Wednesday, February 25, 2015

Here begins Subsidy Raj in a different form

I have no problem with discounting price of water and electricity for the poor. But poor people dont have enough appliances and devices to spend 400 units. I dont think you can spend 400 units with just fans, lights and even a fridge. Even an AC running for 8 hours only spends 5-6 units. So, to spend 400 we are looking at a house with multiple appliances such as fridge, AC and more. Now, I find it extremely hard that people who live in these conditions are poor. I am ok with even a small charge for up to 100 units. But to give a 50% discount to people who dont need it is plain wrong. My parents use an AC in the summer and they barely hit 200 units. I would love to see how many people benefit from this. I am guessing close to 60-70% of Delhi. Oh sure, everybody in India is poor.
I am not well versed in the water usage numbers but giving it free is not correct. They could have a small fee for upto say 10k and increase progressively. The lack of any thought and pure populism of the measure irritates me to no end. Isn't this corruption? I give you free/discounted  power/water - you vote for me. In my opinion this is the same as paying money to vote - here the difference is you pay money from the govt. I just hope this does not give rise to multiple rounds of dole out at state levels.
For all the AAP supporters once in a while please question!
http://www.livemint.com/Politics/l1g7h9mfl0VPci7SqqKsyL/Delhi-govt-cuts-power-tariff-by-50-for-consumption-up-to-40.html

Update: Deputy CM himself claims 90% of Delhi will benefit from electricity bill - so 90% of Delhi needs subsidy for electricity without establishing that the DISCOMS are cheating! (link here)

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