India News | TN Govt Paying Interest on Loan Legacy Inherited from AIADMK Regime: Minister

Chennai, Mar 20 (PTI) The Tamil Nadu government is paying interest on the loan legacy it inherited from the previous AIADMK regime while also implementing measures to improve the financial condition of TANGEDCO (Tamil Nadu Generation and Distribution Corporation Ltd), the state-owned entity, state Electricity Minister V Senthil Balaji claimed on Thursday.

He alleged that the previous AIADMK government had left the state power distribution company in dire financial straits and had done little to improve the power infrastructure.

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"After coming to power in 2021, the DMK government provided a subsidy of over Rs 68,000 crore to TANGEDCO, and we are paying an interest of Rs 16,500 crore on the loan availed by the previous AIADMK government for the power utility," Balaji said, hitting out at former AIADMK Minister P Thangamani for his remark that TANGEDCO continued to incur losses.

Initiating a debate in the Assembly on the Budget, Thangamani claimed that TANGEDCO was making losses despite an increase in revenue due to a tariff revision.

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"TANGEDCO continues to suffer losses despite the power tariff revision, which was expected to generate an additional revenue of Rs 20,000 crore," Thangamani said.

Taking a dig at the ruling DMK government's claims of employment creation and industrialisation, the former Minister said, "You are providing financial aid to women but not creating employment opportunities."

He further stated, "The state's power demand remains at 16,000 MW despite the mushrooming of industries. An increase in industries should have led to higher power consumption, but that does not seem to be the case."

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)