The Delhi government under Arvind Kejriwal has approved the extension of subsidy benefits for the electricity consumers in the capital.
The Delhi government under Arvind Kejriwal has approved the extension of subsidy benefits for the electricity consumers in the capital. For consumption up to 200 units per month, there will be no charges at all, above 200 units to 400 units the consumers will get a subsidy of Rs 800 per month.
The government will also release a subsidy amount for the first quarter directly to the power distribution companies (discom) as the cash flow of discoms is temporarily impacted due to COVID-19.
Just before the Delhi elections in 2019, Kejriwal had announced free power to all households which were consuming 200 units and 50 percent subsidy for those consuming 201-400 units of electricity per month. The subsidy announced by the Delhi government came into effect starting August 1.
Now, almost the same subsidy benefit has been extended by the government, where for 201-400 units will attract a fixed subsidy of Rs 800 per month against a 50 percent subsidy earlier. 100 percent subsidy to victims of 1984 riots for up to 400 units and subsidy to lawyer's chambers within court premises are also extended.
The Delhi government has also taken into account that since the cash flow of discoms is impacted on account of COVID-19, it plans to release 50 percent of the subsidy amount to the discoms for the first quarter and rest 50 percent to power generation and transmission companies against outstanding dues of discoms in case there are no outstanding dues, the entire subsidy amount will be released to the discoms.
The government will also review the payment schedule in subsequent quarters for adjustment of subsidy.
Electricity distribution services are provided by Reliance Infra led BSES Yamuna, Rajdhani and Tata Power Delhi Distribution, based on Public-Private Partnership model where 51 percent stake is with the private company and 49 percent with the Delhi government.