Tussle over power subsidy as Delhi govt orders audit

The remarks are the latest in an escalating war of words between the Aam Aadmi Party (AAP) government and lieutenant governor (LG) VK Saxena. AAP leaders have accused him of trying to end the subsidy.

Chief minister Arvind Kejriwal said on Monday he will not allow the Capital’s power subsidy scheme to be stopped while his Cabinet colleague Atishi announced a special audit to check all accounts related to the popular initiative going back eight years, in an attempt the latter said was meant to counter a “conspiracy to halt the scheme”.

Delhi chief minister Arvind Kejriwal in Delhi Assembly on Monday. (HT Photo)

The remarks are the latest in an escalating war of words between the Aam Aadmi Party (AAP) government and lieutenant governor (LG) VK Saxena. AAP leaders have accused him of trying to end the subsidy — a claim the latter’s office has denied.

“In Delhi we provide free and 24x7 water supply. We have revamped the electricity infrastructure on the one hand and provided the electricity free. This hurts BJP and they want to stop the power subsidy through various conspiracies. Until I am alive, I want to assure people of Delhi that we will not allow the power subsidy to be stopped. We will undertake the audit. We had ordered an audit of the discoms on the first 49-day government and we will again audit them,” Kejriwal said on Monday.

Earlier, at a press conference, Atishi said: “What happened to all the money that has been provided by Delhi government to these discoms (power distribution companies) over the last 8 years? How was this money used? Was there any nexus with officers? Was there any nexus with the officers who were appointed as nominees? Why is LG hell-bent on removing the policy experts appointed by the government on discom boards and why are files related to subsidy not being presented before the elected government? This audit is being ordered to prevent any nexus.”

The minister said the decision to undertake the audit was taken by Kejriwal and the order will be issued to Delhi Electricity Regulatory Commission (DERC) shortly, adding that there were indications that the LG’s office had gone into the issue but no files had been sent to the elected government.

“We got to know through media reports on March 10 that a letter has been sent by LG regarding free power scheme but the files have still not been put up before us. This shows there is a conspiracy being hatched. Earlier, we saw how LG and officials removed policy experts appointed by Delhi government on the boards of these power distribution companies,” she added.

HT reached out to LG office but there was no response.

The tussle over power subsidy broke out on March 10 after LG asked chief secretary Naresh Kumar to direct the power department to place the statutory advice of DERC — which recommended that subsidy should be continued for only consumers with up to 5KV sanctioned load — before the council of ministers.

DERC had argued that capping the power subsidy on the basis of the load factor would cover nearly 95% of the total consumers who are availing subsidies, and could have saved the exchequer ₹200 crore per year.

The AAP government called it an attempt to discontinue the power subsidy, and claimed that DERC later withdrew its advice because it was beyond its mandate to advise the government on power subsidy.

On Monday, HT reported that Delhi’s residents face an astronomical jump in their electricity bills due to a Supreme Court order to the Capital’s electricity regulator to allow a payment of about ₹20,000 crore in accumulated dues to two private discoms. The power regulator has said that it will approach the top court for a re-examination of the order.

The Delhi government is a minority stakeholder in these companies, with a 49% stake. Previously, on February 11, the Delhi LG Saxena replaced “AAP government nominees”, including AAP leader Jasmine Shah, from the boards of power discoms.

The LG office had stated that finance secretary, power secretary and the MD of Delhi Transco will now represent the city government on the boards of the discoms, in line with the earlier prevalent practice

Delhi has three power distribution companies. BSES Rajdhani Power Ltd (BRPL) supplies power to south and west Delhi, while BSES Yamuna Power Limited (BYPL) supplies to central and east Delhi. Power to remaining parts of the Capital is supplied by the Tata Power Delhi Distribution Ltd (TPDDL).

Tata power and BSES did not respond to requests for a comment.

Atishi alleged that there may be a nexus between bureaucrats and the power discoms. “Was it because of this nexus that our nominees were removed from the boards of discoms? We are committed to ensure free and 24*7 water supply. In order to prevent any possible nexus and to expose any possibility of nexus, CM has ordered this audit through CAG empanelled auditors,” she added.

The audit will cover funds that were provided by the government under the free power scheme.

Delhi government provides up to 200 units power free every month to consumers, and a 50% subsidy to consumers using up to 400 units electricity every month.

The last audit of the discoms was carried out in 2015, the minister said, adding that there should have been an audit but when the government nominees were on the board of discoms, it was also assumed that they were monitoring the accounts.

On Saturday, LG office had stated that the AAP government and its functionaries were making “baseless, false and misleading statements”. “The LG has never even suggested, leave apart asking the AAP government to withdraw subsidies. LG has repeatedly asked for subsidy to be given to the deserving poor people, rather than to private power companies,” the official said.