Cabinet extends power subsidy

Jul 27, 2010 - Age Correspondent |

New Delhi

The Delhi Cabinet on Monday extended the subsidy on electricity provided to domestic and agricultural consumers till March 31 next year, a decision that will benefit two million people and cost the state exchequer Rs 143.07 crores.

“It has now been decided to extend it from June 1 (2010) to March 31 (2011),” chief minister Sheila Dikshit said after a Cabinet meeting.
The targeted subsidy of Re 1 per unit for domestic consumers who use 150-200 units of power per month was introduced March 1, 2008. The government is expected to release an amount of Rs 141.57 crores on account of this targeted subsidy for the next 10 months, which will benefit around two million people.
Ms Dikshit, who chaired the Cabinet meeting, said the subsidy is linked to limited consumption resulting in huge savings of power and noted that the step helps the common man.
The subsidy on consumption of 200 unit per month is provided in peak months of May, June, July, August, December and January.
The subsidy on electricity is limited to 150 units per month in off peak months — February, March, April, September, October and November.

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