AP Textile Power Reimbursement — ₹2/Unit Subsidy up to ₹2 Crore

The AP Textile Power Reimbursement is a running state incentive that gives textile manufacturers money back on their electricity usage. In the policy's own language it is the Special Category reimbursement of power cost, introduced under the Andhra Pradesh Textile Policy 2024-29 and administered by the Department of Handlooms and Textiles, Government of Andhra Pradesh.

Power is a heavy, unavoidable cost for any textile operation, and the scheme attacks it directly: qualifying enterprises are credited ₹2 for every unit of electricity they consume. That lowers operating overheads, sharpens profitability and makes manufacturing inside Andhra Pradesh more competitive — which is precisely the intent, since the policy wants new entrants as well as existing units to invest and grow within the state.

The incentive is deliberately inclusive. It is earmarked for enterprises whose proprietor is a woman, or belongs to Backward Classes, Scheduled Castes, Scheduled Tribes, minorities, transgender individuals or persons who are specially abled. Support is tiered by enterprise size, starting at ₹2 Lakh for a micro unit and running up to ₹2 Crore for a large one. Applications are accepted on a rolling basis, so there is no application window to wait for.

• ₹2 reimbursed per unit of electricity consumed
• Size-based caps from ₹2 Lakh (micro) to ₹2 Crore (large)
• Support available for five years from the Date of Commercial Production
• Open to new, expanding and diversifying textile units across all size classes
• Reserved for women proprietors and BC, SC, ST, minority, transgender or specially abled promoters
• Rolling applications — no fixed deadline

To qualify, your enterprise must sit in the textile sector and must be new, expanding or diversifying — the scheme is not restricted to first-time entrants.

• Enterprise size: micro, small, medium, sub-large and large units are all covered.
• Proprietor category: the promoter must be a woman or belong to Backward Classes (BC), Scheduled Castes (SC), Scheduled Tribes (ST), minorities, transgender or specially abled categories.
• Location: since this is a Government of Andhra Pradesh incentive under the state's Textile Policy 2024-29, the unit must be operating in Andhra Pradesh.

The category requirement applies to the proprietor of the enterprise, and proof of that category is part of the documentation submitted with the application.

AP Textile Power Reimbursement — ₹2/Unit Subsidy up to ₹2 Crore is open to startups at any stage. It is open to startups registered anywhere in India.

AP Textile Power Reimbursement — ₹2/Unit Subsidy up to ₹2 Crore 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.

The core benefit is a ₹2 per unit reimbursement on electricity consumed by an eligible textile enterprise.

Caps depend on how the unit is classified:

• Micro: up to ₹2 Lakh, claimable across two years.
• Small: up to ₹10 Lakh, across three years.
• Medium: up to ₹30 Lakh, across four years.
• Sub-Large: up to ₹1 Crore, across four years.
• Large: up to ₹2 Crore, across five years.

The wider support window runs for five years, measured from the unit's Date of Commercial Production (DCP). The benefit is delivered as a cash subsidy, with regulatory support attached to the policy package — it is not an investment, so nothing is given away in exchange.

AP Textile Power Reimbursement — ₹2/Unit Subsidy up to ₹2 Crore 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.

Getting approved is a compliance exercise rather than a contest. There is no shortlist, pitch or competitive round — entitlement turns on whether the unit satisfies the policy's criteria.

• Screening: the Andhra Pradesh Industries Department, or a committee set up under the Textile Policy 2024-29, receives and screens the application.
• Eligibility review: reviewers confirm the enterprise's classification (micro, small, medium, sub-large or large), the proprietor's category (woman, BC, SC, ST, minority, transgender or specially abled), and whether the unit is new, expanding or diversifying.
• Documentation check: records of power consumption and compliance with state regulations are examined in detail.
• Sanction and disbursement: once the submitted information is verified, the department sanctions the subsidy and releases the amount.

Because the test is eligibility rather than selection, a complete and accurately documented application is what moves it forward.

Before you apply to AP Textile Power Reimbursement — ₹2/Unit Subsidy up to ₹2 Crore, 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 Textile Power Reimbursement — ₹2/Unit Subsidy up to ₹2 Crore 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.