De-Carbonization Subsidy (AP)

The De-Carbonization Subsidy falls under the AP TAG 4.0 policy (Textile Policy 2024-29). It is intended for sub-large and large enterprises in Andhra Pradesh that move towards sustainable, climate-friendly industrial operations.

The incentive funds investment in advanced plant, machinery and equipment that brings measurable reductions in pollution and emissions, conserves water, minimises waste and raises energy efficiency, green buildings included. A share of the project cost is offset through the scheme.

The purpose is to speed up the shift to a greener industrial ecosystem within the state, balancing environmental responsibility with economic growth for established enterprises.

- Consult the official guidelines document, accessible at the URL given, for the full application procedure and the relevant forms. - Draft a comprehensive project proposal covering the proposed investment in climate-friendly plant, machinery and equipment, supported by cost breakdowns and environmental impact assessments. - Lodge the completed application with the Andhra Pradesh Industries Department, or with the nodal agency named in the policy. - Each application is reviewed to confirm eligibility and assess the viability of the project. - Once approved, the subsidy is released in tranches across a 5-year period, in line with the policy terms.

A committee drawn from the Andhra Pradesh Industries Department reviews each project proposal in detail. Its assessment covers three things: whether the project meets the climate-friendly investment criteria, whether it is financially viable, and how far it aligns with the objectives of the AP TAG 4.0 policy. Where required, technical experts examine the proposed plant, machinery and equipment for environmental impact and efficiency.

A project is approved for subsidy disbursement only once it satisfies every eligibility and technical requirement.