CHENNAI: The white paper on the state’s finance presented by Finance Minister N Marie Wilson has pegged the outstanding debt of state public sector undertakings (PSUs) power, transport and civil supplies at Rs 3.18 lakh crore as of March 31 this year. Among them, the debt of the TNEB group increased from Rs 1.67 lakh crore in March 2021 to Rs 2.47 lakh crore in March 2026.
During the period, the department’s accumulated losses rose from Rs 1.45 lakh crore in March 2021 to Rs 1.82 lakh crore in March 2026. Similarly, the accumulated losses of the state transport undertakings increased from Rs 41,826 crore in March 2021 to Rs 72,667 crore in March 2026. The minister assured administrative measures would be taken to reduce losses and improve the financial health of these entities.
According to the white paper, the transport undertakings earn only Rs 25.97 for every kilometre operated, against an expenditure of Rs 78.81, resulting in a loss of Rs 52.84/km.
During 2025-26, the Tamil Nadu Power Distribution Corporation (TNPDCL) incurred monthly expenditure of around Rs 11,000 crore, while its monthly revenue stood at about Rs 8,500 crore, including Rs 6,000 crore from consumer tariff collections and Rs 2,500 crore in subsidies and grants from the state government.
As a result, the utility faced a monthly revenue shortfall of nearly Rs 2,500 crore, translating into an annual liquidity gap of about Rs 30,000 crore. This gap was bridged through short-term borrowings, delayed payments to power purchase companies, and the deferment of capital expenditure.
The white paper stated the outstanding loans of the TNPDCL stood at Rs 1.07 lakh crore, while Tamil Nadu Power Generation Corporation (TNPGCL) loans were at Rs 1.03 lakh crore, the Tamil Nadu Green Energy Corporation Limited (TNGECL) owed Rs 5,672 crore and the Tamil Nadu Transmission Corporation Limited (TANTRANSCO) had outstanding loans of Rs 30,965 crore. Together, the power-sector undertakings accounted for total outstanding debt of about Rs 2.47 lakh crore.
In addition, the State Express Transport Corporation (SETC), the Metropolitan Transport Corporation (MTC), and the six Tamil Nadu State Transport Corporation (TNSTC) units together had outstanding loans of Rs 43,865 crore. The Tamil Nadu Civil Supplies Corporation (TNCSC) also had outstanding borrowings of Rs 27,181 crore. Thus, total debt of public sector undertakings is Rs 3,18,176 crore till March 31.
Further, the white paper revealed the two major water sector boards have accumulated losses of Rs 7,776 crore. Of this, the Metro Water has incurred losses of Rs 4,961 crore, while the Tamil Nadu Water Supply and Drainage (TWAD) Board has recorded losses of Rs 2,815 crore.
PSU outstanding debt: Rs 3.18 lakh crore
Power sector: Rs 2.47L cr
Transport undertakings: Rs 43,865 crore
Civil supplies (TNCSC): Rs 27,181 crore
