After free water, Arvind Kejriwal moves to reduce power bills in Delhi

December 31, 2013

Arvind_Kejriwal4New Delhi, Dec 31: After fulfilling his party's promise of providing free supply of 700 litres of water everyday for Delhi households, Chief Minister Arvind Kejriwal on Tuesday initiated steps to reduce power bills by asking the three private power distribution companies to present their case on their likely audit by the Comptroller and Auditor General.

According to reports, Chief Minister has given time till Wednesday morning to the three major power distribution companies to file their replies in this regard.

Defying doctor's advice, an unwell Chief Minister Kejriwal also went to meet CAG Shashi Kant Sharma to discuss the issue before going into a cabinet meeting.

Kejriwal told reporters, “Delhi government is of the view that audit of these companies can be done. But under the provisions of law the three companies were being given the opportunity of being heard on the government audit of their finances.”

"They are being given time till tomorrow morning by which they will have to give their representations. The cabinet will meet in the evening," he told reporters before leaving for his meeting with the CAG.

At the cabinet meeting today, the issue of revising the power tariff may be discussed. The Chief Minister said in today's cabinet meeting, they would discuss issues relating to unauthorised colonies.

The ailing Chief Minister, who has been advised complete bed rest by the doctors, also tweeted, “Going to meet the CAG, to discuss possibility of an audit of the three power companies.”

“I believe we have 48 hours in hand so doing whatever we can to help people in this period, “ the Chief Minister's tweet said.

After the AAP government delivered on its promise of supplying 700 litres of free water everyday for Delhi households, expectations are running high whether the ruling party would be able to deliver on its promise of reducing the power tariff by 50 percent in the national capital.

Kejriwal on Monday delivered on the AAP's poll promise by announcing 20 kilo litres of free water a month to all metered households. The Congress, however, questioned the move, saying Kejriwal should ensure that every citizen of Delhi gets 700 litres of free water per day.

The government's decision, however, came with a rider that those consuming over this limit will have to pay as per tariff, enhanced by 10 percent, effective January 1.

The promise of 700 litres of free water to every Delhi household was made in the AAP poll manifesto.

Ever since Kejriwal formed AAP, he has been focusing his Delhi campaign on reducing power tariff and free water supply. Experts say that reducing electricity tariffs by 50 percent can only be done only if subsidies are doled out.

“It is unlikely that the utilities can bring down the electricity tariffs by 50 percent without government providing them with cash subsidy,” Debashish Mishra, Senior Director, Deloitte India said.

However, he added that there may be scope for further loss reduction in distribution, demand side management measures and cost optimisation in O&M (Operation & Maintenance).

He said that broadly the tariff is determined by four factors - existing operational efficiencies, capital and cost structures, power purchase agreements, and regulatory (assured and authorised) assets in the sector.

Electricity tariffs were revised in the Capital in July this year. Delhiites pay a minimum of Rs 3.90 per unit tariff.

AAP has said that it would seek complete statehood for Delhi, special audit of all electricity companies, regularisation of unauthorised colonies, stopping donations in private schools and improving working conditions of contract labour and lowly paid employees.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 6,2020

New Delhi, Mar 6: As panicky depositors rushed to withdraw money from Yes Bank whose control was seized by the RBI in a dramatic late-night move, Finance Minister Nirmala Sitharaman on Friday assured depositors that their money is safe and said the central bank was working for an early resolution of the crisis.

The Reserve Bank of India (RBI) on Thursday evening capped withdrawals at Rs 50,000 for the next one month and imposed strict limits on operations at the country's fourth-largest private lender that faced "regular outflow of liquidity" after an effort to raise new capital failed.

"I am in continuous interaction with the RBI. The RBI is fully seized of the matter and has assured they will give a quick resolution," Sitharaman said here.

She said no depositor will lose his or her money and insisted that the immediate priority is to ensure Yes Bank customers are able to withdraw money within the stipulated cap.

"I want to assure every depositor that their money shall be safe. Their monies are safe," she said. "I am constantly in contact with the RBI and the steps that are taken are taken in the interest of depositors, banks and economy. We are fully seized of the development."

She was talking to reporters after meeting State Bank of India (SBI) Chairman Rajnish Kumar. On Thursday, the SBI board gave its "in-principle" approval to exploring investment opportunities in Yes Bank.

"So I repeat, the depositors can be assured that their money is safe," she said.

Soon after the RBI takeover, depositors thronged Yes Bank ATMs to withdraw money and police had to be deployed in some places to control the crowds.

Yes Bank has 1,000 branches across the country.

Refusing to elaborate on her meeting with the SBI chairman, the minister said that "was on a completely different matter".

"RBI governor has given me assurance that there will be an appropriate resolution soon. No depositor will lose (money)," she said. "Reserve Bank has taken cognizance of the problem."

The central bank, she said, has gone through the "process over and over again to find out an amicable solution".

"And that has been over the last couple of months. So it is not as if they have come in suddenly now. We have been monitoring the situation," she said adding the RBI has appointed an administrator who previously was with the SBI.

"Both the RBI and the government are looking at this with all the details before them, not just today. I have personally monitored the situation over the last couple of months with the RBI. Therefore we have taken a course which will be in everybody's interest," she added.

Yes Bank had been seeking new capital since last year to bolster its ratios and quell questions about its stability due to its exposure to the non-banking finance industry entangled in a prolonged crunch in the local credit market.

The SBI chairman said the resolution to the Yes Bank crisis will come "very shortly".

"This is not a sectoral problem. It is a bank-specific problem," he said. "The RBI will take all steps to ensure financial stability."

On SBI picking up a stake in Yes Bank, he said the lender already has an in-principle approval for doing so.

"If SBI has to pick up a stake in Yes Bank, we have an in-principle approval for that," he said.

Commenting on the crisis at Yes Bank, Alka Anbarasu, Vice President – Senior Credit Officer, Financial Institutions, Moody's Investors Service, said: "RBI's moratorium on Yes Bank is credit negative as it affects timely repayment of bank depositors and creditors."

"While Moody's expects Indian authorities will take steps to prevent the weakness in the bank's viability from significantly impacting its depositors and senior creditors, the lack of a coordinated and timely action highlights continued uncertainty around bank resolutions in India," she said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
July 14,2020

Mumbai, Jul 14: Bhima Koregaon case accused Varavara Rao was admitted to JJ Hospital in Mumbai on Monday night.

Rao who is in Taloja proson was rushed to the hospital following complaint of dizziness.

Rao was arrested in November 2018 along with five others, for alleged links with Naxals and for inciting the violence.

On January 1, 2018, the violence at Bhima Koregaon village in Pune district left one dead and several others injured including 10 policemen.

Violence erupted after some people, reportedly with saffron flags, pelted stones at cars heading towards the village for the commemoration of 200 years of Bhima-Koregaon war on New Year's Day.

The police had filed 58 cases against 162 people.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
June 10,2020

New Delhi, Jun 10: Delhi recorded 1,366 fresh cases of COVID-19 on Tuesday, taking the tally to 31,309, while the death toll mounted to 905, authorities said on Wednesday.

According to a health bulletin issued by the Delhi government's health department, there are 18,543 active cases, while 11,861 patients have either recovered, been discharged or migrated.

No health bulletin was issued on Tuesday.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.