Chennai, June 25:
State Electricity Minister Nirmal Kumar today released a comprehensive white paper detailing the financial and operational status of the Tamil Nadu power sector, revealing that the State’s electricity board is currently burdened with a massive debt of ₹2.47 lakh crore.
Presenting a 25-year overview of the sector, the minister outlined the mounting losses across successive governments. According to the report, the power sector recorded a loss of ₹8,355 crore between 2001 and 2006, which sharply increased to ₹35,463 crore during 2006–2011. The losses further escalated to ₹56,361 crore between 2011 and 2016, followed by ₹58,534 crore from 2016 to 2021. In the most recent period from 2021 to 2026, the sector incurred an additional loss of ₹34,447 crore.
Highlighting key concerns, Nirmal Kumar questioned the sharp rise in expenditure despite limited new investments. He pointed out that expenses have increased by ₹51,000 crore even though no major new infrastructure—such as transformers or system upgrades—was undertaken beyond ongoing and previously initiated projects.
The minister raised serious questions about financial management in the sector, asking how costs could escalate significantly without corresponding expansion or modernisation efforts. He suggested that inefficiencies and lack of fresh capital investments may have contributed to the growing financial strain.
Nirmal Kumar has outlined a series of major reforms and infrastructure initiatives aimed at strengthening Tamil Nadu’s power sector.
Highlighting the current status of infrastructure, the minister said Tamil Nadu has 4,47,603 transformers, of which 42,808 have crossed 25 years of service, indicating an urgent need for modernisation. To address this, the government plans to immediately commission 231 new substations and undertake infrastructure upgrades at a cost of ₹21,512 crore.
Nirmal Kumar also alleged that no new power generation projects were initiated during the DMK’s five-year rule, raising concerns over long-term energy security. He stressed that the present government is focused on strengthening both generation and distribution capacity to meet growing demand.
On governance and transparency, the minister made strong assertions, stating that there is no concept of “party fund” in the current administration. He invited anyone who had paid such funds to come forward with complaints, assuring that action would be taken to recover and return the money.
He further warned of strict action against those who fail to pay contract workers in the electricity sector, underlining the government’s commitment to worker welfare. Additionally, he assured that transfers within the department would be handled transparently, based on proper procedures rather than influence.
The minister also accused the previous government of mishandling electricity board employees, claiming they were treated poorly. In contrast, he said the current administration has issued appointment orders to 411 individuals recently and granted promotions to many others.
Reinforcing the government’s stance, Nirmal Kumar stated that around 3,000 transfers have already been carried out without any irregularities. He alleged that earlier regimes conducted appointments without transparency, but assured that such practices would no longer be tolerated under the present system.
These announcements come as part of a broader effort to reform the power sector, improve accountability, and ensure reliable electricity supply across Tamil Nadu.