Chennai: The Tamil Nadu government on Saturday issued orders for providing 200 units of free electricity every two months to domestic consumers using up to 500 units bimonthly. The scheme will come into force from May 10, 2026 with an annual subsidy allocation of INR 1,730 crore.
Coimbatore: The Tamil Nadu government has officially issued orders for implementing the free electricity scheme announced by Chief Minister C Joseph Vijay, under which eligible domestic consumers will receive 200 units of free electricity once every two months.
According to Government Order (Ms) No.50 issued by the Energy Department on May 10, 2026, domestic consumers with bimonthly electricity consumption of up to 500 units will be eligible for the benefit. The government stated that the move is aimed at reducing the financial burden on ordinary households amid rising living costs and inflation.
The order further stated that the state government will bear an additional tariff subsidy expenditure of INR 1,730 crore annually for implementing the scheme. Consumers whose electricity consumption exceeds 500 units in two months will continue under the existing tariff structure, including the earlier free electricity benefit of 100 units bimonthly.
The expenditure for the scheme has been sanctioned under a newly created head of account in the Chief Electrical Inspectorate. The government also directed the concerned Pay and Accounts Officer to open the necessary account provisions for the scheme implementation.
The order mentioned that pending legislative approval, the expenditure would initially be met through an advance from the Contingency Fund. Necessary approvals and revised budget estimates for the financial year 2026-27 will be processed subsequently.
The government also clarified that the sanctioned amount would not be paid in cash but would instead be adjusted through contra credit mechanisms linked to Tamil Nadu Electricity Board deposits and advances.
The order was issued with the concurrence of the Finance Department and comes into immediate effect from May 10, 2026.
According to Government Order (Ms) No.50 issued by the Energy Department on May 10, 2026, domestic consumers with bimonthly electricity consumption of up to 500 units will be eligible for the benefit. The government stated that the move is aimed at reducing the financial burden on ordinary households amid rising living costs and inflation.
The order further stated that the state government will bear an additional tariff subsidy expenditure of INR 1,730 crore annually for implementing the scheme. Consumers whose electricity consumption exceeds 500 units in two months will continue under the existing tariff structure, including the earlier free electricity benefit of 100 units bimonthly.
The expenditure for the scheme has been sanctioned under a newly created head of account in the Chief Electrical Inspectorate. The government also directed the concerned Pay and Accounts Officer to open the necessary account provisions for the scheme implementation.
The order mentioned that pending legislative approval, the expenditure would initially be met through an advance from the Contingency Fund. Necessary approvals and revised budget estimates for the financial year 2026-27 will be processed subsequently.
The government also clarified that the sanctioned amount would not be paid in cash but would instead be adjusted through contra credit mechanisms linked to Tamil Nadu Electricity Board deposits and advances.
The order was issued with the concurrence of the Finance Department and comes into immediate effect from May 10, 2026.