The Tamil Nadu government is set to release Rs 173.07 billion to Tamil Nadu Power Distribution Corporation Limited (TNPDCL) towards electricity subsidies for various consumer categories during 2026-27, marking an increase of around Rs 13 billion over the subsidy released in 2025-26.
Of the total subsidy, Rs 84.28 billion will be provided towards 100 units of free electricity for domestic consumers and tariff reduction in subsequent slabs, while Rs 73.17 billion will be allocated for free electricity supply to agricultural connections. Further, Rs 5.64 billion will be provided for free supply and tariff reduction for powerlooms, Rs 3.94 billion for reduction in peak-hour consumption charges for small-scale industries, and Rs 3.7 billion for free electricity for hut consumers. The Tamil Nadu Electricity Regulatory Commission has directed the state government to release the subsidy in advance every quarter to compensate TNPDCL for the revenue shortfall arising from free supply and reduced tariffs.