Senthilbalaji Warns of Tamil Nadu’s Rising Power Debt

CHENNAI: Former Tamil Nadu electricity minister V Senthilbalaji has criticised the C Joseph Vijay-led government for failing to properly estimate the state’s electricity demand and plan power generation accordingly. He warned that the government’s decision to purchase electricity from outside sources at high prices could create serious financial problems for the Tamil Nadu Generation and Distribution Corporation (Tangedco).

Senthilbalaji said Tangedco’s debt, which currently stands at around Rs 2.4 lakh crore, could rise to more than Rs 5 lakh crore by the end of the present government’s term if the situation continues. He expressed concern that depending on short-term power purchases instead of improving local power generation could increase the financial burden on the state.

According to Senthilbalaji, Tamil Nadu’s own electricity generation, which earlier met around 60% to 75% of the state’s total demand, has now fallen to between 30% and 35%. As a result, the state has been forced to purchase more electricity from the open market, where prices can be high.

He alleged that the government was considering purchasing electricity at Rs 35 per unit and demanded that the reported decision be withdrawn. He said buying power at such a high rate could increase expenses and place additional pressure on the state’s electricity department.

Speaking to reporters at Arivalayam on Tuesday, Senthilbalaji accused the government of spending the past five months cancelling tenders and blaming officials instead of properly studying electricity demand and making plans to meet future requirements. He also criticised the government for referring to certain officials as “blacksheep” rather than focusing on long-term solutions to the state’s power needs.

Senthilbalaji also questioned the government’s current electricity procurement policy by recalling the Tamilaga Vettri Kazhagam (TVK) leadership’s criticism of the previous DMK government during the election campaign.

He pointed out that Vijay and his party had raised concerns about the previous government purchasing electricity from the open market at high prices. He also recalled that Electricity Minister C T R Nirmalkumar had demanded the resignation of the then government over power purchases reportedly costing Rs 20 per unit.

Questioning the present government’s position, Senthilbalaji asked how the electricity minister would justify the reported proposal to purchase power at Rs 35 per unit when the party had earlier criticised similar purchases at lower prices.

He said the government should focus on accurately assessing electricity demand, improving the state’s own power generation and planning purchases in advance. He warned that continued dependence on expensive market purchases could worsen Tangedco’s financial position and increase its debt in the coming years.