Special Correspondent

Approval for de-commissioning of the Indraprastha thermal power station from October 31

Panel to consider the overall resource position of the Delhi Govt. and needs of the municipal bodies

Power station to be closed due to un-economical operation because of high fuel consumption

NEW DELHI: The Delhi Cabinet on Thursday gave its approval for constitution of the fourth Delhi Finance Commission and de-commissioning of the Indraprastha thermal power station from October 31.

It also gave its nod for appointment of nine district-level full-time secretaries along with ancillary staff in the District Legal Service Authority.

Briefing media persons after the meeting, Chief Minister Sheila Dikshit said the fourth Delhi Finance Commission would be headed by a chairman and would have two members including a member-secretary. The Commission has been requested to submit its recommendations along with action taken report during the Budget Session in February-March 2011. The Commission has been given 15 months in the first instance. Its recommendations would be applicable for five years beginning April 1, 2011.

The terms of reference for the Commission mainly include distribution between the Delhi Government and the municipalities of the net proceeds of taxes, tolls and fees levied by the Delhi Government; determination of taxes, duties, tolls and fees which may be assigned to the municipalities; grants-in-aid to the municipalities from the Consolidated Fund of the Delhi Government; to recommend measures needed to improve the financial position of the municipalities; study the scope for economy in municipal administration and the scope for improvement in resource mobilisation by the municipalities; analyse the tax efforts made by the municipalities and review the functions assigned to the municipalities.

While making its recommendations, the Commission would have to consider the overall resource position of the Delhi Government and the requirements of the municipal bodies for modernisation of administration.


The Cabinet also decided to de-commission the coal-based Indraprastha power station of IPGCL on October 31. The normal life of a coal-based generating station is 25 years and the units of this station have outlived their designed life.

The Central Electricity Authority had recommended de-commissioning of these units on account of un-economical operation owing to high fuel consumption. The Cabinet had on May 7, 2007, approved de-commissioning of the IP station and disposal of the plant and machinery of the existing station. However, the Department of Power had decided to run the plant till October 31, 2009, to meet the higher demand of summer months. Since the dedicated power station at Dadri would now make available power to the Capital, it has finally been decided to de-commission the IP station.

Ms. Dikshit said the Cabinet had also approved creation of 36 posts in different pay scales for nine District Legal Service Authorities as most of the States and Union Territories in the country have already created posts of secretaries along with ancillary staff. One of the primary functions of the District Legal Service Authority is to organise Lok Adalats and coordinate the activities of Legal Services Committees and other legal services in the district.