Tata Power welcomes Arvind Kejriwal govt's move to provide power subsidy in Delhi

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Aam Aadmi government's subsidy on power will benefit around 28 lakh of the total 35 lakh consumers in Delhi. Aam Aadmi government's subsidy on power will benefit around 28 lakh of the total 35 lakh consumers in Delhi.
SummaryArvind Kejriwal's Aam Aadmi govt has announced a 50 pct subsidy on power consumption up to 400 units in Delhi.

of total revenue of discoms goes into purchasing power from central and state government owned entities through long term power purchase agreement, at rates determined by the central and state regulators.

The experts said discoms' cost of buying power from generating companies has increased by around 300 per cent in the last two years while the power tariff, in the corresponding period, has risen by around 70 per cent.

The power tariff in the city was hiked by 22 per cent in 2011 followed by five per cent hike in February 2012. The tariff was hiked by up to two per cent in May 2012 year and again by 26 per cent for domestic consumers in July 2012 The tariff was hiked by up to three per cent in February last year and again by five per cent in August last.

The cost of buying power has increased primarily on account of an increase in the input prices of raw material like coal and gas, officials said.

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