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TNEB was set up on 1st July 1957 as the Madras State Electricity Board. It was responsible for the generation, distribution and transmission of electricity, and it regulated the supply of electricity to the state. Later, the board was renamed the Tamil Nadu Electricity Board.
In October 2008, the government of Tamil Nadu decided to split TNEB into two affiliates. On 1st November 2010, TNEB Limited became a holding company with two subsidiaries, Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), responsible for power generation, and Tamil Nadu Transmission Corporation Limited (TANTRANSCO), responsible for power transmission.