Palaniswami accuses TVK govt of ‘orchestrating’ power procurement scam, flags ₹35/unit purchase

Chennai, AIADMK general secretary Edappadi K Palaniswami on Tuesday accused the TVK-led government of "orchestrating" a massive corruption scandal in power procurement, saying its handling of the TNPDC had pushed the utility deeper into a financial crisis.

In a statement, Palaniswami flagged the short-term purchase of electricity from private firms at an alleged exorbitant average rate of ₹35 per unit, and claimed that the mismanagement had plunged Tamil Nadu into darkness and severe distress.

Citing frequent power cuts, he claimed that the inexperience and administrative failure of the TVK coalition government, which came to power five months ago, had left the public severely distressed.

He alleged that the ruling dispensation was exploiting these hardships to engage in systematic corruption.

Reports indicate that the Tamil Nadu Power Distribution Corporation has awarded contracts to five private companies to procure 4,400 MW of power daily between October 12 and 31, 2026, Palaniswami said.

Expressing concern over the historic high price, he contrasted it with neighbouring Andhra Pradesh, which, he said, had finalised its October procurement at ₹16–20 per unit well before calling for emergency tenders. He added that market and bilateral peak-hour rates rarely approached such levels.

Recalling the AIADMK governments led by late Chief Minister J Jayalalithaa and himself, during which Tamil Nadu became a power-surplus state, Palaniswami accused the present government of failing to plan.

Palaniswami alleged that the TVK government had cancelled earlier power procurement contracts in May over corruption suspicions and promised low-cost, long-term agreements in June, but had now turned to short-term contracts with private firms at rates of ₹32 to ₹37 per unit, nearly twice the earlier rates.

Palaniswami further alleged, citing public complaints, that electricity bills for ordinary consumers had surged from around ₹1,500 to roughly ₹4,000 under revised calculation policies.

He warned that high-cost power procurement could push the TNPDC further into debt and pave the way for its eventual privatisation.

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