Delhi Government Faces Heavy Electricity Subsidy Burden, Estimated at ₹4,000 Crore This Year

The financial burden of electricity subsidies in Delhi is steadily increasing. Sources indicate that in the fiscal year 2025-26, the total expenditure on electricity subsidies by the Delhi government may exceed ₹4,000 crore. Initially, the government had allocated ₹3,849 crore for electricity subsidies this year.

Additional ₹361 Crore Sought for Subsidy Payments

The Power Department has requested an additional ₹361 crore in the revised budget to cover pending subsidy payments. Officials state that this extra amount is necessary to meet the outstanding dues. Over the past decade, spending on electricity subsidies has nearly tripled.

This year’s initial allocation of ₹3,849 crore represents an increase of approximately ₹250 crore compared to the previous fiscal year, during which the total subsidy expenditure was ₹3,600 crore. The Delhi government decided to continue the subsidy program and increase the budget accordingly. With the new demand for ₹361 crore in the revised budget, the proposal is likely to be approved during the Delhi Assembly’s Winter Session in December.

Subsidy Scheme Growing Over the Years

The free electricity scheme began in 2015-16, when Delhi had 52.62 lakh electricity consumers and the subsidy expenditure was over ₹1,442 crore. Ten years later, the number of consumers has increased to 69 lakh, and subsidy expenditure is estimated to reach ₹4,200 crore. Currently, over 83% of Delhi’s electricity consumers are residential.

Year-wise expenditure on electricity subsidy has risen consistently: ₹1,442.76 crore in 2015-16, ₹1,577.94 crore in 2016-17, ₹1,676.70 crore in 2017-18, ₹1,699.29 crore in 2018-19, and ₹3,600 crore in 2024-25.

200 Units Free Under Delhi Electricity Scheme

Under the scheme, residential consumers using up to 200 units of electricity receive their bills free of charge. Consumers using between 201 and 400 units are eligible for a 50% subsidy on their total bill, up to a maximum of ₹800. Consumers consuming more than 401 units do not receive any subsidy.