AP Power Cost Subsidy Scheme
By Department of Handlooms and Textiles, Government of Andhra Pradesh
Check your eligibility
Sign up and we'll tell you whether your startup qualifies for this grant.
Quick Answer
A reimbursement scheme providing financial assistance on power costs for eligible industrial enterprises in Andhra Pradesh under the AP Textile Policy 2024-29.
- Funding amount
- ₹2L – ₹2Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Andhra Pradesh
About this subsidy
The Power Cost Subsidy scheme, part of the Andhra Pradesh Textile and Apparel Policy (AP TAG 4.0) 2024-29, is designed to reduce operational costs for new, expanding, diversifying, and modernizing industrial enterprises within the state. This crucial incentive aims to bolster the competitiveness and growth of the industrial sector, particularly within textiles, by offsetting a portion of their energy consumption charges. By offering a direct reimbursement per unit of power consumed, the Government of Andhra Pradesh seeks to create a more attractive investment environment and support the sustainable development of local industries. The scheme encourages industries to establish or expand their operations, providing significant financial relief over a five-year period to various enterprise categories, from Micro to Large.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
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
- ₹2L – ₹2Cr
What You Get
This scheme offers a ₹2 per unit reimbursement on energy consumption charges for eligible industrial enterprises in Andhra Pradesh. The annual capping limits are tiered based on enterprise size: Micro enterprises can receive up to ₹2 Lakh per annum, Small enterprises up to ₹10 Lakh per annum, Medium enterprises up to ₹30 Lakh per annum, and Sub-Large/Large enterprises up to ₹2 Crores per annum. This financial assistance is provided on an annual basis for a period of 5 years, significantly reducing operational expenses and enhancing the financial viability of industrial units.
- Disbursement
- Reimbursement
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Claims for the Power Cost Subsidy are evaluated annually by the Department of Industries, Government of Andhra Pradesh. The selection process involves a thorough review of submitted documentation to verify the enterprise's eligibility under the AP Textile Policy 2024-29, authenticate energy consumption data, and confirm payment details from DISCOMs or RECs. Compliance with all policy guidelines is assessed before the approval and subsequent disbursement of the reimbursement.
Application Process
- 1
Submit Claim
Submit annual reimbursement claims to the Department of Industries, Government of Andhra Pradesh, with required documentation.
You - 2
- 3
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 Power Cost Subsidy?
The Power Cost Subsidy is an incentive under the AP Textile Policy 2024-29 that provides reimbursement of ₹2 per unit on energy consumption charges to eligible industrial enterprises in Andhra Pradesh.
Who is eligible to claim this subsidy?
All eligible new industrial enterprises, as well as those undertaking expansion, diversification, or modernization projects, are eligible. This includes Micro, Small, Medium, Sub-Large, and Large enterprises that draw power from DISCOMs and Rural Electrical Companies (RECs).
What are the maximum reimbursement limits?
The maximum annual reimbursement varies by enterprise size: Micro enterprises can receive up to ₹2 Lakh, Small up to ₹10 Lakh, Medium up to ₹30 Lakh, and Sub-Large/Large enterprises up to ₹2 Crores per annum.
For how long is the subsidy provided?
The power cost reimbursement is provided on an annual basis for a period of 5 years from the date of eligibility or commercial operation.
Is this a grant or a loan?
This is a subsidy, structured as a reimbursement of power costs, meaning it is non-repayable and aims to offset a portion of your operational expenses.
Sources
Data on this page is compiled from official program and provider references.
