The newly -formed Aam Aadmi Party government on Tuesday cleared a 50 per cent cut in electricity tariffs for the state.
Chief Minister Arvind Kejriwal announced this after chairing a cabinet meeting at the Delhi Secretariat on Tuesday evening. Also, the three major power distribution companies in the capital will be audited starting on Wednesday, he said. Reducing Delhi's electricity bills was one of AAP's major pre-poll promises.
The power tariff cut, effective from Wednesday, January 1, will apply to those homes that consume up to 400 units of electricity a month. Those who consume more will pay for the entire supply. The rate-cut would benefit 28 lakh consumers and would cost the government Rs. 60 crore for the three months left of this financial year.
Kejriwalon Tuesday evening met the government's national auditor or Comptroller and Auditor General, Shashi Kant Sharma, who agreed to inspect the finances of Delhi's distribution companies. "If the companies have any objections about being audited, they should inform us by tomorrow (Wednesday) morning," the former tax inspector said, reported NDTV.
The AAP has alleged that power companies in Delhi operated hand-in-gloves with previous governments to over-charge the residents. Discounting the prices will require a massive government subsidy.
The AAP formed the government on last Saturday with external support from the Congress. Kejriwal has to prove his majority by Friday.