LTPT Subsidy — 20% Low Tension Power Tariff Relief for TN MSMEs — Frequently Asked Questions

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.

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.

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.

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%.

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.

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.

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.

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.

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.

Yes. You can check the status of your application online through the same portal, and updates may also reach you by email or SMS.

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.

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.

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.