Andhra Pradesh Textile, Apparel and Garments Policy (4.0) 2024-29

A Policy Framework for Growth

The Government of Andhra Pradesh has introduced the "Andhra Pradesh Textile, Apparel and Garments Policy (4.0) 2024-29" with the goal of establishing a comprehensive ecosystem for the textile value chain within the state. The policy is effective for five years from the date of the order. It aims to attract new investments, create employment, and increase textile exports by focusing on value-added activities such as weaving, knitting, processing, and garments

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Incentives and Subsidies

The policy provides a comprehensive set of financial incentives and concessions for enterprises based on their investment category.

1. Incentives for MSMEs

2. Incentives for Sub-Large & Large Units

1. Note : An additional subsidy of 5% of FCI is available for Large and Sub-Large units owned by women, BC, SC, ST, Minorities, specially-abled, and transgender investors.

Eligibility Criteria

The policy is applicable to both new and existing enterprises that are investing in a new unit or expanding/upgrading their current units within Andhra Pradesh. To be eligible for incentives, the enterprise must obtain a Consent for Operation (CFO) and commence commercial production during the policy period.

The policy defines different categories based on investment in Plant and Machinery or Equipment:

1. MSME: As defined by the Government of India.
2. Sub-Large: Investment above ₹50 crores and not exceeding ₹100 crores.
3. Large: Investment above ₹100 crores and not exceeding ₹200 crores.
4. Mega: Investment above ₹200 crores

Ineligibility Criteria

The document does not explicitly list ineligibility criteria, but it is implied that enterprises must adhere to the operational guidelines to be issued by the Director of Industries. Additionally, the policy specifies that the approved incentives will be disbursed in installments and are contingent on the date of commercial production

How to Apply for the Scheme

The policy mentions a Single Window Mechanism 2.0 to provide all necessary approvals and clearances for investors through a single desk portal. The detailed application process will be outlined in the operational guidelines, which are yet to be drafted

Application and Approval Process

The policy states that the State Investment Promotion Board (SIPB) and State Investment Promotion Committee (SIPC) will be responsible for taking final decisions on investments, promotions, and approval of Mega projects. The SIPC will also monitor the performance of the single desk system and the implementation of all large/mega ongoing projects. The Director of Industries is responsible for drafting the necessary operational guidelines.

Important Points to Avoid Subsidy Cancellation

While the policy does not explicitly state cancellation clauses, a careful review reveals some key points:

1. Operational Guidelines: Incentives will be extended as per the guidelines to be notified separately. Adherence to these guidelines is crucial.
2. Timely Commencement: The enterprise needs to commence commercial production during the policy period to be eligible for incentives.
3. Disbursement Milestones: Approved incentives will be disbursed in equal annual installments from the date of commercial production (DCP). Failure to meet these milestones could affect disbursement

Why choose Unique Group as your subsidy consultant?

Navigating the complexities of government policies like the Andhra Pradesh Textile, Apparel and Garments Policy (4.0) 2024-29 requires specialized expertise. At Unique Group, we track policy developments closely and will be ready to assist you as soon as the detailed operational guidelines are released. Our expert team will help you understand all eligibility criteria, meticulously prepare your application, and manage the entire process to ensure you maximize your subsidy claims and avoid common pitfalls. Partner with us to stay ahead and get the support you need to grow your business.