The Tamil Nadu government on Saturday, March 14, announced a subsidy of Rs 2 per additional unit of electricity for eateries switching from LPG to electric cooking amid shortages of cooking gas triggered by global fuel supply disruptions.
The announcements were made after a high-level committee meeting chaired by Chief Minister MK Stalin in Chennai on Saturday, March 14.
Among the measures announced is financial support for Micro, Small and Medium Enterprises (MSMEs) to purchase electric cooking equipment. The government will also establish state-level and district-level committees to monitor the fair allocation of commercial cooking gas to essential establishments such as hospitals and educational institutions.
Further, Aavin, the state-run dairy brand, will increase milk procurement to offset the expected drop in demand from commercial eateries and related establishments affected by the fuel shortage.
The electricity subsidy will apply to all eateries, including restaurants, cloud kitchens, tea shops and similar establishments, irrespective of whether they hold commercial hotel licences.
The government also announced several loan and subsidy schemes during this period. Under the Unemployed Youth Employment Generation Programme, businesses can avail loans with a 25% subsidy of up to Rs 3.75 lakh.
Loans with subsidies of up to 35%, with a maximum subsidy of Rs 1 crore, will be available under the Annal Ambedkar Business Champions Scheme.
Additionally, loans of up to Rs 10 lakh with a 25% subsidy, capped at Rs 2 lakh, will be provided under the Tamil Nadu Women Entrepreneurship Development Scheme.
The measures come amid disruptions in global energy supply following the outbreak of hostilities involving the United States, Israel and Iran. Iran subsequently blocked the Strait of Hormuz, a narrow shipping channel that is a key artery for global oil trade, triggering fuel shortages in several consumer countries, including India.