The Narendra Modi government Thursday allocated Rs.700 crore to Delhi for improving its water and power supply. Of the total sum, Rs.500 crore was earmarked for the water sector.
The Aam Aadmi Party and the Congress were quick to dismiss the allocation as "lacking clarity" and "directionless".
Presenting the union budget for 2014-15 in parliament, Finance Minister Arun Jaitley also announced Rs.50 crore for the construction of the long-pending Renuka Dam to solve the water supply issue in the national capital.
"The National Capital Territory of Delhi faces large in-migration every year. Delhi is plagued by frequent transmission-related problems and issues of water distribution and supply," he said.
"To overcome this and make Delhi a world class city, I propose to provide Rs.200 crore for power reforms and Rs.500 crore for water reforms," he said.
In June, Delhi saw power outages after a storm damaged transmission lines. The political parties blamed each other for the mess.
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"Finance Minister Arun Jaitley's announcement of providing Rs.200 crore for power reforms and Rs.500 crore for water reforms in Delhi lacks clarity and runs the risk of finally ending up helping the private companies and contractors only," said a statement from the AAP.
Satish Upadyay, the newly-appointed president of the Delhi unit of the BJP, said the budget was "dedicated to nation building".
Delhi has been under President's rule and the assembly has been kept in suspended animation since AAP leader Arvind Kejriwal resigned as chief minister Feb 14.
The central rule can be extended by six more months with parliament's approval unless elections are held earlier.