Active Stocks
Fri May 24 2024 15:59:27
  1. Tata Steel share price
  2. 174.80 -0.37%
  1. NTPC share price
  2. 374.85 0.68%
  1. State Bank Of India share price
  2. 828.60 -0.45%
  1. ITC share price
  2. 436.10 -1.16%
  1. Power Grid Corporation Of India share price
  2. 318.50 -0.39%
Business News/ News / India/  AAP, Delhi LG tussle intensifies over power subsidy
BackBack

AAP, Delhi LG tussle intensifies over power subsidy

The controversy arose after Power Minister Atishi alleged on Friday that senior officials in the power department were attempting to obstruct the free power scheme in collusion with the lieutenant governor's office

The dispute over the power subsidy began on March 10 when the LG asked the chief secretary to instruct the power department to present the statutory advice of the Delhi Electricity Regulatory Commission (DERC) before the council of ministersPremium
The dispute over the power subsidy began on March 10 when the LG asked the chief secretary to instruct the power department to present the statutory advice of the Delhi Electricity Regulatory Commission (DERC) before the council of ministers

The dispute between the Delhi government and the lieutenant governor's office has intensified over the city's free electricity scheme. On Saturday, Chief Minister Arvind Kejriwal accused the LG's office of plotting to terminate the scheme, a claim that the office refuted as false and misleading.

The controversy arose after Power Minister Atishi alleged on Friday that senior officials in the power department were attempting to obstruct the free power scheme in collusion with the lieutenant governor's office. In response, Kejriwal tweeted, “A conspiracy is being hatched to shut down Delhi’s free electricity. But we will never let their conspiracy succeed."

“Then they say that Kejriwal fights a lot. A conspiracy is being hatched to shut down Delhi’s free electricity. But we will never let their conspiracy succeed. Kejriwal will stand like a rock to protect the rights of the people of Delhi. LG sir, later please don’t say that the limits are being breached," Kejriwal tweeted.

The LG's office dismissed the allegations as baseless and clarified that it had not asked the AAP government to withdraw subsidies. Instead, the LG had requested that subsidies be provided to deserving poor people rather than private power companies.

Under the scheme, the Delhi government offers up to 200 units of free electricity each month to consumers and a 50% subsidy to those using up to 400 units per month. Last year, the government introduced an opt-in scheme, and around 4.8 million consumers have already opted in for the power subsidy.

The dispute over the power subsidy began on March 10 when the LG asked the chief secretary to instruct the power department to present the statutory advice of the Delhi Electricity Regulatory Commission (DERC) before the council of ministers. The DERC's recommendation was to continue the subsidy only for consumers with up to 5KV sanctioned load, a move that could have saved the exchequer 200 crore annually by covering nearly 95% of the total consumers availing subsidies.

However, the AAP government opposed the move, claiming that it was an attempt to discontinue the subsidy. They also argued that the DERC had withdrawn its advice as it was beyond its mandate to advise the government on power subsidies.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 27 Mar 2023, 02:45 PM IST
Next Story footLogo
Recommended For You