Public Sector Enterprises

State Public Sector Enterprises

Financial performance of Tamil Nadu's major PSUs — profits, losses, accumulated liabilities, and state subsidies. These hidden liabilities are ultimately borne by the taxpayer.

TANGEDCO TNSTC Metro Water 7 PSUs CAG Audited
Total PSU Net Loss 2023-24 ?
₹27,924Cr
64 PSUs total
▲ 14.3% vs prev yr
Total Accumulated Losses ?
₹2.51L Cr
as of 2023-24
▲ Growing ₹25-30K Cr/yr
Loss-Making PSUs ?
34
of 64 active PSUs (53%)
12 dormant PSUs
TANGEDCO Accum. Loss ?
₹1.79L Cr
as of 2023-24
▲ ₹23,840 Cr loss in FY24
State Guarantees to PSUs ?
₹1.59L Cr
contingent liabilities 2023-24
+10.8% per year
Subsidy to PSUs (Budget) ?
₹14,280Cr
TANGEDCO subsidy 2023-24
↑ Growing annually
PSU Deep-Dive

Individual PSU Analysis

Sector View

All PSUs — Aggregate Trend

Profit/Loss Trend — All PSUs
Net P&L (₹ Crore)
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Profit vs Loss Making PSUs
Count of PSUs by financial status
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Accumulated Losses — All PSUs
Total lifetime losses piled up (₹ Crore)
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Analysis

Why PSU Losses Matter

TANGEDCO — The Biggest Risk TANGEDCO supplies below-cost electricity due to political tariff decisions. Average cost of supply: ~₹7.68/unit. Average tariff realised: ~₹5.64/unit. The ~₹2/unit gap is partly covered by state subsidy, but the rest becomes losses — now ₹1.79L Cr accumulated. TANGEDCO borrows from banks with state guarantees, creating hidden sovereign debt.
TANGEDCO Annual Report 2023-24 / CAG
TNSTC — Ageing Fleet, Fixed Fares Bus fares have not been revised to keep pace with fuel costs and inflation. TNSTC accumulated losses: ₹23,286 Cr. Daily passengers declined from 148L (2018-19) to 138L (2023-24) — partly due to private vehicles, partly route rationalisation. Safety concerns from inadequate maintenance funding.
TNSTC Annual Report / CAG PSU Report
TNPL — A Success Story Tamil Nadu Newsprint and Papers Ltd (TNPL) is one of the few profitable state PSUs. Net profit in 2023-24: ₹284 Cr. Strong export performance, efficient pulp sourcing. Shows that PSUs can be viable with commercial discipline.
TNPL Annual Report 2023-24
Reform Imperative International experience shows PSU losses can be addressed through: (1) Tariff rationalisation with targeted subsidies to poor, (2) Operational efficiency drives, (3) Privatisation of non-strategic PSUs, (4) Transparent subsidy accounting. Without reform, PSU losses will continue to crowd out state capital expenditure.
World Bank / NITI Aayog PSU Reform Studies
Data Sources
TN Finance Department — Annual Report on Public Enterprises
CAG Reports on PSUs of Tamil Nadu (Annual)
TANGEDCO Annual Reports (tangedco.gov.in)
TNSTC Annual Reports (tnstc.gov.in)
TVK White Paper on State Finances, June 2026
* Approximate figures. Verify with original sources.