TN govt to release 17,307cr subsidy to TNPDCL this year

Chennai: The state govt should release 17,307 crore to the Tamil Nadu Power Distribution Corporation (TNPDCL) towards subsidy for various categories of electricity consumers this financial year. It is roughly 1,300crore more compared with the subsidy released for 2025-26.Of the 17,307crore, the lion's share of 8,428.16 crore goes towards 100 units of free electricity provided to all domestic consumers, apart from reduction in tariff for subsequent tariff slabs. The second-biggest share of 7,317crore goes towards free electricity supply to agri connection — 564.41crore will go towards free supply and tariff reduction for powerlooms, 394.10crore towards small-scale industries for reduction in peak-hour consumption charges, and 370crore for free electricity for consumers living in huts. Though electricity tariffs are revised annually in Tamil Nadu, the state govt has been absorbing the additional burden every alternate year, which increases the subsidy quotient by at least 1,000crore per year.In the latest subsidy order, the TN Electricity Regulatory Commission has directed the state govt to release the subsidy in advance for every quarter to compensate for the shortfall in revenue to TNPDCL consequent to the extension of free supply and reduction of tariff as per policy direction. The regulatory body has also instructed TNPDCL to extend free supply and collect reduced tariff from respective consumers. For the first quarter, the state should immediately release about 4,326crore, and excess or shortfall in the subsidy will be adjusted in the third quarter. Similarly, the subsidy released for the second quarter will be reconciled in the fourth quarter. TNPDCL officials said the state govt promptly releases the subsidy in advance to ensure that the discom does not face any difficulties in its daily operations.
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