The Low Tension Power Tariff (LTPT) Subsidy is a flagship initiative of the MSME Department, Government of Tamil Nadu, aimed at helping new and expanding manufacturing MSMEs reduce their electricity costs. It provides a 20% subsidy on electricity charges for a period of 36 months from either the date of production or power connection, whichever is later, upon registration with the District Industries Centre (DIC).
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Scheme Key Highlights (Short Summary)
• Implementing Body: MSME Department, Tamil Nadu
• Target Group: New and expanding manufacturing MSMEs
• Subsidy Rate: 20%
• Duration: 36 months from production/power connection (whichever is later)
• Power Supply: Must be using Low Tension (Tariff III B)
• Application Timeline: Within 3 months from the applicable start date
• Application Mode: Online
Benefits
• 20% subsidy on LT electricity bills for 3 years
• Applies from the later of production start date or power connection date
• Multiple units in different locations can apply for their first LT connection at each site
• Reduces operational costs, improving viability of small enterprises
Eligibility
For New Enterprises:
• Micro manufacturing enterprises anywhere in Tamil Nadu
• Small & Medium manufacturing units in 251 industrially backward blocks
• Agro-based industries in all 385 blocks
For Expansion/Diversification:
• Minimum 25% enhancement in both plant & machinery value and turnover
• Must be in same or new product line
• Only LT (Low Tension) power users (Tariff III B) are eligible
Multiple Service Connections:
• One subsidy per LT connection at a location
• Additional branches in different locations may avail separately (one LT connection each)
Exclusions
• Service Enterprises (all types)
• Units engaged in: Sugar, Distilleries, Fertilizers, Iron & Steel Smelting, Tobacco, Cement, Firecrackers, Saw Mills, Mining, Repacks without processing, Rayon/Nylon/Polyester fibers, Poultry, Slaughterhouses, Caustic Soda, and more
• Agro-based industries within corporation/municipality limits
Application Process
Online
• Step 1: Visit MSME Tamil Nadu Portal → Click “Login/Registration”
• Step 2: Register using personal and business details → Create Password
• Step 3: Login → Go to “Schemes” → Choose “LTPT Subsidy” → Click “Apply Online”
• Step 4: Fill the application form and click “Proceed” → Note reference number
• Step 5: Upload all required documents in PDF format (under 200 KB)
• Step 6: Confirm declarations and “Submit Application”
• Step 7 (Optional): Track application status on the portal
Documents Required
For Eligibility Certificate Application:
• Attested Copy of EB Meter Card
• Copy of Udyog Aadhaar Memorandum
For Subsidy Application (II C):
• Attested Copy of EB Meter Card
• EB Bills and Payment Receipts (attested)
• Advance Stamped Receipt
• Udyog Aadhaar Memorandum
• Eligibility Certificate (EC)
Note:
• Original documents must be presented during inspection. If with the bank, attested copies by the bank manager are accepted.
• PDF format only, file size < 200 KB
Frequently Asked Questions (FAQs)
Q: When should LTPT subsidy applications be submitted?
A: Within 3 months from the date of power connection or commercial production, whichever is later.
Q: Is the subsidy applicable for 36 months?
A: Yes, from the applicable date.
Q: Are agro-based industries eligible?
A: Yes, but only outside corporation/municipality limits.
Q: What activities are excluded from eligibility?
A: Sugar, distilleries, tobacco, cement, repacking, poultry, rayon, etc.
Q: Can enterprises with multiple LT connections apply?
A: Yes, but only one LT connection per location qualifies.
Q: What are the requirements for expanding units?
A: 25% increase in plant & machinery and turnover.
Q: Are SMS/email updates provided?
A: Yes, through the MSME Tamil Nadu portal.
Q: Are original documents needed?
A: Yes, during inspection. If held by a bank, attested copies from bank manager are accepted.
Sources and References
• Guidelines
• Contact Us
• Documents Required
• FAQs (Tamil)