Tamil Nadu: With power tariffs revised, Tangedco hopes to bridge its burgeoning revenue gap in three years

CHENNAI: Even as the state-owned discom Tangedco’s debt burden has been estimated to be 1.59 lakh crore till the financial year 2021-22, the Tamil Nadu Electricity Regulatory Commission (TNERC), in its latest tariff order, has stated the tariff revision has been envisaged only to neutralise the annual revenue deficit by financial year 2025-26.

With the old tariff system, the revenue gap is projected to be 23,877 crore for 2022-23, which is expected to come down by half to Rs 12,504.64 crore by implementing the new tariff system along with subsidy by the state government and release of funds under UDAY scheme for the rest of the financial year.

A Tangedco official told TOI that Tangedco is expected to break even from 2024-25 after which the loans would be settled with the surplus revenue in a phased manner to bring down the interest.