Standard Incentives under AP Food Processing Policy 2024–2029
The AP Food Processing Policy 2024–29 extends a wide range of standard incentives to promote the growth, efficiency, and competitiveness of food processing enterprises across Andhra Pradesh. These incentives cover essential operational areas such as power tariff reimbursement, net SGST refunds, energy and water audits, skill upgradation, local procurement, and quality certification—ensuring both cost savings and improved performance. Additional benefits like stamp duty reimbursements and land conversion fee waivers further reduce the initial investment burden for new and expanding units.
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Explore government incentives, capital subsidies, and policy benefits available for industries in Andhra Pradesh.
Power Tariff Reimbursement General Category
Beneficiary | Investment Slabs | Reimbursement | Period |
Micro | Slab 1: Upto INR 1 Cr | Rs. 1 Per unit (Max Rs. 1 Lakh) | 5 years |
Micro | Slab 2: INR 1 Cr to INR 2.5 Cr | Rs. 1 Per unit (Max Rs. 5 Lakh) | 5 years |
Small | Slab 1: INR 2.5 Cr to INR 10 Cr | Rs. 1 Per unit (Max Rs. 5 Lakh) | 5 years |
Small | Slab 2: INR 10 Cr to INR 25 Cr | Rs. 1 Per unit (Max Rs. 15 Lakh) | 5 years |
Medium | Slab 1: INR 25 Cr to INR 50 Cr | Rs. 1 Per unit (Max Rs. 15 Lakh) | 5 years |
Medium | Slab 2: INR 50 Cr to INR 125 Cr | Rs. 1 Per unit (Max Rs. 15 Lakh) | 2 years |
Large | INR 125 Cr to INR 200 Cr | Rs. 1 Per unit (Max Rs. 15 Lakh) | 2 years |
Power Tariff Reimbursement Special Category
Beneficiary | Investment Slabs | Reimbursement | Period |
Micro | Slab 1: Upto INR 1 Cr | Rs. 1.5 Per unit (Max Rs. 1 Lakh) | 5 years |
Micro | Slab 2: INR 1 Cr to INR 2.5 Cr | Rs. 1.5 Per unit (Max Rs. 5 Lakh) | 5 years |
Small | Slab 1: INR 2.5 Cr to INR 10 Cr | Rs. 1.5 Per unit (Max Rs. 5 Lakh) | 5 years |
Small | Slab 2: INR 10 Cr to INR 25 Cr | Rs. 1.5 Per unit (Max Rs. 10 Lakh) | 5 years |
Medium | Slab 1: INR 25 Cr to INR 50 Cr | Rs. 1.5 Per unit (Max Rs. 15 Lakh) | 5 years |
Medium | Slab 2: INR 50 Cr to INR 125 Cr | Rs. 1.5. Per unit (Max Rs. 15 Lakh) | 2 years |
Large | INR 125 Cr to INR 200 Cr | Rs. 1.5 Per unit (Max Rs. 15 Lakh) | 2 years |
Net SGST Reimbursement
|
Beneficiary Type |
Reimbursement Rate |
Duration |
Cap on Annual Turnover |
|
FPOs/SHGs/Cooperatives/Societies (MSMEs) |
100% of net SGST |
6 years |
5% of annual turnover |
|
Large FPOs/SHGs/Cooperatives/Societies |
100% of net SGST |
5 years |
5% of annual turnover |
|
Large Enterprises |
100% of net SGST |
5 years |
5% of annual turnover |
Energy and Water Audit Subsidy
|
Enterprise Type |
Subsidy Coverage |
Water Audit Cap |
Energy Audit Cap |
Equipment Cost Cap |
|
Micro |
75% of audit cost, 25% of equipment cost |
RS. 1 Lakh |
RS. 2 Lakh |
RS. 20 Lakh |
|
Small |
75% of audit cost, 25% of equipment cost |
RS. 1 Lakh |
RS. 2 Lakh |
RS. 40 Lakh |
|
Medium |
75% of audit cost, 25% of equipment cost |
RS. 1 Lakh |
RS. 2 Lakh |
RS. 50 Lakh |
Skill Upgradation Subsidy
|
Enterprise Type |
Subsidy Amount |
Cap on Employees / Contribution |
|
Micro |
RS. 5,000 per employee |
Max 10 employees |
|
Small |
RS. 10,000 per employee |
Max 20 employees |
|
Medium |
100% of employer EPF contribution |
Cap of RS. 1 lakh per annum, for 3 years |
Local Procurement Subsidy
|
Enterprise Type |
Subsidy Rate |
Duration |
Overall Cap |
|
Micro |
1% of annual turnover |
3 years |
RS. 15 Lakhs |
|
Small |
1% of annual turnover |
3 years |
RS. 1.5 Crore |
|
Medium |
1% of annual turnover |
3 years |
RS. 7 Crore |
Quality Certification Support Table
|
Support Aspect |
Details |
|
Information Dissemination |
Through Food Processing associations and DIC |
|
Reimbursement |
100% of certification costs for HACCP, GMP, ISO 9000, ISO 22000, GLP, and TQM |
Standard Incentives and Concessions Table
|
Incentive |
Details |
|
8.2.1 Stamp Duty Reimbursement |
- 100% reimbursement on stamp duty and transfer duty paid for land
purchase intended for industrial use. |
|
8.2.2 Land Conversion Charges |
- 100% reimbursement of fees charged for land conversion. |
These standard incentives reflect the government’s commitment to building a robust and inclusive food processing ecosystem. They are designed to ease operational costs, enhance productivity, and encourage sustainable practices at every level of enterprise development.
Unique Group is your trusted partner in identifying, applying for, and availing these incentives with ease. Get in touch with us today to ensure you make the most of what the AP Food Processing Policy has to offer.
Subsidies under AP Food Processing Policy 2024-29
Capital Subsidies
- Capital Subsidy for Food Processing Units – General Category
- Capital Subsidy for Food Processing Units – Special Category (Women / Backward Castes / SC / ST / minority / specially abled / transgender entrepreneurs
- Capital Subsidy for Technology Upgradation/Modernization
- Capital Subsidy for Waste Processing
- Capital Subsidy for Modern Abattoirs/Meat Processing/Animal Feed Units
- Capital Subsidy for Food Testing Laboratories
- Standard Subsidies
- Topup of Government of India schemes