Andhra Pradesh Textile, Apparel and Garment Policy 2018-23

Andhra Pradesh Textile, Apparel and Garment Policy 2018–23 is a Government of Andhra Pradesh policy implemented through the Department of Industries & Commerce, originally notified on 12 October 2018, with incentives extended and aligned under updated approvals (including continuation into 2024–29 framework as per latest government orders).

The policy aims to create a complete textile value chain ecosystem from fibre to fashion by supporting investments in weaving, knitting, processing, garments, and technical textiles. For you as an MSME, this policy helps reduce project cost, improve competitiveness, and access multiple financial incentives for manufacturing and expansion.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process

Key Features

End-to-end textile ecosystem development: Focus on entire value chain from raw material to finished garments.
Strong MSME support: Special incentives designed for micro, small, and medium enterprises.
Employment generation focus: Target to create over 2 lakh jobs in the textile sector.
Investment promotion: Target to attract ₹10,000 crore investment in textile industry.
Export promotion: Aims to increase textile exports significantly from the state.
Cluster and park development: Development of integrated textile parks and infrastructure.
Technology upgradation support: Encourages modern machinery and production techniques.

Financial Assistance

Component	Assistance Provided	Detailed Explanation
Investment Subsidy	30%–45% of Fixed Capital Investment (FCI)	Example: ₹1 crore investment → ₹30–45 lakh subsidy depending on category.
Technology Upgradation Subsidy	Up to 45% of FCI (with cap)	Support for upgrading machinery. Example: ₹50 lakh upgrade → up to ₹22.5 lakh subsidy.
Power Cost Reimbursement	₹2 per unit (for 6 years)	Example: 1 lakh units/month → ₹2 lakh monthly savings.
Electricity Duty Exemption	50% exemption for 6 years	Reduces electricity-related expenses.
Stamp Duty Reimbursement	100% reimbursement	Covers land purchase/lease costs.
Skill Development Support	₹5,000–₹10,000 per person	Supports workforce training expenses.
Local Procurement Subsidy	1% of annual turnover (3 years)	Encourages domestic sourcing of raw materials.

Eligibility Criteria

Must be a textile, apparel, garment, or technical textile enterprise
Must be located in Andhra Pradesh
Must be a new or expansion project
Must commence commercial production during policy period
Must obtain Consent for Operation (CFO)

Additional conditions:

Investment must meet MSME or project category thresholds
Compliance with environmental and regulatory norms required

Non-eligibility conditions:

Units outside textile value chain
Projects not approved under policy
Units not commencing operations within policy timeline

Documents Required

Company / MSME registration certificate
Project Report (DPR)
Investment proof (plant & machinery invoices)
Land and building documents
CFO approval
Bank account details

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
Submit investment proposal
Apply for approvals (CFO, land, utilities)
Select applicable textile incentives
Upload required documents
Submit application
Evaluation by State Investment Promotion Committee (SIPC)
Approval by State Investment Promotion Board (SIPB) (if required)
Disbursement of incentives in instalments
Track application status online