Power Cost Subsidy (IDP 4.0)
By Department of Industries & Commerce, Government of Andhra Pradesh
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Quick Answer
Andhra Pradesh IDP 4.0 reimburses ₹1 per unit of power for sub-large enterprises, capped at ₹15 lakh a year for two years.
- Funding amount
- Up to ₹30L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Andhra Pradesh
About this subsidy
Sub-Large enterprises in Andhra Pradesh that buy power from DISCOMs and Rural Electrical Companies (RECs) can get ₹1 per unit of energy back, up to ₹15 lakh a year. The subsidy runs for two years from the date of eligibility, paid twice a year.
It is a reimbursement under the Andhra Pradesh Industrial Development Policy (IDP) 4.0. It covers part of the power bill for enterprises that use a lot of electricity.
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 ₹30L
What You Get
Eligible 'Sub-Large enterprises' operating in Andhra Pradesh can receive a substantial financial benefit through a reimbursement of ₹1 per unit of energy consumed. This direct cost-saving measure is capped at ₹15 lakh per annum, ensuring significant relief for medium to large-scale operations. The support is provided for a continuous period of two years from the date of eligibility, with disbursements made on a convenient bi-annual basis. This structured approach helps enterprises budget effectively and reduces the overall financial burden of electricity bills, promoting long-term sustainability and growth within the state's industrial sector. Beyond direct cash reimbursement, the program offers indirect benefits by improving the overall financial health and operational viability of participating enterprises.
- Disbursement
- Reimbursement
- Duration
- 24 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection and approval process for the Power Cost Subsidy involves a meticulous review by the Department of Industries and Commerce, Government of Andhra Pradesh. Applications are initially screened to confirm that the applicant is a 'Sub-Large enterprise' and meets the basic criteria, such as utilizing power from specified DISCOMs or RECs. Subsequently, the submitted power consumption bills and other financial records are scrutinized to verify the units consumed and to calculate the eligible reimbursement amount, ensuring it adheres to the ₹1 per unit rate and the ₹15 lakh annual cap. Any discrepancies or missing information may lead to queries or rejection. The final approval is granted by a competent authority within the department, based on the comprehensive assessment of all submitted details and compliance with the IDP 4.0 policy guidelines.
Application Process
- 1
Apply Online
Submit application with required documents through the AP Industries portal.
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 a financial incentive under the Andhra Pradesh Industrial Development Policy (IDP) 4.0. Its primary goal is to reimburse eligible 'Sub-Large enterprises' for a portion of their electricity consumption costs, thereby reducing operational expenses and promoting industrial growth in the state.
Who is eligible to claim this subsidy?
'Sub-Large enterprises' that are consuming power from state-designated DISCOMs (Distribution Companies) and Rural Electrical Companies (RECs) within Andhra Pradesh are eligible to apply for this subsidy.
What is the quantum of the subsidy and for how long is it available?
Eligible enterprises will receive a reimbursement of ₹1 per unit of energy consumed. This benefit is capped at ₹15 lakh per annum per enterprise and is available for a total period of two years from the date of eligibility.
How frequently will the subsidy be disbursed?
The reimbursement amount will be disbursed to the eligible enterprises on a bi-annual basis, meaning payments will be made twice a year over the two-year program duration.
Are there any specific industry restrictions for this subsidy?
No specific industry restrictions are mentioned in the policy document for this particular incentive. It is generally open to 'Sub-Large enterprises' across various industrial sectors that meet the power consumption criteria.
What documents are typically required to apply for the Power Cost Subsidy?
Applicants generally need to submit their enterprise registration documents, Udyam Registration (if applicable), recent power consumption bills from DISCOMs/RECs, and bank account details for direct transfer. Specific requirements will be detailed in the application guidelines.
Sources
Data on this page is compiled from official program and provider references.
