Tamil Nadu Offers Power Subsidy to Hotels Amid LPG Shortage

Chennai, March 2026 : Escalating tensions in West Asia following attacks on Iran by the United States and Israel have begun to affect global energy supplies, leading to a shortage of commercial cooking gas in several countries, including India. The crisis has already impacted the hospitality sector, with hotels and restaurants in several Indian cities temporarily suspending operations due to the scarcity of commercial LPG cylinders.

In response to the situation, the Tamil Nadu government has introduced a series of relief measures to support food businesses and ensure continuity of services. The decisions were taken during a high-level meeting of senior officials chaired by Tamil Nadu Chief Minister M. K. Stalin in Chennai.

One of the key measures announced is a subsidy of ₹2 per unit of electricity for food establishments that switch from LPG to electric cooking. The subsidy will be available to tea shops, restaurants, hotels, and cloud kitchens that choose to use electric stoves instead of LPG cylinders. The Chief Minister said the decision aims to encourage the use of electricity as an alternative cooking fuel during the ongoing shortage of commercial gas. The subsidy will remain in effect until the supply situation improves.

Officials said the shortage of commercial LPG cylinders has created serious challenges for the food service sector, which relies heavily on gas for daily operations. By promoting electric cooking, the state government hopes to reduce the burden on gas supplies while allowing eateries to continue functioning.

In addition to the electricity subsidy, the state government announced several other measures to mitigate the impact of the crisis. Regulations regarding the use of alternative fuels in certain industrial establishments will be temporarily relaxed to help businesses adapt to the shortage. Micro, Small and Medium Enterprises (MSMEs) will also be offered loans and subsidies to purchase electric stoves and heating equipment.

Another step includes increasing milk procurement by Aavin, the state-run dairy cooperative. This move is intended to offset any possible decline in demand from commercial establishments that may reduce operations due to the LPG shortage.

To ensure fair distribution of available LPG supplies, the government has also decided to establish state-level and district-level monitoring committees. These committees will prioritize the allocation of commercial LPG cylinders to essential institutions such as hospitals and educational institutions.

Speaking to the media after the meeting, J. Radhakrishnan, Chairman and Managing Director of the Tamil Nadu Electricity Board, said the electricity subsidy would apply to all eateries, including restaurants, cloud kitchens, and tea shops, regardless of whether they currently hold a formal food business license.

He added that authorities would not verify whether the increased electricity consumption is solely due to electric cooking or other appliances such as air conditioners. The subsidy will apply to every additional unit of electricity consumed beyond the establishment’s current baseline usage, making it easier for businesses to benefit from the relief measure.