AP Equipment Commissioning Subsidy after an Energy Audit
Department of Industries & Commerce, Government of Andhra Pradesh · Central government
Energy audit-recommended equipment is funded at 25% of cost for MSMEs, capped at ₹50 lakh.
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
A one-time subsidy is available for equipment recommended through an energy audit, offered under MEDP 4.0 and FPP 4.0.
The Equipment Commissioning Subsidy falls under the Micro and Small Enterprise Development Policy (MEDP) 4.0 and the Food Processing Policy (FPP) 4.0, introduced by the Government of Andhra Pradesh for 2024-29. The scheme provides financial assistance to encourage Micro, Small, and Medium Enterprises (MSMEs) to invest in modern, energy-efficient equipment, with the aim of lowering operational costs, reducing environmental impact, and supporting a greener industrial ecosystem.
Support is extended to enterprises that commission equipment based on recommendations from a certified energy audit, so that investments deliver measurable improvements in energy consumption.
Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), Federations, Cooperatives, and Societies are also eligible, extending the scheme's reach across different economic segments.
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
- Micro, Small and Medium enterprises, as defined under the MEDP 4.0 and FPP 4.0 guidelines. - FPOs, SHGs, federations, cooperatives and societies, subject to the size of investment. - Equipment commissioning costs are covered where they follow the recommendations of an energy audit.
How to apply
Applications for the Equipment Commissioning Subsidy follow a set procedure designed to verify eligibility and confirm that funds are used as intended. In most cases, an applicant must first register the enterprise under the applicable policy — MEDP 4.0 or FPP 4.0 — before filing a detailed application form. Supporting documents normally include a certified energy audit report setting out the recommended equipment and the expected energy savings, together with quotations for the new machinery. Business registration proof, financial statements and an undertaking to comply with policy guidelines are also standard. The completed submission goes to the designated implementing authority, for example the Andhra Pradesh Industries Department or its nodal agencies, which then begins the review and verification process. For the exact application portals and submission instructions, refer to the full policy document.
How applications are assessed
Applications submitted under MEDP 4.0 and FPP 4.0 are assessed against the stated criteria by a committee or nodal agency. This body checks whether the enterprise qualifies, confirms that the energy audit report is genuine and its recommendations valid, and judges whether the quoted equipment commissioning costs are reasonable. Business registration particulars and financial records are verified against other sources.
The test applied is whether the investment actually delivers energy efficiency gains and fits the policy's aims. Approval turns on how closely guidelines are followed, whether the documentation is complete, and the likely effect of the project. Applicants who clear this stage are informed, and the subsidy is released as a lump sum once the remaining post-approval requirements are met.
Frequently asked questions
What is the maximum subsidy I can receive?
The subsidy ceiling under this policy is ₹20 Lakhs for Micro, ₹40 Lakhs for Small and ₹50 Lakhs for Medium enterprises, subject to your enterprise size and the eligibility criteria.
Who is eligible for this subsidy?
Under MEDP 4.0 and FPP 4.0, Micro, Small and Medium enterprises are the primary eligible applicants, while Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), Federations, Cooperatives and Societies may also apply, subject to their investment size and compliance with policy guidelines.
Is this a one-time benefit?
Equipment commissioning support is granted once per eligible project, as a one-time financial incentive intended to offset part of the initial investment in energy-efficient machinery.
What kind of equipment is eligible for the subsidy?
Only equipment commissioning costs recommended in a formal energy audit qualify for the subsidy, so that the funded equipment contributes directly to the enterprise's energy savings and efficiency gains.
Is there any equity taken by the government for this subsidy?
No. This benefit is a non-repayable government subsidy, and your enterprise does not have to give up any equity in return.
How long will this policy be active?
The subsidy falls under the MEDP 4.0 and FPP 4.0 policies, which remain in force from 2024 to 2029. Applications are generally accepted on a rolling basis during this period, though acceptance depends on the availability of funds and any revisions made to the policy.
Do I need an MSME registration to apply?
Yes. A valid MSME Udyam registration is compulsory, as the scheme is intended solely for Micro, Small and Medium enterprises.
Sectors
- Manufacturing Industrial
- Agri Food Rural
- Equipment Subsidy
- Energy Efficiency
- Msme
- Andhra Pradesh
- Food Processing
Details last verified on 18 September 2026. Source: the issuer's published information.