Subsidy impact on discoms should be revenue neutral: Jyotiraditya Scindia

NEW DELHI: It is the prerogative of state governments to provide power subsidies to certain groups, but they need to ensure that the impact on distribution companies remains 'revenue neutral', Power Minister Jyotiraditya Scindia said today.

His comments come against the backdrop of Delhi Chief Minister Arvind Kejriwal announcing reduction in power tariffs by up to 50 per cent for consumers using up to 400 units a month. Congress leaders in Mumbai Sanjay Nirupam and Priya Dutt have demanded the same in Mumbai.

"It is the state government's prerogative if it wants to subsidise certain group of customers on electricity tariff," Power Minister Jyotiraditya Scindia said at a conference here.

He added however that discoms should be revenue neutral. "Whatever is the price of power, if I decide to give subsidy to certain consumers, that is my prerogative as state government. No one can take that right away from me. But I must foot the bill for that. So, there should be transparency and accountability across the system," Scindia said.

He added: "We have put in place a policy framework for the sector, which will allow investors to get returns. This will allow discoms to operate efficiently and take away political and government interference from this very politicisation of power."

On CAG audit of private distribution companies in the Delhi, Scindia said: "If one has done nothing wrong and there is nothing to hide, what is the issue."