Tamil Nadu Civil Supplies Corporation’s fiscal risk differs from other PSUs: White Paper (opens original article in a new tab)

The Tamil Nadu Civil Supplies Corporation faces unique fiscal risks due to subsidy issues and deferred obligations, with deficits rising sharply and interest payments consuming a large share of funds.

• Tamil Nadu Civil Supplies Corporation's fiscal risk stems from subsidy inadequacy, reimbursement delays, and deferred obligations rather than commercial failure.
• The corporation recorded a cash surplus only once in the past five years, with deficits increasing sharply from ₹1,166 crore in 2024-25 to ₹5,245 crore in 2025-26.
• Working capital debt increased by 55% over five years, leading to rising interest payments that consume a significant portion of annual payments without funding procurement or distribution.