CHENNAI: The Tamil Nadu government on Wednesday announced a reduction in the peak hour electricity charges for Micro, Small and Medium Enterprises (MSMEs) operating in the state to 15 percent from 25 percent.
The revised electricity tariff which had come into force from September 10 led the MSMEs to pay higher tariff during peak hour.
Various industry representatives and associations had requested the state government to reduce the peak hour charges.
"Considering the important role of MSMEs in spurring economic growth and providing employment, the government accepted their request and decided to reduce the power charges during peak hour by 15 per cent from the earlier 25 percent to low tension electricity connection (Low Tension III-B) consumers," the government said in a release here.
The move will greatly benefit the MSMEs in Tamil Nadu, the government said.
Recently, several associations representing the MSME industry stressed the need to reduce the tariff charged for HT and LT consumers.
In July, the government announced a hike in the power tariff for consumers of state power utility Tamilnadu Generation and Distribution Corporation (TANGEDCO).