AP Power Cost Reimbursement Scheme (Special Category)
By Department of Industries & Commerce, Government of Andhra Pradesh
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Quick Answer
Power cost reimbursement of up to ₹15 Lakh a year for new, expanding or diversifying enterprises, FPOs and SHGs in Andhra Pradesh, including special-category led units.
- Funding amount
- ₹1L – ₹15L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Andhra Pradesh
About this subsidy
This Andhra Pradesh scheme reimburses part of the power cost for enterprises that are new, expanding or diversifying. It sits under the Andhra Pradesh Industrial Development Policy (AP IDP-MSME-EDP-FPP 4.0) for 2024-29.
It covers Micro, Small, Medium and Large enterprises, plus FPOs (Farmer Producer Organizations), SHGs (Self-Help Groups), Federations, Co-operatives and Societies. Enterprises led by Women, BC, SC, ST, Minority, Specially-abled and Transgender individuals have special-category support. Reimbursement is up to ₹15 Lakh annually.
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
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
- ₹1L – ₹15L
What You Get
This scheme provides reimbursement of power costs for eligible enterprises. Micro and Small enterprises, FPOs, SHGs, Federations, Co-operatives, and Societies can receive ₹1.5 per unit with annual caps ranging from ₹1 Lakh (Micro) to ₹5 Lakh (Small, FPOs, SHGs, etc.) and ₹15 Lakh (FPOs/SHGs etc.) for 5 years. Medium enterprises and Large enterprises are eligible for ₹1 per unit with an annual cap of ₹15 Lakh for 2 to 5 years. This support aims to reduce operational expenses, enhance cost efficiency, and foster industrial growth by making businesses more competitive.
- Disbursement
- Reimbursement
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for power cost reimbursement are typically reviewed by a dedicated committee within the district or state level Department of Industries. The selection process involves a thorough verification of the enterprise's eligibility based on its category (Micro, Small, Medium, Large), type (FPO, SHG, etc.), and operational status (new, expansion, diversification). Adherence to the 'special category' criteria for founder demographics is also assessed where applicable. Power consumption data and electricity bills are scrutinized against the project details and operational reports to accurately calculate the eligible reimbursement amount, ensuring it aligns with the per-unit rates and annual caps specified in the policy document. The committee’s decision ensures compliance with the policy’s objectives and fair distribution of incentives.
Application Process
- 1
Register Enterprise
Register the enterprise under the appropriate MSME category or entity type with relevant authorities.
You - 2
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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 purpose of this scheme?
The scheme aims to reimburse a portion of power costs for eligible special category enterprises in Andhra Pradesh to support their operational efficiency and growth under the AP IDP-MSME-EDP-FPP (4.0) 2024-29 policy.
Who is eligible for this power cost reimbursement?
Special category led Micro and Small enterprises under MEDP 4.0, and Micro, Small, Medium, Large enterprises, FPOs, SHGs, Federations, Co-operatives, and Societies under FPP 4.0 are eligible. This also applies to enterprises that are new, expanding, or diversifying.
What is the reimbursement amount and cap?
Micro enterprises receive ₹1.5 per unit with an annual cap of ₹1 Lakh. Small enterprises, FPOs, SHGs, Federations, Co-operatives, and Societies receive ₹1.5 per unit with an annual cap of ₹5 Lakh for Small enterprises and ₹15 Lakh for FPOs/SHGs etc. Medium and Large enterprises receive ₹1 per unit with an annual cap of ₹15 Lakh.
For how long can an enterprise claim this reimbursement?
Micro and Small enterprises, FPOs/SHGs/Federations/Co-operatives/Societies can claim for 5 years. Medium enterprises can claim for 5 years. Large enterprises can claim for 2 years.
Which types of enterprises does this scheme support?
This scheme provides incentives for new enterprises, as well as existing enterprises undertaking expansion or diversification projects in Andhra Pradesh.
Are there specific founder categories that receive incentives?
Yes, the policy explicitly offers incentives for enterprises led by Women, BC (Backward Classes), SC (Scheduled Castes), ST (Scheduled Tribes), Minority, Specially-abled, and Transgender individuals.
Sources
Data on this page is compiled from official program and provider references.
