AP FPP 4.0 Power Cost Subsidy — Up to ₹15L/Year for Food Processing Units

The Power Cost Subsidy sits inside the Government of Andhra Pradesh's Food Processing Policy 4.0 (FPP 4.0) and is delivered by the state's Department of Industries & Commerce. Its mechanics are simple: a food processing unit that sources its electricity from a DISCOM or a Rural Electrical Company (REC) is reimbursed ₹1 for every unit of power it consumes, up to an annual ceiling.

That reimbursement attacks one of the heaviest recurring costs a processing plant carries. Chillers, dryers, pulping lines and cold rooms all run on electricity, so returning part of that spend is meant to sharpen the competitiveness and long-term viability of the state's food processing businesses — from micro-scale operations all the way up to large industries. It also feeds the state's wider interest in agricultural value addition, jobs and industrial growth.

Support is not uniform. How much a unit can claim each year is decided by its enterprise class, and the money is released twice a year so recipients can plan working capital around a predictable inflow. The benefit also runs on a fixed clock: five years for smaller enterprises, two years for the largest ones.

• Reimbursement of ₹1 per unit of electricity consumed
• Annual caps of ₹1 Lakh (micro), ₹5 Lakh (small), and ₹15 Lakh (medium and large)
• Open to food processing units of every size class in Andhra Pradesh
• Power must be purchased from a DISCOM or a Rural Electrical Company (REC)
• Disbursement happens twice a year, supporting cash flow
• Benefit tenure of 5 years for micro, small and medium units; 2 years for large units

The scheme is built for food processing units operating in Andhra Pradesh, and it does not restrict itself to a single size band.

• Enterprise size: micro, small, medium and large units are all covered. Size matters only because it sets the annual ceiling on the reimbursement.
• Sector: the unit must be engaged in food processing.
• Power source: electricity must be drawn from a DISCOM or a Rural Electrical Company (REC). Consumption billed by any other supplier does not qualify.
• Registration and compliance: the unit must be registered and must meet the conditions laid out in the FPP 4.0 policy.
• Documentation of class: applicants need to prove their classification as micro, small, medium or large, since that classification decides the cap they can claim against.

AP FPP 4.0 Power Cost Subsidy — Up to ₹15L/Year for Food Processing Units is open to startups at any stage. It is open to startups registered anywhere in India.

AP FPP 4.0 Power Cost Subsidy — Up to ₹15L/Year for Food Processing Units accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Eligible units are reimbursed ₹1 per unit of electricity consumed. Because the per-unit rate is fixed, the real limit is the annual ceiling attached to your enterprise class:

• Micro units: capped at ₹1 Lakh per year.
• Small units: capped at ₹5 Lakh per year.
• Medium units: capped at ₹15 Lakh per year.
• Large units: capped at ₹15 Lakh per year.

Across the scheme, the annual benefit therefore ranges from ₹1 Lakh to ₹15 Lakh, depending on the size of the unit.

Payment is made twice a year rather than as one annual settlement, so the support arrives in two instalments across the year.

How long a unit can keep claiming is also fixed by class: micro, small and medium enterprises get five years, while large enterprises get two years.

AP FPP 4.0 Power Cost Subsidy — Up to ₹15L/Year for Food Processing Units is offered by Department of Industries & Commerce, Government of Andhra Pradesh, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

There is no competitive shortlisting here — this is a reimbursement scheme, so the process is about registration, submission and verification.

• Register the unit and confirm FPP 4.0 compliance. The unit must be registered and meet the policy's conditions before a claim can move forward.
• Submit the application form in the format set out in the policy guidelines. The form and guidelines are published on the Andhra Pradesh Industries Department website.
• Attach the supporting documents, including proof of the unit's classification as micro, small, medium or large, electricity consumption records from the DISCOM or REC, and other financial statements as required.
• Verification and bi-annual claim processing. Claims are normally settled twice a year, after the submitted documents and the energy consumption data have been checked.

Before you apply to AP FPP 4.0 Power Cost Subsidy — Up to ₹15L/Year for Food Processing Units, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

AP FPP 4.0 Power Cost Subsidy — Up to ₹15L/Year for Food Processing Units is best suited for startups in India seeking non-dilutive funding of ₹1L – ₹15L. If that describes your startup, review the eligibility criteria above before applying.