Notice for additional security deposit comes as a shocker for micro industries

Notice for extra security deposit comes as a shocker for micro industries Published – August 20, 2026 10: 00 pm IST – COIMBATORE.

Key points

• The Tamilnadu Power Distribution Corporation has began issuing notices to micro and small-scale industries for payment of further security deposit.
• According to a notice received by one of the micro units in Coimbatore city, the extra security deposit is reviewed once in two years.
• We have been repeatedly asking for reduction of electricity charges.

What happened

Meanwhile, the Tamilnadu Power Distribution Corporation has began issuing notices to micro and small-scale industries for payment of further security deposit. "This has come as a shocker and no one in the State government is looking at growth of the manufacturing industries, " remarked 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 extra 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 extra security deposit.

"We have been repeatedly asking for reduction of electricity charges. Instead, the burden is only on the rise for micro units. The local energy department authorities stated the units can pay the amount in two or three installments. But, the administration should look at the financial burden the industries are incurring as of the energy costs and take steps to reduce it, " he noted.

The bottom line

For now, notice for additional security deposit comes as a shocker for micro industries remains the part of the story worth watching, and further updates are likely as more details are confirmed.