Power Cost Subsidy (MEDP 4.0): ₹15L Yearly Cap for AP MSMEs

The Power Cost Subsidy sits inside Andhra Pradesh's Industrial Development Policy, referred to as MEDP 4.0, and is delivered by the Department of Industries & Commerce, Government of Andhra Pradesh. It is not an investment or a loan — it is a straight reimbursement in which part of an enterprise's electricity spend is paid back after the power has already been used.

Electricity is among the heaviest recurring outflows for a small manufacturing unit, and this incentive exists to lighten that load. By returning a fixed sum for every unit drawn, it protects the operating margin of businesses already producing in the state and gives them room to keep running and grow, which in turn supports employment and industrial activity across Andhra Pradesh.

The benefit is restricted to enterprises that take their supply from DISCOMs and Rural Electrical Companies (RECs), so the support stays with units connected to the state's own distribution network. Payments follow a fixed rhythm — twice a year, over a five-year span — with a ceiling on how much any single enterprise can claim annually depending on whether it is Micro, Small or Medium. Applications are accepted on a rolling basis, so there is no closing date to race against.

Since this is a subsidy, the state takes nothing in return. No equity is surrendered, no share of profit is claimed, and no repayment is expected.

• ₹1 reimbursed for every unit of electricity consumed
• Annual ceilings of ₹1 Lakh (Micro), ₹5 Lakh (Small) and ₹15 Lakh (Medium)
• Paid twice a year and available for a total of 5 years
• Open to MSMEs operating in Andhra Pradesh on DISCOM or REC power
• Rolling applications — the scheme has no closing deadline
• A non-dilutive subsidy: no equity given up and nothing to repay

Two yardsticks decide eligibility: how big the enterprise is, and where it buys its power.

• The unit must be a Micro, Small or Medium enterprise (MSME).
• It must be operating within Andhra Pradesh.
• It must draw electricity from a DISCOM or a Rural Electrical Company (REC).

An enterprise that satisfies both conditions falls into one of the three size bands, and the band determines the annual ceiling it can claim. Units located outside Andhra Pradesh, or those sourcing power from outside the DISCOM and REC network, do not fit the scheme's stated scope.

The category that matters here is enterprise size — Micro, Small or Medium — rather than the sector the business operates in.

Power Cost Subsidy (MEDP 4.0): ₹15L Yearly Cap for AP MSMEs is open to startups at any stage. It is open to startups registered anywhere in India.

Power Cost Subsidy (MEDP 4.0): ₹15L Yearly Cap for AP MSMEs 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.

The core entitlement is a reimbursement of ₹1 for every unit of energy consumed.

How much that adds up to in a year depends on the size band the enterprise falls into:

• Micro enterprises: capped at ₹1 Lakh per year
• Small enterprises: capped at ₹5 Lakh per year
• Medium enterprises: capped at ₹15 Lakh per year

Disbursement happens twice a year, on a bi-annual cycle, and the support runs for a total of 5 years. Because the benefit is a reimbursement tied to metered consumption, the actual payout in any period reflects verified usage — the caps are ceilings, not flat handouts.

Taken together, the scheme puts between ₹1 Lakh and ₹15 Lakh a year of power cost relief within reach, depending on enterprise size.

Power Cost Subsidy (MEDP 4.0): ₹15L Yearly Cap for AP MSMEs 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.

Every claim passes through a verification exercise run by the Andhra Pradesh Industries Department.

During scrutiny, the department checks the documents submitted to establish that the applicant is genuinely an MSME, that the unit is located within Andhra Pradesh, and that the power consumption being claimed was actually drawn from a DISCOM or REC.

Approval and processing then rest on that verified data. The per-unit reimbursement rate is applied as stated, and the annual ceiling appropriate to the enterprise's category is enforced, so no claim can exceed the limit for its size band.

Once a claim clears verification, the approved amount is released on the bi-annual disbursement cycle.

Before you apply to Power Cost Subsidy (MEDP 4.0): ₹15L Yearly Cap for AP MSMEs, 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.

Power Cost Subsidy (MEDP 4.0): ₹15L Yearly Cap for AP MSMEs is best suited for startups in India seeking non-dilutive funding of ₹1L – ₹15L. If that describes your startup, review the eligibility criteria above before applying.