**Executive Summary**
This document is an official notification from the Government of Tamil Nadu, dated July 11, 2025, outlining amendments to the Tamil Nadu Energy Conservation Fund Rules, 2007. The amendments are made under the powers conferred by the Energy Conservation Act, 2001. The notification establishes a dedicated fund and revises the authority and financial provisions related to the fund.
**Key Points / Main Content**
* **Establishment of Tamil Nadu Energy Conservation Fund:**
* Rule 2-A is inserted, establishing the "Tamil Nadu Energy Conservation Fund" for promoting efficient energy use and conservation within Tamil Nadu.
* **Authority to Administer the Fund:**
* Rule 3 is substituted, designating a State Level Steering Committee as the authority to administer the Fund.
* The committee composition includes:
* Secretary to Government, Energy Department (Chairman)
* Chairman and Managing Director, Tamil Nadu Power Distribution Corporation Limited (Member Secretary)
* Secretary to Government, Finance Department or his nominee (Member)
* Chief Engineer / Commercial, Research and Development and Demand Side Management of Tamil Nadu Power Distribution Corporation Limited and Chief Executive Officer / Tamil Nadu State Designated Agency (Member)
* Chief Financial Controller / General, Tamil Nadu Power Distribution Corporation Limited (Member)
* Director, Dr. Ambedkar Institute of Productivity, National Productivity Council (Member)
* **Fund Operation and Restrictions:**
* The phrase "through Public Deposit Account" is omitted from Rule 4.
* Rule 5 is amended to include clause (8), specifying the use of funds:
* Funds can be used to finance energy efficiency projects as a Revolving Investment Fund (RIF) in public buildings (Central and State Government), energy efficiency street lighting, energy efficiency projects in public drinking water pumping stations, energy efficiency projects in various industrial sectors and Micro, Small and Medium Enterprises (MSME) clusters.
* Funds cannot be used for projects related to renewable sources of energy.
* **Financial Limits:**
* In Rule 6, the expression "rupees five lakhs" is substituted with "rupees fifty lakhs" in both sub-rules (2) and (3).
**Impact Analysis**
**Government of Tamil Nadu (Energy Department, Finance Department):**
* **Impact:** Responsible for establishing, overseeing, and contributing to the Energy Conservation Fund.
* **Action Required:** Implement the amended rules and ensure the fund is managed according to the new provisions.
**Tamil Nadu Power Distribution Corporation Limited (TANGEDCO):**
* **Impact:** Senior members involved in fund management.
* **Action Required:** Participate in the State Level Steering Committee and administer the fund as per the new rules.
**Public Sector Entities (Central and State Government Buildings, Drinking Water Pumping Stations, MSME Clusters):**
* **Impact:** Eligible to receive financing for energy efficiency projects through the Revolving Investment Fund.
* **Action Required:** Identify and propose projects that align with the fund's purpose and comply with its restrictions.
Key Entities Referenced
Tamil Nadu Energy Conservation Fund Rules, 2007: The primary subject being amended, establishing rules for the Energy Conservation Fund.
Tamil Nadu Energy Conservation Fund: A fund created for the purpose of promotion of efficient use of energy and its conservation within the State of Tamil Nadu.
Energy Conservation Act, 2001: The central act that confers powers for the rules and amendments.
State Level Steering Committee: The authority designated to administer the Tamil Nadu Energy Conservation Fund.
Energy Department (Tamil Nadu): The department issuing the notification and responsible for energy conservation in Tamil Nadu.