Cabinet approves 50% power subsidy in Lutyens’ Zone

The Delhi Cabinet on Thursday approved extension of 50 per cent electricity subsidy scheme for the power consumers residing in Lutyens’ Zone which falls under the jurisdiction of New Delhi Municipal Council for 2015-16. This is for the first time that electricity subsidy scheme has been extended to NDMC areas which will cost Rs 15 crore per annum to the public exchequer.

“50 per cent electricity tariff reduction for consumers using up to 400 units per month extended to NDMC domestic consumers, for the financial year 2015-16,” said Delhi government in a statement informing that the decision was taken by the Delhi Cabinet on Wednesday evening chaired by CM Arvind Kejriwal. “The consumers using above 400 units of power will not be provided any subsidy. An additional fund of Rs 15 crore will be provided by the government to the power department for this purpose,” it added.

NDMC areas’ subsidy was struck down as it demanded that the government should compensate for the loss while the latter said that NDMC should bear the cost. As a solution, the government will pay Rs 15 crore to Delhi Vidyut Board (DVB) Pension Trust to distribute pensions among their pensioners. According to Delhi government, NDMC owes Rs 27 crore to DVB Pension Trust which the former was to provide as prorate contribution but did not honour the statutory directions. “The trust is facing huge problems in providing pensions to 21,300 pensioners. Therefore, the government will provide the subsidy amount directly to the trust,” added the officer.