Dikshit says power tariff hike possible

Delhi Chief Minister Sheila Dikshit today said she did not rule out the possibility of a hike in power tariff.

"There is no need for a power tariff hike for Delhi residents as the power distribution companies have done well. However, I do not completely rule out a hike," Dikshit said.

The possibility of a tariff hike in the national capital has arisen because the Delhi finance ministry has rejected the subsidy package planned by the power department. A tariff hike of around five per cent is expected this year.

Last year, the power tariff hike was neutralised by the state government and power distribution companies (discoms) that had contributed a total of Rs 180 crore in the form of subsidy and rebates.

The Delhi government and power discoms had contributed Rs 90 crore each last year (2005-06).

If the discoms continue with their rebate this year the expected tariff hike would be around five per cent this year. The hike could happen as no contributing subsidy may be provided by the government.

Even the Union power ministry had said providing subsidies was against the spirit of reforms. Delhi's power discoms "" NDPL, BSES Rajdhani and BSES Yamuna "" and transmission company Delhi Transco, have a revenue gap of around Rs 1,500 crore.

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