State Minister for Transport and Electricity, SS Sivasankar|Image Credit: Siva SaravananS
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Over the next 5 to 7 years, Tamil Nadu will need over 2 lakh crore in financial investments throughout power generation, transmission and circulation. A brand-new detailed financial obligation restructuring plan, with joint involvement from the Union and State federal governments, is important, stated State Minister for Transport and Electricity, SS Sivasankar.
The minister, speaking at Group of Ministers on the monetary practicality of Electricity Distribution Companies in New Delhi on Monday, likewise stressed the requirement for unique grants to be supplied under the 16th Finance Commission.
The conference was chaired by the Union Minister for Power, Housing and Urban Affairs, Manohar Lal, and the Union Minister of State for Power and New & & Renewable Energy, Shripad Yesso Naik, states a State federal government release.
Tamil Nadu has actually become a leader in the energy sector, executing a number of considerable accomplishments and reforms. He highlighted that, a Multi-Year Tariff program connected to the Consumer Price Index (CPI), with automated yearly boosts, has actually been presented in Tamil Nadu.
The minister stated TANGEDCO has actually been unbundled into different business for Generation, Green Energy and Distribution. Aggregate Technical and Commercial (AT&C) losses, which stood at 18.73 percent in 2017-18, have actually been lowered to 10.73 percent in 2024-25.
Expert system is being utilized for need forecasting and power purchase preparation. Through settlements with REC and PFC, rates of interest have actually been decreased by 0.5 percent. The ACS-ARR space has actually narrowed to simply 0.04 per system, and payable days have actually been lowered from 146 to 49, he stated.
The minister prompted that rates of interest from REC and PFC be decreased by a minimum of 1.5 percent. Net metering for roof solar need to shift to a net feed-in system. For open gain access to customers, banking charges must be lined up with the expense differentials in between procurement and modification time slots, or settlement ought to be allowed within the very same time slot.
Tamil Nadu has actually been greatly strained by increased Inter-State Transmission System charges emerging from exemptions for renewable resource, General Network Access-based sharing, and upcoming green hydrogen jobs. To resolve this, the Minister suggested adoption of the “User Pays” concept and discontinuation of waivers for commercially fully grown eco-friendly innovations. He prompted that the Raigarh-Pugalur-Trissur High-Voltage Direct Current transmission line be acknowledged as a tactical nationwide property, with charges figured out appropriately.
The minister likewise pushed for decrease of SECI’s trade margin, instant notice of the Captive Generation Scrutiny treatment by State Regulators, and top priority status for electrical power fees under the IBC resolution procedure. Furthermore, he hired the Reserve Bank of India to allow extension of loan tenors to match possession life, increase the ECB limitation under the automated path to 25,000 crore each year, and exempt capital gains tax on transmission property monetisation deals.
Released on September 15, 2025
