Delhi government announces Re1 subsidy on power tariff

A day after the new power tariffs came into force in the capital, the Delhi government today announced a subsidy of Re1 per unit for domestic consumers.

Facing flak over the steep 26 per cent tariff hike announced by the Delhi Electricity Regulatory Commission (DERC) last week, chief minister Sheila Dikshit had earlier hinted at subsidising power tariffs to lighten the burden Delhites have been called on to bear.

A senior government official had earlier said there could be a Re 1 per unit increase in the subsidy given to those who consume less than 200 units per month or the state government could increase the subsidy blanket from the present 200 units, India Today has reported.

Dikshit had scheduled a press conference this afternoon, which many had linked to the announcement on electricity tariffs after the cabinet meeting.

According to the official, while there was a consensus among all political parties on the introduction of a subsidy, which would be a populist step, the final decision on the quantum would be discussed only at the cabinet meeting.

However, the subsidy would be available to consumers with consumption of less than 200 units a month.

Consumers using less than 200 units a month would pay Rs2.70 per unit. However, if consumption were to go beyond 200 units, it would be charged at Rs4.80 per unit for the entire consumption.