AP Power Cost Reimbursement (Special Category) — Up to ₹15 Lakh/Year

Electricity is one of the heaviest recurring expenses any factory or service unit in Andhra Pradesh carries, and this scheme exists to hand a slice of it back. The AP Power Cost Reimbursement Scheme (Special Category) is administered by the Department of Industries & Commerce, Government of Andhra Pradesh, as an incentive under the state's industrial development policy for 2024-29 (AP IDP-MSME-EDP-FPP 4.0).

The design is a reimbursement, not an upfront payment. A unit runs on grid power, pays its bills, and then claims a fixed rate for every unit consumed, subject to an annual ceiling that depends on how the enterprise is classified. Micro and Small units, FPOs, SHGs, Federations, Co-operatives and Societies are reimbursed at ₹1.5 per unit, while Medium and Large units are reimbursed at ₹1 per unit. Ceilings stretch from ₹1 Lakh a year to ₹15 Lakh a year.

Two policy tracks sit underneath. MEDP 4.0 carries special category led Micro and Small Enterprises — businesses whose founders come from the Women, BC, SC, ST, Minority, Specially-abled or Transgender communities. FPP 4.0 covers the wider applicant pool: Micro, Small, Medium and Large enterprises, along with FPOs, SHGs, Federations, Co-operatives and Societies.

Only units that are starting fresh, expanding, or diversifying are considered. By trimming a utility bill that never stops coming, the state aims to make these businesses more competitive and sustainable, and in turn to keep industrial growth and employment inside Andhra Pradesh.

• ₹1.5 per unit reimbursement for Micro and Small units, FPOs, SHGs, Federations, Co-operatives and Societies; ₹1 per unit for Medium and Large units
• Annual ceiling from ₹1 Lakh for Micro units up to ₹15 Lakh
• Benefit period of 2 to 5 years, depending on the class of enterprise
• Open to new units as well as expansion and diversification projects in Andhra Pradesh
• Separate special category recognition for Women, BC, SC, ST, Minority, Specially-abled and Transgender led enterprises
• Rolling applications — no fixed last date

Special category led Micro and Small Enterprises are the applicants under MEDP 4.0.

Under FPP 4.0, the net widens to:

• Micro, Small, Medium and Large enterprises
• FPOs (Farmer Producer Organizations)
• SHGs (Self-Help Groups), Federations, Co-operatives and Societies

The unit must operate in Andhra Pradesh, and it must be newly established, going through an expansion, or diversifying its operations — adding capacity or a new line counts alongside a first-time setup.

Special category treatment applies to enterprises led by Women, BC (Backward Classes), SC (Scheduled Castes), ST (Scheduled Tribes), Minority, Specially-abled and Transgender founders. A unit claiming on that basis may need to produce the relevant certification or declaration with its papers.

AP Power Cost Reimbursement (Special Category) — Up to ₹15 Lakh/Year is open to startups at any stage. It is open to startups registered anywhere in India.

AP Power Cost Reimbursement (Special Category) — Up to ₹15 Lakh/Year 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.

Support is paid as a reimbursement of electricity costs for power actually consumed — it is not a lump sum handed over at the start.

Per-unit rate and annual ceiling:

• Micro enterprises: ₹1.5 per unit, capped at ₹1 Lakh a year
• Small enterprises: ₹1.5 per unit, capped at ₹5 Lakh a year
• FPOs, SHGs, Federations, Co-operatives and Societies: ₹1.5 per unit, capped at ₹15 Lakh a year
• Medium and Large enterprises: ₹1 per unit, capped at ₹15 Lakh a year

How long the benefit runs:

• Micro and Small enterprises: 5 years
• FPOs, SHGs, Federations, Co-operatives and Societies: 5 years
• Medium enterprises: 5 years
• Large enterprises: 2 years

The intended outcome is a permanently lower cost of operations, which is what makes these units more competitive and better able to sustain themselves as the state pushes for industrial growth.

AP Power Cost Reimbursement (Special Category) — Up to ₹15 Lakh/Year 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 pitching round here. A dedicated committee at district or state level in the Department of Industries reviews each claim. It verifies:

• the class of the enterprise — Micro, Small, Medium or Large
• the type of entity — FPO, SHG, Federation, Co-operative or Society where relevant
• the status of the project — new, expansion or diversification
• the special category founder criteria, where the unit is claiming on that basis

Electricity bills and power consumption records are then matched against the project details and operational reports to work out exactly how much can be reimbursed. The calculation is held within the per-unit rate and the annual cap that apply to that class of enterprise, so the payout follows the policy rather than a negotiation. The committee's approval is what releases the incentive.

Before you apply to AP Power Cost Reimbursement (Special Category) — Up to ₹15 Lakh/Year, 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 Power Cost Reimbursement (Special Category) — Up to ₹15 Lakh/Year 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.