Local Procurement Subsidy (AP)
By Department of Handlooms and Textiles, Government of Andhra Pradesh
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Quick Answer
A reimbursement scheme for export-oriented textile enterprises in Andhra Pradesh, offering 1% of annual export turnover capped up to ₹7 crore annually for three years, based on local procurement.
- Funding amount
- ₹15 Lakhs – ₹7 Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Andhra Pradesh
About this subsidy
This incentive, part of the Andhra Pradesh Textile Policy 2024-29, aims to bolster the state's textile sector by encouraging local sourcing and promoting exports. The Local Procurement Subsidy provides financial assistance to export-oriented textile enterprises that meet specific criteria related to their export turnover and input sourcing from within Andhra Pradesh. By incentivizing local procurement, the government seeks to strengthen the backward linkages within the state's textile industry, foster economic growth, and create more employment opportunities. This initiative supports enterprises across various scales, from micro to large, ensuring that a broad spectrum of businesses can benefit from the policy's supportive framework.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Benefits & Funding
- Amount
- ₹15 Lakhs – ₹7 Cr
What You Get
The program offers a reimbursement of 1% of the annual export turnover for eligible textile sector enterprises. This subsidy is provided annually for a period of three years. The maximum capping limits vary by enterprise size: Micro enterprises can receive up to ₹15 lakhs, Small enterprises up to ₹1.5 crores, Medium enterprises up to ₹7 crores, and Sub-Large/Large enterprises up to ₹2 crores per year.
- Disbursement
- Reimbursement
- Duration
- 37 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for the Local Procurement Subsidy are reviewed by a designated committee or authority within the Government of Andhra Pradesh's Department of Industries. The evaluation process involves verifying the eligibility criteria, including enterprise registration, minimum export turnover, and the percentage of input sourced locally. Claims are assessed against the policy guidelines to ensure compliance before approval and disbursement.
Application Process
- 1
Submit Claim Application
Submit the annual claim application with all required documents to the designated government department.
You - 2
- 3
- 4
How to apply
Four steps from draft to disbursement — one action each.
- 1
Submit on the official portal
Use the official application link and verify all details before final submission.
- 2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the Local Procurement Subsidy (AP)?
The Local Procurement Subsidy is an incentive under the Andhra Pradesh Textile Policy 2024-29. It aims to support export-oriented textile enterprises by reimbursing a percentage of their annual export turnover, provided they source a significant portion of their inputs locally.
Who is eligible to apply for this subsidy?
Eligible applicants are export-oriented textile sector enterprises (Micro, Small, Medium, Sub-Large, and Large) registered in Andhra Pradesh. They must generate a minimum of 60% of their annual turnover from exports and source at least 60% of their input requirements from within the state.
What is the maximum subsidy amount I can receive?
The subsidy is 1% of your annual export turnover, subject to a maximum cap that varies by enterprise size. Micro enterprises can receive up to ₹15 lakhs, Small enterprises up to ₹1.5 crores, Medium enterprises up to ₹7 crores, and Sub-Large/Large enterprises up to ₹2 crores annually.
How often is the subsidy disbursed?
The subsidy is disbursed on an annual basis for a period of three years from the date of eligibility.
Are new and existing enterprises eligible for this subsidy?
Yes, both new and existing export-oriented textile sector enterprises that meet the specified criteria are eligible to apply for the Local Procurement Subsidy.
What documents are typically required for the application process?
While not explicitly detailed, applicants typically need to submit an application form, proof of enterprise registration, audited financial statements to verify export turnover, and procurement records to demonstrate local sourcing. Specific details will be provided in the official guidelines for the Andhra Pradesh Textile Policy 2024-29.
