Power Cost Subsidy (MEDP 4.0)
By Department of Industries & Commerce, Government of Andhra Pradesh
Check your eligibility
Sign up and we'll tell you whether your startup qualifies for this grant.
Quick Answer
Andhra Pradesh MSMEs get ₹1 per unit of power reimbursed, paid twice a year for 5 years, capped annually by enterprise size at ₹1 Lakh, ₹5 Lakh or ₹15 Lakh.
- Funding amount
- ₹1L – ₹15L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Andhra Pradesh
- Registrations needed
- Udyam registration
About this subsidy
Micro, Small and Medium enterprises in Andhra Pradesh that buy power from DISCOMs and Rural Electrical Companies (RECs) get ₹1 per unit of energy consumed reimbursed. The annual cap is ₹1 Lakh for Micro enterprises, ₹5 Lakh for Small enterprises and ₹15 Lakh for Medium enterprises. It is paid twice a year for 5 years.
This incentive is part of the Andhra Pradesh Industrial Development Policy (MEDP 4.0).
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
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
Eligible Micro, Small, and Medium enterprises receive a reimbursement of ₹1 per unit of energy consumed. This benefit is capped annually based on enterprise size: ₹1 Lakh for Micro enterprises, ₹5 Lakh for Small enterprises, and ₹15 Lakh for Medium enterprises. The subsidy is disbursed on a bi-annual basis for a period of 5 years, providing significant and consistent operational cost relief to foster growth and sustainability.
- Disbursement
- Tranched
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for the Power Cost Subsidy will undergo a rigorous verification process by the Andhra Pradesh Industries Department. The selection committee will scrutinize submitted documents to confirm the enterprise's MSME status, location within Andhra Pradesh, and actual power consumption from DISCOMs or RECs. Reimbursement claims will be approved and processed based on the accurate and verified data, adhering strictly to the per-unit subsidy rate and annual caps for each enterprise category.
Application Process
- 1
Submit Application
Enterprises apply by submitting the prescribed application form with all necessary documents to the designated authority.
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
Who is eligible for the Power Cost Subsidy?
Micro, Small, and Medium enterprises (MSMEs) operating within Andhra Pradesh that utilize power from DISCOMs and Rural Electrical Companies (RECs) are eligible for this subsidy.
What is the benefit amount under this subsidy?
Enterprises receive a reimbursement of ₹1 per unit of energy consumed. This is capped at ₹1 Lakh per annum for Micro enterprises, ₹5 Lakh per annum for Small enterprises, and ₹15 Lakh per annum for Medium enterprises.
How long is the subsidy provided?
The subsidy is disbursed on a bi-annual basis for a period of 5 years from the date of eligibility or application approval.
How is the subsidy disbursed?
The approved reimbursement amounts are provided to eligible enterprises bi-annually, based on their verified power consumption data.
Is this subsidy available across India?
No, this Power Cost Subsidy is a specific incentive under the Andhra Pradesh Industrial Development Policy (MEDP 4.0) and is exclusively applicable to enterprises operating within the state of Andhra Pradesh.
Does this subsidy require prior funding or equity participation?
No, this is a direct reimbursement subsidy and does not require any prior external funding or equity participation from the applicant enterprise.
Sources
Data on this page is compiled from official program and provider references.
