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

It covers part of your electricity bill. For every unit of energy your enterprise consumes, the state reimburses ₹1. The money comes back to you after the power has been used, so it works as a cost refund rather than a discount applied at billing time.

The annual ceiling depends on your size band. Micro enterprises can claim up to ₹1 Lakh a year, Small enterprises up to ₹5 Lakh, and Medium enterprises up to ₹15 Lakh. Within those limits, the payout tracks your actual metered consumption at ₹1 per unit.

Payments are released on a bi-annual basis, meaning twice a year. The benefit continues for a total period of 5 years, so an eligible enterprise can keep claiming across that span subject to the yearly cap for its category.

Micro, Small and Medium enterprises that are operating in Andhra Pradesh and that draw their power from DISCOMs and Rural Electrical Companies (RECs). Both conditions — being an MSME in the state and using the state's distribution network — need to be met.

No. This is an incentive under the Andhra Pradesh Industrial Development Policy (MEDP 4.0) and it applies only to enterprises operating within Andhra Pradesh. A unit located in another state does not qualify, however small or large it may be.

No. This is a direct reimbursement subsidy. The state does not take equity, does not ask for a share of profits, and does not require any prior external funding or investment participation from the applicant enterprise. The amount received does not have to be repaid.

The application pack typically calls for proof of enterprise registration as an MSME, along with power consumption bills and bank account details and any other forms or declarations the department prescribes. Since eligibility is framed entirely around being a Micro, Small or Medium enterprise, that registration is what places you in the correct size band and determines your annual cap.

Applications usually require proof of enterprise registration (MSME), your power consumption bills, bank account details, and any specific forms or declarations prescribed under MEDP 4.0. Keeping consumption records ready in the prescribed format helps, since the claim is verified against actual metered data.

You submit the application form prescribed by the Andhra Pradesh Industries Department under the MEDP 4.0 policy. Applications generally go to the relevant District Industries Centre or another designated authority in Andhra Pradesh. The department's incentives portal at https://www.apindustries.gov.in/Incentives/Index.aspx is the starting point for the process.

There is no closing date. The scheme runs on a rolling basis and stays open, so you can apply when you are ready. What does follow a fixed schedule is the payout: approved claims are processed and disbursed on the bi-annual cycle after verification.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Power Cost Subsidy (MEDP 4.0): ₹15L Yearly Cap for AP MSMEs, though having it can strengthen your application and unlock other benefits.

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. 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.