CHENNAI: Tamil Nadu Power Distribution Corporation Limited (TNPDCL) has climbed three places to secure the 39th rank among 54 power distribution companies (discoms) in the country in the Union Ministry of Power’s 14th Annual Integrated Rating and Ranking released in January. The state-owned utility was awarded a B-grade with a score of 43.92 for 2024-25. In the previous ranking, TNPDCL was at 42nd position among 52 discoms.
According to the rating accessed by TNIE, the results indicate a gradual improvement in TNPDCL’s overall performance. Billing efficiency has remained steady over the last three financial years, recording 90.83% in 2022-23, 90.08% in 2023-24 and 90.32% in 2024-25. Collection efficiency showed a marginal improvement, rising from 98.08% in 2022-23 to 98.58% in 2024-25.
For 2024-25, TNPDCL reported a total revenue of Rs 1.48 lakh crore and sold 96,803 million units (MUs) of electricity. The utility posted a profit after tax of Rs 2,073 crore, indicating a modest but positive financial turnaround. However, auditors have flagged concerns by awarding ‘red card’ metrics to eight utilities, including TNPDCL, despite the corporation having four financial directors and hundreds of chartered professionals.
Speaking to TNIE, a senior engineering official of TNPDCL said that while the corporation has shown improvement after several years, significant challenges remain, particularly in reducing commercial losses.
“Achieving 100% billing efficiency is essential, but it is difficult due to the government’s subsidy commitments and policy decisions,” the official said.
The official added that TNPDCL is weighed down by heavy debt, resulting in annual interest payments of nearly Rs 17,000 crore, which continues to be a major financial burden. He also pointed out that the discom has pending dues of around Rs 3,000 crore from various government departments. “Even though power tariffs are revised annually, issues such as unpaid government dues and high interest costs continue to affect the utility’s growth and financial performance,” he said.
E Natarajan, state general secretary of the Bharatiya Electricity Engineers Association, said TNPDCL procured electricity worth Rs 75,960 crore from private power producers during 2024-25. “Compared to neighbouring states such as Andhra Pradesh, which spent around Rs10,000 crore, and Karnataka, which spent Rs 4,473 crore, TNPDCL’s power purchase cost is very high,” he said.
Natarajan said the state should focus on reducing dependence on private power purchases and ramping up its own power generation capacity, especially as electricity demand continues to rise.