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Delhi Government in a fix over power hike

Sujay Mehdudia

Hectic consultations on to find a formula The Government is under tremendous pressure from the private discoms to effect a tariff hike

NEW DELHI: Although the Delhi Electricity Regulatory Commission (DERC) is ready with a new "tariff hike order'', the Sheila Dikshit Government appears to have developed cold feet over the whole issue. Fearing a backlash from the people, its own elected representatives as well as the Opposition parties, hectic consultations are being held by Chief Minister Sheila Dikshit to a find a face-saving formula.

Interestingly, senior DERC member, K. Venugopal, had indicated two days ago that DERC was almost ready with a tariff increase and would announce it on Friday or Monday. However, it is understood that soon after her arrival from London the Chief Minister held consultations with Finance Minister A.K. Walia on the issue and is understood to have sought his views on the situation.

There is a feeling within the Government that an increase at this point of time was bound to result in a strong backlash as the people still had not recovered from the shock of the massive hike in water tariff a few months ago and burdening them with another hike would only make matters worse. Ms. Dikshit is also waiting for the return of Power Minister, Haroon Yusuf, from abroad on Sunday to hold the final round of discussion on Monday morning.

It is learnt that Ms. Dikshit held another round of consultations on Saturday with the DERC members as well as senior Government officials in order to find a way out of the tight situation. On one hand the Government maintains that it cannot influence DERC as it was an independent body and on the other it is vetting its proposals and has reportedly asked it to hold back the power hike for the time being.

What has made the task of the Delhi Government a bit difficult is that if it once again opts for providing subsidy in bills to small consumers, it stands to take an opposite stand to that of the Prime Minister, Manmohan Singh, who has aired his views against giving power subsidy or free power. Also, there is a view point within the Finance Ministry that the Government cannot continue to give subsidy to the power companies as well as the consumers and ground realities have to be kept in mind.

However, the Government is under tremendous pressure from the private discoms especially the BSES Rajdhani and BSES Yamuna to effect a tariff hike for the third consecutive year to make up for its losses. On the other hand, the North Delhi Power Limited (NDLP) has locked horns with DERC over the tariff hike issue and has pleaded that in view of the over-achievement of targets by them, tariff for their consumers should be decreased accordingly.

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