New Delhi, December 31
After free water, the Aam Aadmi Party (AAP)-led Delhi Government today announced 50 per cent power subsidy for the people.

Chief Minister Arvind Kejriwal said consumers using up to 400 units every month will get 50 per cent subsidy. The subsidy will be given with effect from January 1, 2014.

Kejriwal said the subsidy will ‘theoretically’ put a burden of Rs 200 crore on the government. The actual cost, however, will only be Rs 61 crore, he claimed. “The total outgo will be Rs 61 crore. The remaining Rs 140 crore will be adjusted by the two power companies of Reliance-owned BSES as it owes Rs 4,500 crore to the government,” he said. Of the 34 lakh power consumers in the capital, 28 lakh would be benefited by the new scheme as they fall under the category 0-400 unit consumption category.

The households with consumption up to 200 units will now be charged Rs 1.95 per unit instead of current Rs 3.90, while those in the bracket of 201-400 units will have to shell out Rs 2.90 per unit instead of Rs 5.80 per unit. There is no subsidy for households exceeding 400 units per month.

Kejriwal has also invited objections from power distribution companies by tomorrow to decide whether they need to go through an audit by Comptroller Auditor General (CAG). The Chief Minister today met CAG Shashi Kant Sharma to discuss the issue before the cabinet meeting. Slashing of power charges and auditing the finances of power distribution companies were among the major promises made by the AAP during its election campaign.

Kejriwal said the government was authorised to give subsidy. “Though Delhi Electricity Regulatory Commission (DERC) revises the tariff, the Delhi Government can provide subsidy,” he said. DERC had earlier said the government cannot interfere in fixing tariff.”