Tamil Nadu power procurement could push Tangedco’s debt beyond Rs 5 lakh crore by the end of the current government’s tenure, former electricity minister V Senthilbalaji warned on Tuesday, alleging that inadequate demand planning and reduced own-generation were forcing the state utility to buy electricity from the open market at high prices.
Speaking to reporters at Arivalayam, Senthilbalaji alleged that Tangedco’s debt could rise from about Rs 2.4 lakh crore to more than Rs 5 lakh crore if the government continued relying on short-term power purchases. He also demanded the withdrawal of a reported decision to procure electricity at Rs 35 per unit.
The former minister claimed that Tamil Nadu’s own generation, which previously met between 60% and 75% of demand, had fallen to 30%-35%. According to him, the decline had increased the state’s dependence on open-market purchases and created financial pressure for the electricity utility. The figures and allegations were reported by the Times of India.
Senthilbalaji criticised the government for cancelling tenders and blaming officials instead of assessing demand and planning generation capacity. He said the previous DMK government held regular meetings with officials and floated tenders in November and December for the peak-demand months, including May. He claimed that advance procurement planning helped bridge supply gaps at lower prices.
He also compared the current procurement policy with statements made during the campaign against the previous government. Senthilbalaji said electricity minister C T R Nirmalkumar had earlier demanded the resignation of the then government over purchases from the open market at Rs 20 per unit. He questioned how the minister would respond to the reported proposal to buy power at Rs 35 per unit.
The dispute centres on the balance between electricity demand, available generation and procurement timing. Short-window purchases can help utilities manage immediate shortages, but the cost of such purchases directly affects the finances of a state power distributor. Senthilbalaji alleged that frequent reliance on such tenders could also create opportunities for corruption and irregularities. He did not provide documentary evidence for those allegations in the reported interaction.
Senthilbalaji further alleged that power cuts had become frequent across Tamil Nadu, including during ministers’ programmes, convocation ceremonies and at the Secretariat. He claimed residents were protesting regularly, including in Chief Minister C Joseph Vijay’s Perambur constituency. These claims were attributed to him and were not independently established in the supplied report.
The former minister said the previous DMK government had increased power generation to 29,000 million units from 22,000 million units during the AIADMK regime. He also claimed that demand had risen by more than 4,300 MW over five years while the earlier administration maintained supply through planning and additional generation.
He accused the government of failing to operate existing facilities at optimum capacity and of delaying projects including Ennore Thermal Power Station’s Stage III and the Udangudi thermal power project. The reported remarks did not include a response from the electricity department or the current government to the allegations, nor did they establish the present status of the cited projects or the reported procurement decision.
