AAP cuts power rates by 50%; free water in Delhi

With its spectacular win in the elections to the Delhi Assembly, a resurgent Aam Aadmi Party has now delivered on its promise of free water and cheaper electricity to the capital's residents.

Eleven days after the Arvind Kejriwal-led AAP formed its government in Delhi, deputy chief minister Manish Sisodia announced today that every household will get 20,000 litres of water at no cost every month.

He also announced a 50-per cent reduction in electricity bills for those families consuming less than 400 units a month.

The decision to slash power tariff by 50 per cent will benefit around 90 per cent of Delhi's population, Sisodia announced at a cabinet meeting presided over by chief minister Arvind Kejriwal.

"The reduction in power tariff will benefit 36,06,428 families, which is around 90 per cent of the city's population," Sisodia said, adding that those consuming over 400 units would have to pay the full bill.

Water tariff will also be raised for those whose consumption exceeds the 20,000 litre limit, he added.

The new electricity rates will come into effect on 1 March and payment of electricity bills under the new rates will start from the next fiscal year.

The reduction in electricity prices is estimated to cost the state government about Rs1,400 crore, while the discount on water will add another Rs250 crore, Sisodia said,

He said the electricity tariff subsidy and free water will cost the government Rs70 crore and Rs20 crore, respectively.

"We have delivered on our promises. Electricity at half-price and free water. We will make good on other promises later. Just stay with us," chief minister Kejriwal tweeted.

In fact, the AAP, which had nearly gone to oblivion after last year's Lok Sabha debacle, rode back to power with 67 of the 70 seats in the Delhi Asembly on the plank of cheaper utilities.