Tamil Nadu's Power Struggle: Legacy Debts and Financial Challenges

The Tamil Nadu government grapples with financial woes of TANGEDCO, attributed to the previous AIADMK regime. Despite Rs 68,000 crore subsidy and tariff revisions, losses persist. Former AIADMK Minister accuses current DMK rule of inadequate employment creation, even as the state's power demand remains stagnant.

The Tamil Nadu government finds itself burdened by the financial legacy left by the former AIADMK administration, particularly concerning the state-owned Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO). The current regime is implementing measures to stabilize the entity's financial state, said Electricity Minister V Senthil Balaji on Thursday.

Balaji accused the former AIADMK government of leaving TANGEDCO in severe financial trouble, with little effort made to enhance power infrastructure. He detailed that since taking office in 2021, the DMK has allocated a subsidy exceeding Rs 68,000 crore to TANGEDCO and is managing an interest burden of Rs 16,500 crore from loans taken by the former government.

In an assembly debate on the Budget, former AIADMK Minister P Thangamani highlighted that despite revenue boosts from a tariff revision, TANGEDCO continues to incur losses. He also criticized the DMK for focusing on financial aid over job creation, while power demand remains at 16,000 MW, unchanged even with industrial growth.

(With inputs from agencies.)