Low Tension Power Tariff (LTPT) Subsidy

Low Tension Power Tariff (LTPT) Subsidy helps Micro, Small and Medium Enterprises (MSMEs) in Tamil Nadu cut their electricity costs with a 20% subsidy on power charges for 36 months. The benefit starts from the date of commercial production or the date of power connection, whichever comes later.

Tamil Nadu MSME Department continues to offer this support to new and expanding manufacturing units across the state. Enterprises that hold an Entrepreneur Memorandum (Part 2) number from the local District Industries Centre can apply through the official MSME online portal.

Low Tension Power Tariff (LTPT) Subsidy - Details

The scheme covers micro manufacturing enterprises set up anywhere in the state, small and medium manufacturing units located in the 251 designated industrially backward blocks, and agro-based industries in 385 blocks. Only units using low tension power supply under Tariff III B qualify for this benefit.

For expansion or diversification, an existing enterprise must increase its plant and machinery value by at least 25% of the current value. It also needs to show a 25% increase in turnover for existing or new product lines. The application must be filed within three months of starting production or getting the power connection, whichever is later.

Benefits

Eligible enterprises receive a 20% subsidy on low tension electricity tariff for a period of 36 months. The clock starts from the date of commercial production or the date of power connection, whichever is later. The subsidy covers actual energy charges including surcharge and tax, but excludes penalty. Enterprises must hold an Entrepreneur Memorandum (Part 2) number to claim this support.

Eligibility

Check whether the enterprise fits into these categories before applying:

For New Enterprises

• Micro manufacturing enterprises established anywhere in the state.
• Small and medium manufacturing enterprises located in the 251 designated industrially backward blocks.
• Agro-based industries located across 385 blocks in the state.

For Expansion or Diversification

Existing enterprises should increase plant and machinery value by at least 25% of the current value and show a 25% increase in turnover for existing or new product lines.

Important Note: Only units using low tension power supply (Tariff III B) qualify. If an enterprise has multiple service connections in one location, only the first connection is eligible. Branch units in different locations can each claim the subsidy for their first service connection.

Exclusions

Several industries are not eligible under this scheme, including sugar, distilleries, brewery, malt extraction, fertiliser, mining and quarrying, iron and steel smelting, beedies or tobacco products, saw mills, cement, aluminium smelting, calcium carbide, slaughter houses, re-packing units, azoic dyes, fire crackers, ozone-depleting substances, poultry, cyanide, caustic soda, potassium chloride, nylon, rayon, and polyester fibre. Agro-based industries located within corporations and municipalities are also excluded. Micro, small and medium service enterprises are not covered.

Application Process

Follow these steps to apply online through the official MSME portal:

STEP 1 - Visit the official MSME portal and click on Login/Registration. Provide details including Aadhaar number, email and mobile number, and create a secure password.

STEP 2 - Use the registered credentials on the login page to access the dashboard.

STEP 3 - Go to the Schemes section and find the LTPT subsidy. Fill in the required application details, review everything carefully and click proceed. Save the reference number.

STEP 4 - Open the Upload Documents section using the Application ID. Upload the required documents and verify them before submitting.

STEP 5 - Click the Submit Application button once all details are entered. A confirmation update arrives on the mobile number. Track the application status online at any time.

Documents

Keep the following documents ready for the application:

For Eligibility Certificate

1. Attested copy of EB Meter Card.
2. Copy of Udyog Aadhaar Memorandum.

For Subsidy Application (II C)

1. Attested copy of EB Meter Card.
2. Attested copies of Electricity Bills and Payment Receipts.
3. Advance Stamped Receipt.
4. Copy of Udyog Aadhaar Memorandum.
5. Copy of the Eligibility Certificate.

Note: All files must be in PDF format and under 200 kb. Keep the original documents handy for verification during inspection.

References

Official Guidelines | FAQs (Tamil) | MSME Policy Note 2025-26

FAQ's

Are there specific deadlines for filing the application?

Yes, the application should be filed within three months from the date of starting commercial production or obtaining the power connection. Late applications are not accepted.

What if the original documents are with the bank?

Copies of the documents can be submitted as long as they are duly attested by the Branch Manager of the financing bank.

How often do claims need to be submitted after getting the Eligibility Certificate?

The first claim should be submitted within 30 days of receiving the certificate. After that, claims are submitted once every 6 months for the bills raised by electricity authorities.

What is the benefit duration?

The 20% subsidy benefit is available for a duration of 36 months.

Where can the user manual be found?

The online application user manual is available here.