CAG Flags Discrepancies in Delhi Power Subsidy Scheme
POWER & RENEWABLE ENERGY

CAG Flags Discrepancies in Delhi Power Subsidy Scheme

The Comptroller and Auditor General has found that Delhi's electricity subsidy policy failed to target the disadvantaged and favoured higher consumption households, according to a report tabled by Chief Minister Rekha Gupta in the Delhi Assembly. The audit showed that Rs 31.61 billion (bn) was paid as subsidy in 2022–23. The report indicated that the scheme's design, including a high threshold of 400 units, resulted in large parts of the domestic consumer base receiving benefits.

More than three million (mn) consumers in the zero to 200 unit consumption bracket received an average subsidy of Rs 6,000 per connection per annum, while one point six six million (mn) consumers with consumption above 200 units received an average subsidy per connection of more than Rs 10,000 per annum, about 70 per cent higher. The audit said the rationale for setting the threshold at 400 units, which covered approximately 80 per cent of domestic consumers, was not found on record. The review covered four fiscal years from 2019–20 to 2022–23.

The auditors also identified instances of apparent leakage, noting that over 50,000 consumers had zero consumption for more than 12 months yet received subsidies totalling Rs 178.1 million (mn). More than 90,000 consumers recorded continuous zero consumption for six to 11 months and were paid Rs 118.8 million (mn), and about 170,000 consumers with zero consumption for three to five months received Rs 125.7 million (mn).

The audit concluded that the subsidy outgo per consumer tended to be higher in higher consumption brackets and that the policy paid the benefit to nearly the entire domestic consumer base rather than to targeted disadvantaged groups. The report recommended that the Government of the National Capital Territory of Delhi review the eligibility criteria and put in place controls to prevent payments to inactive connections.

The Comptroller and Auditor General has found that Delhi's electricity subsidy policy failed to target the disadvantaged and favoured higher consumption households, according to a report tabled by Chief Minister Rekha Gupta in the Delhi Assembly. The audit showed that Rs 31.61 billion (bn) was paid as subsidy in 2022–23. The report indicated that the scheme's design, including a high threshold of 400 units, resulted in large parts of the domestic consumer base receiving benefits. More than three million (mn) consumers in the zero to 200 unit consumption bracket received an average subsidy of Rs 6,000 per connection per annum, while one point six six million (mn) consumers with consumption above 200 units received an average subsidy per connection of more than Rs 10,000 per annum, about 70 per cent higher. The audit said the rationale for setting the threshold at 400 units, which covered approximately 80 per cent of domestic consumers, was not found on record. The review covered four fiscal years from 2019–20 to 2022–23. The auditors also identified instances of apparent leakage, noting that over 50,000 consumers had zero consumption for more than 12 months yet received subsidies totalling Rs 178.1 million (mn). More than 90,000 consumers recorded continuous zero consumption for six to 11 months and were paid Rs 118.8 million (mn), and about 170,000 consumers with zero consumption for three to five months received Rs 125.7 million (mn). The audit concluded that the subsidy outgo per consumer tended to be higher in higher consumption brackets and that the policy paid the benefit to nearly the entire domestic consumer base rather than to targeted disadvantaged groups. The report recommended that the Government of the National Capital Territory of Delhi review the eligibility criteria and put in place controls to prevent payments to inactive connections.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code