TN Chief Minister Mr.C.Joseph Vijay.
MADURAI: An urgent fervent appeal was made to Tamil Nadu Chief Minister Mr.C.Joseph Vijay to immediately reduce the EB Fixed (Demand) charges for the survival of MSMEs and also introduce a stable and industry-friendly power tariff policy so that it will ensure the long-term sustainability of Micro, Small and Medium Enterprises in the State.
The Madurai District Maavu Manufacturers Association which comprises mostly MSME units have sent a representation to the new Chief Minister Mr.Vijay requesting him for remedial measures for the survival of MSME sector which is facing severe financial stress due to steep escalation of electricity fixed demand charges in Tamil Nadu as Fixed (Demand) charges for electricity have shot up in an unprecedented manner upto 450 per cent, raised from Rs.35 per KW to Rs.165 per KW and more depending on the sanctioned load. This fixed demand charge increase coupled with EB annual tariff hikes have put MSME units in our State in an unbearable burden because many of our MSME units are operating in thin margins and struggling for survival,” association president Mr.C.Deivarajan and secretary Mr.P.J.Manoharan have appealed from Madurai in their representation to Chief Minister Mr.C.Joseph Vijay on June 4th 2026 and a copy of this was forwarded to Electricity Minister Mr.C.T.R.Nirmal Kumar also seeking for quick intervention.
APPEAL FROM MADURAI WITH REASONS:
The appeal from Madurai District Maavu Manufacturers Association, which is an important voice of flour mill units, had cited specific reasons for its appeal by citing how MSME ecosystem in Madurai thrives in food and agro-based industries, flour manufacturing units, metal based and engineering, textiles, readymade garments , paper board printing and packaging, rubber, plastic and chemicals etc.
“We want the CM to slash fixed electricity demand charges for MSME units which generally fall under Low Tension (LT) III B Tariff Category but are facing compounding fixed cost pressures due to EB charges. Because fixed charges are calculated based on sanctioned load rather than actual consumption, smaller units are affected badly. Annual power tariff hikes approved by TNERC have made our operating costs unpredictable. If an MSME’s production drops or a machine sits idle, they still pay the full fixed charge now whereas States like Gujarat and Maharashtra offer much lower fixed demand charges for manufacturing units,” the association had pointed out by stating that electricity is a critical input cost and steep tariff hikes are directly impacting production viability and leading to closure of many MSME units in Madurai region and in Tamil Nadu.
Appealing to announce industry-friendly power tariff policy like in other States, the association has said that that immediate intervention by the CM will safeguard thousands of MSME units and employment because if TANGEDCO passes on its debt and operational inefficiencies to industries with EB tariff revision system, then the survival of MSMEs will be a question mark and give a huge shock due to the present power tariff system.
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