AP Equipment Commissioning Subsidy after a Water Audit
Department of Industries & Commerce, Government of Andhra Pradesh · Central government
MSMEs can claim 25% of post-water-audit equipment costs, capped at ₹50 lakh, under this scheme.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹50,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Single lump sum
About this scheme
This one-time subsidy covers equipment identified through a water audit, offered under MEDP 4.0 and FPP 4.0 (2024-29).
Andhra Pradesh's Equipment Commissioning Subsidy sits within the Micro and Small Enterprise Development Policy (MEDP) 4.0 and Food Processing Policy (FPP) 4.0 (2024-29). It is intended to advance sustainable industrial growth and resource efficiency in the state.
Eligible applicants include Micro, Small, and Medium enterprises, Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), Federations, Cooperatives, and Societies. The support applies to the commissioning of new equipment that a comprehensive water audit has identified.
By covering a substantial share of the capital expenditure on such equipment, the scheme promotes water-efficient technologies and practices. This lowers both environmental impact and operating costs, and supports the uptake of modern, eco-friendly industrial processes across sectors in Andhra Pradesh, in step with the state's industrial development and environmental objectives.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Andhra Pradesh
Eligibility conditions:
- The applicant must be a Micro, Small, or Medium Enterprise (MSME) covered under MEDP 4.0 and FPP 4.0 (2024-29). - Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), Federations, Cooperatives, and Societies may also apply, subject to the size of their investment.
How to apply
1. Go through the detailed guidelines set out in the Micro and Small Enterprise Development Policy (MEDP) 4.0 and the Food Processing Policy (FPP) 4.0 (2024-29), both of which are hosted on the Andhra Pradesh Industries website. 2. Assemble the required paperwork: enterprise registration certificates (MSME Udyam registration), a full water audit report, itemised equipment purchase invoices, and commissioning certificates. 3. Send the completed application form together with every supporting document to the nominated District Industries Centre (DIC) or to the Department of Industries & Commerce of Andhra Pradesh. 4. The relevant authorities will examine each application to confirm it is complete, that the applicant is eligible, and that policy norms have been met. 5. Once verification and approval are through, the one-time subsidy is paid straight into the bank account of the enterprise that qualifies.
How applications are assessed
A committee at the Department of Industries & Commerce, or the District Industries Centre (DIC), screens each application against the MEDP 4.0 and FPP 4.0 guidelines. Three things are checked: whether the enterprise qualifies, whether the water audit report is genuine, and whether the equipment proposed for commissioning actually addresses what the audit recommended. The intent is to direct the subsidy towards real water-efficiency investments and sustainable industrial practices in Andhra Pradesh.
Frequently asked questions
Who is eligible for this subsidy?
MSMEs registered under the MEDP 4.0 and FPP 4.0 for 2024-2029 qualify, as may FPOs, SHGs, Federations, Cooperatives and Societies, whose eligibility typically turns on their investment size and operational scope within Andhra Pradesh.
What is the maximum subsidy amount I can receive?
The maximum subsidy depends on your enterprise classification: micro enterprises can receive up to ₹20 Lakhs, small enterprises up to ₹40 Lakhs, and medium enterprises up to ₹50 Lakhs.
What percentage of the equipment cost does the subsidy cover?
The subsidy covers 25% of the total cost of eligible equipment commissioned as a direct result of a water audit, so the government bears a substantial share of the investment in water-efficient technology.
Is this a repayable loan or a non-repayable grant?
The money is a grant, so the government does not require it to be returned. It is a one-time incentive intended to encourage particular investments in water conservation and efficiency.
Is there a deadline to apply for this subsidy?
The Equipment Commissioning Subsidy operates under MEDP 4.0 and FPP 4.0, both in force from 2024 to 2029, and applications are generally accepted on a rolling basis throughout that period. It is advisable to confirm specific windows or cut-off dates with the implementing authority, such as the Department of Industries & Commerce of Andhra Pradesh.
What kind of equipment is eligible for this subsidy?
The subsidy applies to equipment commissioned on the recommendation of a water audit — typically machinery and systems that improve water efficiency, cut water consumption, enable water recycling, or upgrade wastewater treatment within the enterprise's operations, provided the equipment directly advances water conservation and sustainable resource management.
Is co-financing required from the applicant?
Yes — since the subsidy meets 25% of the equipment cost, the eligible enterprise must fund the remaining 75% itself, so that the investment in adopting sustainable technologies is shared.
Sectors
- Agri Food Rural
- Manufacturing Industrial
- Equipment Subsidy
- Water Audit
- Manufacturing
- Food Processing
- Msme
Details last verified on 18 September 2026. Source: the issuer's published information.