Thursday, September 1 2005 14:15 Hrs (IST) - World Time -

New Delhi: Congress MP Ajay Maken, who yesterday (Aug 31, 2005) raised the demand for resignation of Chief Minister Sheila Dikshit, asserted that giving subsidy to the private power distributing companies (Discoms) was 'unjustified' and against the idea of reforms in the sector.

"I am not against anybody. But I am opposed to giving of subsidy by the government to the private companies," he told sources after creating a stir in Delhi's political circles by raising the demand at a meeting of MPs and Congress Working Committee (CWC) members of Delhi here.

He said the Delhi Government's decision to give subsidy for five per cent rollback of power tariff hike would cost the state exchequer up to Rs 90 crore annually.

"On the one hand, the government is withdrawing the hike to save the public. But on the other hand, it is giving away the public money to the private companies," Maken said.

Insisting that the discoms had earned profits, he said giving of subsidy for withdrawing tariff hike was 'unjustified'.

"Providing subsidy to the companies is against the basic idea of reforms," said Maken, former Delhi Power Minister under whom power privatization took place in 2002.

He said the privatization was undertaken to enable the Government to save money and utilize it on social infrastructure development.