Can tan delta be negative, if so what is the reason ? What exactly is Tan Delta of a Transformer ?

and what does it signify.

Yes, Tan delta can sometimes be -ve also. This happens when you have a Insulation/Dielectric in combination with Inductance/Winding. Normally Tan delta of a Transformer insulation i.e. paper-oil insulation is +ve and it is very small (typically <1%). However, as the dielectric medium is aged or subjected to higher thermal/electrical stresses, the losses within the dielectric increases, hence tan delta value shoots up. Significance of Tan delta: Tan delta indicates how good or bad an insulator is. It indicates the gross defect in the Insulation/Dielectric Medium. Defects could be attributed to Manufacturing defects, Moisture present, voids etc. within the Insulation.