AP Textile Equipment Subsidy after an Energy Audit
By Department of Handlooms and Textiles, Government of Andhra Pradesh
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Quick Answer
Textile and garment MSMEs get 25% of the cost of energy-saving equipment from an energy audit, up to ₹50 lakh.
- Funding amount
- Up to ₹50L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Andhra Pradesh
- Registrations needed
- Udyam registration
About this subsidy
This subsidy sits under the AP Textile, Apparel, and Garmenting (AP TAG) Policy 4.0 and is for textile and garmenting MSMEs.
The Equipment Commissioning Subsidy (Energy Audit) is a key incentive under the Andhra Pradesh Textile, Apparel, and Garmenting (AP TAG) Policy 4.0, spanning 2024-2029. This scheme is designed to bolster the competitiveness and sustainability of Micro, Small, and Medium Enterprises (MSMEs) within the textile and garmenting sector in Andhra Pradesh. Recognizing the critical importance of energy efficiency in manufacturing, this subsidy directly supports enterprises in reducing their operational utility costs. It encourages businesses to invest in advanced, energy-efficient machinery and equipment that are identified through a professional energy audit. By offsetting a significant portion of the capital expenditure for such equipment, the Government of Andhra Pradesh aims to foster green manufacturing practices, enhance resource efficiency, and ultimately contribute to the long-term economic viability and environmental stewardship of the state's textile industry. This initiative reflects the state's commitment to creating a supportive ecosystem for industrial growth while promoting sustainable development.
Eligibility
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Subsidy providers
The Department of Handlooms & Textiles is the Government of Andhra Pradesh's department for the state's handloom and textile sector. It runs state and central schemes for handloom weavers, powerloom units and weavers' co-operative societies, and is based at Mangalagiri. Most of…
Learn moreBenefits & Funding
- Amount
- Up to ₹50L
What You Get
This program offers a substantial one-time capital subsidy to eligible enterprises, covering 25% of the cost of equipment specifically recommended for energy conservation following a detailed energy audit. The maximum subsidy amount is tiered based on the enterprise size:
- Micro enterprises can receive a subsidy of up to ₹20 lakh (INR 2,000,000).
- Small enterprises are eligible for a subsidy of up to ₹40 lakh (INR 4,000,000).
- Medium enterprises can avail a subsidy of up to ₹50 lakh (INR 5,000,000). This financial support directly reduces the initial investment burden for businesses adopting energy-efficient technologies, promoting sustainable practices and improving overall operational profitability. The subsidy is disbursed as a reimbursement upon the successful commissioning of the eligible equipment.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for the Equipment Commissioning Subsidy (Energy Audit) involves a thorough review of submitted applications by the designated state authority, typically the Department of Industries or a specialized committee. Applications are screened for adherence to eligibility criteria, completeness of documentation, and alignment with the policy's objectives of energy conservation in MSMEs. Key aspects scrutinized include the validity of the energy audit report, the nature of the commissioned equipment, and its direct impact on reducing energy utility costs. Successful applicants are those whose proposals clearly demonstrate compliance with the AP Textile Policy 4.0 guidelines and whose investments are verified as genuinely contributing to energy efficiency.
Application Process
- 1
Review Guidelines
Thoroughly read the AP Textile Policy 2024-29 Guidelines for eligibility and process.
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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 primary objective of the Equipment Commissioning Subsidy (Energy Audit)?
The subsidy aims to encourage Micro, Small, and Medium Enterprises (MSMEs) in Andhra Pradesh's textile sector to invest in energy-efficient equipment, thereby reducing their utility costs and promoting sustainable manufacturing practices as part of the AP Textile Policy 4.0.
Who is eligible to apply for this subsidy?
New and existing Micro, Small, and Medium enterprises undertaking expansion or diversification projects that commission equipment specifically recommended by an energy audit to reduce energy utility costs.
What percentage of equipment cost does the subsidy cover?
The subsidy covers 25% of the eligible equipment cost, with specific maximum caps based on the enterprise size.
What are the maximum subsidy amounts for different enterprise categories?
Micro enterprises can receive up to ₹20 lakh, Small enterprises up to ₹40 lakh, and Medium enterprises up to ₹50 lakh.
Is an energy audit mandatory to claim this subsidy?
Yes, the subsidy is specifically for equipment recommended as per an energy audit, making a certified energy audit report a crucial requirement for eligibility.
Is this a one-time benefit, or can it be claimed multiple times?
This is a one-time subsidy per eligible enterprise for qualifying equipment commissioning.
Sources
Data on this page is compiled from official program and provider references.
