises. The disbursement of this subsidy will occur over a period of 2 to 4 years, depending on the enterprise size, supporting the ongoing financial needs of technology upgradation and expansion projects.
- Disbursement
- Milestone Based
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications will undergo a thorough screening process by a committee established by the Department of Industries, Government of Andhra Pradesh. The evaluation will focus on the eligibility of the enterprise, the nature and scope of the technology upgradation or expansion project, the quantum of eligible Fixed Capital Investment, and the potential impact of the project on the textile sector. Projects that demonstrate strong financial viability and align with the policy's objectives of modernization and inclusive growth will be prioritized for subsidy allocation.
Application Process
- 1
Download Guidelines
Download the Textile Policy 2024-29 guidelines and application format from the official website.
You - 2
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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 Technology Upgradation Subsidy (Special Category)?
It is an incentive under the Andhra Pradesh Textile Policy 2024-29, offering a capital subsidy to Micro, Small, and Medium enterprises for technology upgradation, expansion, or diversification projects, particularly those led by proprietors from special categories.
Who is eligible to claim this subsidy?
Micro, Small, and Medium enterprises are eligible if they are led by proprietors belonging to Backward Classes (BC), Scheduled Castes (SC), Scheduled Tribes (ST), Minorities, Transgender individuals, specially abled persons, or women. Enterprises must also be registered as MSMEs.
What is the maximum subsidy an enterprise can receive?
The maximum subsidy is capped at ₹2 Crores for Micro enterprises, ₹2 Crores for Small enterprises, and ₹7.5 Crores for Medium enterprises. This is calculated as 45% of the eligible Fixed Capital Investment.
What type of investments does this subsidy cover?
The subsidy covers eligible Fixed Capital Investment (FCI) made by enterprises for expansion or diversification, specifically aimed at technology upgradation within the textile sector.
Is co-financing required for this subsidy?
Yes, as the subsidy is a percentage of the eligible Fixed Capital Investment, enterprises are expected to make the initial investment and then claim the subsidy for a portion of that investment.
Sources
Data on this page is compiled from official program and provider references.
