TANGEDCO: The ₹1.67 Lakh Crore Hole
Tamil Nadu Generation and Distribution Corporation (TANGEDCO) is the state's power company. It is currently the most loss-making electricity board in India. Its failure is the single biggest threat to Tamil Nadu's financial health.
The Loss Story
Every year, TANGEDCO spends more to make/buy power than it earns from selling it. The gap is huge.
Yearly Operational Losses (₹ crore)
Despite raising electricity prices twice, the company still loses thousands of crores every year. In 5 years, the government has given it **₹73,821 crore** just to keep it running — and it still wasn't enough.
The Debt Mountain
Because it makes losses, it borrows money to pay for coal and salaries. Today, its total debt is massive.
This debt is nearly **18%** of the entire state's direct debt. If TANGEDCO fails, the government HAS to pay this back.
Why is it losing money?
Technical Losses: **15%** of power is lost in wires or stolen (Global standard is below 5%).
High Interest: It pays over **₹15,000 crore** every year just as interest on its old loans.
Inefficient Plants: Many government-owned coal plants are old and very expensive to run.
The Impact on You
Higher Bills: Your electricity bills will keep going up to cover these losses.
Unreliable Power: No money for maintenance means more transformers blowing up and frequent power cuts in summer.
Economic Risk: If the power company collapses, the whole state's economy stops.