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Capital Subsidy for Food Processing units under AP Food Processing Policy 2024-29 (General Category)

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Capital Subsidy for Food Processing Units (General Category) – APFPS 2024–2029

The Capital Subsidy scheme provides financial support to new enterprises in the food processing sector, for primary, Secondary and Tertiary Food processing units. Subsidies vary based on the type of enterprise (e.g., FPOs, SHGs, Micro, Small, Medium, Large) and investment size.

Download the AP Subsidies Booklet

Explore government incentives, capital subsidies, and policy benefits available for industries in Andhra Pradesh.

AP Subsidies Booklet AP Subsidies Booklet

Details of Capital Subsidy

Beneficiary

Subsidy for Primary Processing units

Subsidy for Secondary / Tertiary Processing units

Incentive disbursement period

FPOs / SHGs / Federations / Cooperatives/Societies

25% FCI, cap at RS. 50 Lakh

35% FCI, cap at

RS. 5 Cr

2 years from generation of  1st tax invoice

Other enterprises - Micro

25% FCI, cap at RS. 25 Lakh

35% FCI, cap at

RS. 35 Lakh

2 years from generation of  1st tax invoice

Other enterprises – Small

25% FCI, cap at RS. 1.5 Cr

35% FCI, cap at

RS. 3.5 Cr

3 years from generation of  1st tax invoice

Other enterprises - Medium

25% FCI, cap at RS. 7 Cr

35% FCI, cap at

RS. 8 Cr

4 years from generation of  1st tax invoice

Large

15% FCI

5 years from

generation of 1st tax

invoice

Important points to be noted

  1. ✔️ FPOs/SHGs/Federations/Cooperatives/Societies depending on the size of investment can avail benefits eligible for Small or Medium or Large category whichever is higher
  2. ✔️ For Mega projects with investment RS. 100 Crores and above, GoAP will extend tailor made incentives on case to case basis.
  3. ✔️ The incentive is applicable for only new projects.
  4. ✔️ For Projects delayed beyond committed completion date, the incentive will be reduced by 0.5% for each month of delay in DCP from the committed date in the application.
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Subsidies under AP Food Processing Policy 2024-29

Capital Subsidies
  1. Capital Subsidy for Food Processing Units – General Category
  2. Capital Subsidy for Food Processing Units – Special Category (Women / Backward Castes / SC / ST / minority / specially abled / transgender entrepreneurs
  3. Capital Subsidy for Technology Upgradation/Modernization
  4. Capital Subsidy for Waste Processing
  5. Capital Subsidy for Modern Abattoirs/Meat Processing/Animal Feed Units
  6. Capital Subsidy for Food Testing Laboratories
  7. Standard Subsidies
  8. Topup of Government of India schemes
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