The Hindu : New Delhi News : BJP decries subsidy to power distribution companies

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BJP decries subsidy to power distribution companies

Staff Reporter

“Subsidy in violation of Section 65 of the Electricity Act 2003”

“Would now be given Rs.500 crore for not increasing the tariff”
“Discoms generating additional income of Rs. 2,000 crore pa”

NEW DELHI: Senior Delhi BJP leaders on Friday accused the Congress Government in Delhi of misappropriating public money in connivance with the private power distribution companies by doling out hundreds of crores of rupees in the name of providing subsidy.

Delhi BJP president Harsh Vardhan said it is ironical that even after five years of privatisation of power, the Delhi Government was still providing heavy subsidy to the discoms. He charged that this was in violation of Section 65 of the Electricity Act 2003.

Stating that the power companies would now be provided a subsidy of Rs.500 crore for not increasing the tariff, Dr. Vardhan said there should have been no need for such a subsidy as the Electricity Act 2003 had sated that the subsidy will be decreased every year after privatisation.

At the time of privatisation too, he said, a sum of Rs.3,450 crore was given to the companies as subsidy. After that a subsidy of Rs.200 crore was given every year, he said, adding that now the Government wants to give a further subsidy of Rs.500 crore in the name of keeping the tariff at the 2004-05 level.

Leader of Opposition in Delhi Assembly Jagdish Mukhi said while these discoms were generating an additional income of Rs. 2,000 crore per annum on account of the 20 per cent reduction in theft as claimed by them, they were still compelling the Government to shell out more for the power.

Prof. Mukhi said as per the decision of the Delhi Cabinet on Friday, a subsidy of Rs. 1.25 per unit for 200 units during peak months and of Re.1 per unit up to 150 units during non-peak months will be given to the discoms. Accordingly, he said, a profit in the name of subsidy amounting to Rs.225 crore will be given to these discoms.

Since they are also getting an assured 16 per cent profit on the investment made and have been given a free hand to show the purchases, he said it appears that the Delhi Government is working towards benefiting them.

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