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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.

AP Subsidies Booklet AP Subsidies Booklet

Power Tariff Reimbursement General Category

Enterprise Type

Subsidy Amount

Duration

Annual Cap

Micro

RS. 1 per unit

6 years

RS. 1 Lakh

Small

RS. 1 per unit

6 years

RS. 5 Lakh

Medium

RS. 1 per unit

6 years

RS. 15 Lakh

Large

RS. 1 per unit

2 years

-

Power Tariff Reimbursement Special Category

Enterprise Type

Subsidy Amount

Duration

Annual Cap

Micro

RS. 1.5per unit

5 years

RS. 1 Lakh

Small

RS. 1.5per unit

5 years

RS. 5 Lakh

Medium

RS. 1.5per unit

5 years

RS. 15 Lakh

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.
- 100% reimbursement for stamp duty on lease of land/shed/buildings, mortgages, and hypothecations.
- Reimbursement applies only once per land transaction; no reimbursement for subsequent transactions.

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.

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