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

Micro and Small enterprises, along with FPOs, SHGs, Federations, Co-operatives and Societies, are reimbursed at ₹1.5 per unit of power consumed. Medium and Large enterprises are reimbursed at ₹1 per unit.

It depends on how your enterprise is classified. Micro units can claim up to ₹1 Lakh a year and Small units up to ₹5 Lakh a year. FPOs, SHGs, Federations, Co-operatives and Societies can claim up to ₹15 Lakh a year, and Medium and Large enterprises carry a ₹15 Lakh annual ceiling at their ₹1 per unit rate.

Micro and Small enterprises, FPOs, SHGs, Federations, Co-operatives and Societies can claim for 5 years, and Medium enterprises also run for 5 years. Large enterprises can claim for 2 years.

Special category led Micro and Small Enterprises qualify under MEDP 4.0. Under FPP 4.0 the eligibility is wider and covers Micro, Small, Medium and Large enterprises, plus FPOs, SHGs, Federations, Co-operatives and Societies. In every case the unit has to be operating in Andhra Pradesh and must be new, expanding or diversifying.

Enterprises led by Women, BC, SC, ST, Minority, Specially-abled and Transgender founders are recognised as special category, and the policy sets out incentives specifically for these businesses. If you are claiming on that basis, the relevant certification or declaration may be required along with your application.

None of those exactly — it is a subsidy paid as a reimbursement, and it is non-dilutive. You pay your electricity bills first and then claim the eligible amount back from the department. The state does not take equity or any share of your business in return.

Registering the enterprise under the correct category is part of the process. Udyam registration is listed among the documents to be compiled for a claim, together with incorporation certificates, power bills and, for new, expansion or diversification projects, a project report.

There is no fixed deadline. Applications under this scheme are rolling and the window stays open, so claims can be filed as per the guidelines of the AP IDP-MSME-EDP-FPP (4.0) 2024-29 policy.

A dedicated committee at district or state level in the Department of Industries goes through the claim. It verifies your enterprise category and entity type, confirms whether the project is new, an expansion or a diversification, checks the special category founder criteria where they apply, and then matches your electricity bills and consumption data against the project and operational reports to arrive at the reimbursable amount within the applicable per-unit rate and annual cap.

A claim is submitted to the designated authority — normally the relevant district or state industries department — or through the Department of Industries' online incentives portal at https://www.apindustries.gov.in/Incentives/Index.aspx. Processing then follows the detailed guidelines of the AP IDP-MSME-EDP-FPP (4.0) 2024-29 policy.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for AP Power Cost Reimbursement (Special Category) — Up to ₹15 Lakh/Year, though having it can strengthen your application and unlock other benefits.

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. 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.