You must have heard that AAP schemes aim to ensure dignity of life for all. But does this necessarily mean bad economics? Read on…
“AAP government’s promise of 300 units of free electricity along with uninterrupted electricity supply is good politics, better economics”Akshay Marathe, AAP spokesperson
Schemes such as the Free Lifeline Electricity programme reduces waste and increases use of electric appliances and people’s productivity. People tend to spend the savings in local markets, stimulating demand in the local economy.
It is more efficient than a Direct Benefit Transfer (DBT) to households. Increased power consumption led to Delhi’s GDP growing at 7.7% between 2015-16 and 2020-21.
Discoms too benefit from better financial health owing to reduction in losses, increased legal compliance. Power generation too is shifting to cheaper, greener, renewable alternatives.