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

The scheme reimburses ₹1 for every unit of electricity your unit consumes. That reimbursement is capped each year at ₹1 Lakh for micro units, ₹5 Lakh for small units, and ₹15 Lakh for medium and large units. So the maximum annual payout under the scheme is ₹15 Lakh.

Food processing units located in Andhra Pradesh qualify, regardless of whether they are micro, small, medium or large. The one condition on the power side is that the unit must buy its electricity from a DISCOM or a Rural Electrical Company (REC). Units must also be registered and compliant with the FPP 4.0 policy.

No. There is no fixed closing date — the scheme runs on a rolling, always-open basis. Applications and claims can be submitted as per the policy guidelines, and claims are typically taken up for settlement twice a year.

It is released on a bi-annual basis, meaning the benefit is paid out twice a year rather than in a single annual settlement. That split helps units manage their cash flow through the year.

Micro, small and medium enterprises can claim for 5 years. Large enterprises have a shorter window of 2 years. The tenure runs from the date your unit becomes eligible under the scheme.

No. This is a subsidy paid as a reimbursement of power costs, not an investment or a loan. The state does not take a stake in your business, and the reimbursed amount is not repaid.

No. It returns a fixed ₹1 per unit of power consumed, and the total is limited by the annual ceiling for your enterprise class. Depending on your consumption and your cap, the reimbursement will cover only part of your annual power spend.

Applicants generally need the application form completed as per the policy guidelines, proof of the unit's classification as micro, small, medium or large, electricity consumption records issued by the DISCOM or REC, and supporting financial statements. These are checked before each bi-annual claim is processed.

DPIIT recognition is not listed as a condition of this scheme. What the scheme requires is that the unit is a food processing unit in Andhra Pradesh, buys power from a DISCOM or REC, is registered and compliant with FPP 4.0, and can establish its classification as micro, small, medium or large — since that classification sets the annual cap.

Applications follow the process laid out in the Food Processing Policy guidelines. Register the unit, complete the prescribed application form available through the Andhra Pradesh Industries Department, attach your classification proof, power consumption records and financial statements, and file the claim. The state's incentives portal, https://www.apindustries.gov.in/Incentives/Index.aspx, is the entry point for the process.

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 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.