MySubsidy

Equipment Commissioning Subsidy (Water Audit)

Department of Handlooms and Textiles, Government of Andhra Pradesh · Central government

Andhra Pradesh offers MSMEs a one-time 25% equipment subsidy, capped at ₹50 lakhs, for water conservation measures from a water audit.

Open, rolling. Applications are accepted continuously — there is no deadline.

Key facts

Subsidy amount
₹20,00,000 – ₹50,00,000
Instrument
Subsidy
Deadline
Rolling
Disbursement
Reimbursed after spend

About this scheme

The Equipment Commissioning Subsidy (Water Audit) sits within the Andhra Pradesh Textile, Apparel, and Garment (AP TAG) Policy 2024-29. Through this incentive, Micro, Small, and Medium enterprises in the textile sector are encouraged to take up water-efficient technologies and bring down their water utility costs. Water conservation matters greatly in industrial processes, particularly in water-intensive sectors such as textiles, and the Government of Andhra Pradesh therefore extends financial assistance to businesses that invest in equipment identified through a comprehensive water audit.

Enterprises that are newly setting up, as well as those carrying out expansion or diversification projects, can draw on this subsidy. Both new and established players are thus able to take part in the push towards environmental sustainability. By covering a substantial share of the capital expenditure on water-saving equipment, the policy lightens the financial load on enterprises, which in turn speeds up the uptake of greener technologies and supports the state's wider environmental objectives.

The scheme is structured to improve resource efficiency, bring down operational costs for businesses, and encourage a more sustainable industrial ecosystem across Andhra Pradesh's textile, apparel, and garment industries.

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

- New, expanding, or diversifying Micro, Small, and Medium enterprises are eligible. - The equipment must be prescribed for reducing water utility costs, as determined by a water audit. - The enterprise must be operating under the Andhra Pradesh Textile, Apparel, and Garment Policy (AP TAG 4.0).

How to apply

- **Review the guidelines**: Go through the Andhra Pradesh Textile, Apparel, and Garment Policy (AP TAG 4.0) guidelines in full to grasp the eligibility criteria and the application procedure for the Equipment Commissioning Subsidy (Water Audit). - **Carry out a water audit**: Appoint a qualified consultant to conduct a water audit of your enterprise. The audit should identify where water utility costs can be brought down and specify the equipment required. - **Purchase and commission the equipment**: Buy and install the water conservation equipment the audit recommends. Keep records of every expense. - **Assemble the application**: Gather all documents required, which usually comprise the water audit report, invoices for equipment purchase, commissioning certificates, enterprise registration details (MSME, etc.), and financial statements. - **File the application**: Send the complete application package to the designated authority within the Andhra Pradesh Industries Department, in line with the submission process set out in the AP TAG 4.0 policy. Submission may take place online through a portal or physically at a district industry centre. - **Verification and approval**: Authorities will verify the application and the documents supporting it. This may involve site visits to inspect the commissioned equipment. - **Disbursal of subsidy**: Once verification and approval are complete, the subsidy amount you are eligible for will be paid out to your enterprise.

Apply on the issuer's site

How applications are assessed

Applications for the Equipment Commissioning Subsidy are assessed in stages, in keeping with the AP TAG 4.0 policy. An initial screening checks that each application is complete and meets the basic eligibility criteria. Where required, a technical committee or expert panel examines the water audit report and equipment specifications submitted, to establish how far they relate to water conservation and cost reduction. Designated officials may also carry out field inspections to verify that the equipment has been commissioned and is in working condition.

Approval rests with a high-level committee in the Andhra Pradesh Industries Department. Its decision draws on the verified information and depends on the funds available under the policy.

Frequently asked questions

What is the purpose of the Equipment Commissioning Subsidy (Water Audit)?

The subsidy offers financial assistance to Micro, Small and Medium enterprises in Andhra Pradesh's textile sector for water conservation equipment, with the aim of promoting water-efficient technologies and lowering water utility costs.

Which types of enterprises are eligible for this subsidy?

New, expanding or diversifying Micro, Small and Medium enterprises in the textile, apparel and garment industries qualify, provided they meet the definition set out in the AP TAG 4.0 policy.

What is the maximum subsidy amount I can receive?

Subsidy is capped at 25% of equipment cost, subject to a ceiling of ₹20 lakhs for Micro, ₹40 lakhs for Small and ₹50 lakhs for Medium enterprises.

Is a water audit mandatory to claim this subsidy?

Yes. Eligibility requires a comprehensive water audit, and the equipment must be one that the audit's findings and recommendations prescribe for lowering water utility costs.

How is the subsidy disbursed?

The subsidy is paid as a one-time reimbursement, usually once the eligible equipment has been commissioned and verified and all application conditions under the AP TAG 4.0 policy are satisfied.

Are startups that are not yet revenue-generating eligible?

The scheme covers micro, small and medium enterprises that are operational or starting up, including new units. However, the equipment commissioning subsidy generally applies only once a business is ready to install and use equipment for production, which implies a product or revenue stage.

Sectors

  • Manufacturing Industrial
  • Water Conservation
  • Textile Industry
  • Msme Subsidy
  • Environmental Sustainability
  • Industrial Efficiency

Details last verified on 18 September 2026. Source: the issuer's published information.