Tamil Nadu Govt Announces Electricity Subsidy To Tackle LPG Crisis

The Tamil Nadu government has announced that restaurants, tea shops, cloud kitchens, and other food production units switching from LPG to electric stoves will receive a subsidy of ₹2 per unit for the additional electricity consumed.

This measure, introduced by Chief Minister MK Stalin during a high-level review meeting at the Secretariat on Saturday, aims to ensure the smooth operation of the food sector amidst a severe LPG shortage triggered by geopolitical tensions in the Gulf region. The subsidy will remain in effect for the duration of the commercial LPG restrictions imposed by the Central Government.

The energy crisis stems from a joint military strike by the United States and Israel against Iran on 28 February, which led the Iranian government to block maritime traffic through the Strait of Hormuz. J Radhakrishnan, Chairman and Managing Director of TANGEDCO, confirmed that this blockade has severely disrupted the supply of crude oil and LPG to India. In response, the state has rolled out a comprehensive support package for Micro, Small, and Medium Enterprises (MSMEs) to transition toward electric infrastructure.

To facilitate this transition, the Chief Minister has sanctioned subsidised loans for the purchase of electric equipment such as industrial stoves and heaters. Under the Unemployed Youth Employment Generation Programme, eligible entrepreneurs can access a 25% subsidy up to ₹3.75 lakh, while the Tamil Nadu Women Entrepreneurship Development Scheme provides a similar 25% subsidy for loans up to ₹10 lakh. Furthermore, the Annai Ambedkar Business Champions Scheme offers a 35% capital subsidy, capped at ₹1 crore, to encourage SC/ST entrepreneurs to adopt high-efficiency electric machinery.

The state has also relaxed environmental regulations for over 60,000 factories currently reliant on LPG, CNG, or diesel. These units are now permitted to temporarily switch to alternative fuels including kerosene, biomass, and high-speed diesel without seeking fresh approvals from the Pollution Control Board, provided they notify the authorities in advance.

To protect the agricultural supply chain, the government has directed Aavin milk cooperative societies to procure excess milk from farmers without restrictions. Similarly, farmers are encouraged to sell their produce across 194 Uzhavar Sandhais (farmers' markets) to mitigate the impact of potential restaurant closures on vegetable and fruit sales.

While a state-level monitoring committee under the Chief Secretary has been formed to oversee LPG allocation, officials have urged the public to remain calm. The State Government Oil Companies Coordinator confirmed that petrol and diesel stocks are sufficient for at least one month. To manage current inventories, LPG supplies are being prioritised for essential institutions such as hospitals, schools, and hostels, while an additional 3,228 kilolitres of kerosene have been released through the Public Distribution System to support ration card holders.