Delhi government approved on Monday a proposal to continue 50 per cent subsidy on electricity bills in the national capital.
The government’s move came after the Finance Department advised it to approve the subsidy proposal in the Cabinet following which it would “legally” be able to release the amount to be incurred on subsidy to the discoms in the current financial year.
The decision was taken in a Cabinet meeting chaired by chief minister Arvind Kejriwal at Delhi Secretariat.
Sources said the Cabinet approved the proposal to shell out about Rs 1,600 crore on the power subsidy to be given to discoms in the current financial year.
In the Budget in March, Delhi deputy chief minister and finance minister Manish Sisodia had announced that the AAP government would continue to give 50 per cent subsidy scheme on electricity bills in the 2016-17 financial year as well.
In February, the Delhi Cabinet had also decided to extend the power subsidy scheme to domestic consumers using up to 400 units per month to the New Delhi Municipal Council (NDMC) area.
As per the scheme, all the consumers whose monthly power consumption do not exceed 400 units get 50 per cent subsidy in tariff and the scheme benefits around 36 lakh or 90 per cent of the consumers in the national capital.
During its 49-day stint too, the AAP government had also announced 50 per cent subsidy on power bills following which electricity bills were slashed by fifty per cent.