Notice for additional security deposit comes as a shocker for micro industries
Micro and small-scale industries in Tamil Nadu are protesting a new mandate from the state power distribution corporation requiring additional security deposits. Industry leaders argue this creates an unfair financial burden during a period of economic difficulty for manufacturing units.
Why it matters
This highlights the tension between utility service providers and small businesses regarding operational costs and regulatory compliance.
The Tamilnadu Power Distribution Corporation has started issuing notices to micro and small-scale industries for payment of additional security deposit. “This has come as a shocker and no one in the State government is looking at growth of the manufacturing industries,” said J. James, president of the Tamil Nadu Association of Cottage and Micro Enterprises.
According to a notice received by one of the micro units in Coimbatore city, the additional security deposit is reviewed once in two years. For consumers under monthly billing, the security deposit is equivalent to two times the monthly average electricity charges for the preceding 12 months upto April 2026 and for those with bi monthly billing, it is equivalent to three times the monthly average electricity charges for the preceding 12 months upto April 2026. The difference in amount should be paid as additional security deposit.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in