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

It returns 50% of the electricity duty cost your unit incurs. There is no fixed maximum sum printed on the scheme — because the benefit is a share of real duty paid, the rupee value depends on how much electricity the unit consumes and how much duty it is billed.

None of those. It is a subsidy in the form of a reimbursement. You are not borrowing money that must be paid back, and the government does not take any stake in your company in return. The support is non-repayable.

Eligible New Industrial Enterprises and units carrying out expansion or diversification projects can apply. The scheme applies across the MSME, Sub Large and Large investment bands, so size alone does not disqualify a unit — provided all other stipulated conditions are met.

Reimbursement is available for a continuous period of 5 years, counted from the Date of Commercial Production (DCP) of the unit. This applies both to newly established units and to existing units that expand or diversify.

It is part of the Andhra Pradesh Textile Policy 2024-29, commonly called AP TAG 4.0. The conditions governing the scheme are laid out in the policy's GO 55 guidelines, and the Department of Handlooms and Textiles, Government of Andhra Pradesh, is the administering body.

No. Applications are rolling / always open, so there is no deadline to beat. That said, the reimbursement only applies from the Date of Commercial Production onwards, so it is worth filing once that date and the supporting records are in place.

DPIIT recognition is not listed as a condition of this scheme. MSME/Udyam registration does appear among the documents typically submitted, where it applies to the unit — and since the benefit spans the MSME, Sub Large and Large bands, the requirement depends on which band you fall under.

Applicants generally submit incorporation certificates, MSME/Udyam registration where applicable, details establishing the date of commercial production, and electricity bills. The GO 55 guidelines document carries the full list of annexures, so it is worth checking the official paperwork before filing.

Applications for the reimbursement are submitted through the designated portal or department of the Government of Andhra Pradesh. The state's incentives portal at apindustries.gov.in/Incentives is the entry point, and applicants are advised to go through the official guidelines for the step-by-step procedure and the annexures required.

No. Concerned government authorities simply review the application to verify eligibility and confirm compliance with the AP Textile Policy 2024-29 (GO 55) guidelines. Selection depends on meeting the stipulated conditions, not on competing against other applicants or presenting to a panel.

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. 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.