LPG crisis: Rs 2/unit power subsidy for eateries in Tamil Nadu

Loan support for MSMEs to purchase electric stoves, heaters among decisions taken at high-level meet chaired by CM Stalin.
Chief Minister M K Stalin chairing the high-level meeting on Saturday.
Chief Minister M K Stalin chairing the high-level meeting on Saturday.(Photo | Express)
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CHENNAI: After chairing a high-level meeting here to discuss the ongoing shortage of commercial LPG cylinders, Chief Minister M K Stalin on Saturday announced a few relief measures, including a subsidy of Rs 2 per unit of additional power consumed by hotels that switch to electric cooking, to tackle the situation until the crisis is over.

Other measures include relaxation of norms for certain types of industrial establishments to switch to alternative fuels, loans and subsidies for MSMEs to buy electric stoves and heaters, increased procurement of milk by Aavin to mitigate any reduction in demand from commercial establishments, and constitution of state-level and district-level committees to monitor the distribution of commercial LPG cylinders in a fair manner to establishments like hospitals and educational institutions that need them on a priority basis.

Addressing the media after the meeting, TNEB chairman and managing director J Radhakrishan said the CM has instructed that the subsidy of Rs 2 per unit for additional power usage be provided to all restaurants, cloud kitchens, tea shops and other types of eateries even if they did not hold a licence at present as an establishment involved in food business.

“We are not going to check if the additional usage is indeed because of electric cooking or due to use of air conditioners or anything else,” he said, adding that the subsidy will be available for every additional unit than their present power usage so that it is easier for them to avail of the benefit.

The government said MSMEs that depend on LPG will receive support to buy electric stoves and heaters. Loans with subsidies will be provided under different state schemes. Under the Unemployed Youth Employment Generation Programme, businesses can get loans with a 25% subsidy up to Rs 3.75 lakh. Under the Tamil Nadu Women Entrepreneurship Development Scheme, loans up to Rs 10 lakh with a 25% subsidy, up to Rs 2 lakh, will be given. Under the Annal Ambedkar Business Champions Scheme, loans with a subsidy up to 35%, with a maximum subsidy of Rs 1 crore, will be provided.

Highlighting that 60,698 factories in TN currently use fuels such as LPG, CNG, diesel and furnace oil with approval from the Tamil Nadu Pollution Control Board (TNPCB), the government said these establishments can now use alternative fuels such as kerosene, Refuse-Derived Fuel, High Speed Diesel and biomass. Radhakrishnan said they only have to inform TNPCB about the use of alternative fuels and need not seek fresh approval. This exemption will remain in force until restrictions on usage of LPG and CNG announced by the union government are in place.

To support dairy farmers who may face risks of drop in demand from hotels and others, the state has asked Aavin to procure surplus milk without restrictions through its network of 9,300 primary milk producers’ cooperative societies. Similarly, to mitigate any drop in demand for agricultural produce, the government said that farmers can sell vegetables and fruits freely in any of the 194 Uzhavar Santhais (farmers’ market) in TN without any restrictions.

The CM also ordered for the constitution of a state-level committee headed by the chief secretary and district-level committees headed by respective collectors to oversee allocation of commercial LPG. He ordered the release of an additional 3,228 kilolitres of kerosene this month through the PDS for ration card holders.

Officials said the state has been closely monitoring the situation.

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