Chennai, June 26: Tamil Nadu’s Electricity Minister, C.T.R. Nirmal Kumar, released a white paper on Thursday detailing the financial status of the Tamil Nadu Electricity Board (TNEB). The report reveals that the state’s power sector is burdened with a staggering debt of ₹2.47 lakh crore.
Despite this growing financial strain, the minister assured consumers that there would be no increase in electricity rates this year.
The white paper, presented at the TNEB headquarters in Chennai, offers an in-depth review of the financial performance of the power sector over the past 25 years.
This announcement coincides with the Tamil Nadu government’s recent release of a comprehensive white paper on state finances, which estimates the total state debt at ₹13.18 lakh crore, with the power sector’s liabilities at ₹2,47,130 crore.
Speaking to reporters, the minister noted that between 2021 and 2026, the total expenditure of the electricity board reached ₹5.32 lakh crore, while its revenue during the same period was ₹4.97 lakh crore, resulting in a loss of ₹34,447 crore.
He highlighted that the power sector now constitutes 77.6% of the total debt of all public enterprises in the state, underscoring the urgent need for financial reforms.
According to the white paper, the electricity board has consistently operated at a loss under multiple governments. Losses amounted to ₹35,463 crore from 2006 to 2011, which escalated to ₹56,361 crore from 2011 to 2016, and further to ₹58,534 crore from 2016 to 2021.
Nirmal Kumar criticized the lack of expected development in power infrastructure despite significant spending and borrowing. The government is committed to strengthening the power sector through improved financial management and operational efficiency.
He also mentioned that Tamil Nadu’s peak electricity demand has reached 21,307 megawatts. The state meets its electricity needs through hydro, thermal, and gas-based generation, along with purchases from central plants, private producers, and other states. The government is working on long-term contracts instead of costly short-term power purchase agreements, aiming to save approximately ₹215 crore each month.
The minister reiterated that there would be no changes to electricity rates this year, with the government’s immediate focus on improving the financial health of the electricity board. Investigations will be conducted into alleged irregularities in the procurement of conductors at nine locations.
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