Tamil Nadu's electricity sector drowning in ₹2.47 lakh crore debt, according to a White Paper from Electricity Minister R. Nirmalkumar on Thursday. Report shows Tamil Nadu Power Distribution Corporation Limited (TNPDCL),Tamil Nadu Power Generation Corporation Limited (TNPGCL), Tamil Nadu Green Energy Corporation Limited (TNGECL),and TANTRANSCO deep in red. Worries mount about state's energy infrastructure sustainability.
Tariff revision by previous government in 2022 did little good for department or consumers. Rates hiked across board,while power purchase agreements racked up costs. Minister noted state's peak demand over 21,300 MW, but only 3,495 MW generated locally — 2,965 MW from thermal,381 MW from hydro, 149 MW from gas.
Past governments leaned on external procurement over local generation. Minister slammed reliance on Central stations,solar power at ₹6.11 per unit, leading to high expenses. Market rates can spike to ₹17 per unit during peak times, straining finances. Department plans new open-access mechanisms to save ₹215 crore in coming years .
On infrastructure, Nirmalkumar reported only two of four major thermal projects are active. Ennore SEZ,Udangudi progress, but ETPS Expansion,Uppur stalled post ₹8,700 crore spent. Minister criticized lack of new substations despite revenue from tariff hikes. During AIADMK rule (2016-2021),359 substations commissioned; just 122 completed from 2021 to 2026.
Procurement of 99,573 new transformers by previous government under scrutiny for a scam involving 45,800 units, now being investigated. Severe manpower shortage—nearly 45% vacancy rate with 65,921 positions unfilled from sanctioned strength of 140,635. Current workforce at 74,714.
Nirmalkumar admitted shortage in wiremen,linemen roles could delay power restoration,new connections. Following Chief Minister C . Joseph Vijay's orders,he proposed hiring 15,000 new staff this year,absorbing 5,391 gangmen already recruited.
Minister unveiled plans to renovate 682 substations at ₹8,318 crore, speed up work on 121 under construction, and build 231 new ones. White Paper aims to highlight Tamil Nadu electricity sector's challenges,urgent reform need for reliable power,financial stability...
