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₹2 power subsidy, loan support: Tamil Nadu's big push to tackle LPG shortage

₹2 power subsidy, loan support: Tamil Nadu's big push to tackle LPG shortage

Chennai: The Tamil Nadu government on Saturday announced a series o

f measures to support industries and businesses affected by the ongoing LPG shortage, following a review meeting chaired by Chief Minister M. K. Stalin at the Secretariat.

The meeting was convened to address operational challenges faced by various sectors, including the food industry, amid fuel supply disruptions linked to the geopolitical situation in the Gulf region. Speaking to the media after the meeting, J. Radhakrishnan, Chairman and Managing Director of Tamil Nadu Power Generation and Distribution Corporation, said disruptions in crude oil and LPG supplies from the Gulf had impacted availability.

Subsidy of ₹2 per unit

According to the state government, several decisions were taken to ensure continuity of operations. 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 of additional electricity consumed. The support will remain in place for the duration of central restrictions on commercial LPG use.

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To assist Micro, Small and Medium Enterprises (MSMEs), the government has directed the provision of subsidised loans for purchasing electric equipment such as stoves and heaters. Under the Unemployed Youth Employment Generation Programme (UYEGP), eligible entrepreneurs can avail a 25 per cent subsidy of up to ₹3.75 lakh. The Tamil Nadu Women Entrepreneurship Development Scheme offers a 25 per cent subsidy capped at ₹2 lakh on loans up to ₹10 lakh. Additionally, the Annai Ambedkar Business Champions Scheme provides a 35 per cent capital subsidy of up to ₹1 crore to promote SC/ST entrepreneurs and encourage the adoption of energy-efficient machinery.

Industries currently operating with approvals from the Tamil Nadu Pollution Control Board will be permitted to temporarily switch to alternative fuels, including kerosene, RDF, HSD and biomass, without obtaining fresh consent. Only prior intimation will be required during the period of LPG and CNG restrictions.

The government also announced that excess milk produced by farmers will be procured without restriction through Aavin cooperatives, and vegetables and fruits can continue to be sold without limits at 194 Uzhavar Sandhai markets across the state.

To ensure proper distribution of LPG cylinders to commercial establishments, a state-level monitoring committee will be formed under the Chief Secretary, alongside district-level committees led by District Collectors and oil company officials. An additional 3,228 kilolitres of kerosene have been supplied this month under the Public Distribution System (PDS).

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Officials also reassured the public that fuel stocks are adequate. They stated that petrol and diesel supplies are sufficient for around one month and that LPG distribution will prioritise essential institutions such as hospitals and educational hostels. Authorities urged residents not to panic, noting that rumours had led to a surge in fuel sales.

The state has held a series of review meetings over the past week to address the issue, with directions issued to relevant departments to implement contingency measures and ensure stable fuel supply across sectors.

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