The Hindu : New Delhi News : Sheila rules out power tariff hike

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New Delhi

Sheila rules out power tariff hike

Staff Reporter

NEW DELHI: With an eye on the Assembly elections , the Delhi Cabinet on Friday decided to extend a subsidy for freezing the power tariff for domestic and agricultural consumers at the 2004-05 level.

It also endorsed its earlier decision to extend the subsidy of Re.1 per unit to those consumers who would be limiting their monthly consumption up to 150 units and 200 units per month during non-peak and peak months respectively.

Weaker sections

Addressing the media following the Cabinet meeting, Chief Minister Sheila Dikshit said the decision to freeze the power tariff had been taken to safeguard the interests of the economically weaker sections of society. She also sought to set at rest speculation about an increase in power tariff by stating that the Government had committed itself to grant subsidy for agricultural and domestic consumers to keep the tariff at the level of 2004-05. As for the reduced tariff for limited consumption, the Chief Minister clarified that for the purpose of its calculation May, June, July, August, December and January would be considered the peak months.

Limited consumption

Power Minister A.K. Walia also expressed confidence that the benefit of this subsidy would primarily percolate down to the economically weaker sections and poor families. He said over 10 lakh families would be charged Re. 1 per unit less or Rs.1.20 per unit during the six months of the year. “This would not only provide relief to those poor families whose consumption is limited, but also exhort others to conserve electricity by limiting their consumption to remain within the eligibility criteria for availing themselves of the subsidy,” he said.

The decision on both the freezing of the tariff and the Re.1 subsidy would come into effect from April 1, 2008.

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