§1Who it is for
- New MSMEs and expansions (manufacturing; incentives for manufacturing per KIP summary)
Useful if
Women/SC/ST/BC/minority founders in manufacturing
Do not spend time on it if
Trading/retail
§2Eligibility
Udyam registered MSME
- Second-hand machinery not over 25% of P&M
- Ineligible: alcohol (except pharma), road metal, stone crushing, cinematography, farming etc.
- Overall incentives under the policy not to exceed 75% of FCI
§3Benefits
- General: 25% of FCI - micro max Rs.25 lakh (2 years), small max Rs.1.5 crore (3 years), medium max Rs.7 crore (4 years)
- Special category (women/BC/SC/ST/minority) after G.O.22: micro 45% max Rs.45 lakh; small 45% max Rs.4.5 crore; medium 35% max Rs.7 crore (ICAI summary). Original G.O.69 summary showed up to 35% (KIP)
§4Norms — pattern of assistance
- Disbursed over 2/3/4 years by size
- Retention/operation period typically 3-5 years per G.O. (ICAI)
§5Documents
Not published
The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.
§6How to apply
- 1
Apply on AP MSME ONE portal with project report, bank and registration details
§7Pros and cons
Merits
- Special-category micro units can get up to 45% of FCI (ICAI summary of amended policy)
Demerits
- Subsidy paid over 2-4 years
- All incentives together capped at 75% of FCI
→Related schemes
Need help with AP capital subsidy?
Eligibility check, DPR and application file — ask us on WhatsApp.
Our interestHelp is our paid service. You can also apply for the scheme yourself.
¶Sources
- ICAI MSME & Startup Committee - Andhra Pradesh State MSME Policy (2026 edition, secondary)
- KIP Financial - AP MSME & EDP 4.0 summary (consultancy, secondary)
- AP MSME & Entrepreneur Development Policy 4.0 (2024-29), G.O.Ms.No.69 I&C dt 26.10.2024 - AP MSME ONE (blocks automated download)
Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.