Chennai: AIADMK general secretary Edappadi K Palaniswami on Tuesday accused the ruling administration of orchestrating a massive corruption scandal in power procurement, stating that its handling of the state power utility had pushed the organization deeper into a financial crisis. In a public statement, Palaniswami flagged the short-term purchase of electricity from private firms at an alleged exorbitant average rate of 35 rupees per unit, claiming that widespread mismanagement had plunged the state into darkness and severe distress.
Citing frequent power interruptions, he asserted that the administrative shortcomings of the coalition government, which assumed office five months ago, had left the public struggling. He alleged that the ruling dispensation was exploiting these hardships to engage in systematic corruption while failing to manage essential utility services effectively.
According to reports cited by Palaniswami, the Tamil Nadu Power Distribution Corporation awarded contracts to five private companies to procure 4,400 megawatts of power daily between October 12 and 31, 2026. Expressing alarm over the historic high price, he contrasted the figure with neighboring Andhra Pradesh, which he noted had finalized its October procurement at 16 to 20 rupees per unit well before resorting to emergency tenders, adding that typical bilateral peak-hour market rates rarely reach such elevated levels.
Recalling past AIADMK administrations under late Chief Minister J Jayalalithaa and himself—during which Tamil Nadu transitioned into a power-surplus state—Palaniswami blamed the current leadership for a complete lack of foresight and planning. He claimed that the government had cancelled earlier power procurement contracts in May under the guise of corruption suspicions and promised low-cost, long-term agreements in June, only to reverse course and rely on short-term private contracts priced between 32 and 37 rupees per unit, representing nearly double the previous rates.
Palaniswami also pointed to public grievances regarding escalating household expenses, stating that electricity bills for ordinary consumers had surged from approximately 1,500 rupees to roughly 4,000 rupees due to revised calculation policies. He concluded with a warning that the ongoing high-cost power procurement strategy could plunge the distribution corporation into deeper debt and ultimately pave the way for its privatization.