Equipment Commissioning Subsidy (Water Audit)
By Department of Handlooms and Textiles, Government of Andhra Pradesh
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Quick Answer
A one-time subsidy of 25% of equipment costs, up to ₹50 lakhs, for Micro, Small and Medium enterprises in Andhra Pradesh to cut water use as per a water audit.
- Funding amount
- ₹20L – ₹50L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Andhra Pradesh
- Registrations needed
- Udyam registration
About this subsidy
Micro, small and medium enterprises in Andhra Pradesh's textile, apparel and garment sector get a one-time subsidy of 25% of the cost of equipment prescribed by a water audit to reduce water utility costs. The cap is up to ₹20 lakhs for Micro, ₹40 lakhs for Small and ₹50 lakhs for Medium enterprises.
New enterprises and those expanding or diversifying can apply. The subsidy is part of the Andhra Pradesh Textile, Apparel, and Garment (AP TAG) Policy 2024-29, also called AP TAG 4.0.
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
- ₹20L – ₹50L
What You Get
This scheme offers a significant financial incentive to Micro, Small, and Medium enterprises (MSMEs) in the textile sector for adopting water-efficient technologies. Beneficiaries receive a one-time subsidy equivalent to 25% of the cost of eligible equipment identified through a water audit. The maximum subsidy amount varies by enterprise size: up to ₹20 lakhs for Micro enterprises, up to ₹40 lakhs for Small enterprises, and up to ₹50 lakhs for Medium enterprises. This direct financial support helps alleviate the capital expenditure burden, promoting investment in sustainable practices and reducing operational costs associated with water consumption. Additionally, enterprises gain support in navigating the regulatory framework of the AP TAG 4.0 policy to claim these incentives.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection and approval process for the Equipment Commissioning Subsidy typically involves several stages to ensure compliance with the AP TAG 4.0 policy. Applications are first screened for completeness and adherence to basic eligibility criteria. A technical committee or expert panel may review the submitted water audit report and equipment specifications to verify their relevance to water conservation and cost reduction. Field inspections may be conducted by designated officials to confirm the commissioning of the equipment and its operational status. The final approval is usually granted by a high-level committee within the Andhra Pradesh Industries Department, based on all verified information and the availability of funds under the policy.
Application Process
- 1
Review Guidelines
Applicant thoroughly reviews the AP TAG 4.0 policy guidelines for the subsidy.
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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 the Equipment Commissioning Subsidy (Water Audit)?
The subsidy aims to encourage Micro, Small, and Medium enterprises in the textile sector of Andhra Pradesh to adopt water-efficient technologies and reduce water utility costs by providing financial assistance for water conservation equipment.
Which types of enterprises are eligible for this subsidy?
Eligible entities include new, expanding, or diversifying Micro, Small, and Medium enterprises within the textile, apparel, and garment industries, as defined by the AP TAG 4.0 policy.
What is the maximum subsidy amount I can receive?
The maximum subsidy is 25% of the equipment cost. For Micro enterprises, it's up to ₹20 lakhs; for Small enterprises, up to ₹40 lakhs; and for Medium enterprises, up to ₹50 lakhs.
Is a water audit mandatory to claim this subsidy?
Yes, the equipment must be prescribed for reducing water utility costs as per the findings and recommendations of a comprehensive water audit, which is a prerequisite for eligibility.
How is the subsidy disbursed?
The subsidy is provided as a one-time reimbursement, typically after the eligible equipment has been commissioned and verified, and all application requirements under the AP TAG 4.0 policy have been met.
Are startups that are not yet revenue-generating eligible?
The policy targets 'Micro, Small, Medium enterprises' which generally implies entities that are already operational or beginning operations. While 'new' enterprises are included, the subsidy for 'equipment commissioning' typically applies once a business is ready to install and utilize equipment for production, suggesting a product or revenue stage.
Sources
Data on this page is compiled from official program and provider references.
