Tamil Nadu Low Tension Power Tariff (LTPT) Subsidy for MSMEs: Benefits, Eligibility

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The Tamil Nadu Department of Micro, Small, and Medium-Sized Enterprises launched the Low Tension Power Tariff (LTPT) Subsidy to help MSME businesses lower their power bills. After getting an Entrepreneur Memorandum (Part 2) from the District Industries Centers, the subsidy offers a 20% reduction in energy bills for 36 months from the date of production beginning or from the date of securing a power connection, whichever comes first.

This subsidy may be applied to new and growing businesses (new and expanding enterprises) that fit certain criteria, enabling them to establish and sustain operations at a lower cost.

Benefits of the Scheme

  1. Subsidy on Power Tariffs:
    • 20% subsidy on the electricity tariff for 36 months from the commencement of production or power connection.
  2. Targeted Enterprises:
    • Provides benefits to Micro, Small, and Medium enterprises, particularly in industrially backward blocks and agro-based industries.
  3. Affordable Power Supply:
    • Reduces electricity expenses, making it easier for businesses to grow and thrive.
  4. Repayment and Moratorium:
    • The subsidy is available from the day of power connection or commencement of production, giving the business time to capitalize on the subsidy benefits.

Eligibility Criteria

For New Enterprises:

  1. Micro Manufacturing Enterprises:
    • All new micro enterprises set up anywhere in the state.
  2. Small and Medium Enterprises:
    • Small and medium manufacturing enterprises set up in 251 industrially backward blocks.
  3. Agro-based Industries:
    • Agro-based industries in 385 blocks of the state.

For Expansion/Diversification Enterprises:

  1. Existing Enterprises:
    • Existing manufacturing enterprises that have undertaken substantial expansion/diversification.
    • Expansion/Diversification must involve an enhancement of at least 25% in the value of plant and machinery and also enhance turnover by 25% for the same or new products.
  2. Eligibility for LTPT:
    • Only enterprises using Low Tension Power supply (Tariff III B) are eligible.

Exclusions

  • Manufacturing Enterprises not eligible:
    • Sugar, distilleries, fertilizer, mining, cement, aluminium smelting, poultry, and other listed industries like beedis, firecrackers, tobacco products, and certain agro-based industries are excluded.

Application Process (Online & Offline)

Online Application:

  1. Visit the Portal:
    • Go to the official MSME Department website and register.
  2. Fill in the Registration Form:
    • Enter mandatory details like Aadhaar, email, mobile number, etc.
  3. Login and Apply:
    • After registration, log in and fill in the application form for the LTPT subsidy.
  4. Upload Documents:
    • Upload the necessary documents and submit the application.
  5. Track Application Status:
    • You can track the application status via the portal, with updates provided through SMS or email.

Offline Process:

  • Submit to District Offices:
    • Applicants may submit applications directly to District Offices of the State Channelizing Agencies (SCAs), RRBs, or Nationalized Banks.

Documents Required

  1. Aadhaar Card (optional but recommended)
  2. Land Documents (Khasra/Khatauni)
  3. Udyog Aadhaar Memorandum
  4. Electricity Bill and Meter Card
  5. Bank Account Details
  6. Advance Stamped Receipt
  7. Occupancy Certificate (if applicable)
  8. Income Proof or Business Details

Frequently Asked Questions (FAQs)

  1. Are applications filed after three months from the commencement date eligible for LTPT subsidy?
    • No, applications should be submitted within three months from the date of commencement of production or power connection.
  2. Which types of manufacturing activities are not eligible for the LTPT subsidy?
    • Several industries such as Sugar, Distilleries, Mining, Beedi manufacturing, and others as mentioned above are excluded.
  3. When should industries file their LTPT subsidy application?
    • The application must be filed within three months of starting production or getting the power connection.
  4. Are agro-based industries eligible for the LTPT subsidy?
    • Yes, agro-based industries in the specified blocks are eligible for the subsidy.
  5. What is the objective of the LTPT subsidy scheme?
    • The objective is to assist MSMEs in reducing electricity costs and encourage growth by making power more affordable.

Sources and References

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