LTPT Subsidy — 20% Low Tension Power Tariff Relief for TN MSMEs
A Tamil Nadu government subsidy that covers 20% of the Low Tension Power Tariff for 36 months for eligible MSME manufacturing units, including new and expanding enterprises.
- Funding amount
- Varies by program
- Funding type
- Subsidy
- Provider
- Micro Small and Medium Enterprises Department, Government of Tamil Nadu (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Low Tension Power Tariff (LTPT) Subsidy is an incentive from the Government of Tamil Nadu, administered by the state's Micro, Small and Medium Enterprises Department. It targets one of the heaviest recurring expenses a small factory carries — its electricity bill — and works by footing a fixed share of the unit's low tension power tariff.
The headline number is 20%, and the support runs for 36 months. The clock begins on whichever comes later: the day the unit starts production, or the day it takes its power connection. One condition sits ahead of both — the enterprise must first be allotted an Entrepreneur Memorandum (Part 2) number by its District Industries Centre.
The scheme is built for manufacturing rather than trading or services. It covers freshly set-up Micro units anywhere in Tamil Nadu, Small and Medium units in designated industrially backward blocks, agro-based industries in specified blocks, and existing manufacturers that are expanding or diversifying in a substantial way. The purpose is to keep operating costs manageable enough that the state's MSME manufacturers stay competitive.
Nothing about the scheme is dilutive — it is a subsidy, not an equity investment, so no ownership stake in the business changes hands.
There is no single annual window to wait for, since applications are accepted on a rolling basis. Each unit, however, has its own hard deadline: file within three months of the later of the production start date and the power connection date. The entire process runs online through the state MSME department's portal.
Highlights
- 20% subsidy on the Low Tension Power Tariff
- Support continues for 36 months
- Open to Micro, Small and Medium manufacturing units in Tamil Nadu
- Both new units and units undertaking expansion or diversification can apply
- Only LT supply under Tariff III B; first service connection per premises
- File within 3 months of production start or power connection
Who can apply
Eligibility rests on three things — the size of your unit, where it is located, and the type of power connection it uses.
New units
- Micro manufacturing enterprises may be set up anywhere in Tamil Nadu.
- Small and Medium manufacturing enterprises must operate from one of the 251 industrially backward blocks of the state.
- New agro-based industries qualify if they are located in one of the 385 specified blocks.
Existing units
- Manufacturing enterprises that have taken up substantial expansion or diversification are covered, provided the exercise adds at least 25% to the value of plant and machinery and at least 25% to turnover.
Power connection and other conditions
- Only units drawing Low Tension Power supply under Tariff III B can claim the subsidy.
- Where a premises has more than one LT connection, only the first service connection attracts the benefit.
- A branch unit at a different location can apply in its own right for its first LT service connection.
- The enterprise must hold an Entrepreneur Memorandum (Part 2) number issued by its District Industries Centre.
LTPT Subsidy — 20% Low Tension Power Tariff Relief for TN MSMEs is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
LTPT Subsidy — 20% Low Tension Power Tariff Relief for TN MSMEs accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
What the subsidy is worth
An eligible enterprise receives a 20% subsidy on its Low Tension Power Tariff, claimed across 36 months.
When the period starts
The 36-month window opens from whichever is later — the date production commences or the date the power connection is obtained — and only after the unit has been allotted its Entrepreneur Memorandum (Part 2) number by the District Industries Centre.
How it helps the business
- It reduces a large recurring cost for the unit, its monthly electricity bill.
- The saving repeats every month for three years, so it improves working cash flow rather than delivering a one-off payment.
- The benefit is non-dilutive: the department takes no equity or ownership stake in the enterprise.
What is not covered
The scheme applies only to Low Tension Power supply under Tariff III B. Where a premises has several LT connections, only the first service connection qualifies.
About the provider
LTPT Subsidy — 20% Low Tension Power Tariff Relief for TN MSMEs is offered by Micro Small and Medium Enterprises Department, Government of Tamil Nadu, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Approval is handled at the district level by the District Industries Centre (DIC), which reviews each application against the conditions of the scheme.
The office verifies:
- The enterprise's classification — Micro, Small or Medium.
- Where it operates within Tamil Nadu, including whether it sits in an eligible industrially backward or specified block.
- Whether the activity is manufacturing or agro-based.
- Whether the unit draws Low Tension Power supply under Tariff III B.
- For new units, that the qualifying conditions are met; for expansion or diversification cases, that the plant and machinery and turnover thresholds are satisfied.
An application moves ahead only once the DIC is satisfied on each of these points.
Documents you’ll need
Before you apply to LTPT Subsidy — 20% Low Tension Power Tariff Relief for TN MSMEs, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Frequently asked questions
How much does the LTPT Subsidy pay?
The scheme covers 20% of the Low Tension Power Tariff for an eligible enterprise, and the benefit runs for 36 months. Because it is a percentage-based subsidy on your power bill, the rupee value depends on how much your unit actually consumes.
Is there a deadline to apply for the LTPT Subsidy?
There is no single closing date, since applications are accepted round the year. The deadline that matters is your own: you must file within three months of whichever is later — the date you begin production or the date your power connection is taken.
Which enterprises qualify for the LTPT Subsidy in Tamil Nadu?
New Micro manufacturing units can be located anywhere in the state. New Small and Medium manufacturing units need to be in one of the 251 industrially backward blocks, and new agro-based industries need to be in one of the 385 specified blocks. Existing manufacturers that have carried out substantial expansion or diversification are also eligible.
Can an existing unit that is expanding claim this subsidy?
Yes. Manufacturing enterprises that take up substantial expansion or diversification can claim it, as long as the exercise increases the value of plant and machinery by at least 25% and turnover by at least 25%.
What kind of electricity connection is eligible?
Only Low Tension Power supply billed under Tariff III B is covered. If your premises has more than one LT connection, the subsidy applies to the first service connection only. A branch unit at a separate location can apply on its own for its first LT service connection.
Is any registration or memorandum needed before applying?
Yes. The unit has to be allotted an Entrepreneur Memorandum (Part 2) number by its District Industries Centre, and the subsidy period is counted from the later of production commencement or power connection after that allotment.
When does the 36-month subsidy period begin?
It begins from the later of two dates — when the enterprise commences production, or when it obtains its power connection. The Entrepreneur Memorandum (Part 2) allotment must be in place for the benefit to apply.
Does the LTPT Subsidy take equity in my company?
No. It is a government subsidy, so the support is non-dilutive — the MSME Department does not take any equity, shares or ownership stake in your enterprise in return for the benefit.
How do I apply for the LTPT Subsidy?
The process is entirely online on the Tamil Nadu MSME department portal at https://www.msmeonline.tn.gov.in/incentives/html_cye_ltpt.php. You register with your name, date of birth, Aadhaar number, email ID and mobile number, then log in with the credentials sent to your registered email and phone. From the Schemes menu you open the scheme, start a new application, fill in the mandatory fields, accept the terms, declaration and privacy policy, and note the reference number shown on screen. Next you upload the required documents in the specified format and size, verify them, and submit. A confirmation message that the application has gone to the GM/DIC or RJD arrives on your mobile.
Can I track my application after submitting it?
Yes. You can check the status of your application online through the same portal, and updates may also reach you by email or SMS.
Is DPIIT recognition required for LTPT Subsidy — 20% Low Tension Power Tariff Relief for TN MSMEs?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for LTPT Subsidy — 20% Low Tension Power Tariff Relief for TN MSMEs, though having it can strengthen your application and unlock other benefits.
Who is eligible to apply for LTPT Subsidy — 20% Low Tension Power Tariff Relief for TN MSMEs?
LTPT Subsidy — 20% Low Tension Power Tariff Relief for TN MSMEs is open to startups at any stage. It is open to startups registered anywhere in India.
Who offers LTPT Subsidy — 20% Low Tension Power Tariff Relief for TN MSMEs?
LTPT Subsidy — 20% Low Tension Power Tariff Relief for TN MSMEs is offered by Micro Small and Medium Enterprises Department, Government of Tamil Nadu, a government body. It is provided as non-dilutive funding.
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