Primer on Delhi Power Issue — Meaning of Cheap Power Promise of AAP

First of all lets understand that as of today people of Delhi/Delhi government owes Rs 13K Cr to Power Companies(Discoms).

Why have we reached this place? Who is to pay that money?

Delhi government, Shiela Dixit tried borrowing money from Central Govt around 2013, but failed. Why should rest of India pay for Delhi fuckup? This is not a solution.

Second option is Delhi government pays from their budgets/earnings. Delhi has annual budget of Rs 36K Cr, and Rs 13KCr would be a huge sum of that budget. This budget is needed for other projects for Delhi. If Delhi pays from there, it is eventually the people of Delhi who will suffer.

Third option is consumers pay for that. This would significantly increase the cost burden on consumers.

You will ask why should one not pay for what they consume?

The first problem with this is that there are a lot of “bijli chori” in Delhi. Basically part of this this money is the money that people who stole electricity and did not pay.

Delhi government has been very lax on this and has not done much to stop it.

All three of these options are problematic.

If we chose option 2 or 3, were all tax payers pay(option 2), or where legal electricity consumers pay(option 3), both would be wrong. Why should people who pay for electricity they consume, pay for people who steal electricity? Why should tax payers pay for people who steal electricity?

When AAP formed government previously, AK implemented this plan: give free electricity to people, till a certain consumption, if they install electric meters. Yes, a lot of people do not have electric meters, they directly put a wire on transmission lines, and use electricity.

This scheme got Rs 1K Cr in extra bill collected by Delhi govt, and costed Rs 300Cr in subsidy due to free electricity promise. More people got meters installed, and the “bilji chori” decreased. At this rate, Delhi will make up for all the debt in 14–15 years. BJP supporters highlighted the Rs 300Cr, omitting the Rs 1000Cr.

AK is also trying to be more strict to others who steal electricity, like shops and commercial users. That may decrease the duration from 14–15 years to may be 10–12years or even more.

Then there is another problem.

See Indian govt gives big companies, free/subsidized access to coal mining, with promise that that coal would be used for electricity production, and that electricity would be passed to citizens of country.

Kejriwal has found that this has not been happening. Eg "Several cases registered by CBI and reports of expert committees set up by the Supreme Court reveals massive theft of coal during the mining, washing and transportation process.";

Further, equipment involved in production of electricity, companies have been repeatedly found: According to reports the DRI is "investigating gross overvaluation of import of equipment and machinery by various entities of Adani Group from a UAE based intermediary".

It is not just the private companies. NTPC, which supplies 75% of electricity in Delhi, charged Rs 1.75/unit to Rs 6.15/unit. Compare it with Rs 1.2/unit from Sasan Ultra.

Between 2011 to 2014, according to Directorate of Revenue Intelligence of India, there was over valuation of Rs 26K Cr by coal importers in India. Part of this goes to Delhi-electricity, and part of this to other places and other industries. All of this is what tax payers, and bill paying population of India has to bear from their pocket, either directly by paying for extra cost of electricity, or indirectly when govt of india or state government pays for this money from our tax money, instead of using that tax money for other use full purposes. Mind you this is not the cost of importing coal, but this is the money we have over paid according to DRI.

Corporations in India set up foreign shell companies, and instead of paying Rs 10 which is actual cost of coal/oil they pay them Rs15, and pocket the Rs 5 balance in Swiss banks etc.

In order to counter this kind of malpractices, AAP is demanding that Controller and Auditor General of India, CAG, who is appointed for this very purpose of Auditing companies in India for fair trade, do audit of power companies in Delhi. BJP and Congress has vehemently opposed this, you can guess why.

With appropriate auditing, when we only pay for coal and equipment at market value instead of over inflated values as is happening today, and stopping “bilji chori”, AK has a plan to handle Rs 13K Cr deficit without borrowing it from centre, or making our tax payers pay for it.

This is what AAP means when they say the cost of electricity will become less under their rule. Opposition has implied that they are planning to pay it from government budgets. This is a lie, and complete misrepresentation of things.

Source: Bijli Swaraj-White Paper on Electricity, published by AAP. Mirror.