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Tamil Nadu Announces Electricity Subsidy to Combat LPG Crisis Amid Gulf Tensions

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Chennai: Chief Minister M.K. Stalin has unveiled a strategic relief package for Tamil Nadu’s food and industrial sectors, headlined by a ₹2 per unit electricity subsidy for eateries transitioning from LPG to electric stoves. The announcement followed a high-level review meeting at the Secretariat on Saturday, aimed at mitigating the operational disruptions caused by a severe LPG shortage. The current fuel crisis stems from a volatile security situation in the Gulf region, which has seen critical maritime trade routes, including the Strait of Hormuz, obstructed since late February.

The new subsidy is specifically designed for restaurants, tea shops, cloud kitchens, and food production units. Under this directive, the state will cover ₹2 for every additional unit of electricity consumed by establishments that move away from gas-based cooking. This financial support will remain active as long as the Central Government’s restrictions on commercial LPG usage continue. To further assist the transition, the state is offering substantial loans and capital subsidies—ranging from 25% to 35%—for MSMEs and entrepreneurs to purchase high-efficiency electric machinery and heaters.

In a significant regulatory ease, the Tamil Nadu Pollution Control Board has temporarily relaxed fuel restrictions for over 60,000 factories. Industries previously limited to LPG or CNG are now permitted to use alternative fuels such as biomass, RDF, and kerosene without seeking fresh environmental clearances. Additionally, the government is moving to protect the agricultural sector; Aavin has been directed to procure all excess milk from cooperative societies, while farmers are encouraged to sell produce without restriction at 194 Uzhavar Sandhais to prevent losses if restaurants face reduced hours.

To ensure equitable distribution of remaining fuel stocks, a state-level monitoring committee led by the Chief Secretary has been established. Despite the disruption in the Strait of Hormuz, officials have reassured the public that petrol and diesel reserves remain sufficient for at least one month. An additional 3,228 kilolitres of kerosene have also been diverted to the Public Distribution System to support ration card holders. While prioritized LPG delivery is being maintained for hospitals and educational hostels, the government urged citizens to avoid panic-buying, noting that distribution networks are being managed through district-level oversight committees.

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