New Delhi: A week after the 22 per cent hike in power tariff, Delhi government on Saturday formally took a decision to provide a subsidy of Rs one per unit to domestic consumers whose monthly consumption of electricity does not exceed 200 units.

A meeting of the Delhi Cabinet, presided over by Chief Minister Sheila Dikshit, decided to extend the subsidy which will benefit around 34 lakh consumers out of 52 lakh consumers of the three private discoms.

"The decision to extend the subsidy was taken to insulate the common man from the hike," Dikshit said after the meeting.

Power Minister Harun Yusuf, earlier this week had announced in Delhi Assembly the government's in-principle decision to offer the subsidy to those domestic customers whose monthly consumption is restricted upto 200 units.

The annual financial implication on the government would be around Rs 180 crore.

The government has been providing the subsidy for the last five years and it had lapsed in March this year.

As per the new rates announced by DERC, a domestic consumer will be charged Rs 3 per unit for first 200 units of power instead of the current Rs 2.45.

The rate for per unit of power has been increased to Rs 4.80 from the current Rs 3.95 per unit for usage between next 200 units to 400 units while Rs 5.70 per unit will be charged instead of current Rs 4.65 for usage beyond 400 unit.

Sources said the issue of a proposal seeking hike in salaries of Delhi ministers and MLAs by up to 300 per cent also figured in the cabinet meeting as the Home Ministry has expressed reservations over certain provisions in it.

The proposal was sent by the Delhi government to the Home
Ministry in March for clearance after a similar proposal sent last year was rejected.

The Delhi Cabinet in February had approved a proposal seeking a hike in the salaries of members of legislative assembly and ministers by up to 300 percent, citing inflation and increased cost of living in the capital.

As per the proposal, an MLA who currently gets nearly Rs 32,000 monthly, including all incentives, will get nearly Rs 1 lakh while the monthly emolument of a minister will go up to Rs 1,20,000 from the current Rs 43,000 a month.

The Home Ministry last month had sought certain clarification regarding the proposal.