In a drastic shift from conventional approach to governance, immediately after being sworn in as CM of Delhi, Mr Kejriwal has got cracking and taken decisions to deliver on two major promises made in AAP’s election manifesto.
These are reduction in power tariff by 50% on supplies to households consuming less than 400 units and supply of 20 kilo liter of water per family per month ‘free’ to all those families having a metered connection.
For decades, established political system has either reneged on commitments given to the public or acted with a huge time lag giving much less than what was promised. Quite often, winning parties have even slept over till it is time to face electorate again.
This pattern emerges from a deeply entrenched ethos where by a political outfit having got a mandate from public to govern, changes its incarnation from a ‘public servant’ to that of a ruler/king who makes common man virtually fall on its feet for access to basics.
This leader – whose living and working style bears striking resemblances to Mahatama Gandhi – has not changed at all despite being catapulted to seat of power. It has made him more humble and strengthened his resolve to serve the public.
It is our moral obligation to appreciate what he is doing and bolster his confidence. Far from that, critiques have already started lambasting Mr Kejriwal for indulging in ‘populism’ and even on trivial things (like objecting to AAP MLAs wearing a cap in Assembly).
Even as central Government under UPA and Congress ruled states have indulged in blatant give away at highly subsidized prices or even free leading to grave fiscal imbalances, AAP is also being bracketed in the same category. They have got it all wrong.
Recall the thrust of Mr Kejriwal’s argument (AAP’s promises must not be viewed in isolation). He opined that tariffs increased due bungling by power distribution companies (PDCs). He cited Draft order by Delhi Electricity Regulatory Commission (DERC) which estimated that 3 PDCs had a revenue surplus of Rs 3577 crores in 2010-11 and recommended a 23% cut in tariff. Yet, far from reduction, then Government slapped hikes hike on hapless consumers.
He also referred to mis-appropriation of funds through un-metered sales, inflated operation & maintenance cost, ‘gold plating’ of equipment cost, sale of power to subsidiary companies of Reliance (owner of 2 PDCs) at less than Rs 2 per unit etc.
When, power distribution in Delhi was privatized in 2002, transmission & distribution losses (those include large scale theft) were 60%. These according to PDCs, have reduced to 15% now. If that be so, where have consequential savings disappeared?
The take-away from all this is that already, there is money in the system. If, operations & balance sheet of PDCs are thoroughly scrutinized and irregularities fixed resulting in lower cost, that will automatically make way for cut in rates.
This is what good governance is all about. This is what Mr Kejriwal has been adumbrating and now ordered CAG audit of PDCs. Prima facie, he is convinced that results of audit will corroborate a fool proof case for cutting tariff by 50%.
Yet, he is more than keen to follow the rules and wait till audit report is out. During the interregnum and in deference to high expectancy quotient of public at this juncture, he has announced immediate relief for those consuming up to 400 units a month.
As alluded to by a spokesperson of AAP on a TV channel, 50% reduction will be granted to all consumers in Delhi – on receipt of CAG report – as promised in the manifesto.
There is not an iota of populism in the above approach and no ‘fiscal profligacy’ as alleged. Far from putting any burden on the financés of Delhi Government, this will only generate more resources not just for giving relief on power front but also, for improving social amenities like education, health etc.
In regard to water, Government has announced what is immediately possible. Like in electricity, here also critics are labouring to pick holes. They say that households not having a connection have been discriminated; left high & dry! This is a frivolous argument.
Considering that there are no pipelines reaching those homes, it is technically impossible to give them benefit at present. It is bewildering to see this criticism coming from Congress who – despite being in power for more than a decade – did not bother to build pipelines and connect homes for basic necessity as water!
A charge that only privileged will benefit is also baseless. The assurance of free supply is 666 litre per day for each family. An one using water in excess will be charged on the ‘entire’ quantity including 666. That is a strong deterrent against reckless use.
It is preposterous to liken these steps to massive subsidies given by central Government – a major slice of which does not even reach the beneficiaries; subsidies that run in to hundreds of thousands of crores and are a major source of de-stabilization of budgets.
Food Security Act (FSA) alone would cost exchequer a monumental over Rs 200,000 crores (more than US$ 32 billion) annually. Even at 50% leakage (admitted by Government), mis-appropriation of funds will be Rs 100,000 crores (around US$ 16 billion). For more details, see https://www.uttamgupta.com/agriculture-foodgrain/a-recipe-for-disaster/
Citing what Mr Kejriwal is doing in Delhi, Maharashtra and Haryana governments are also proposing to reduce power rates. While, former is committed to help Delhiites through ‘good governance’, latter want to scale up sops given all along to new heights despite continued mis-governance.
It bears repetition that decisions announced by Mr Kejriwal are ‘interim’ arrangement applicable for 3 months till March 31, 2014. The intervening period will be utilized to get thorough investigations done on both power and water front.
Once, the exercise is complete, permanent and sustainable steps will be in place; those should give promised relief to consumers without causing any stress on budget.
We need to view actions of AAP in the right perspective that combines good economics with good governance. Mr Kejriwal needs widespread and un-stinted support in this endeavor.
The process must not be hamstrung by small technical points e.g., being private entities, CAG cannot do audit of PDCs or an argument that tariff can be revised only by DERC etc.
People’s mandate in Delhi assembly elections has presented a big opportunity for ‘clean’ and ‘efficient’ governance. We should seize this for the good of millions of Delhiites.