CM Rekha Gupta Says Delhi Discoms Cannot Pass Rs 38,000 Crore Burden to Consumers

NEW DELHI — Chief Minister Rekha Gupta stated in the Delhi assembly on Tuesday that power distribution companies in the capital have accumulated a financial gap of approximately Rs 38,000 crore, but asserted that the government will not permit them to pass this financial burden on to consumers.

Addressing the house, Gupta said the Delhi government is standing its ground firmly on the issue and is fighting the case in court to protect electricity consumers. She explained that power tariffs in Delhi have not been increased since 2014, which led to a growing disparity between actual revenue from electricity distribution and the costs of purchasing power. Over time, this widening gap gradually accumulated in the form of a regulatory asset.

Gupta made the remarks during a debate in the assembly concerning two Comptroller and Auditor General (CAG) reports related to the finances and performance of the previous Aam Aadmi Party government in Delhi. Criticising the former administration, she alleged widespread governance failures and irregularities during its tenure.

Citing the CAG findings, Gupta highlighted several issues, including alleged lapses in central grants-in-aid to the Delhi government, schemes announced with available funds that were never implemented, irregularities in tenders, and the non-payment of GST refunds under the previous regime. She added that the current government is implementing reforms to clear up governance bottlenecks, improve administration, and execute pending public projects.