Energy Audit Reimbursement (AP)
Department of Handlooms and Textiles, Government of Andhra Pradesh · Central government
Andhra Pradesh reimburses 75% of energy audit costs, up to ₹2 Lakh, for textile Micro, Small and Medium enterprises.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹2,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Energy Audit Cost Reimbursement scheme forms part of the Andhra Pradesh Textile Policy (AP TAG 4.0). It exists to encourage energy efficiency and sustainability among MSMEs operating in the state's textile sector.
Under this incentive, enterprises that commission professional energy audits can have a substantial share of the audit cost reimbursed. The purpose is to lower operational costs and environmental impact, while helping units adopt energy-saving measures, stay competitive and move towards greener industrial practices.
New enterprises are eligible, as are those carrying out expansion or diversification projects. This keeps support open across the sector's growth and modernisation needs, and reflects the Andhra Pradesh government's stated commitment to MSME operational excellence and environmental stewardship.
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
- Enterprises that are new, or undertaking expansion or diversification, within the textile sector - Enterprises classified as Micro, Small, or Medium
How to apply
Applications for the Energy Audit Cost Reimbursement are governed by the wider provisions of the AP Textile Policy 2024-29. An enterprise wishing to claim this incentive ought to go through the entire policy document, which sets out the instructions in detail. The process generally runs as follows:
- **Preparation**: Confirm that the enterprise qualifies — that is, it is a Micro, Small or Medium enterprise operating in the textile sector and has undertaken a new establishment, expansion or diversification. - **Conduct Energy Audit**: Arrange for an approved energy audit of the facility, and secure both a detailed report and an invoice for it. - **Application Submission**: File a formal application with the Andhra Pradesh Industries Department or the nominated nodal agency, on the prescribed forms provided under the AP Textile Policy. Submission is ordinarily made online through a dedicated portal, though physical submission is also possible. - **Document Upload**: Enclose every supporting document required — the Udyam registration certificate, evidence of investment and project particulars, the energy audit report, the auditor's invoices, and proof that the audit has been paid for. - **Verification**: The authorities will scrutinise the application and the accompanying documents in full. - **Reimbursement**: Once verification and approval are complete, the reimbursement due is credited to the enterprise's bank account.
How applications are assessed
Every application for Energy Audit Cost Reimbursement is assessed against the eligibility criteria and on how complete the supporting paperwork is. Screening comes first: each submission is checked for filled-in mandatory fields and for meeting the basic conditions covering MSME status, project type and sector. What follows is a detailed examination of the supporting documents, in which the authenticity of the energy audit report and the costs claimed are verified, along with the enterprise's compliance with policy terms; Udyam registration details and project status are cross-referenced at this stage.
Where verification is satisfactory, the application goes to the competent authority in the Andhra Pradesh Industries Department for approval. A sanction order is then issued and the reimbursement amount processed and paid out to the eligible enterprise.
Frequently asked questions
Who is eligible for the Energy Audit Cost Reimbursement?
New, expanding or diversifying Micro, Small and Medium enterprises in Andhra Pradesh's textile sector can claim this reimbursement.
What is the maximum amount of reimbursement I can receive?
Energy audit costs are reimbursed up to a ceiling of ₹2 Lakh for each eligible enterprise.
What percentage of the energy audit cost is covered?
The scheme reimburses 75% of the actual cost incurred for the energy audit.
Is this a one-time benefit?
The Energy Audit Cost Reimbursement is a one-time incentive, so an eligible enterprise may claim it only once.
How do I claim this incentive?
To claim incentives under the AP Textile Policy 2024-29, an enterprise must submit a formal application with supporting documents to the Andhra Pradesh Industries Department, following the procedure set out in the policy guidelines.
What kind of documents are required for claiming the reimbursement?
Typically, you will need proof of your enterprise's MSME classification, particulars of the new establishment or the expansion/diversification project, and the invoice or report from an approved energy audit together with proof of payment.
Who can conduct the energy audit?
Energy audits should generally be carried out by energy auditors or agencies that are accredited, empanelled or otherwise recognised by the relevant government bodies, since this supports both credibility and compliance with policy requirements.
Is there a specific deadline to apply?
Under the AP Textile Policy 2024-29, applications are generally accepted on a rolling basis until the policy is amended or replaced, so it is best to apply as soon as the energy audit is completed.
Sectors
- Manufacturing Industrial
- Msme
- Energy Efficiency
- Reimbursement
- Andhra Pradesh
- Textile Industry
Details last verified on 16 September 2026. Source: the issuer's published information.