"One way by which people want to provide cheaper electricity is by the state subsidising it. A state subsidy really means that you will have to tax people more in order to provide something free to some other people. Is that a sustainable cause?" he said addressing the Re-Invest 2015 conference on renewable energy here.
Inaugurating the conference on Sunday, Modi wondered how promises of cheap power could be made by political parties in states which are dependent on electricity supply from outside, comments which were seen as a dig at AAP.
Jaitley said the ongoing auction of coal mines undertaken by the NDA government would ensure cheaper electricity to common man in a sustained manner.
Taking the first step towards slashing power tariff by 50 percent, the Aam Aadmi Party-led Delhi government yesterday directed finance and power departments to immediately send their proposals for its implementation.
Slashing power tariff by half was among the key pre-poll promises made by AAP in the Assembly elections which they won with a landslide majority.
Referring specifically to the ongoing auction of coal mines, Jaitley said the reverse auction process will ensure cheaper electricity to common man as against the practice of
certain states giving power subsidy.
"In reverse bidding, the cost of power is going to be linked with the rate at which you get the fuel," Jaitley said.
Aggressive bidding is going on for the first tranche of the coal mines auction which is expected to completed by February 22.

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