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MSME Sector Disappointed as Tamil Nadu Budget Skips Power Tariff Relief Announcements

SimpliCity News Team · 05 Aug 2026

Coimbatore: The Tamil Nadu Budget has fallen short of addressing critical power tariff relief expectations of the Micro, Small and Medium Enterprises (MSME) sector, according to M Jayabal, State General Secretary of the Tamil Nadu All Entrepreneurs Federation and President of the Recycle Textile Federation.

While the industrial sector had placed unprecedented expectations on the budget presented by the newly formed Government of Tamil Nadu, the absence of announcements on key power tariff reforms has disappointed the MSME community representing 4.8 million entrepreneurs across the State.

Jayabal welcomed the Government's decision to implement 765kV power transmission projects between Virudhunagar-Coimbatore and Ariyalur-Coimbatore at an estimated cost of ₹4,000 crore. He also appreciated the Green Energy Corridor Project worth ₹6,884 crore, which will facilitate the evacuation of 11,760 MW of renewable energy. "These initiatives will significantly strengthen the State's power infrastructure and support future industrial growth," he stated.

The entrepreneur leader emphasized that only a strong and growing industrial sector can enable Tamil Nadu to repay its ₹10 lakh crore debt, including interest, while also helping the State achieve the Government's ambitious goal of becoming a ₹1.5 trillion economy.

However, Jayabal expressed disappointment over the budget's silence on long-pending MSME demands. "We had expected this year's budget to address crucial issues affecting our entrepreneurs. In particular, we were looking forward to the announcement of a 50% reduction in fixed charges, which have increased by nearly 480%, a 50% reduction in demand charges, and the waiver of solar network charges," he explained.

These measures were among the commitments made during the election campaign, with assurances that they would be implemented immediately after assuming office. The absence of any announcement on these crucial issues has left the MSME sector facing mounting financial pressures.

"We sincerely hope that the Government will give due consideration to these demands and announce suitable relief measures at the earliest to protect and promote the growth of MSMEs across Tamil Nadu," Jayabal concluded.

The MSME sector continues to be a vital contributor to Tamil Nadu's economy, and industry leaders expect the Government to address their concerns in upcoming policy announcements.

tamil nadu budget msme power tariff jayabal recycle textile federation entrepreneurs federation fixed charges demand charges green energy corridor coimbatore industrial growth

MSME Sector Disappointed as Tamil Nadu Budget Skips Power Tariff Relief Announcements

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