Power Cost Subsidy (IDP 4.0): ₹1/Unit Power Reimbursement up to ₹30L — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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