Power Cost Subsidy (MEDP 4.0)

The Power Cost Subsidy operates as a financial incentive within the Andhra Pradesh Industrial Development Policy (MEDP 4.0). It is structured to reduce operational expenses for Micro, Small, and Medium Enterprises (MSMEs) located in the state. The scheme offsets a portion of electricity charges, thereby lowering the cost burden on businesses and supporting their continued operation and expansion.

This support is intended to improve the competitive position of MSMEs and contribute to employment generation and economic activity in Andhra Pradesh. Eligibility is limited to enterprises that draw power from local DISCOMs and Rural Electrical Companies, ensuring that assistance reaches businesses actively integrated with the state’s electricity infrastructure.

Applicants are required to complete the application form specified by the Andhra Pradesh Industries Department under the MEDP 4.0 policy. Supporting documentation generally comprises the enterprise's MSME registration certificate, electricity consumption bills, bank account particulars, and any additional forms or declarations that may be applicable. Submissions are ordinarily made to the appropriate District Industries Centre or another authority designated within Andhra Pradesh. Following the verification of eligibility and power usage records, claims are assessed and released twice a year.

The Andhra Pradesh Industries Department verifies each application for the Power Cost Subsidy. The selection committee examines the submitted documents to confirm the enterprise’s MSME status, its location within Andhra Pradesh, and the actual power consumed from DISCOMs or RECs. Claims for reimbursement are approved and processed using the verified data, in line with the per-unit subsidy rate and the annual caps applicable to each enterprise category.