CHENNAI: Tamil Nadu’s state-owned power utilities have accumulated a cumulative debt of Rs 2.47 lakh crore as of March 31, 2026, up from Rs 6,492 crore on April 1, 2001, with the highest borrowings in any five-year period of Rs 87,399 crore (35.4% of the total debt) being recorded under the previous DMK government between 2021 and 2026, Electricity Minister C T R Nirmalkumar said on Thursday.
Releasing a white paper on the state’s power sector at the TNEB headquarters in Chennai, the minister also outlined measures to strengthen infrastructure, bridge financial gaps, and recruit nearly 20,000 personnel. The white paper provided a five-year block assessment of TNEB’s financial trajectory for 25 years from 2001 to 2026.
Nirmalkumar said the Tamil Nadu Power Distribution Corporation Limited (TNPDCL) accounted for the largest share of the debt at Rs 1.07 lakh crore, followed by the Tamil Nadu Power Generation Corporation Limited (TNPGCL) at Rs 1.03 lakh crore.
‘Can save Rs 215 cr/month by ending short-term power procurements’
Tantransco had an outstanding debt of Rs 30,965 crore, while the Tamil Nadu Green Energy Corporation Limited (TNGECL) owed `5,672 crore.
The minister said the debt burden can’t be reduced overnight and would have to be addressed through phased financial reforms.
The power utilities may earn revenue of Rs 1.43 lakh crore during 2026-27, while expenditure is projected to be at Rs 1.41 lakh crore. Net borrowings for the current year are estimated to beRs 11,893 crore, he said.
Referring to the financial performance of the previous administration, Nirmalkumar said the utilities generated total revenue of Rs 4.97 lakh crore between 2021 and 2026, while expenditure stood at Rs 5.32 lakh crore. Despite this being the highest revenue recorded in the history of the state’s power sector, largely due to tariff revision, debt continued to rise, he said.
“The objective of revising tariffs is to reduce debt, improve operational efficiency and ultimately benefit consumers. However, neither the utility nor consumers gained from the tariff revision,” he alleged.
Explaining the power procurement pattern, the minister said TN’s peak power demand had reached 21,307 MW, but only 3,495 MW was generated through the utility’s own hydro, thermal and gas-based power stations. The rest was met through independent power producers, wind and solar generators, captive power users and central government allocations.
He alleged that power was procured from electricity exchanges at rates exceeding `20 per unit and that the previous administration had purchased solar power at `6.11 per unit, which was above prevailing market rates. The TVK government has decided to eliminate financial leakages, discontinue short-term procurement practices and shift to long-term tenders aimed at securing power at lower costs, he said. These measures were expected to result in monthly savings of around `215 crore.
The minister further alleged that the previous government had not initiated major generation or infrastructure projects and had failed to fill vacancies in the power utilities, with high-cost power purchases from private sources adding to the expenditure.
Addressing long-standing labour shortages, Nirmal Kumar announced a massive recruitment drive to counteract the retirement of 20,240 employees over the last decade and prepare for an estimated 16,782 retirements over the next five years. The state has authorised a massive hiring roadmap for 20,449 personnel, he said.
Without naming former deputy chief minister Udhayanidhi Stalin and V Sabareesan, the minister alleged that government departments were influenced by “family members including son, son-in-law, relatives and associates” of the previous ruling dispensation.
The government would also focus on completing long-pending generation projects, expanding Battery Energy Storage Systems (BESS) and pumped storage projects, and expanding electric vehicle charging infrastructure, he added.
Nirmal said the government was committed to restoring the financial health of the power utilities and eventually turning them into profit-making entities.
No tariff hike this year: Min
Electricity Minister CTR Nirmalkumar on Thursday said that there will not be a power tariff hike this year. Though there is provision to hike the power tariff by 3.57%, it will not be increased to protect consumers’ interests, the minister said