AP Power Cost Subsidy Scheme — Up to ₹2 Cr for 5 Years — Frequently Asked Questions
Answers to the questions founders most often ask about AP Power Cost Subsidy Scheme — Up to ₹2 Cr for 5 Years — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
How much funding does the scheme actually provide?
You are reimbursed ₹2 for every unit of electricity you consume, calculated on your energy consumption charges. A yearly ceiling applies based on your enterprise size — ₹2 lakh for a micro unit, ₹10 lakh for a small one, ₹30 lakh for a medium one and ₹2 crore for a sub-large or large enterprise. The amount is released annually across five years.
Who can apply for this subsidy?
New industrial enterprises that have come up in Andhra Pradesh can apply, and so can existing units that are expanding, diversifying or modernising. The scheme covers Micro, Small, Medium, Sub-Large and Large enterprises. Your plant has to be located and operating in the state, and its electricity must be purchased from a DISCOM or a Rural Electrical Company (REC).
Is there a last date to submit a claim?
No. The scheme is rolling and always open, with no fixed closing date. Claims move through the Department of Industries' annual assessment cycle, so the practical approach is to file your reimbursement claim for the relevant year along with the supporting energy and payment records.
For how many years can I keep claiming?
The reimbursement is provided on an annual basis for a period of five years. Each year's claim is assessed separately, and the annual ceiling for your enterprise size applies to each of those years.
Is this a loan or a grant, and does it take equity?
It is neither a loan nor a equity investment — it is a subsidy paid as a reimbursement of your power costs. The money is non-repayable, and the government does not take any stake in your company. You simply recover a portion of what you have already spent on electricity.
What documents are typically needed?
A claim is filed with proof of the electricity consumed from your DISCOM or REC, your payment receipts for those bills, and your enterprise registration documents. These are the records the Department of Industries relies on to authenticate consumption and confirm payments before approving a reimbursement.
How and where do I apply?
Claims go to the Department of Industries, Government of Andhra Pradesh, following the application process laid down by the AP Textile Policy 2024-29. Scheme details and the application route are available on the AP Industries incentives portal at https://www.apindustries.gov.in/Incentives/Index.aspx.
Do I need DPIIT recognition to be eligible?
DPIIT recognition does not appear among the eligibility conditions listed for this scheme. What the scheme looks at is your enterprise size category, that your unit is located and operational in Andhra Pradesh, that the project is a new unit or an expansion, diversification or modernisation, and that your power is drawn from a DISCOM or REC.
Does the subsidy wipe out my entire electricity bill?
No. It is a fixed reimbursement of ₹2 per unit of power consumed, not a full waiver of your bill, and it is further limited by the annual ceiling for your enterprise size. Any electricity cost beyond that stays with the enterprise.
Who offers AP Power Cost Subsidy Scheme — Up to ₹2 Cr for 5 Years?
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. It is provided as non-dilutive funding.
How do I apply for AP Power Cost Subsidy Scheme — Up to ₹2 Cr for 5 Years?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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