Andhra Pradesh MSME & Entrepreneur Development Policy 4.0 (2024-2029)

Andhra Pradesh MSME & Entrepreneur Development Policy 4.0 (2024–2029) is a Government of Andhra Pradesh policy implemented through the Industries & Commerce Department, notified on 26 October 2024, and valid for a period of 5 years.

The policy aims to promote MSME growth, entrepreneurship, and industrial development in the state with a vision of “One Family One Entrepreneur” by 2030. For you as an MSME or startup, this policy provides financial incentives, infrastructure support, access to finance, and ecosystem development to help your business grow, become competitive, and integrate into global markets.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process

Key Features

One Family One Entrepreneur vision: Focus on promoting entrepreneurship at household level.
Strong MSME ecosystem development: Support across entire business lifecycle.
Focus on formalisation of MSMEs: Bringing unregistered units into formal sector.
Cluster-based industrial development: Development of MSME parks and clusters.
Innovation and technology adoption: Promotion of Industry 4.0 and digital transformation.
Access to finance initiatives: Credit support, guarantee schemes, and digital lending.
Export promotion and global integration: Support for MSMEs to enter global value chains.
Inclusive growth focus: Special support for women, SC/ST, BC, and rural entrepreneurs.

Financial Assistance

Component	Assistance Provided	Detailed Explanation
Capital Subsidy	25% of Fixed Capital Investment (FCI)	Example: MSME invests ₹1 crore → receives subsidy based on category and caps.
Stamp Duty Reimbursement	100% reimbursement	Example: Full refund on stamp duty paid for land purchase.
Land Conversion Charges	100% reimbursement	Example: Conversion fees for industrial use fully reimbursed.
Power Cost Reimbursement	₹1 per unit (up to 6 years)	Example: Reduces electricity cost, improving profitability.
SGST Reimbursement	100% net SGST for 6 years	Example: Refund on GST paid, improving cash flow.
Technology Upgradation	Up to 20% of FCI	Example: Support for upgrading machinery and technology.
Skill Development	₹5,000–₹10,000 per employee / EPF support	Example: Training employees or EPF contribution support.
Energy & Water Audit	75% reimbursement + equipment subsidy	Example: Cost savings through efficiency improvements.
Local Procurement Subsidy	1% of export turnover	Example: Incentive for using domestic raw materials.
Quality Certification	100% reimbursement (balance over GoI support)	Example: ISO certification costs covered.

Eligibility Criteria

Must be registered as MSME under Udyam Portal
Must fall under Micro, Small, or Medium category as per MSME Act
Must be engaged in manufacturing activities
Applicable for new units and expansion projects

Startup eligibility (if applicable):

Within 10 years of incorporation
Turnover less than ₹100 crore
Innovation-driven business

Additional conditions:

Total incentives capped at 75% of Fixed Capital Investment

Non-eligibility conditions:

Service-only enterprises for certain incentives
Unregistered MSMEs
Units not complying with policy guidelines

Documents Required

Udyam Registration Certificate
Company Incorporation / Registration documents
Detailed Project Report (DPR)
Investment proof (plant & machinery)
Land documents / lease agreements
Bank account details
GST registration and returns

Application Process

Option 1: Apply with Bullit, Recommended

Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.

Option 2 : Apply Online (Government Process)

Register on Andhra Pradesh Single Desk Portal
Apply for MSME registration (Udyam)
Submit project proposal and investment details
Select applicable incentives under MSME Policy
Upload required documents
Submit application
Verification by Industries Department / DIC
Approval by competent authority
Sanction and disbursement of incentives
Track application status online