Presenting the budget, Finance Minister Arun Jaitley proposed Rs 500 crore for reform in the water sector while Rs 200 crore has been set aside for reform in the power sector.
Separately, Delhi government was allocated Rs 349 crore as central assistance for 2014-15, which is a decrease of Rs 682 crore compared to last year's provision of Rs 1,031 crore.
"Delhi faces large in-migration every year. Delhi is plagued by frequent transmission-related problems and issues of water distribution and supply. In order 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," Jaitley said in his budget speech.
The city has been facing long power cuts during the peak summer months in the last few years despite adequate availability of power. Major power transmission lines often trip when the load increases.