Low Tension Power Tariff (LTPT) Subsidy
By Micro Small and Medium Enterprises Department, Government of Tamil Nadu
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Quick Answer
A scheme by the Government of Tamil Nadu providing a 20% subsidy on low tension power tariff for MSME enterprises for 36 months.
- Funding amount
- Varies
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Tamil Nadu
- Registrations needed
- Udyam registration
About this subsidy
The Low Tension Power Tariff (LTPT) Subsidy scheme, introduced by the Micro Small and Medium Enterprises Department, Government of Tamil Nadu, aims to significantly reduce electricity costs for eligible MSME enterprises across the state. This initiative provides a crucial financial benefit, enabling businesses to manage their operational expenses more effectively and fostering industrial growth. The scheme offers a substantial 20% subsidy on low tension power tariffs for a period of 36 months. This support is extended from the date of commencement of production or from the date of obtaining a power connection, whichever occurs later, subsequent to the allotment of an Entrepreneur Memorandum (Part 2) number from the District Industries Centres. To qualify, eligible industries are required to submit their LTPT subsidy application within three months from the later of the aforementioned dates, ensuring timely access to the benefits. The program is designed to support both newly established manufacturing units and existing enterprises undertaking significant expansion or diversification, thereby contributing to the overall economic development and industrial competitiveness of Tamil Nadu.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Provider
Micro Small and Medium Enterprises Department, Government of Tamil NaduChennai · Tamil Nadu · India
Tamil Nadu's Micro, Small and Medium Enterprises Department runs state subsidy, loan and incentive schemes for micro, small and medium enterprises and for people who want to start one. The department's pages do not always agree on the details, so confirm the terms of any scheme…
Learn moreBenefits & Funding
What You Get
- 20% subsidy on Low Tension Power Tariff for 36 months, significantly reducing operational electricity costs for eligible MSME enterprises. This financial support helps businesses manage expenses more effectively, promoting sustainability and growth. The subsidy is granted from the date of commencement of production or obtaining power connection, whichever is later, after receiving an Entrepreneur Memorandum (Part 2) number from the District Industries Centres.
- Disbursement
- Reimbursement
- Duration
- 37 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are meticulously reviewed by the District Industries Centres (DIC) based on the submitted details and strict compliance with the scheme's eligibility criteria. This includes an assessment of the enterprise's classification (Micro, Small, or Medium), its operational location within Tamil Nadu, the nature of its manufacturing or agro-based activities, and verification of its Low Tension Power supply (Tariff III B) usage. The DIC ensures that all conditions for new enterprises or for expansion/diversification are met before proceeding with the subsidy approval.
Application Process
- 1
Register Account
Create an account on the MSME Department portal by providing personal and contact details.
You - 2
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the LTPT Subsidy scheme?
The Low Tension Power Tariff (LTPT) Subsidy scheme provides a 20% subsidy on electricity costs for eligible Micro, Small, and Medium Enterprises (MSMEs) in Tamil Nadu, aiming to reduce their operational expenses.
Who is eligible for this subsidy?
New Micro, Small, and Medium manufacturing enterprises, including agro-based industries in specific blocks, are eligible. Existing units undergoing substantial expansion or diversification may also apply, provided they meet specific criteria for increased plant/machinery value and turnover.
What is the duration of the subsidy?
The subsidy is provided for a period of 36 months from the date of commencement of commercial production or power connection, whichever is later, after receiving an Entrepreneur Memorandum (Part 2) number.
What type of power connection is eligible?
Only enterprises using Low Tension Power supply (Tariff III B) are eligible for this scheme. For enterprises with multiple connections, the subsidy is typically for the first service connection per premise, though branch units in different locations can each apply for their first LT connection.
How do I apply for the LTPT Subsidy?
Applications are submitted online through the official MSME Department website of Tamil Nadu. The process involves user registration, logging into the portal, filling out the detailed application form, uploading all mandatory documents, and finally submitting the application.
What is the deadline to apply?
Eligible industries must file their LTPT subsidy application within three months from the date of commencement of commercial production or the date of power connection, whichever is later. This ensures timely processing of benefits for newly established or expanding units.
Sources
Data on this page is compiled from official program and provider references.
