With reference to the funding of Tamil Nadu Power Distribution Corporation Limited (TNPDCL), consider the following statements: 1. The planned tariff subsidy for the current year is ₹9,893 crore. 2. The government funding to TNPDCL saw a 451% growth between 2013-14 and 2024-25. 3. The average annual assistance for loss absorption since 2021-22 is ₹18,130 crore. Which of the statements given above is/are correct?

CAG Report: TNPDCL Gets ₹2.55 Lakh Crore from Govt, 451% Growth Since 2013-14

GS3Economy · S&T · Environment · Security· Fiscal policy, budget & taxation (GST)· Prelims + Mains· 16 September 2026

Fiscal health and subsidy regimes: a GS3 case study on state-funded public utility losses.

Why in news

The CAG highlighted a 451% growth in government funding to the Tamil Nadu Power Distribution Corporation Limited (TNPDCL) between 2013-14 and 2024-25.

Background

The state government has fully absorbed TNPDCL's losses since 2021-22, averaging an annual assistance of ₹18,130 crore.

Facts for Prelims

FactTNPDCL received ₹2.55 lakh crore from the government between 2013-14 and 2024-25.
FactAverage annual assistance to TNPDCL for loss absorption since 2021-22 is ₹18,130 crore.
FactPlanned tariff subsidy for the current year is ₹18,860 crore.
FactNearly ₹9,893 crore is reserved for a free electricity scheme up to 200 units.
BodyCAG: Comptroller and Auditor-General of India

Prelims practice question

With reference to the funding of Tamil Nadu Power Distribution Corporation Limited (TNPDCL), consider the following statements:

The planned tariff subsidy for the current year is ₹9,893 crore.
The government funding to TNPDCL saw a 451% growth between 2013-14 and 2024-25.
The average annual assistance for loss absorption since 2021-22 is ₹18,130 crore.

Which of the statements given above is/are correct?

(a)1 only
(b)2 only
(c)1 and 3 only
(d)2 and 3 only

Show answer

Answer: (d) 2 and 3 only — Statements 2 and 3 are correct. Statement 1 is incorrect: The planned tariff subsidy is ₹18,860 crore; ₹9,893 crore is for the free electricity scheme.

For Mains

Q. Examine the fiscal implications of state-funded subsidies on public utility corporations and their impact on state fiscal health.

Dimensions to cover in your answer

Fiscal strain: High recurring subsidies for power distribution impacting state capital expenditure
Cross-subsidization issues: Impact of free electricity schemes on the financial viability of state-run utilities
Audit oversight: Role of CAG in identifying inefficiencies in public-sector utility funding

Keywords: Fiscal deficit · Cross-subsidization · Public utility · Audit report · Subsidy regime

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