The Delhi Government is in the process to extend subsidies on power and water to the people of Delhi in the next fiscal year (2016-17) beginning from April 1.
Top sources told The Pioneer that the move has been reportedly finalised by Chief Minaister Arvind Kejriwal at a high-level meeting with power and Delhi Jal Board officials recently.
According to sources, Rs1600 crore would be earmarked for the next year in the Budget provisions pertaining to power department. Similarly, Rs250 crore would be earmarked for subsidy of water to DJB consumers. In total Rs1,850 crore would be given in subsidies of power and water next year. In the current financial year, the subsidies on power had cost the State about Rs1,427 crore and Rs200 crore on water.
Sources said the AAP Government -promised to provide water and power free of cost of the people of Delhi in its manifesto — felt that subsidies reach 90 per cent of the consumers with power tariff reduction benefitting 36 lakh or 90 per cent of consumers. Similarly, the water subsidy reaches 18 lakh families with functional meters.
Interestingly, the Government had earlier said subsidy on power was for a year as the tariff would come down after CAG audit of discoms. However, the CAG audit has not been permitted by the Delhi High Court. After coming to power for the second time on February 15, Kejriwal had announced 50 per cent subsidy to consumers consuming up to 400 units of electricity every month. He had also announced free supply of 20,000 litres of drinking water every month to each household. The move was condemned as critics pointed out that 14 lakh households, particularly those in slums and unauthorised colonies, don’t have piped water network means the benefit wouldn’t reach those who need it the most — the poor.
During erstwhile Chief Minister Sheila Dikshit’s tenure, the Government used to provide 50 per cent subsidy to those consuming up to 200 units of power every month. The one’s consuming between 200 and 400 units of power were given Rs1 subsidy on each unit.
The AAP Government, which has time and, again been demanding additional annual budgetary allocation of Rs5,000 crore from the Centre, has itself been able to spend only 49.58 per cent of the total money it had allocated in its Budget for the current financial year.
The Government, which had allocated Rs41,129 crore for 2015-16 financial year had earmarked Rs19,000 crore for planned projects. Of the planned funds, the AAP Government till January 31 ended up spending just 46.38 per cent on education, 40.56 per cent on medical institutions and 61.81 per cent on public health. In all, the Government was able to spend only 49.58 per cent of the total plan expenditure till January 31