AP FPP 4.0 Power Cost Subsidy
Department of Industries & Commerce, Government of Andhra Pradesh · Central government
Andhra Pradesh's Food Processing Policy 4.0 reimburses power costs for Micro, Small, Medium and Large food processing units.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- ₹1,00,000 – ₹15,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Power Cost Subsidy operates as an incentive under the Andhra Pradesh Food Processing Policy (FPP 4.0), extending support to the state's food processing sector. Under this scheme, eligible food processing units receive reimbursement for a share of their energy consumption expenses, which brings down operational costs. The objective is to improve the competitiveness and sustainability of food processing enterprises, covering the range from micro-scale operations to large industries, by easing the power cost burden they carry.
Power drawn from local DISCOMs (Distribution Companies) and Rural Electrical Companies (RECs) is what qualifies a unit for this subsidy. Support levels vary according to the enterprise's classification — Micro, Small, Medium, or Large — so that assistance matches the scale of operations. Through this programme, the state signals its commitment to building a strong food processing ecosystem, which matters for agricultural value addition, employment generation, and economic growth in Andhra Pradesh.
Benefits are disbursed bi-annually. This mechanism keeps a regular flow of benefits coming in, which helps businesses manage their cash flow across the scheme's tenure.
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, Medium and Large food processing units are eligible. - The unit must draw power from DISCOMs and Rural Electrical Companies (RECs).
How to apply
Applications under the Power Cost Subsidy (FPP 4.0) ordinarily follow the procedure laid down in the wider Food Processing Policy document. Food processing units that qualify are, as a rule, expected to:
- Complete registration of the unit and confirm adherence to the FPP 4.0 policy. - File an application form in line with the policy guidelines, which is generally obtainable from the Andhra Pradesh Industries Department website. - Furnish the required documentation, covering proof of the unit's classification (Micro, Small, Medium or Large), electricity consumption records issued by DISCOMs/RECs, and other supporting financial statements. - Reimbursement claims are, in the normal course, settled twice a year, following verification of the documents submitted and the energy consumption data.
Frequently asked questions
What is the Power Cost Subsidy (FPP 4.0)?
Under the Andhra Pradesh Food Processing Policy (FPP 4.0), eligible food processing units can claim reimbursement of the electricity they consume, which lowers their running costs.
How much reimbursement can my unit receive?
Units are paid ₹1 for every unit of energy consumed, subject to an annual ceiling of ₹1 Lakh for Micro units, ₹5 Lakh for Small units, and ₹15 Lakh for Medium and Large units.
Who is eligible to claim this subsidy?
In Andhra Pradesh, food processing units of any size — micro, small, medium or large — qualify provided they draw power from DISCOMs or Rural Electrical Companies (RECs).
How often is the subsidy disbursed?
Reimbursement is paid out twice a year, so units receive financial support at regular intervals.
For how long can my unit claim this subsidy?
MSME units may claim the subsidy for up to 5 years, whereas large units are eligible for 2 years from the date they qualify.
Are there any specific documentation requirements for application?
Applicants generally have to provide proof of enterprise classification, electricity bills, and evidence of compliance with the FPP 4.0 policy guidelines; the policy's application form or guidelines set out the exact requirements.
Sectors
- Agri Food Rural
- Food Processing
- Power Subsidy
- Msme
- Andhra Pradesh
Details last verified on 16 September 2026. Source: the issuer's published information.