Agencies/New Delhi

Delhi Chief Minister Arvind Kejriwal yesterday announced his government would halve power bills and provide free water to poorer households from next month.
Households in the Indian capital consuming less than 20,000 litres of water per month will pay nothing from March 1, while those using less than 400 units of electricity will see their bills halved, Deputy Chief Minister Manish Sisodia told a news conference.
“We did what we said. Have halved the power rates and made water free... will also fulfil other promises, just keep giving us your support,” Kejriwal said on Twitter.
The populist policies are the first since Kejriwal’s Aam Aadmi Party won a landslide election this month and fulfil pledges he made during the campaign to help millions of struggling families in the capital make ends meet.
Sisodia said after a cabinet meeting that the power subsidy would cost the exchequer Rs14.27bn annually, while the free water would cost of Rs2.5bn.
A consumer will have to pay Rs2 per unit for up to 200 units a month, in comparison to the Rs4 per unit at present, which has a subsidy of Rs1.20 per unit.
For those consuming between 200-400 units, the cost would be down from Rs5.95 per unit to Rs2.97. In this slab too, there is an existing subsidy of 80 paise - announced by the central government in last year’s budget.
However, there is a rider. The consumer will be charged full rates from zero base if the electricity consumption crosses 400 units.
This also applies to water too.
“The relief in electricity bills will be provided to domestic consumers till the CAG (Comptroller and Auditor General) audit of private power distribution companies (discoms) is completed,” a government statement said.
The AAP trounced Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) at the polls, handing the premier his first defeat since storming to victory at last year’s general election.
The win capped a remarkable comeback for Kejriwal, whose last stint as Delhi’s chief minister lasted just 49 days and ended in chaos when he quit a year ago.
Sisodia estimated that the party’s new power policy would benefit about 3.6mn households, while the water offer would help 1.8mn.
“None of the previous administrations made any effort to give cheap, affordable power and water to the people of Delhi... we are doing it just as promised,” Sisodia said.
The AAP, which was born out of an anti-corruption mass movement three years ago, announced similar decisions during its brief, controversy-marred rule last year.
Many critics have said giving out free water will encourage wastefulness in a country where water is already in a short supply.