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

The amount is capped by your enterprise classification. A micro enterprise can receive up to ₹20 Lakhs, a small enterprise up to ₹40 Lakhs, and a medium enterprise up to ₹50 Lakhs. In every case the payment works out to 25% of the equipment cost, so the lower of the two figures applies — whichever is less, the 25% share or the size-based ceiling.

The subsidy meets 25% of the cost of the equipment that is commissioned following a water audit. The remaining 75% is financed by your own enterprise, which makes this a shared investment in water-efficient technology rather than a fully funded purchase.

Micro, Small and Medium Enterprises registered under the Micro and Small Enterprise Development Policy (MEDP) 4.0 and the Food Processing Policy (FPP) 4.0 for 2024-2029 form the core applicant group. Farmer Producer Organizations, Self-Help Groups, federations, cooperatives and societies are also eligible, though their qualification depends on the size of their investment. The enterprise must be operating in Andhra Pradesh, since the scheme is administered by the state government.

DPIIT recognition is not listed as a requirement for this Andhra Pradesh subsidy. What the application process does ask for is enterprise registration documentation in the form of MSME Udyam registration, along with a comprehensive water audit report, equipment purchase invoices and commissioning certificates.

It is neither a loan nor a typical grant — it is a subsidy, and a non-repayable one. The amount you receive does not have to be returned to the government. It is extended as a one-time incentive to encourage investment in water conservation and efficiency.

No. This is a subsidy programme delivered as cash support, so no shares or ownership stake change hands. The funds are non-repayable and no dilution of your business takes place.

There is no fixed deadline. The subsidy operates on a rolling basis throughout the MEDP 4.0 and FPP 4.0 policy period, which runs from 2024 to 2029. Even so, it is sensible to confirm current application windows or cut-off dates with the implementing authority — the Department of Industries & Commerce of Andhra Pradesh or your District Industries Centre.

Support goes to equipment commissioned on the strength of a water audit. In practice that means machinery and systems that improve water efficiency, bring down water consumption, allow water to be recycled, or improve wastewater treatment inside your operations. The purchase must connect directly to water conservation and sustainable resource use, and the equipment must tie back to a recommendation in your audit report.

You will need your enterprise registration certificate, meaning MSME Udyam registration, a comprehensive water audit report, detailed invoices for the equipment purchased, and commissioning certificates. Together they establish that your unit qualifies, that the audit was genuine, and that the equipment has actually been installed.

Start by reading the detailed guidelines under MEDP 4.0 and FPP 4.0, which are available on the Andhra Pradesh Industries website at https://www.apindustries.gov.in/Incentives/Index.aspx. Then assemble the supporting documents, including your Udyam registration, water audit report, equipment invoices and commissioning certificates, and submit the completed form to the designated District Industries Centre or to the Department of Industries & Commerce. After screening and approval, the subsidy is credited directly to your bank account. You can also go through the review stages described under the selection process before you file, so nothing is missing.

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