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Tamil Nadu Electricity Minister CTR Nirmal Kumar released a white paper on the financial condition of the Tamil Nadu Electricity Board (TNEB), revealing that the state's power sector carries an outstanding debt of Rs 2.47 lakh crore. However, the Minister also assured consumers that there will be no electricity tariff hike this year.
Releasing the document at the Electricity Board headquarters on Thursday, June 25, Nirmal Kumar said the white paper examines the sector's finances, infrastructure, staffing, procurement, logistics, ongoing projects, and revenue and expenditure patterns over the past 25 years. He described it as a roadmap for improving transparency and guiding future reforms in the power sector.
According to the white paper, the power sector's total debt stands at Rs 2,47,130 crore, accounting for 77.6% of the total debt accumulated by Tamil Nadu's public sector undertakings. The disclosure comes days after the state government released a broader fiscal white paper that placed Tamil Nadu's overall debt at Rs 13.18 lakh crore.
The Minister said TNEB recorded expenditure of Rs 5.32 lakh crore between 2021 and 2026 against revenue of Rs 4.97 lakh crore, resulting in a deficit of Rs 34,447 crore during the period. He also outlined the sector's financial performance over previous administrations, stating that the power sector registered deficits of Rs 35,463 crore between 2006 and 2011, Rs 56,361 crore between 2011 and 2016, and Rs 58,534 crore between 2016 and 2021.
Nirmal Kumar alleged that despite significant expenditure, borrowing and revenue generation over the years, infrastructure development had not kept pace with the money spent. He also said the government would examine alleged irregularities in the procurement of electrical conductors at nine locations.
Addressing concerns over electricity tariffs, the Minister said the government would not approve any tariff revision this year. He also said the free electricity scheme for farmers would continue.
On the proposed smart meter programme, Nirmal Kumar said that the state was currently required to install smart meters only in government buildings. He said no policy decision had been taken to extend the project to residential consumers and that the government was only considering pilot testing before taking any further steps.
The white paper also highlighted severe staffing shortages within the Electricity Board. Of the sanctioned strength of 1,40,635 posts, only 74,714 are currently filled, leaving 65,921 vacancies. The Minister said 9,136 employees retired between 2021 and 2026, while only 343 appointments were made during the same period.
To address the shortage, the government plans to recruit 20,000 employees this year. Nirmal Kumar also announced that 5,391 gangmen recruited in 2021 would be granted employment approval.
The Minister said Tamil Nadu's peak power demand currently stands at 21,307 MW. The state meets its requirements through hydroelectric, thermal and gas-based generation, while also purchasing power from the Union government, private producers and other states.
He added that the government is working to replace short-term power purchase agreements with long-term contracts, a measure expected to save around Rs 215 crore every month.
This article was written by a student interning with TNM.