Electricity distribution will not be privatized in TN: Minister

Power Minister CTR Nirmal Kumar addressing the Coimbatore Industry Association at a meeting organized by the Confederation of Indian Industry in the city on Tuesday. | Photo credit: SIVA SARAVANAN S.

Electricity distribution will not be privatized in Tamil Nadu, Power Minister CTR Nirmal Kumar said in Coimbatore on Tuesday.

Speaking at a meeting organized by the Confederation of Indian Industry, Coimbatore, before members of various industry associations, the minister said that the Union government was pressuring the states to privatize electricity distribution. However, Tamil Nadu would not. The DMK government in the state was moving towards privatization as Tamil Nadu’s power sector debt stood at ₹2.5 crore. “We have to save TNEB first,” he said.

The Tamil Nadu Electricity Regulatory Commission will be reconstituted in a few weeks and the state government will come up with a policy for the Battery, Energy and Storage (BES) system in two weeks. A coordination committee will also be formed soon.

“The previous state government thought that it would bring investment to Tamil Nadu from outside. We don’t believe in that. We want to develop the existing industry in the state, in places like Coimbatore. We will give you full support,” he said.

In the last 15 years, the state stopped focusing on the development of local industry. Those who invest in Tamil Nadu from other places are looking only for profits. Only cottage industries know the people and the place, he said.

The electricity department will sign an MoU with IIT – Madras for research, development and new technologies within two days. About 12,000 people will be recruited for vacancies in the civil services this year. Additional costs incurred may be covered. “We have done away with all policies that favored only a few. This year we will purchase ₹5,000 crore worth of transformers. As many as 231 new substations will be built,” the minister said.

He invited local industries that generate renewable energy to supply to the state grid and also invited them to participate in the tenders of the Ministry of Electricity. “We are streamlining electricity procurement and will develop the necessary infrastructure for the power sector within a few years. Each of the previous governments lost ₹ 1,000,000 for purchasing electricity. If the cost of purchased electricity can be brought down by ₹ 5 per unit, the electricity sector can be revived. However, the immediate problems of the industry will be looked into and resolved. They will be called for a High 300 consumer meeting soon,” he said.

Published – 7 Jul 2026 21:59 IST