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The Low Tension Power Tariff (LTPT) Subsidy scheme by the Tamil Nadu government aims to cut electricity Read More... costs for MSME businesses, offering a 20% subsidy for 36 months. Read less

Details

Small and medium businesses in Tamil Nadu can now get significant relief on their electricity bills. The Micro Small and Medium Enterprises (MSME) Department has launched the Low Tension Power Tariff (LTPT) Subsidy scheme to help MSMEs reduce their power expenses.

What Is This Scheme?

The LTPT Subsidy scheme is designed to lower the electricity costs for eligible MSME enterprises in Tamil Nadu. It offers a substantial subsidy on the electricity bills, making it easier for businesses to manage their operational expenses and grow.

Who Can Benefit From This Scheme?

This scheme is primarily for Micro, Small, and Medium enterprises. It supports new manufacturing units, including those in backward areas, and agro-based industries. Existing businesses can also benefit if they are undertaking significant expansion or diversification, provided they meet certain investment and turnover criteria. Crucially, only businesses using Low Tension Power supply (Tariff III B) are eligible.

Why This Scheme Is Important

Electricity is a major cost for many businesses. By providing a 20% subsidy for 36 months, this scheme helps MSMEs improve their profitability and competitiveness. It encourages industrial growth, especially in backward regions, and supports the expansion of existing businesses, contributing to the overall economic development of the state.

Objective

The Low Tension Power Tariff (LTPT) Subsidy scheme by the Tamil Nadu government aims to cut electricity costs for MSME businesses, offering a 20% subsidy for 36 months.

Benefits

All girl students who studied from Classes 6th to 12th in Government schools will be paid ₹1,000/- per month till the completion of their undergraduate degree, diploma, ITI, and any other recognized course.
The assistance amount under this scheme will be disbursed directly into the student’s Bank Account.
The students shall be eligible for this in addition to other scholarships.

Sources and references

Official Website

Eligibility Criteria

To qualify for the Low Tension Power Tariff (LTPT) Subsidy, your enterprise must meet specific conditions:

For New Enterprises:

All new Micro manufacturing enterprises set up anywhere in Tamil Nadu.
All new Small and Medium manufacturing enterprises established in any of the 251 industrially backward blocks.
All new Agro-based industries located in any of the 385 blocks across the state.

For Expansion/Diversification Enterprises:

Existing manufacturing units in the above categories can avail the subsidy if they undertake substantial expansion or diversification.
The expansion or diversification must involve an increase of at least 25% in the value of plant and machinery compared to existing assets.
There must also be a corresponding increase of at least 25% in turnover for the same product or for new product lines.

Important Note:

Only enterprises that use Low Tension Power supply under Tariff III B are eligible.

For Enterprises with Multiple Service Connections:

If an enterprise has more than one LT connection at the same location, the subsidy is only for the first service connection.
However, if the enterprise has separate branch units in different locations, each branch unit can receive the LTPT subsidy for its first LT connection, provided all other norms are met.

How To Apply

Applying for the LTPT Subsidy involves a few key steps. Industries must submit their application within a specific timeframe.

Application Submission Deadline: Industries need to file their LTPT subsidy application within three months from the date commercial production starts or from the date of obtaining the power connection, whichever date is later.
Application Mode: Applications can be submitted online. Alternatively, you can submit them through the General Manager (GM) of the District Industries Centre (DIC) or the Regional Joint Director (RJD) in Chennai.

Note: Ensure you have obtained your Entrepreneur Memorandum (Part 2) number from the District Industries Centres before applying.

Documents Required

To apply for the LTPT Subsidy, you will need to prepare the following documents:

For Eligibility Certificate Application:

Attested copy of your EB Meter Card.
Copy of your Udyog Aadhaar Memorandum.

For Subsidy Application (after getting Eligibility Certificate):

Attested copy of your EB Meter Card.
Attested copies of your electricity Bills and Receipts.
An Advance Stamped Receipt.
Copy of your Udyog Aadhaar Memorandum.
Copy of the Eligibility Certificate (EC) issued to your enterprise.

Important Notes:

You must present all original documents for verification during inspection. They will be returned after verification.
If original documents are held by your financing bank, you can submit copies duly attested by the Branch Manager of that bank.
All submitted files must be in PDF format (.pdf).
The maximum file size for uploads should not exceed 200 kb.

FAQ’s

How long can an eligible business receive the LTPT subsidy?

Eligible businesses can receive a 20% subsidy on their low tension power tariff for a total of 36 months. This period begins from when production starts or when the power connection is obtained, whichever is later.

What is the main goal behind the LTPT Subsidy scheme?

The primary aim of the LTPT Subsidy scheme is to help MSME businesses in Tamil Nadu reduce their electricity expenses, offering a 20% discount for 36 months from the commencement of production or power connection.

Can existing businesses get this subsidy when they expand?

Yes, existing manufacturing units can get the LTPT subsidy if they significantly expand or diversify. This requires increasing the value of plant and machinery by at least 25% and boosting turnover by 25% for existing or new products.

Are there any restrictions on the types of industries that can apply for the LTPT subsidy?

Yes, certain industries like sugar production, distilleries, tobacco products, cement, and some agro-based industries in specific areas are not eligible. The scheme specifically supports enterprises using Low Tension Power supply (Tariff III B).

What happens if an enterprise has multiple electricity connections at the same site?

If an enterprise has multiple LT connections at the same premises, the LTPT subsidy will only be applied to the first service connection. However, if there are separate branch units in different locations, each unit's first LT connection can be eligible.

When should businesses apply for the LTPT subsidy?

Businesses must submit their LTPT subsidy application within three months from the date they begin commercial production or get their power connection, whichever is later.

Is it necessary to submit original documents for the LTPT Subsidy application?

Original documents are needed for verification during an inspection. If your originals are held by the bank that financed your project, you can submit copies that have been attested by the Branch Manager.

Do new agro-based industries qualify for this electricity subsidy?

Yes, new agro-based industries set up in any of the 385 designated blocks in Tamil Nadu are eligible to apply for the LTPT subsidy.

What are the required file formats and size limits for document uploads?

All documents you upload must be in PDF format (.pdf). Make sure each file is not larger than 200 kb.

When is the first claim for subsidy submitted after getting the Eligibility Certificate?

The initial subsidy claim must be submitted within 30 days of receiving your Eligibility Certificate. Following that, claims are submitted every six months, covering the electricity bills issued by TNEB.

Will I be notified about my application's progress?

You may receive updates regarding your application status through email or SMS via the online portal.