Delhi government is firing on all cylinders to maximise revenues. It has recently increased power tariffs by 22%, while hikes in circle rates for land and water tariffs are also proposed to be made an yearly affair, state Chief Minister Sheila Dikshit tells Rajat Guha. Excerpts:

Why have you pegged a higher growth rate for Delhi vis-a-vis national growth for the next five years?

The Delhi government has projected an impressive GDP growth rate of 11%-11.5% for the national capital during the 12th Five-Year Plan against the current rate of around 10.5%. The estimate has been made taking into account current economic trends and expected investments in the core sector during the next five years. The projection is significantly high compared to the national target of around 9%.

What have been the benefits of growing private participation in the transport sector? Have you given up on the bus rapid transit (BRT) system?

As of now, we do not find enough confidence in introducing the BRT system across Delhi in one go. We have learnt from our past mistakes. Still we are exploring the possibilities of introducing the system in some parts of the city after factoring in the risks involved. However, the private buses on Delhi roads have met with huge success. We have introduced another lot of 50 semi-floor buses in the northern and western parts of the capital under the cluster bus service scheme. Under the PPP model, the first fleet of cluster buses was launched in May with 100 buses in south Delhi. With the introduction of these 50 buses, their number has gone up to 150. The orange buses under Cluster-2 will supplement the existing public transport system apart from providing comfortable service to the commuter. We are also exploring the idea of privatising bus ticketing services in the Capital.

How will the trifurcation of Delhi municipal corporation help the city?

Delhi is still legally a union territory but with a legislative assembly. The Centre has, however, retained its say in important matters, such as the appointment of municipal commissioners, in view of Delhi?s unique status. After the trifurcation, we would definitely see better governance of local bodies and their increased accountability.

Will the recent hike in circle rates of land in Delhi put pressure on the real estate, which is already dogged by the slowdown?

Home prices may or may not rise in the Capital. I understand the hike in circle rates is the second hike in a year after the one in February. The growth of the real estate market and instances of undervaluation of properties necessitated the notification of minimum rates. The move would drastically reduce the black money component, which is emblematic of real estate transactions in the city, as circle rates in most locations are much lower than the actual market price of a property. We have also seen a significant jump in revenues through circle rate hikes. Undervaluation of property on paper is always a big loss for the state exchequer. The exercise is hopefully going be an yearly affair.

Was the decision to hike water tariff challenging? Will water distribution in the Capital be privatised?

We recently increased water tariffs in the Capital, barring for the weaker sections. The tariffs were increased after a gap of six years though drinking water is still being subsidised. Elected governments never like to hike rates for their civic services, though they have to take certain steps to improve the quality of services and for their expansion. The government from time to time exhorts the Resident Welfare Associations (RWA) to become vigilant and ensure that there is no wastage of drinking water. However, we would also make it a routine exercise to hike water tariff every year. We are toying with the idea of introducing water distribution involving private players on a pilot project basis in two areas of Delhi, to begin with.