LPG Crisis: Tamil Nadu CM Stalin Announces Power Subsidy, Loans, And Fuel Switch To Aid Businesses

LPG Crisis: Tamil Nadu CM Stalin Announces Power Subsidy, Loans, And Fuel Switch To Aid Businesses

Tamil Nadu CM M.K. Stalin announced relief measures amid a commercial LPG shortage triggered by West Asia tensions. Restaurants shifting to electric cooking will get a ₹2-per-unit power subsidy, while MSMEs can access subsidised loans for electric equipment. Industries may temporarily use alternate fuels until LPG supply stabilises, the government said.

N ChithraUpdated: Saturday, March 14, 2026, 06:18 PM IST
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Tamil Nadu Chief Minister M. K. Stalin on Saturday announced a series of measures to mitigate the impact of the ongoing shortage of commercial Liquefied Petroleum Gas (LPG) in the State. | File Pic

Chennai: Tamil Nadu Chief Minister M. K. Stalin on Saturday announced a series of measures to mitigate the impact of the ongoing shortage of commercial Liquefied Petroleum Gas (LPG) in the State and ensure that economic activities, particularly in the food and small-scale industrial sectors, continue without disruption.

Chairing a high-level review meeting at the Secretariat, the Chief Minister directed officials to implement relief measures for restaurants, small businesses and industries affected by the disruption in LPG supplies caused by the West Asia conflict.

Restaurants Switching to Electric Get ₹2 Per Unit Subsidy

According to an official release, restaurants, tea shops, cloud kitchens and other food production units that shift from LPG to electric cooking appliances will be provided a subsidy of ₹2 per unit for the additional electricity consumed. The subsidy will remain in force as long as restrictions on the supply of commercial LPG cylinders continue.

To support micro, small and medium enterprises in transitioning to alternative energy sources, the government will facilitate loans with subsidies for purchasing electric stoves, heaters and other equipment. Under the Unemployed Youth Employment Generation Programme, loans will be provided with a subsidy of 25%, up to ₹3.75 lakh. Similarly, under the Tamil Nadu Women Entrepreneurship Development Scheme, loans up to ₹10 lakh will be offered with a subsidy of 25% or up to ₹2 lakh. Under the Annal Ambedkar Business Champions Scheme, loans with subsidies of up to 35%, subject to a maximum of ₹1 crore, will be made available.

Industries Permitted to Temporarily Switch to Kerosene, Diesel, Biomass

Industries that currently rely on LPG or CNG have been permitted to temporarily switch to alternative fuels such as kerosene, refuse-derived fuel (RDF), high-speed diesel and biomass without obtaining fresh consent from the Tamil Nadu Pollution Control Board. However, they must inform the authorities before making the switch. This relaxation will remain in place until LPG supply stabilises.

The Chief Minister also ordered the procurement of surplus milk through Aavin cooperative societies without restriction and permitted farmers to sell vegetables and fruits freely in all 194 Uzhavar Sandhais (farmer markets) across the State to prevent losses that could arise if restaurants reduce operations.

Monitoring Committees Formed

Additionally, monitoring committees will be set up at the State and district levels to oversee the allocation and distribution of commercial LPG cylinders. The government has also ordered the supply of an additional 3,228 kilolitres of kerosene under the Public Distribution System this month to ensure adequate availability for ration card holders.

The shortage has arisen following disruptions in crude oil and LPG supplies from the Gulf region due to escalating tensions in West Asia, including restrictions on shipping through the Strait of Hormuz. The State government has been closely monitoring the situation through a series of review meetings with officials and stakeholders over the past week.