AP Electricity Duty Reimbursement
Department of Handlooms and Textiles, Government of Andhra Pradesh · Central government
Andhra Pradesh reimburses 50% of Electricity Duty for 5 years to special-category MSMEs led by specific proprietor demographics.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Electricity Duty Cost Reimbursement (Special Category) programme operates under the Andhra Pradesh Textile Policy 2024-29. It provides financial support to Micro, Small, and Medium Enterprises (MSMEs) in the state’s textile sector that fall under the ‘special category’ designation. This category includes units whose proprietors belong to Backward Classes (BC), Scheduled Castes (SC), Scheduled Tribes (ST), Minorities, or are transgender individuals, specially-abled persons, or women entrepreneurs.
Eligible units receive a reimbursement of 50% of their electricity duty costs. This benefit applies for five years, starting from the official Date of Commercial Production (DCP) of the unit. The measure reduces operational expenses related to electricity for these enterprises. It also supports broader ownership and participation in Andhra Pradesh’s textile industry, contributing to a more inclusive industrial environment.
Who can apply
- Eligible business forms
- 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
- Proprietor must belong to BC/SC/ST/Minorities/Transgender/specially abled categories, or be a woman. - Must be an MSME registered under the Special Category. - Applicable from the Date of Commercial Production (DCP).
How to apply
To claim the Electricity Duty Cost Reimbursement (Special Category), an MSME must follow the procedure set out in the Andhra Pradesh Textile Policy 2024-29. The process comprises the steps below:
- **Submission of Application:** The applicant must submit the prescribed application form to the designated office, which is expected to be the Department of Industries and Commerce or the relevant district industries centre in Andhra Pradesh. - **Supporting Documents:** The application must be accompanied by the necessary paperwork. This generally includes the Udyam Registration Certificate as proof of MSME status, a certificate confirming the applicant's eligibility under the special category (such as a caste certificate, gender declaration, or disability certificate), official proof of the Date of Commercial Production (DCP), and electricity bills that have been certified and clearly show the electricity duty paid. - **Scrutiny and Assessment:** Departmental officials will examine the application and its attachments to confirm that the eligibility conditions and policy requirements are met. - **Sanction and Payment:** Once the application is validated and approved, the reimbursement is processed. The funds are released to the MSME according to the payment terms and procedures specified in the Textile Policy.
Frequently asked questions
What is the primary objective of the Electricity Duty Cost Reimbursement (Special Category) program?
The scheme reimburses electricity duty costs for special-category MSMEs in Andhra Pradesh’s textile sector, offering financial relief to support their operations and promote inclusive growth.
Which specific groups qualify as 'special category' proprietors for this scheme?
Proprietors belonging to Backward Classes, Scheduled Castes, Scheduled Tribes, Minorities, transgender individuals, specially-abled persons, or women entrepreneurs qualify under this special category.
What percentage of electricity duty costs is reimbursed, and for how long?
Eligible MSMEs are entitled to a 50% reimbursement of electricity duty expenses for five years, starting from their Date of Commercial Production (DCP).
Is this a grant or a loan, and is any equity taken?
This is a direct reimbursement, effectively a subsidy, and is not a loan, nor does it dilute the equity of the applicant business. It is free of equity and does not need to be repaid.
What documentation is typically required to apply for this reimbursement?
Applicants must submit their MSME registration certificate, evidence of the proprietor's special category status, documentation of the Date of Commercial Production, and electricity bills confirming duty payment.
Can existing MSMEs apply, or is it only for new units?
The benefit period begins on the Date of Commercial Production (DCP), so support applies after a unit is established but only during the first five years of operation in which reimbursement is available.
Sectors
- Manufacturing Industrial
- Msme
- Textile Industry
- Electricity Subsidy
- Andhra Pradesh
- Inclusive Entrepreneurship
Details last verified on 8 September 2026. Source: the issuer's published information.