AP Equipment Commissioning Subsidy — Up to ₹50L for MSMEs — Frequently Asked Questions

The subsidy covers 25% of the total cost of eligible equipment, subject to a cap based on enterprise size. Micro enterprises can claim up to ₹20 lakh, small enterprises up to ₹40 lakh and medium enterprises up to ₹50 lakh. The benefit is paid once per eligible project, so it is not a recurring annual grant.

Micro, Small and Medium enterprises defined under MEDP 4.0 and FPP 4.0 are the main applicant category. Farmer Producer Organizations, Self-Help Groups, federations, cooperatives and societies can also apply, and their eligibility generally turns on the size of the investment they are making.

Yes. Because the scheme is built for micro, small and medium enterprises, a valid MSME Udyam registration is a mandatory prerequisite before an enterprise can be considered eligible.

Yes. The equipment you commission has to be recommended by a formal, independent energy audit. That requirement exists so the subsidy pays only for machinery expected to deliver measurable energy savings, and it is the central condition of the scheme.

No. This is a non-repayable government subsidy, so no equity stake or ownership share is taken from your enterprise in exchange for the money.

No fixed closing date has been given. Applications are accepted on a rolling basis, and the underlying MEDP 4.0 and FPP 4.0 policies cover the period 2024-29. Approvals remain subject to funds being available and to any revisions the state may make to the policy.

It is a one-time financial incentive per eligible project. It is intended to support the initial investment in energy-efficient equipment rather than to fund successive purchases.

Applications are typically supported by a certified energy audit report listing the recommended equipment and the projected energy savings, quotations for the new machinery, proof of business registration, financial statements and an undertaking to follow the policy guidelines. Registration under the relevant policy is also part of the process.

Only equipment that features in the recommendations of the certified energy audit qualifies. The investment is expected to lead to verifiable improvement in the enterprise's energy consumption, which is also what the reviewing committee assesses before approving a claim.

Applications go to the designated implementing authority — the Andhra Pradesh Industries Department or its nodal agencies. The official incentives portal at https://www.apindustries.gov.in/Incentives/Index.aspx is the starting point, and the full policy document should be consulted for exact submission requirements and portal instructions.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for AP Equipment Commissioning Subsidy — Up to ₹50L for MSMEs, though having it can strengthen your application and unlock other benefits.

AP Equipment Commissioning Subsidy — Up to ₹50L for MSMEs is offered by Department of Industries & Commerce, Government of Andhra Pradesh, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.