Tamil Nadu CM MK Stalin provides electricity subsidy of Rs 2 per unit to restaurants switching to LPG due to supply crisis

New Delhi: Tamil Nadu Chief Minister MK Stalin on Saturday announced a subsidy of Rs 2 per unit on additional electricity consumption by restaurants, tea shops, cloud kitchens and other food production units switching from LPG to electric stoves to address fuel shortages related to tensions in the Gulf region.The decision was taken at a Secretariat review meeting chaired by Stalin to assess the impact of LPG shortage on the industrial and food sectors and ensure that their operations continue smoothly.J Radhakrishnan, chairman and managing director of the Tamil Nadu Power Generation and Distribution Corporation, said the chaos began when the United States and Israel launched a joint military attack on Iran on February 28, following which Tehran blocked ships passing through the Strait of Hormuz.He said the move affected the Gulf region’s supply of crude oil and LPG to India.Under the new measures, restaurants that switch to electric cooking will be subsidized for the extra electricity they consume during the period when the central government imposes restrictions on the use of commercial LPG.To support micro, small and medium enterprises, the state government will also provide subsidized loans for the purchase of electrical equipment such as stoves and heaters. Under the Job Creation Scheme for Unemployed Youth, eligible entrepreneurs can get 25% subsidy up to a maximum of Rs 3.75 lakh. The Tamil Nadu Women Entrepreneurship Development Scheme will provide 25% subsidy on loans up to Rs 10 lakh, subject to a ceiling of Rs 2 lakh, to support women-led enterprises.For SC and ST entrepreneurs, the Annai Ambedkar Business Champions Scheme will provide higher capital subsidy of 35% up to Rs 1 Crore to promote the adoption of efficient motors.The government has also allowed industries to temporarily switch to alternative fuels such as kerosene, RDF, HSD and biomass instead of LPG and CNG. These units do not require fresh consent approval from the Tamil Nadu Pollution Control Board and only require advance notification to the authorities. This relaxation will remain in effect during the period of LPG and CNG restrictions.In Tamil Nadu, around 60,698 factories are operating with permission from the Pollution Control Board, using fuels such as LPG, CNG, diesel, furnace oil and firewood.The state also said the Avin cooperative will purchase excess milk produced by farmers without restrictions. Tamil Nadu has 9,300 primary milk producer cooperatives with a capacity to process about 5.5 million liters of milk per day.Farmers will also be allowed to sell vegetables and fruits freely at 194 Uzhavar Sandhais (farmers’ markets) across the state to ensure that their livelihoods are not affected if restaurants reduce operations due to LPG shortage.To monitor the distribution of LPG to commercial establishments, the government will set up a state-level monitoring committee headed by the chief secretary and district-level committees headed by district collectors and officials of petroleum distribution companies.The state has also supplied an additional 3,228 kiloliters of kerosene to ration card holders through the public distribution system this month.The state oil company coordinator said fuel stocks remained adequate and urged people not to panic.He said, “There is enough petrol and diesel in stock for one month and we will also make further arrangements. There is no need for the public to panic. Sales of petrol and diesel have doubled due to rumors. Cylinders in urban areas are usually supplied every 25 days and the stock can last up to one month. LPG supply will be given to hospitals, schools and college dormitories on priority.”The Chief Minister had earlier chaired a review meeting on LPG shortage on March 10 and directed the departments to take steps to address the constraints.Subsequently, the state food and civil supplies minister met industry representatives and hotel and restaurant associations on March 11 to discuss their concerns, while the chief secretary held review meetings with relevant department officials on March 9, 12 and 13.