Chennai, January 28, 2025: Tamil Nadu BJP President K Annamalai has urged the DMK government to fulfill its promises to small, micro, and medium enterprises (SMEs) without further delay, highlighting the severe challenges faced by these sectors due to increased electricity tariffs and policy inefficiencies.
In a strongly worded statement, Annamalai criticised the DMK government for failing to address the long-standing grievances of SMEs, accusing it of prioritising publicity over meaningful action. “Since coming to power, the DMK government has consistently increased electricity tariffs, causing significant distress to the public and the industrial sector. Their announcements have turned out to be superficial, further deceiving the struggling SMEs,” he said.
Impact on SMEs in Coimbatore
Citing Coimbatore as an example, Annamalai revealed that the district is home to approximately 52,367 small-scale industries consuming less than 12 kW of power. These industries have borne the brunt of the annual electricity tariff hikes under the DMK regime, which has significantly increased their operational costs.
“Industry associations have repeatedly demanded that the electricity connection category for SMEs consuming less than 12 kW of power be shifted from III-B to III-A(1). This change would substantially reduce electricity costs from Rs 9.60 per unit to Rs 4.65 per unit,” Annamalai noted.
Promises Yet to Be Fulfilled
Tracing the timeline of the government’s promises, Annamalai recalled Chief Minister M.K. Stalin’s announcement on September 23, 2023, stating that the Tamil Nadu Electricity Regulatory Commission (TNERC) would review the demand for shifting SMEs to the lower tariff category. Subsequently, TNERC issued a directive to the Tamil Nadu Electricity Board (TNEB) on September 29, 2023, allowing SMEs using less than 12 kW to be moved to category III-A(1).
However, despite these announcements, the higher tariff continues to be charged to SMEs even after 1.5 years. “This delay is unacceptable,” Annamalai said, adding, “TNERC’s statement made it clear that the tariff change should have been effective immediately from September 29, 2023.”
In his statement, Annamalai expressed dissatisfaction over the TNEB’s response to the situation. On January 23, 2025, the Chief Engineer of TNEB’s Coimbatore division reportedly informed industry associations that automating the transition for eligible SMEs was “not feasible.” Instead, each enterprise must individually apply with the required documents to initiate the tariff change, which would only take effect from the date of application.
“This manual process is a needless bureaucratic hurdle,” Annamalai argued. “If the software can automatically transition companies exceeding the 12 kW limit to a higher tariff category, why is it necessary for SMEs to apply separately to benefit from a lower tariff? This reeks of inefficiency and intent to mislead industrialists with superficial announcements.”
Annamalai called on the DMK government to implement an automated system for shifting SMEs consuming less than 12 kW from category III-B to III-A(1) without requiring manual applications. He also demanded the refund of excess tariffs collected from these SMEs since September 2023.
“For the past 1.5 years, the Tamil Nadu Electricity Board has been collecting inflated tariffs from SMEs consuming 12 kW or less. This not only undermines the government’s credibility but also exacerbates the financial strain on small-scale industries already struggling with rising operational costs,” Annamalai emphasized.
The BJP leader’s statement has intensified the ongoing debate on the DMK government’s handling of SME concerns. Opposition leaders and industry bodies have echoed Annamalai’s demand for swift action, emphasising the importance of SMEs in sustaining Tamil Nadu’s economic growth and employment generation.
Annamalai concluded by reiterating his support for SMEs and holding the government accountable for its promises. “The DMK government must act now to alleviate the financial burden on SMEs. Their inaction not only hampers industrial growth but also betrays the trust of entrepreneurs who rely on fair policies to thrive.”
