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L-G orders special audit of subsidy given to discoms

New Delhi, April 18 Amid the ongoing tussle between the Aam Aadmi Party (AAP) government and Delhi L-G, L-G VK Saxena on Tuesday directed the Delhi Electricity Regulatory Commission (DERC) to conduct a Special Audit of Distribution Companies (discoms)...
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New Delhi, April 18

Amid the ongoing tussle between the Aam Aadmi Party (AAP) government and Delhi L-G, L-G VK Saxena on Tuesday directed the Delhi Electricity Regulatory Commission (DERC) to conduct a Special Audit of Distribution Companies (discoms) into the electricity subsidy released by the Delhi government to the companies for financial years 2016-17 and 2021-22.

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As per the order, released in view of the policy involving larger public interest, the special audit would be conducted by a CAG-empanelled external audit.

The special audit, according to the L-G, is being carried out to ensure that subsidies reach the targeted beneficiaries with transparency and efficiency.

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Notably, the AAP government in Delhi provides free electricity to consumers up to 200 units of monthly consumption. Those consuming 201 to 400 units get a 50 per cent subsidy, capped at Rs 850.

The decision to conduct the audit of discoms comes days after Power Minister Atishi accused the Delhi L-G of sitting on the files pertaining to the power subsidy.

In the run up to the release of the said order, Saxena had slammed the AAP government for avoiding an audit of the subsidies, amounting to Rs 13,549 crore, provided to private discoms for more than six years between 2016 and 2022.

The L-G had said, “At the outset, I would like to record my surprise at the fact that public funds to the tune of Rs13, 549 crore have not been audited for the past 6 years and been passed on to the private discoms, without any substantive scrutiny as to whether the subsidies meant for the poor are reaching the targeted population or not.”

‘Rs 13,549 cr given to private firms’

  • Subsidies amounting to Rs 13,549 crore provided to private discoms between 2016 and 2022, the L-G said
  • “The special audit is being carried out to ensure that subsidies reach the beneficiaries,” the L-G said
  • The special audit would be conducted by a CAG-empanelled external audit
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