Business Standard

Why Tamil Nadu's massive power sector debt is the highest in India?

According to the state government, a major reason for this is the AIADMK government's reluctance to raise power tariffs for the last 7 years, apart from high costs and lower recoveries

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Shine Jacob Chennai
Contributing to around 30 per cent of the total power sector debt in India of Rs 4.5 trillion, 20 per cent of the country’s discoms' outstanding dues to power generation companies in June 2021 and 28 per cent of Tamil Nadu's overall debt, the Tamil Nadu Generation and Distribution Corporation (Tangedco) is turning out to be a serious concern for not just the power sector in India, but for the state’s efforts in reducing its rising debt burden too.

Within a span of one year, the guarantee provided by the state government for loans to the power sector jumped 90

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