Andhra Pradesh Electricity Duty Reimbursement — 50% Subsidy for 5 Years

Andhra Pradesh has built a cost-relief incentive for industrial units in the state: half of the electricity duty they pay is returned to them. The scheme is run by the Department of Handlooms and Textiles, Government of Andhra Pradesh, and sits inside the Andhra Pradesh Textile Policy 2024-29 — the framework widely known as AP TAG 4.0.

The benefit is a subsidy, not a loan, grant or equity deal. Nothing is repaid, and no shareholding changes hands. What it does is shrink one of the heaviest recurring costs a manufacturing plant carries — its power bill — and by doing so improve the unit's overall viability.

Both greenfield units and existing enterprises going in for expansion or diversification can claim it. Support continues for five years starting from the Date of Commercial Production (DCP), which makes this long-term relief rather than a single payment. Because the payout is a share of the duty actually incurred, there is no single advertised amount — the rupee value varies with the unit's electricity consumption.

Applications are accepted on a rolling basis. There is no closing date to race against, but the unit must clear all the conditions laid down under the AP Textile Policy 2024-29 (GO 55) guidelines before the reimbursement is released.

• Reimburses 50% of the electricity duty a unit pays
• Runs for 5 years from the Date of Commercial Production (DCP)
• Covers new units plus expansion and diversification projects
• Open across the MSME, Sub Large and Large investment bands
• Rolling applications — no fixed deadline to meet
• Non-repayable subsidy; no equity and no repayment involved

Eligibility here turns on the type of project and the investment band it belongs to, not on winning a competition.

• New Industrial Enterprises that satisfy the scheme's conditions can apply.
• Existing units taking up expansion or diversification projects are also covered.
• The benefit spans the MSME, Sub Large and Large investment bands — it is not reserved for small units alone.
• Applicants must meet all other stipulated conditions set out in the AP Textile Policy 2024-29 (GO 55) guidelines.

The published eligibility facts do not name specific industries, do not require DPIIT recognition, and do not impose a founder residency rule. MSME/Udyam registration is listed among the documents typically submitted, where applicable to the unit.

Andhra Pradesh Electricity Duty Reimbursement — 50% Subsidy for 5 Years is open to startups at any stage. It is open to startups registered anywhere in India.

Andhra Pradesh Electricity Duty Reimbursement — 50% Subsidy 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.

The core benefit is a 50% reimbursement of the electricity duty a unit pays. Since it is calculated as a share of the duty actually incurred, the scheme does not publish a fixed ceiling — the payout scales with the unit's consumption and the duty billed.

• Relief runs for 5 continuous years from the Date of Commercial Production (DCP).
• Available to newly set-up units as well as existing units going in for expansion or diversification.
• Delivered as cash back on duty already paid, rather than a sanctioned loan or an equity allotment.

This is a non-repayable subsidy. No amount has to be returned to the government and no ownership stake is given up in exchange. For the duration of the benefit window, the unit effectively operates with a permanently lighter load of overheads.

Beyond the money, the scheme does not advertise mentorship, incubation or networking components. Its contribution is purely financial cost relief, which feeds directly into the unit's sustainability and competitiveness.

Andhra Pradesh Electricity Duty Reimbursement — 50% Subsidy 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.

Approval here is a verification exercise, not a competitive selection.

• The enterprise files its reimbursement application through the designated Government of Andhra Pradesh portal or department.
• Supporting papers are submitted with it — incorporation certificates, MSME/Udyam registration where applicable, evidence relating to the commercial production date, and electricity bills.
• Concerned authorities scrutinise the application against the conditions stipulated in the AP Textile Policy 2024-29 (GO 55) guidelines.
• Once verification is complete and approval granted, the reimbursement is processed and disbursed to the eligible unit.

There is no pitch round, no ranking and no shortlisting against other applicants. An application stands or falls on whether it meets the stipulated conditions.

Before you apply to Andhra Pradesh Electricity Duty Reimbursement — 50% Subsidy 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.