Equipment Commissioning Subsidy (Water Audit) — Up to ₹50L in AP — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.