AP Power Cost Subsidy Scheme — Up to ₹2 Cr for 5 Years

The AP Power Cost Subsidy Scheme is one of the incentives offered under the Andhra Pradesh Textile and Apparel Policy 2024-29, commonly referred to as AP TAG 4.0. It is run by the Department of Handlooms and Textiles, Government of Andhra Pradesh.

The mechanism is a reimbursement rather than a lump sum. An eligible industrial unit gets ₹2 credited back for every unit of electricity it consumes, and the support repeats each year instead of arriving as a single payment. Electricity is one of the heaviest recurring costs a factory carries, so easing that bill directly improves a unit's margins and makes the state a more attractive base for manufacturing investment.

Both greenfield industrial enterprises and existing plants that are expanding, diversifying or modernising can use the scheme. Support stretches over five years, and the yearly ceiling depends on how the enterprise is classified — from ₹2 lakh for a micro unit up to ₹2 crore for a sub-large or large one.

There is no fixed closing date. Claims are accepted and assessed on a rolling basis as part of the annual cycle followed by the Department of Industries.

• ₹2 per unit reimbursement on the power a unit consumes
• Yearly ceilings of ₹2 lakh (micro) to ₹2 crore (sub-large/large)
• Benefit continues for 5 years, claimed annually
• Open to new, expanding, diversifying and modernising industrial units
• Electricity must be drawn from a DISCOM or an REC
• Rolling window — no fixed deadline

The scheme is open to industrial enterprises that are located and operating within Andhra Pradesh.

• New industrial units set up in the state, as well as existing enterprises taking up expansion, diversification or modernisation projects.
• Enterprises in every size band: Micro, Small, Medium, Sub-Large and Large.
• The unit must purchase its power from a DISCOM or a Rural Electrical Company (REC). Consumption sourced through any other route does not qualify.
• Claims have to be supported by records — proof of the power consumed and the payments made against it.

Eligibility is built around the enterprise's size category, its location in Andhra Pradesh, the nature of the project and where its electricity comes from.

AP Power Cost Subsidy Scheme — Up to ₹2 Cr for 5 Years is open to startups at any stage. It is open to startups registered anywhere in India.

AP Power Cost Subsidy Scheme — Up to ₹2 Cr for 5 Years 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.

Every qualifying unit is reimbursed ₹2 for each unit of power consumed, worked out on its energy consumption charges.

The maximum that can be recovered in a year is tiered by enterprise size:

• Micro — up to ₹2 lakh per annum
• Small — up to ₹10 lakh per annum
• Medium — up to ₹30 lakh per annum
• Sub-Large and Large — up to ₹2 crore per annum

Payment is made annually over a five-year period, which adds up to substantial relief on a plant's running costs and improves the financial viability of the unit.

Because this is a subsidy, the money is non-repayable and the government takes no equity in the business.

AP Power Cost Subsidy Scheme — Up to ₹2 Cr for 5 Years is offered by Department of Handlooms and Textiles, Government of Andhra Pradesh, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

Claims are evaluated once a year by the Department of Industries, Government of Andhra Pradesh.

The department examines the documentation filed with each claim to establish that the enterprise qualifies under the AP Textile Policy 2024-29. Energy consumption figures are authenticated, and the payment details received from DISCOMs or RECs are verified against them.

The claim is then checked for compliance with the policy's conditions. Once all of this is cleared, the approved reimbursement amount is sanctioned and disbursed to the enterprise.

Before you apply to AP Power Cost Subsidy Scheme — Up to ₹2 Cr for 5 Years, 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 Subsidy Scheme — Up to ₹2 Cr for 5 Years is best suited for startups in India seeking non-dilutive funding of ₹2L – ₹2Cr. If that describes your startup, review the eligibility criteria above before applying.