As within the case of different non-northeast and hill states, a good portion of Tamil Nadu’s losses had been concentrated within the energy sector. File |Picture Credit score: The Hindu
Tamil Nadu has been recognized as one of many prime three states within the nation affected by heavy losses by state public sector enterprises (SPSEs).
In accordance with the sixteenth Finance Fee’s Main Report Quantity 1, the highest three states on this class for 2022-23 had been Uttar Pradesh (Rs 32,430 crore), Rajasthan (Rs 18,814 crore) and Tamil Nadu (Rs 16,048 crore). These states fall into the broad group of non-Northeast and hilly (non-NEH) states.
As in different non-NEH states, a good portion of the losses had been concentrated within the energy sector. Throughout the yr, the now defunct Tamil Nadu Technology and Distribution Company (Tangedco) recorded losses of round Rs 9,192 crore. Nonetheless, the revenue after tax (PAT) of Tamil Nadu Energy Distribution Company Restricted (TNPDCL), one of many successor firms of Tangedco, is estimated to be Rs 2,073 crore in 2024-25, in keeping with the lately launched annual consolidated rankings of energy distribution firms compiled by the Energy Finance Company.
Nonetheless, this was made attainable by the state authorities’s enormous measures – provision of customs subsidy of Rs 15,772 crore and loss inheritance of Rs 16,107 crore. Extra importantly, TNPDCL’s gathered deficit has come down from Rs 1,66,944 crore in 2023-24 to Rs 1,191.53 crore in 2024-25, because of the separation of Tangedco.
Overview of State Public Sector Enterprises (SPSEs) in Tamil Nadu as on March 31, 2023
Variety of firms: 102
Gross sales (as a proportion of gross home product): 7.1%
Business enterprise: 54 Deficit firms: 35 individuals (the remainder unknown)
Revenue: ₹256 billion loss: ₹16,048 billion
State authorities price range expenditure on SPSE: 2,686.7 billion yen
Wonderful assure from the state authorities. To SPSE: ₹89,768 billion
sauce: Report of the sixteenth Finance Committee (Quantity 1 of this report)
The Finance Committee described SPSE’s poor monetary efficiency as a “burden on the state price range” and mentioned the state authorities has to bear budgetary expenditures within the type of grants, grants, fairness investments and loans. As well as, ensures needed to be supplied for the loans raised by SPSE. The monetary help supplied to SPSE within the type of fairness, loans and grants/grants by the state authorities via the price range for 2022-23 amounted to a complete of Rs 2,500 crore.
The committee recorded that the budgetary expenditure by the Tamil Nadu authorities on SPSE for 2022-23 was Rs 26,867 crore and the excellent assure until the top of the yr in query amounted to Rs 89,768 crore.
The committee didn’t embody Tamil Nadu, which has a excessive proportion of loss-making firms, within the membership states, a comfort situation for policymakers and the state’s residents.
