This Article is From Jan 02, 2014

Aam Aadmi Party's subsidy bonanza: eye on national polls?

New Delhi: Chief Minister Arvind Kejriwal today defended his government's decision to provide free water and subsidised power in Delhi by saying the move was taken to ensure that the aam aadmi or common man is not burdened in the immediate future. (50% power tariff cut for usage upto 400 units in Delhi) | (Kejriwal keeps free water promise)

Both the measures are expected to cost the government approximately Rs 350 crores.

BJP leader and MLA Dr Harsh Vardhan questioned the move saying the tax payer and not private companies will end up paying for the largess.

Dr Vardhan's senior colleague and leader of the opposition in the Rajya Sabha, Arun Jaitley also questioned the rationale of the subsidy.

"More subsidies lead to more taxes... A subsidy may prove counter-productive for more vulnerable sections," Mr Jaitley said. (AAP's sops in Delhi will lead to more taxes, warns Jaitley)

Mr Kejriwal says providing subsidised power is a short term measure till they do an audit and get better rates for the long term. The chief minister today announced that the Comptroller and Auditor General (CAG) will audit the finances of the three private power distribution companies in Delhi which would make electricity tariffs more transparent and ensure that rates eventually come down. (All three power firms in Delhi to be audited by CAG, says Chief Minister Arvind Kejriwal)

Supplying cheap power has been high on AAP's agenda. Before the Delhi elections, the party had asked people not to pay huge power bills and when connections were disconnected, Mr Kejriwal even went to people's homes to reconnect the power supply.

The message and formula worked for AAP, and it made a spectacular political debut, winning 28 of the Delhi Assembly's 70 seats.

Interestingly, Mr Kejriwal today indirectly received support from Congress MP Sanjay Nirupam, who wrote to the Maharashtra Chief Minister asking for a probe into Mumbai power distribution companies and a reduction in power tariffs. (Cut power rates in Mumbai like AAP did in Delhi: Congress MP)

Now as AAP repays the aam aadmi, its critics are questioning the sops alleging that it is being done with an eye on the upcoming Lok Sabha polls.

While AAP yet to decide on how many seats it will contest, the answer will depend on how quickly it can set up its poll machinery on the ground and how its work is perceived by the aam aadmi
.