The Aam Aadmi Party (AAP) has fulfilled its promise of providing free water and cheaper electricity to Delhi’s citizens.

On Wednesday, the Arvind Kejriwal Government re-implemented the subsidy of 50 per cent on electricity tariffs for people consuming up to 400 units of electricity a month and free water and sewage bills for those consuming up to 20,000 litres of water a month. It will be available from March 1.

The electricity subsidy will cost the Delhi Government ₹1,427 crore over the 2015-16 fiscal year, while water will cost ₹250 crore. “The benefit of the electricity tariff reduction will be from March 1. This will benefit 90 per cent of Delhi’s families or a total of 36,06,428 families,” said Delhi’s Deputy Chief Minister, Manish Sisodia.

Asked how the Delhi Government would fund the subsidies, Sisodia said the answer would be given when the budget was presented in the assembly. He added that while the subsidy estimate has been budgeted for the next fiscal year, the Government expects it to drop after the Comptroller and Auditor General (CAG) competes its audit of Delhi’s distribution utilities.

“For the one month (March) in the current fiscal year, the subsidy expense on electricity will be ₹70 crore,” Sisodia said. The water subsidy will cost the Delhi Government ₹20 crore in March.

While tariffs will be halved for people consuming less than 400 units of electricity, those who consume more than 400 units will have to pay the full amount. Similarly, for water, families consuming up to 20,000 litres of water will be exempt from paying water and sewage bills. If consumption crosses that level, full charges will have to be paid. “The benefit will be to around 18,00,000 families from March 1,” said Sisodia.

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