AP Equipment Commissioning Subsidy after an Energy Audit
By Department of Industries & Commerce, Government of Andhra Pradesh
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Quick Answer
MSMEs get 25% of the cost of equipment recommended by an energy audit, up to ₹50 Lakh.
- Funding amount
- Up to ₹50L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Andhra Pradesh
About this subsidy
This one-time subsidy covers 25% of the cost of equipment recommended by an energy audit, under MEDP 4.0 and FPP 4.0 of the Andhra Pradesh Government for 2024-29. Micro, Small and Medium enterprises can apply. The cap is ₹20 Lakhs for micro, ₹40 Lakhs for small and ₹50 Lakhs for medium enterprises. Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), Federations, Cooperatives and Societies are also eligible, depending on investment size.
Eligibility
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Subsidy providers
Provider
Department of Industries & Commerce, Government of Andhra PradeshMangalagiri · Andhra Pradesh · India
The Department of Industries & Commerce is the Government of Andhra Pradesh's department for industrial and MSME policy. It runs the state's Single Desk Portal for regulatory clearances and the Industrial Incentives portal, where units apply for the state's subsidies and…
Learn moreBenefits & Funding
- Amount
- Up to ₹50L
What You Get
This program provides substantial financial relief by offering a one-time subsidy that covers 25% of the total cost of eligible equipment commissioned as per the recommendations of an independent energy audit. This ensures that the investments are strategically aligned with energy efficiency goals. The financial assistance is tiered to cater to enterprises of varying sizes: Micro enterprises can receive a maximum subsidy of ₹20 Lakhs, Small enterprises are eligible for up to ₹40 Lakhs, and Medium enterprises can avail themselves of a generous subsidy of up to ₹50 Lakhs. This non-repayable cash infusion is crucial for enhancing the financial viability of adopting advanced, energy-saving machinery, directly contributing to long-term operational savings and improved environmental performance. Beyond the direct cash benefit, this subsidy acts as a catalyst for technological upgrades, fostering a more sustainable and competitive industrial landscape in Andhra Pradesh.
- Disbursement
- Lump Sum
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for the Equipment Commissioning Subsidy involves a thorough evaluation of submitted applications against the defined criteria of MEDP 4.0 and FPP 4.0. A dedicated committee or nodal agency will scrutinize the enterprise's eligibility, verify the authenticity and recommendations of the energy audit report, and assess the reasonableness of the equipment commissioning costs. Financial records and business registration details will also be cross-checked. The primary goal is to ensure that the proposed investment genuinely leads to energy efficiency improvements and aligns with the policy's objectives. Decisions are made based on strict adherence to guidelines, completeness of documentation, and the potential impact of the project. Successful applicants will be notified, and the subsidy will be disbursed in a lump sum after all post-approval formalities are completed.
Application Process
- 1
Apply
Submit application form with energy audit report and commissioning documents.
You - 2
- 3
- 4
How to apply
Four steps from draft to disbursement — one action each.
- 1
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.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
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 maximum subsidy I can receive?
The maximum subsidy is ₹20 Lakhs for Micro enterprises, ₹40 Lakhs for Small enterprises, and ₹50 Lakhs for Medium enterprises, depending on your enterprise size and eligibility criteria as per the policy.
Who is eligible for this subsidy?
Micro, Small, and Medium enterprises as defined under MEDP 4.0 and FPP 4.0 are primarily eligible. Additionally, Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), Federations, Cooperatives, and Societies can also apply, with eligibility often depending on their investment size and adherence to policy guidelines.
Is this a one-time benefit?
Yes, the subsidy for equipment commissioning is provided as a one-time financial incentive per eligible project, designed to support initial investment in energy-efficient machinery.
What kind of equipment is eligible for the subsidy?
The subsidy specifically applies to equipment commissioning costs that are recommended as part of a formal energy audit. This ensures that the funded equipment directly contributes to energy savings and efficiency improvements for the enterprise.
Is there any equity taken by the government for this subsidy?
No, this is a non-repayable financial subsidy provided by the government, and no equity stake is taken from your enterprise in exchange for this benefit.
How long will this policy be active?
This subsidy is part of the MEDP 4.0 and FPP 4.0 policies, which are effective for the period 2024-29. Applications are expected to be accepted on a rolling basis throughout this period, subject to fund availability and policy revisions.
Do I need an MSME registration to apply?
Yes, this scheme is specifically designed for Micro, Small, and Medium enterprises. Therefore, having a valid MSME Udyam registration is a mandatory prerequisite for eligibility.
Sources
Data on this page is compiled from official program and provider references.
