Tamil Nadu Electricity Minister C.T.R. Nirmal Kumar disclosed that the Tamil Nadu Electricity Board (TNEB) is burdened with a significant debt of Rs 2.47 lakh crore. Despite this financial strain, he assured that electricity tariffs would remain unchanged for the current year. The white paper, unveiled at the TNEB headquarters in Chennai, offers a detailed overview of the power sector’s financial performance spanning 25 years.
The state government’s broader white paper on finances estimated Tamil Nadu’s total debt at Rs 13.18 lakh crore, with the power sector’s liabilities at Rs 2,47,130 crore. Minister Nirmal Kumar highlighted that between 2021 and 2026, the Electricity Board’s expenses totaled Rs 5.32 lakh crore, surpassing its revenue of Rs 4.97 lakh crore, resulting in a deficit of Rs 34,447 crore. He emphasized the urgent need for structural reforms to stabilize the sector’s finances, which currently constitute a significant portion of the state’s overall debt.
The white paper revealed a pattern of deficits in the Electricity Board’s financial records across different administrations. Losses amounted to Rs 35,463 crore from 2006 to 2011, escalating to Rs 56,361 crore from 2011 to 2016, and further rising to Rs 58,534 crore from 2016 to 2021. Minister Nirmal Kumar expressed concerns over the mismatch between expenditure, borrowing, revenue, and infrastructure development, stressing the government’s commitment to enhancing financial management and operational efficiency in the power sector.
Tamil Nadu’s peak power demand has surged to 21,307 MW, met through various sources including hydroelectric, thermal, and gas-based generation, as well as procurement from Central generating stations, private producers, and other states. Efforts are underway to transition from costly short-term power agreements to long-term contracts, aiming to slash monthly expenses by around Rs 215 crore. The government’s immediate priority is to bolster the Electricity Board’s financial health, with a focus on investigating alleged irregularities in electrical conductor procurement at nine locations.
