Initiatives/ Scheme
Kudankulam Nuclear Power Plant
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- Context: The 320-tonne reactor pressure vessel has been successfully installed in Unit 5 of the Kudankulam Nuclear Power Plant in Tirunelveli district.
- The Kudankulam Nuclear Power Plant operates with Russian collaboration.
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- The Nuclear Power Corporation of India Limited (NPCIL) has announced the successful installation of the reactor pressure vessel inside the reactor building of Unit 5.
- The Atomic Energy Regulatory Board had granted permission to install key equipment at Unit 5 of the Kudankulam Nuclear Power Plant.
- Following this, the installation of major power plant equipment is proceeding in full swing.
- Accordingly, the reactor pressure vessel weighing 320 tonnes has been successfully installed within the reactor building.
- With this, NPCIL has achieved a significant milestone, serving as a testament to India’s engineering prowess.
- This achievement marks the commencement of the installation of equipment for the nuclear steam supply system.
- A strong partnership continues between NPCIL and Russia’s ASE.
- Once fully operational, the Kudankulam Nuclear Power Plant will generate 6,000 megawatts of electricity.
Economy
White Paper on Fiscal Management of Tamil Nadu (2021–22 to 2025–26)
- Context: Finance Minister released the White Paper titled “Fiscal Management of Tamil Nadu – An Examination of Public Finances 2021-22 to 2025-26.”
Actual Outstanding Debt
- Tamil Nadu’s total outstanding debt is ₹13.18 lakh crore, including debts of Public Sector Undertakings (PSUs).
- The headline figure of ₹10 lakh crore represents only the State government’s direct borrowings.
- PSU borrowings and liabilities guaranteed by the State add another ₹3.18 lakh crore.
Power Sector – Largest Contributor to PSU Debt
- The power sector accounts for ₹2.47 lakh crore of PSU debt.
Comparison with Peer States
- Tamil Nadu’s fiscal indicators were compared with Karnataka, Maharashtra, and Gujarat.
- These States have similar:
- Per capita income levels.
- Industrial structures.
- Urban populations.
- Historical fiscal positions.
Rapid Growth in State Debt
- State debt increased from ₹5.13 lakh crore (April 1, 2021) to nearly ₹10 lakh crore (March 31, 2026).
- Debt has almost doubled in five years.
Rising Interest Burden
- Interest payments account for:
- 23% of total revenue receipts.
- 35% of State’s Own Tax Revenue (SOTR).
- Annual interest payments for 2025-26 are estimated at ₹67,050 crore.
- Interest payments exceed annual capital expenditure by nearly one-third.
Structural Revenue Deficit
- Revenue deficit for 2025-26 is projected at ₹78,324 crore.
- It equals 2.2% of Gross State Domestic Product (GSDP).
- It is the highest ever in absolute terms and exceeds the COVID-19 period level.
- The State is borrowing to finance current expenditure rather than investment.
Demographic Challenges
- Elderly population is projected to reach 18.2% of total population by 2031.
- Tamil Nadu is expected to have the highest proportion of elderly people among major States.
- The report highlights:
- Declining working-age population.
- Rising dependency ratio.
- Shrinking tax base.
- Increasing social security obligations.
Suggested Corrective Measures
The report stresses the need for long-term reforms in:
- Revenue mobilisation
- Expenditure management
- Public Sector Undertaking (PSU) reforms
- Debt management
