CHENNAI: Tamil Nadu Electricity Minister CTR Nirmal Kumar on Thursday (June 25) released a white paper on the financial status of the Tamil Nadu Electricity Board, stating that the power sector's total outstanding debt has reached Rs 2.47 lakh crore.
According to a Daily Thanthi report, the minister released the document at the Electricity Board headquarters and said it traced the sector's financial trajectory over the past 25 years. The white paper comes days after the State government released a broader report on Tamil Nadu's finances, which pegged the State's total debt at Rs 13.18 lakh crore and the power sector's debt at Rs 2,47,130 crore.
Nirmal Kumar said the Electricity Board incurred 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.
He said the Board currently has a debt burden of Rs 2.47 lakh crore and that the power sector accounts for 77.6 per cent of the total debt of State public sector undertakings.
According to the white paper, the power sector recorded a deficit of Rs 35,463 crore during the 2006-11 period, Rs 56,361 crore during 2011-16, and Rs 58,534 crore during 2016-21.
The minister alleged that despite substantial expenditure, revenue generation and borrowing over the years, infrastructure had not improved in proportion to the money spent.
Nirmal Kumar said there are 65,921 vacancies in the Electricity Board out of a sanctioned strength of 1,40,635 posts, with only 74,714 positions filled.
While 9,136 employees retired between 2021 and 2026, only 343 appointments were made during the same period, he said. The minister announced that 20,000 new recruits would be appointed this year and that 5,391 gangmen recruited in 2021 would also be given employment approval.
The minister said Tamil Nadu's peak power demand stood at 21,307 MW. The State procures power through hydroelectric, thermal and gas-based sources and also purchases electricity from the Centre, private companies and other states.
He added that efforts are under way to replace short-term power purchase agreements with long-term contracts, a move expected to save around Rs 215 crore every month.
Stating that there would be no increase in electricity tariffs this year, Nirmal Kumar said the government would take steps to strengthen the Electricity Board and improve the sector's functioning.
He also alleged irregularities in the procurement of electrical conductors at nine locations and said the matter would be examined.