Budget announcement on Delhi reforms lack clarity Finance minister Mr 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. It would have been better had the finance minister made a specific announcement on how this money being given by the central government will be utilized, since currently the national capital is under its rule. Mr Jaitley has linked his budget announcement for power reforms in Delhi to problems in the city’s transmission network. Since privatization of power in the city more than a decade back, the government’s stake is merely 50% and the rest belongs to these private power distribution companies. If the government comes forward and offers Rs 200 crore of its share, will the discoms also be asked to spend an equal amount for the improvement of transmission network ? The Aam Aadmi Party (AAP) is of the view that if no clarity is provided on power reforms, the amount announced by the centre will finally end up being a subsidy for the discoms, which have been fudging their accounts to deceive the people of Delhi. In place of such unclear announcements, the AAP demands that the central government should immediately reduce the electricity tariff in Delhi by 50%. Similarly, in case of water also, the finance minister has announced Rs 500 crore for reforms to tide over distribution problems. This announcement too, is flawed. Large parts of the city lack piped water and even by most conservative estimates, atleast Rs 3,000 crore would be required to lay down the network for piped water only in some parts of the city The problems of water availability and its distribution network cannot be solved by mere token steps. The amount announced for water reforms is merely token and the AAP demands that the announcement made for power and water reforms should be utilized for providing relief to people by slashing the electricity rates by atleast 50% and water should be made free.
Posted on: Fri, 11 Jul 2014 03:51:00 +0000
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