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Delhi Earmarks Rs 3,942 Crore for Power Sector, Strengthens Subsidy Support and Solar Initiatives

The Delhi government has allocated Rs 3,942 crore to the power sector in its 2026–27 budget, reinforcing its focus on electricity subsidies, infrastructure upgrades, and the promotion of clean energy. The announcement was made during the budget presentation by Chief Minister Rekha Gupta in the Assembly.

A major portion of the allocation—Rs 3,500 crore—has been set aside to continue electricity subsidies for consumers. Under the existing scheme, households consuming up to 200 units per month will continue to receive free power, while those using between 201 and 400 units will benefit from a 50 percent subsidy. The government also plans to establish a dedicated Energy Conservation Fund aimed at encouraging efficiency and responsible energy use across the city.

In line with its clean energy ambitions, the government is accelerating rooftop solar adoption under the PM Surya Ghar: Muft Bijli Yojana. Additional incentive-based measures are being introduced to boost installations and move Delhi closer to energy self-sufficiency through distributed solar generation.

On the infrastructure side, funding for underground cabling has been significantly increased. The allocation for shifting overhead high-tension and low-tension wires underground has been doubled to Rs 200 crore, with ongoing work already covering multiple streets in Chandni Chowk. A further Rs 200 crore has been earmarked to expand underground cabling across other parts of the capital, aimed at improving safety and enhancing urban infrastructure.

Overall, the increased budget outlay—slightly higher than the previous year—highlights the government’s continued emphasis on affordable electricity, modernised power infrastructure, and a gradual transition toward cleaner energy sources.