Tamil Nadu electricity procurement controversy

The Tamilaga Vettri Kazhagam (TVK) government in Tamil Nadu is facing political scrutiny regarding high electricity procurement costs. Critics, including AIADMK general secretary Edappadi K Palaniswami, have accused the administration of creating an artificial power shortage to justify purchasing electricity at rates as high as Rs 35 to Rs 37 per unit. Palaniswami characterized the situation as a ‘vettri mega scam’, noting that previous administrations secured power at significantly lower rates.

Energy Resources Minister CTR Nirmal Kumar defended the costs, citing an unexpected 30% surge in peak power demand driven by El Niño-related weather patterns. However, opposition leaders argue that the government failed to plan effectively, pointing out that other states secured short-term power at much lower rates by finalizing agreements in advance. The controversy is further compounded by reports of significant financial pressure on the state’s power distribution corporation, with debts reaching Rs 2.48 lakh crore.

In recent developments, Palaniswami expanded his criticism during a speech in Madurai, alleging that the administration intentionally canceled tenders for cheaper power to facilitate more expensive purchases. He further accused Chief Minister Vijay of maintaining limited working hours and taking weekends off, questioning the government's capacity to manage law and order. HR&CE Minister S. Ramesh defended the administration, dismissing the claims as political vendetta and asserting that the government is actively working to control price rises and address public concerns.