Relaxation in LT tariff for MSMEs
Regulatory body's directive to Tangedco meets one of the demands of the industry
Ministers TM Anbarasan and TRB Rajaa at a meeting with members from MSME sector (file photo)
CHENNAI: The Tamil Nadu Electricity Regulatory Commission (TNERC) has clarified to the Tamil Nadu Generation and Distribution Corporation that it could allow migration of micro industries consumers with a contracted load of 12 kW or less in LT Industrial tariff (3B) category into LT Cottage industries tariff (3A-1), which has lesser charges.
In a communication to Tangedco, TNERC said that the utility has sought clarification on the classification of tariffs for categories of micro industries with contracted loads not exceeding 12 kW.
TNERC clarified that micro-enterprises or industries with a contracted load below 12kW engaged in the manufacturing or production of iron and steel-related products can be charged under the LT 3A1 category instead of LT 3B category. Ancillary products, and activities such as casting, forging, milling, lathes, and grill works fall under this category, which is expected to help the MSME sector.
The consumer concerned can apply for the change of category with relevant documents, said TNERC.
The conversion from LT industries tariff (3B) to LT cottage industries tariff (3A1) if their connected load is 12 kilowatts or less is one of the five demands put forward by the protesting MSMEs.
KE Raghunathan, national president of the Association of Indian Entrepreneurs has welcomed the move. It shows that the state government has understood the problems of the MSMEs, he said. He demanded the government to consider four other demands of the MSMEs.
