Equipment Commissioning Subsidy (Water Audit) — Up to ₹50L in AP
A one-time Andhra Pradesh subsidy that pays 25% of your water-conservation equipment cost — up to ₹20 lakhs for Micro, ₹40 lakhs for Small and ₹50 lakhs for Medium textile units.
- Funding amount
- ₹20L – ₹50L (subsidy)
- Funding type
- Subsidy
- Provider
- Department of Handlooms and Textiles, Government of Andhra Pradesh (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Equipment Commissioning Subsidy (Water Audit) is a capital-support incentive run by the Department of Handlooms and Textiles, Government of Andhra Pradesh. It operates within the state's Textile, Apparel and Garment policy for 2024-29 — widely known as AP TAG 4.0 — and its single objective is to make water-saving machinery more affordable for smaller textile businesses.
Textile processing is among the thirstiest industrial activities in the state, so the incentive is deliberately tied to a formal water audit. Your unit commissions an audit, the audit pinpoints where water utility costs can be brought down and which equipment will get you there, and the government then covers a quarter of what that equipment costs. It is a one-time payment, not a recurring one.
Both fresh units and established businesses going in for expansion or diversification can claim it, so the scheme is not limited to greenfield plants. By absorbing a large slice of the upfront machinery spend, the policy aims to speed up the shift to water-efficient technology, trim running costs for mills and processing units, and support Andhra Pradesh's broader environmental goals across its textile, apparel and garment cluster.
Highlights
- One-time subsidy covering 25% of the cost of water-conservation equipment
- Ceiling of ₹20 lakhs for Micro, ₹40 lakhs for Small and ₹50 lakhs for Medium enterprises
- Equipment must be the one prescribed by a water audit carried out for your unit
- Open to new, expanding and diversifying textile, apparel and garment MSMEs in Andhra Pradesh
- Rolling applications with no fixed deadline
- A subsidy, not an investment — no equity is taken
Who can apply
To qualify, your unit must be a Micro, Small or Medium enterprise working in Andhra Pradesh's textile, apparel or garment sector and covered by the AP TAG 4.0 policy.
- Stage: new enterprises are eligible, and so are existing units undertaking expansion or diversification.
- Equipment link: the machinery you install has to be the equipment that a water audit prescribes for reducing water utility costs. Unrelated purchases do not count.
- Sector: the incentive is aimed specifically at textile, apparel and garment enterprises rather than industry in general.
- Size category: your classification as Micro, Small or Medium determines the subsidy ceiling you can claim.
- Paperwork: enterprise registration details, such as MSME registration, form part of the application package.
Equipment Commissioning Subsidy (Water Audit) — Up to ₹50L in AP is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Equipment Commissioning Subsidy (Water Audit) — Up to ₹50L in AP 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.
What the funding covers
You receive a one-time subsidy equal to 25% of the cost of the eligible water-conservation equipment. How far that goes depends on your MSME category:
- Micro enterprise: up to ₹20 lakhs
- Small enterprise: up to ₹40 lakhs
- Medium enterprise: up to ₹50 lakhs
Because the support comes as a subsidy rather than an investment, no equity is taken in your business and your ownership stays intact.
Alongside the cash, the scheme extends regulatory support — assistance in working through the AP TAG 4.0 framework so the incentive is filed and claimed correctly.
The practical effect is that a large part of the capital expenditure on water-efficient equipment is offset, your day-to-day water utility bills come down, and the payback on greener technology becomes far easier to justify.
About the provider
Equipment Commissioning Subsidy (Water Audit) — Up to ₹50L in AP 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.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Approval moves through a sequence of checks before any money is released:
- Initial screening: the application is examined for completeness and for meeting the basic eligibility conditions.
- Technical review: a technical committee or expert panel studies the water audit report and the specifications of the equipment you have purchased, to confirm the equipment genuinely relates to water conservation and cost reduction.
- Field inspection: designated officials may visit your site to verify that the equipment is installed, commissioned and in working condition.
- Final approval: a high-level committee within the Andhra Pradesh Industries Department gives the final go-ahead, based on all verified information and the funds available under the policy.
Documents you’ll need
Before you apply to Equipment Commissioning Subsidy (Water Audit) — Up to ₹50L in AP, 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.
Who this is best for
Equipment Commissioning Subsidy (Water Audit) — Up to ₹50L in AP is best suited for startups in India seeking non-dilutive funding of ₹20L – ₹50L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much funding does the Equipment Commissioning Subsidy actually provide?
It reimburses 25% of the cost of the equipment identified in your water audit. The maximum you can receive is ₹20 lakhs if you are a Micro enterprise, ₹40 lakhs if you are a Small enterprise, and ₹50 lakhs if you are a Medium enterprise.
Who is eligible to apply for this subsidy?
Micro, Small and Medium enterprises in Andhra Pradesh's textile, apparel and garment industries that fall under the AP TAG 4.0 policy. New units qualify, and so do existing units that are expanding or diversifying. The equipment you buy must be the equipment a water audit prescribes for cutting water utility costs.
Is there a deadline to apply?
No. Applications are accepted on a rolling basis and the scheme is always open, so there is no fixed closing date to race against. That said, approvals depend on the funds available under the policy, so it is sensible to file once your equipment is commissioned.
Do I need a water audit to claim the subsidy?
Yes. A comprehensive water audit is a prerequisite. The audit identifies where your water utility costs can be reduced and prescribes the equipment needed to achieve that, and only equipment flowing from those recommendations is eligible.
Does the scheme take equity in my company?
No. This is a government subsidy, which means the money is non-dilutive — you do not give up any shares or ownership in return for it.
What documents do I need to submit?
The application package typically includes your water audit report, equipment purchase invoices, commissioning certificates, enterprise registration details such as MSME registration, and financial statements. It is worth reading the AP TAG 4.0 guidelines for the exact list before you file.
Can an existing unit that is expanding or diversifying apply?
Yes. The scheme is deliberately not restricted to new businesses. Enterprises that are expanding or diversifying their operations in the textile, apparel or garment sector are covered, provided the equipment concerned is prescribed by a water audit.
How and where do I apply?
After reading the AP TAG 4.0 guidelines, have the water audit done, procure and commission the recommended equipment, then compile your documents and submit the application to the designated authority within the Andhra Pradesh Industries Department. Submission may be online through the state portal or in person at a district industry centre. The incentives portal at apindustries.gov.in is the starting point.
How is the subsidy disbursed?
It is paid as a one-time reimbursement, released after the eligible equipment has been commissioned and verified and all AP TAG 4.0 requirements have been met. Verification can include a site visit by officials to confirm the equipment is installed and operational.
Is my business ready for this if it is not yet generating revenue?
The policy is built around Micro, Small and Medium enterprises, which generally means businesses that are operational or just starting operations. Since the subsidy attaches to equipment commissioning, it normally comes into play when you are at the stage of installing and running equipment for production.
Is DPIIT recognition required for Equipment Commissioning Subsidy (Water Audit) — Up to ₹50L in AP?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Equipment Commissioning Subsidy (Water Audit) — Up to ₹50L in AP, though having it can strengthen your application and unlock other benefits.
Who offers Equipment Commissioning Subsidy (Water Audit) — Up to ₹50L in AP?
Equipment Commissioning Subsidy (Water Audit) — Up to ₹50L in AP 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 Equipment Commissioning Subsidy (Water Audit) — Up to ₹50L in AP?
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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