Technology Upgradation Cost Grant (MEDP 4.0)
By Department of Industries & Commerce, Government of Andhra Pradesh
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Quick Answer
A grant scheme under Andhra Pradesh's MEDP 4.0 policy, providing up to ₹5 Crore for Micro, Small, and Medium Enterprises to support technology upgradation, expansion, diversification, and modernization.
- Funding amount
- Up to ₹5 Cr
- Funding type
- Grant
- Application deadline
- Rolling
- Location
- Andhra Pradesh
About this grant
The Technology Upgradation Cost Grant is a key incentive under the Micro, Small, and Medium Enterprises Development Policy (MEDP) 4.0, introduced by the Government of Andhra Pradesh. This scheme is designed to bolster the growth and competitiveness of MSMEs by financially supporting their efforts in technology upgradation, expansion, diversification, and modernization. The policy aims to foster industrial development, enhance productivity, and promote innovation within the state's MSME sector. By providing a substantial capital subsidy, the program helps businesses adopt advanced technologies, improve operational efficiency, and meet global standards, thereby contributing to job creation and economic growth in Andhra Pradesh. This grant is critical for MSMEs looking to invest in new machinery, processes, or software that can significantly impact their manufacturing capabilities and market reach.
Eligibility
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Grant providers
Benefits & Funding
- Amount
- Up to ₹5 Cr
- Fund type
- Grant
- Equity
- Equity-free
- Repayment
- Non-repayable
What You Get
This grant provides significant financial support to eligible Micro, Small, and Medium enterprises in Andhra Pradesh. Beneficiaries can receive 20% of their eligible Fixed Capital Investment (FCI), with a maximum cap depending on the enterprise size: up to ₹20 Lakhs for Micro enterprises, up to ₹1 Crore for Small enterprises, and up to ₹5 Crores for Medium enterprises. The funding is typically disbursed in tranches over a period ranging from 2 to 5 years, aligning with the project's milestones and progress. This support helps in offsetting the costs associated with upgrading technology, expanding operations, or diversifying product lines, thereby enhancing the enterprise's long-term viability and competitiveness.
- Disbursement
- Tranched
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for the Technology Upgradation Cost Grant are evaluated based on the detailed project proposal, the eligibility of the MSME, and the alignment of the proposed technology upgradation, expansion, or diversification with the objectives of the MEDP 4.0 policy. A committee comprising officials from the Andhra Pradesh Industries Department and relevant experts will review the submitted documents, assess the economic viability and impact of the project, and verify the eligible Fixed Capital Investment. Shortlisted applications may undergo further due diligence or site visits before final approval and sanction of the grant.
Application Process
- 1
Review Guidelines
Applicants must thoroughly review the MEDP 4.0 policy document for detailed criteria and procedures.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
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 primary objective of the Technology Upgradation Cost Grant?
The primary objective is to support Micro, Small, and Medium Enterprises (MSMEs) in Andhra Pradesh with financial assistance for technology upgradation, expansion, diversification, and modernization, ultimately enhancing their competitiveness and fostering industrial growth.
Which types of enterprises are eligible for this grant?
Micro, Small, and Medium enterprises (MSMEs) that are undertaking projects involving expansion, diversification, or modernization are eligible to apply for this grant. Specific criteria for MSME classification will apply.
What is the maximum grant amount an enterprise can receive?
The maximum grant amount varies by enterprise size: Micro enterprises can receive up to ₹20 Lakhs, Small enterprises up to ₹1 Crore, and Medium enterprises up to ₹5 Crores. The grant is 20% of the eligible Fixed Capital Investment (FCI).
How is the grant disbursed?
The grant is disbursed in tranches over a period of 2 to 5 years. The exact disbursement schedule will likely be tied to project milestones and the progress of the technology upgradation or modernization project.
Is there a requirement for enterprises to provide co-financing?
Yes, as the grant covers 20% of the eligible Fixed Capital Investment, enterprises are required to provide the remaining 80% as co-financing for their projects.
Where can I find the detailed guidelines and application process?
Detailed guidelines and the application process are typically outlined in the official MEDP 4.0 policy document issued by the Andhra Pradesh Industries Department, accessible via their official website or designated portals.
Sources
Data on this page is compiled from official program and provider references.
