Tamil Nadu Generation and Distribution Corporation Limited (Tangedco) has recorded the highest accumulated losses among all state power distribution companies in India, with a staggering ₹1.62 lakh crore loss till the financial year 2022-23. Data presented in the Rajya Sabha reveals that Tangedco alone accounts for 25% of the total losses incurred by power distribution utilities across the country.
According to official figures, the total accumulated losses of all power utilities in India stood at ₹6.47 lakh crore as of 31 March 2023. Tangedco’s financial burden has worsened drastically, increasing by 157% from ₹63,162 crore in 2015-16 to ₹1,62,507 crore in 2022-23. By comparison, the overall losses of power distribution companies in India have increased by 72% during the same period, from ₹3.76 lakh crore in 2015-16 to ₹6.47 lakh crore in 2022-23.
Following Tamil Nadu, Rajasthan ranks second in terms of accumulated losses, with ₹92,070 crore, while Uttar Pradesh follows closely with ₹91,632 crore.
Union Minister of State for Power Shripad Naik attributed the worsening financial condition of state-owned power utilities to multiple factors, including the non-implementation of fuel and power purchase cost adjustments, delays in tariff revisions, inefficient billing systems, and under-recovery of electricity dues from state government departments and subsidy amounts.
A senior Tangedco official stated that despite implementing three electricity tariff hikes since September 2022, the utility continues to suffer financial losses due to the massive interest burden from previous years. In 2022-23, Tangedco reported a loss of ₹10,868 crore, primarily due to an interest expenditure of ₹13,450 crore. The previous financial year saw an even higher loss of ₹12,995 crore, with ₹10,923 crore spent on interest payments.
The official noted that continuous tariff revisions and efforts to reduce interest burdens have helped narrow the gap between the average cost of power supply and the average revenue collected. This deficit, which stood at ₹1.24 per unit in the previous financial year, is projected to decrease to ₹0.49 per unit in 2024-25. However, despite these efforts, Tangedco remains in deep financial distress, with its debt burden continuing to weigh heavily on Tamil Nadu’s power sector.
(With inputs from DTNext)
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