New Delhi, July 26 (IANS) The Delhi cabinet 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 crore.
‘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 crore on account of this targeted subsidy for the next 10 months, which will benefit around two million people.
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 is limited to 150 units per month in off peak months – February, March, April, September, October and November.
Dikshit said the existing special subsidy to agricultural consumers will also be extended from April 1 (2010) to March 31, 2011. ‘The estimated financial implication on account of the special subsidy will be around Rs.1.50 crore,’ she added.