AP Power Cost Subsidy Scheme

The Power Cost Subsidy scheme falls under the Andhra Pradesh Textile and Apparel Policy (AP TAG 4.0) 2024-29. It lowers operating expenses for industrial enterprises in the state that are new, expanding, diversifying or modernising. The incentive is intended to strengthen the competitiveness and growth of the industrial sector, textiles in particular, by covering part of the energy charges these units incur.

Under the scheme, the Government of Andhra Pradesh reimburses a fixed amount for every unit of power consumed. This is meant to make the state a more attractive destination for investment and to support the sustainable development of local industries.

Enterprises across categories — from Micro to Large — can receive this financial relief over a five-year period, which encourages them to set up or expand their operations.

Under the AP Textile Policy 2024-29, the Power Cost Subsidy is claimed through the wider application procedure laid down by that policy. Industrial enterprises that qualify generally have to file yearly reimbursement claims with the Department of Industries, Government of Andhra Pradesh. Such an application ordinarily carries supporting documents, including evidence of energy consumption issued by DISCOMs or RECs, payment receipts, and the enterprise's registration papers. The claims are thereafter scrutinised to confirm eligibility and compliance with the policy guidelines, after which the sanctioned reimbursement amounts are disbursed.

Each year, the Department of Industries, Government of Andhra Pradesh, assesses Power Cost Subsidy claims. Applications undergo a detailed scrutiny of the papers filed: the enterprise's eligibility under the AP Textile Policy 2024-29 is checked, energy consumption figures are authenticated, and payment particulars from DISCOMs or RECs are verified. Only after the application is found to comply with every policy guideline is the reimbursement approved and released.