Tamil Nadu power distributor faces ₹2,500 crore monthly cash shortfall: White Paper

Tamil Nadu's power distribution company faces a persistent monthly structural cash shortfall of ₹2,500 crore, according to a White Paper. This translates to an annual liquidity gap of approximately ₹30,000 crore.

The company finances this deficit through short-term borrowings, delayed payments to power purchase counterparties, and deferred capital expenditure, the report states. The structural nature of the shortfall underscores deeper financial challenges in the state's power sector.