The Uttarakhand government has declared that residential users would receive up to 100 units of free power each month. The administration said on Wednesday that power usage over that, up to 200 units, will be taxed at 50 percent of the price.

Harak Singh Rawat, a cabinet member who was given the additional responsibility of energy and renewable energy in the state on Wednesday, made the announcement shortly after a meeting of the department’s senior officials.

Rawat said, “This will cost the state exchequer around Rs. 400 to 500 crore annually, but it will provide relief to a large section of the state’s population.” He said the department was preparing the proposal to present to the Cabinet in its next meeting.

The minister also rejected the speculation that the scheme is being introduced to check the Aam Aadmi Party (AAP) from taking root in the state, as free electricity and water are poll promises of the latter.

With less than a year left for the state assembly elections, AAP has been attacking the ruling BJP on issues like corruption, unemployment and health through various political events and on social media.

In December last year, senior AAP leader and Delhi deputy chief minister Manish Sisodia visited the state and announced that the party will fight on all 70 assembly seats.

In the Himalayan state, Uttarakhand Power Corporation Limited (UPCL), a government of Uttarakhand undertaking, is the sole distributor of electricity in the state. UPCL is currently supplying electricity to over 2.5 million consumers across the state.