T.N. announces ₹2-per-unit electricity subsidy for hotels, cloud kitchens using electric stoves

The Tamil Nadu government on Saturday, March 14, 2026, announced a ₹2 per unit subsidy on electricity for hotels, tea stalls and cloud kitchens using electric stoves instead of LPG cylinders. The decision was taken at a meeting chaired by Prime Minister MK Stalin to discuss the crisis caused by lack of adequate LPG following the war in West Asia.

The state government’s press release stated that the subsidy will remain in force until regulations on the use of LPG cylinders are lifted. The government also allocated 3,228 kiloliters of kerosene to be distributed to ration card holders.

Loans for SMEs

The government also announced that it will provide loans to micro, small and medium enterprises to purchase electric stoves and heaters to overcome the LPG shortage. Under the Employment Generation Program for Unemployed Youth (UYEGP), loans with 25% grant or maximum grant of ₹3.75 lakh will be released.

Similarly, the loans will be given under the Tamil Nadu Women Entrepreneur Empowerment Scheme (TWEES) with a 25% grant or a maximum grant of ₹2 lakh. Similarly, under the Annal Ambedkar Business Champions Scheme (AABCS), the grant is 35% or ₹1 crore.

Exemptions for factories

A total of 60,698 factories in Tamil Nadu use LPG, CNG, diesel, furnace oil and firewood with the permission of the Pollution Control Board. These factories can choose kerosene, RDF, HSD and biomass as fuel and there is no need to obtain CTE/CTO certification from PCB. The exemption will be valid until the crisis is resolved.

Since farmers are likely to be affected by the closure of hotels, the government announced that they can sell their products for 194 TL. Uzhavar Sandhais without any restrictions.

The government has also constituted a committee headed by the Chief Secretary to monitor the allocation of LPG to commercial entities at the State level. In the districts, officials of oil companies will be among the members of a committee chaired by the district collector.

Hotel association thanked CM

Tamil Nadu Hoteliers Association thanked the Prime Minister for the reduction in electricity rates.

M. Venkadasubbu, president of the association, said the reduction was timely, reiterating their demands, including extending benefits such as property tax reduction and industrial power tariff concessions to the hotel sector, allowing use of solar and wind energy through third-party agreements or limited generation for hotels with LT electricity connection, and granting full net metering credit for excess electricity generated by hotels with rooftop solar power systems.