Delhi Budget 2026-27: ₹3,942 Crore Allocated to Power Sector, Focus on Subsidies and Infrastructure Upgrade
₹3,500 Crore Earmarked for Power Subsidy
New Delhi, March 24: The Delhi Budget 2026-27, presented by Chief Minister Rekha Gupta in the Assembly, allocates ₹3,942 crore to the power department, with a significant portion directed towards consumer subsidies and infrastructure development.Out of the total allocation, ₹3,500 crore has been earmarked for power subsidy payments. The government continues its existing subsidy framework, under which households consuming up to 200 units of electricity receive full subsidy, while those consuming between 201 and 400 units are eligible for a 50 percent subsidy.
Push for Solar Energy and Energy Efficiency
The budget outlines a strategic push towards energy sustainability, with plans to establish a Delhi Energy Conservation Fund. The fund is aimed at promoting energy efficiency and conservation initiatives across the national capital.Highlighting the government’s roadmap, the Chief Minister stated that the allocation will support ongoing subsidy schemes while also advancing Delhi’s transition towards energy self-reliance. This includes implementation of the PM Surya Ghar Muft Bijli Yojana and an incentive-based scheme to promote solar power adoption.
Allocation Increased for Undergrounding Power Lines
A key infrastructure focus in the budget is the undergrounding of overhead electricity wires. The government has doubled the allocation for this initiative to ₹200 crore in 2026-27, compared to ₹100 crore in the previous financial year.Work has already commenced in 28 streets in the Chandni Chowk area, with an estimated project cost of ₹160 crore. The current budget provides an additional ₹200 crore to expand undergrounding of high-tension and low-tension wires to other parts of the city.
Aim to Improve Safety and Urban Aesthetics
The underground cabling initiative is expected to improve urban aesthetics while enhancing public safety by reducing risks associated with overhead wiring.Slight Increase Over Previous Year Allocation
The ₹3,942 crore allocation for the power department in 2026-27 marks a marginal increase from ₹3,847 crore allocated in the 2025-26 budget, reflecting the government’s continued focus on power sector support and modernization.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.