Power Cost Subsidy (IDP 4.0): ₹1/Unit Power Reimbursement up to ₹30L
Andhra Pradesh's IDP 4.0 incentive reimburses Sub-Large enterprises ₹1 per unit of electricity consumed, capped at ₹15 lakh a year for two years, with bi-annual payouts.
- Funding amount
- ₹30L (subsidy)
- Funding type
- Subsidy
- Provider
- Department of Industries & Commerce, Government of Andhra Pradesh (government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Power Cost Subsidy is one of the incentives built into Andhra Pradesh's Industrial Development Policy (IDP) 4.0, and it is delivered by the state's Department of Industries & Commerce. Its shape is simple: an eligible industrial unit buys electricity as usual, and the government pays back a fixed sum against the units it consumed. That makes it a cash reimbursement against an existing operating expense, not a grant handed out in advance.
Electricity is one of the heaviest recurring costs for a power-intensive manufacturer, so the scheme is aimed squarely at Sub-Large enterprises — units large enough for the power bill to be a material drag on competitiveness. By softening that line item, IDP 4.0 is trying to make Andhra Pradesh a more attractive place to set up and expand industrial capacity, with the knock-on effects of investment, employment and regional economic activity the policy is chasing.
The mechanics are deliberately uncomplicated: a per-unit rate, a fixed annual ceiling, a defined two-year window and a predictable payout rhythm. Applications are accepted on a rolling basis, so a qualifying enterprise is not racing a closing date — it can file once it meets the eligibility conditions.
Only power drawn from DISCOMs and Rural Electrical Companies (RECs) counts towards a claim, and every application is screened and verified by the department before any disbursement is made.
Highlights
- Reimbursement of ₹1 per unit of power consumed
- Capped at ₹15 lakh per annum per enterprise
- Payable for two years from the date of eligibility
- Disbursed bi-annually into the registered bank account
- Open to Sub-Large enterprises drawing power from DISCOMs or RECs
- Rolling applications — no closing deadline
Who can apply
This incentive is written for Sub-Large enterprises operating in Andhra Pradesh under the IDP 4.0 framework.
- The applicant must be a Sub-Large enterprise as recognised under the policy.
- Its electricity must be purchased from DISCOMs (distribution companies) or Rural Electrical Companies (RECs).
- The claim has to fall within the IDP 4.0 policy framework of the Government of Andhra Pradesh.
The policy document does not list sector-wise restrictions for this particular incentive, and it does not state any DPIIT recognition, MSME/Udyam status or founder-level condition as a prerequisite. Since the subsidy reimburses an enterprise's own power consumption, the application is made by the registered business rather than by an individual promoter.
Power Cost Subsidy (IDP 4.0): ₹1/Unit Power Reimbursement up to ₹30L 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
Power Cost Subsidy (IDP 4.0): ₹1/Unit Power Reimbursement up to ₹30L 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
Recipients are reimbursed ₹1 for every unit of electricity consumed, which pulls down the effective cost of running a power-hungry operation instead of adding a fresh revenue stream.
- Rate: ₹1 per unit of energy consumed.
- Annual ceiling: ₹15 lakh per annum per enterprise.
- Tenure: two years, counted from the date the enterprise becomes eligible.
- Payout rhythm: disbursements are made bi-annually, so the money reaches the enterprise twice a year.
- Overall value: at the annual cap across the full two-year window, the ceiling works out to ₹30 lakh.
Because this is a reimbursement, the enterprise receives a direct cash benefit and gives up nothing in return — no equity, no stake, no dilution. The bi-annual cycle also lets a business plan its cash flow around a known, recurring inflow rather than a one-off windfall. Beyond the money itself, the scheme improves the operating economics of participating units, which is the policy's stated route to keeping industry viable and growing within the state.
About the provider
Power Cost Subsidy (IDP 4.0): ₹1/Unit Power Reimbursement up to ₹30L is offered by Department of Industries & Commerce, Government of Andhra Pradesh, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Every claim is examined by the Department of Industries and Commerce, Government of Andhra Pradesh, before any amount is released.
- Initial screening: the department first confirms that the applicant qualifies as a Sub-Large enterprise and meets the basic conditions, including drawing power from the specified DISCOMs or RECs.
- Document and consumption scrutiny: the power consumption bills and supporting financial records submitted with the claim are reviewed to verify the units consumed and to compute the reimbursement payable.
- Rate and cap check: the computed figure is tested against the ₹1 per unit rate and the ₹15 lakh annual ceiling to confirm the claim is within limits.
- Queries or rejection: if information is missing or the numbers do not reconcile, the department may raise queries; unresolved discrepancies can result in the claim being rejected.
- Final approval: a competent authority within the department grants approval once it is satisfied with all submitted details and compliance with IDP 4.0 guidelines.
Documents you’ll need
Before you apply to Power Cost Subsidy (IDP 4.0): ₹1/Unit Power Reimbursement up to ₹30L, 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
Power Cost Subsidy (IDP 4.0): ₹1/Unit Power Reimbursement up to ₹30L is best suited for startups in India seeking non-dilutive funding of ₹30L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
What exactly does the Power Cost Subsidy reimburse?
It pays back part of your electricity cost. For every unit of power your enterprise consumes, the state reimburses ₹1 under the IDP 4.0 policy, provided the power is drawn from DISCOMs or Rural Electrical Companies (RECs) in Andhra Pradesh.
How much money can my enterprise receive in total?
The reimbursement is ₹1 per unit, but it is capped at ₹15 lakh per annum. Since the support runs for two years, the maximum an enterprise can receive over the full period is ₹30 lakh.
Who is eligible to apply?
The incentive is meant for Sub-Large enterprises operating within Andhra Pradesh under the IDP 4.0 framework, and the enterprise must be buying its power from DISCOMs or RECs. There is no sector-wise restriction mentioned for this incentive, and no DPIIT, MSME or founder-specific condition is stated in the policy.
Is there a last date to submit the application?
No. Applications are accepted on a rolling basis, so the scheme stays open and an eligible enterprise can apply once it satisfies the eligibility conditions.
How long does the subsidy continue, and how often is it paid out?
Support runs for two years starting from the date your enterprise becomes eligible. The amount is disbursed on a bi-annual basis, meaning payments come through twice a year over those two years.
Does the government take equity or a stake in my company?
No. This is a reimbursement scheme, not an investment. The benefit is a cash payout against your power consumption, and no equity, shares or ownership stake is given away in exchange.
Do I need DPIIT recognition or MSME/Udyam registration to claim it?
Neither is listed as a mandatory condition for this incentive under IDP 4.0. That said, an Udyam Registration Certificate is among the documents applicants typically provide if applicable, so it is worth keeping it handy.
What documents are typically needed?
Applicants generally submit proof of enterprise registration such as the Memorandum of Association and Articles of Association, an Udyam Registration Certificate where applicable, detailed electricity bills from the DISCOMs or RECs covering the claim period, and valid bank account details so the subsidy can be transferred directly. The application guidelines set out the exact requirements.
How and where do I apply?
Applications are submitted online through the official IDP 4.0 portal or the designated application system maintained by the Department of Industries and Commerce, Government of Andhra Pradesh, specifying the Power Cost Subsidy as the incentive being claimed. The department's incentives page at https://www.apindustries.gov.in/Incentives/Index.aspx is the reference point for the procedure.
What happens after I submit the application?
The department screens the application to confirm you qualify as a Sub-Large enterprise and meet the basic criteria, then scrutinises your power bills and financial records to verify the units consumed and calculate the payable amount against the ₹1 per unit rate and the ₹15 lakh annual cap. Missing or mismatched information can trigger queries or lead to rejection, and a competent authority within the department gives the final approval.
Who offers Power Cost Subsidy (IDP 4.0): ₹1/Unit Power Reimbursement up to ₹30L?
Power Cost Subsidy (IDP 4.0): ₹1/Unit Power Reimbursement up to ₹30L is offered by Department of Industries & Commerce, Government of Andhra Pradesh, a government body. It is provided as non-dilutive funding.
How do I apply for Power Cost Subsidy (IDP 4.0): ₹1/Unit Power Reimbursement up to ₹30L?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
More funding from Department of Industries & Commerce, Government of Andhra Pradesh
Department of Industries & Commerce, Government of Andhra Pradesh runs 6 other programs listed on startupfunds — compare them before you decide where to apply.
Alternatives to Power Cost Subsidy (IDP 4.0): ₹1/Unit Power Reimbursement up to ₹30L
Not sure Power Cost Subsidy (IDP 4.0): ₹1/Unit Power Reimbursement up to ₹30L is the right fit, or already applied? These are other subsidies open to Indian startups that founders shortlist alongside it.
Questions from founders
Ask anything about eligibility, documents or the process — answered by the community.
No questions yet — be the first to ask.