Chennai, March 14 (NationPress) In an effort to combat a growing fuel shortage linked to the ongoing conflict in West Asia, the Tamil Nadu government has declared a Rs 2-per-unit subsidy on electricity for hotels, tea stalls, and cloud kitchens transitioning to electric stoves in place of traditional LPG cylinders.

This decision emerged from a high-level meeting led by Chief Minister M.K. Stalin, where officials assessed the repercussions of LPG supply disruptions on commercial entities and the hospitality sector statewide.

As per an official announcement, this electricity subsidy will remain active until the restrictions on LPG cylinder usage and availability are resolved.

The initiative aims to assist eateries and small businesses in temporarily adopting electric cooking methods while keeping their operational expenses within limits.

In tandem with the power subsidy, the state government has allocated 3,228 kilolitres of kerosene for distribution among ration card holders, helping to alleviate household burdens during the fuel crisis.

Additionally, the government stated that micro, small, and medium enterprises (MSMEs) can apply for loans to acquire electric stoves and heaters.

Under the Unemployed Youth Employment Generation Programme (UYEGP), entrepreneurs can access loans with a 25% capital subsidy or a maximum grant of Rs 3.75 lakh.

Loans will also be available through the Tamil Nadu Women Entrepreneur Empowerment Scheme (TWEES), offering a 25% subsidy or up to Rs 2 lakh.

Moreover, under the Annal Ambedkar Business Champions Scheme (AABCS), the government will extend a 35% subsidy with a maximum grant of Rs 1 crore.

Officials indicated that there are currently 60,698 factories in the state using various fuels, including LPG, CNG, diesel, furnace oil, and firewood, with permissions from the Pollution Control Board.

These industries are now permitted to temporarily transition to alternative fuels such as kerosene, RDF (refuse-derived fuel), high-speed diesel (HSD), and biomass without needing new Consent to Establish (CTE) or Consent to Operate (CTO) approvals from the Pollution Control Board until the crisis is resolved.

The government has also implemented measures to protect farmers who might be impacted if restaurants reduce operations due to fuel shortages.

Farmers are now allowed to sell their produce freely at 194 Uzhavar Sandhais (farmers’ markets) throughout the state.

To monitor LPG distribution effectively, the government has formed a state-level committee chaired by the Chief Secretary to oversee allocations to commercial establishments.

At the district level, committees led by district collectors, including representatives from oil companies, will supervise the supply.

The Tamil Nadu Hotels Association has welcomed this initiative, describing it as a timely intervention.

Its president, M. Venkadasubbu, expressed gratitude to the Chief Minister for the electricity tariff relief and urged the government to consider additional support, including property tax concessions and industrial electricity tariff benefits for the hotel sector.

He also advocated for policies that would enable hotels with low-tension electricity connections to utilize solar and wind energy through captive or third-party arrangements, along with full net-metering credits for rooftop solar power generation.