With an eye on the upcoming assembly elections, the Delhi government plans to enhance the subsidy on power tariff in the capital.
In the wake of the centre government’s decision to allow power companies to increase electricity prices, the Delhi government is reportedly considering a move to enhance the subsidy on power tariff till 400 units of electricity. Maximum households in Delhi consume around 400 units of electricity every month. A subsidy of Rs1 per unit has been granted on usage of 200 units. The government is under pressure on the rising power prices as the BJP and Aam Aadmi Party have been persistently raising the issue to garner votes from the middle class in the next assembly elections.
On Friday, the Cabinet Committee on Economics Affairs, chaired by Prime Minister Manmohan Singh, approved the new mechanism under which power companies can hike the tariffs if the cost of imported coal rises.
According to the Delhi Electricity Regulatory Authority(DERC) power tariff in the national capital is all set to get another hike by June-end. The DERC has indicated that the existing tariff might be increased in order to reduce the financial deficit of over Rs 7,000 crore.
Chief minister Shiela Dikshit has dropped hints in several public gatherings that it the power tariff may be hiked in view of increase in the cost of production of electricity in the national capital.
The Delhi government is seriously considering to extend its Rs 1 per unit power subsidy to more domestic consumers if DERC takes a call to hike the power tariff.
Delhi government council of minister said that this move is likely to benefit more than 30 lakh people. ‘The Delhi government, presently spends around Rs 225 crore annually on subsidy, which go up manifold if the subsidy is further extended,’
an official said.
In the wake of the centre government’s decision to allow power companies to increase electricity prices, the Delhi government is reportedly considering a move to enhance the subsidy on power tariff till 400 units of electricity. Maximum households in Delhi consume around 400 units of electricity every month. A subsidy of Rs1 per unit has been granted on usage of 200 units. The government is under pressure on the rising power prices as the BJP and Aam Aadmi Party have been persistently raising the issue to garner votes from the middle class in the next assembly elections.
On Friday, the Cabinet Committee on Economics Affairs, chaired by Prime Minister Manmohan Singh, approved the new mechanism under which power companies can hike the tariffs if the cost of imported coal rises.
According to the Delhi Electricity Regulatory Authority(DERC) power tariff in the national capital is all set to get another hike by June-end. The DERC has indicated that the existing tariff might be increased in order to reduce the financial deficit of over Rs 7,000 crore.
Chief minister Shiela Dikshit has dropped hints in several public gatherings that it the power tariff may be hiked in view of increase in the cost of production of electricity in the national capital.
The Delhi government is seriously considering to extend its Rs 1 per unit power subsidy to more domestic consumers if DERC takes a call to hike the power tariff.
Delhi government council of minister said that this move is likely to benefit more than 30 lakh people. ‘The Delhi government, presently spends around Rs 225 crore annually on subsidy, which go up manifold if the subsidy is further extended,’
an official said.