Tamil Nadu Offers Rs 2/Unit Power Subsidy to Eateries Switching from LPG

Speaking to the media after the meeting, Chairman & Managing Director of Tamil Nadu Power Generation and Distribution Corporation J Radhakrishnan said that on February 28 last month, the United States and Israel launched a joint military attack on Iran. Following this, the Iranian government blocked ships passing through the Strait of Hormuz. Due to this, the supply of crude oil and LPG to India from the Gulf region was disrupted.

Following today's review meeting, chaired by the Chief Minister with senior government officials, several decisions were taken by the Tamil Nadu Government, according to a release.

The Chief Minister announced that restaurants, tea shops, cloud kitchens, and other food production units that switch from LPG to electric stoves will receive a subsidy of ₹2 per unit for the additional electricity consumed. This subsidy will remain in force for the duration of the restrictions on commercial LPG usage imposed by the Central Government.

To help Micro, Small and Medium Enterprises (MSMEs) in Tamil Nadu manage the current LPG crisis, the Chief Minister has ordered the provision of loans with subsidies for purchasing electric equipment, such as electric stoves and heaters.

Under the Unemployed Youth Employment Generation Programme (UYEGP), eligible entrepreneurs can avail of a 25% subsidy up to ₹3.75 lakh, while the Tamil Nadu Women Entrepreneurship Development Scheme offers a 25% subsidy, capped at ₹2 lakh, for loans up to ₹10 lakh to empower women-led businesses, the release noted.

Additionally, for the promotion of SC/ST entrepreneurs, the Annai Ambedkar Business Champions Scheme provides a higher 35% capital subsidy, up to a maximum of ₹1 crore, encouraging the adoption of high-efficiency electric machinery.

In Tamil Nadu, 60,698 factories are operating with consent from the Tamil Nadu Pollution Control Board, using fuels such as LPG, CNG, diesel, furnace oil, and firewood. These industries will now be allowed to temporarily switch to alternative fuels such as kerosene, RDF, HSD, and biomass instead of LPG and CNG. They will not be required to obtain fresh CTE/CTO approval from the Pollution Control Board; only prior intimation will suffice. This relaxation will remain in effect during the period of restrictions on LPG and CNG usage announced by the Central Government.

Across Tamil Nadu, 9,300 primary milk producers' cooperative societies have the capacity to procure and handle 55 lakh litres of milk per day. Due to the current situation, excess milk produced by farmers will be procured without restrictions by Aavin milk cooperative societies.

Due to the LPG shortage, if restaurants are forced to close, the sale of vegetables produced by farmers may be affected. Considering the livelihood of farmers, they will be allowed to sell their vegetables and fruits without restrictions in 194 Uzhavar Sandhais (farmers' markets) across the state.

Additionally, to monitor the proper allocation of LPG cylinders to commercial establishments, the Chief Minister has ordered the formation of a state-level monitoring committee under the supervision of the Chief Secretary, consisting of senior government officials. Similarly, district-level monitoring committees led by District Collectors, including officials from oil distribution companies, will oversee the distribution.

Furthermore, an additional 3,228 kilolitres of kerosene have been supplied this month to ration card holders under the Public Distribution System (PDS).

State Government Oil Companies Coordinator assured that preparations are adequate, urging the people not to panic.

"Petrol and diesel stocks are sufficient for one month, and further arrangements will also be made. There is no need for the public to panic. Due to rumours, petrol and diesel sales have doubled. Gas cylinders are normally supplied in urban areas once every 25 days, and there is sufficient stock for up to one month. LPG supplies will be prioritized for hospitals, schools, and college hostels," he said.

Regarding the LPG shortage in Tamil Nadu, a review meeting chaired by the Chief Minister was also held on March 10, where directions were given to the concerned departments to take appropriate measures to address the fuel restrictions.

As per the Chief Minister's instructions, the Minister for Food and Civil Supplies held a meeting on March 11 with representatives of industry and trade associations and hotel and restaurant associations. In addition, the Chief Secretary conducted review meetings on March 9, 12, and 13 with the secretaries of relevant departments, following the Chief Minister's directions. During the meeting chaired by the Food and Civil Supplies Minister, industry associations and the Tamil Nadu Hotel Owners Association submitted several demands, as per the release.

The meeting was attended by Chief Secretary Muruganandam, Additional Chief Secretary for Environment, Climate Change and Forests Supriya Sahu, Additional Chief Secretary and Chairman & Managing Director of Tamil Nadu Power Generation and Distribution Corporation J Radhakrishnan, Additional Chief Secretary for Home, Prohibition and Excise, Dheeraj Kumar, Additional Chief Secretary for MSMEs Atul Anand, Principal Secretary for Municipal Administration and Water Supply Karthikeyan, Secretary for Industries, Investment Promotion and Commerce Arun Roy, Secretary for Cooperation, Food and Consumer Protection K.S. Palanisamy, Secretary for Animal Husbandry, Dairy Development, Fisheries and Fishermen Welfare Subbaiyan, Director of Food Supply S. Sivarasu, and other senior government officials.

- ANI