Govt may table Electricity (Amendment) Bill in Budget session
Union Minister of Power Manohar Lal Khattar
Power Minister Manohar Lal said on Monday that the Union government may introduce the Electricity (Amendment) Bill, 2025, which is aimed at opening up the power distribution sector, in the upcoming Budget Session of Parliament.
The government wants to ensure zero discom losses with the latest amendments to the Electricity Act, 2003, which is expected to be tabled in Parliament in the upcoming session, he said on the sidelines of the inauguration of IIT-Delhi-CERC-Grid India Centre of Excellence.
In October last year, the Power Ministry released the draft Electricity (Amendment) Bill, 2025 for public feedback, which was followed by criticism from Central Trade Unions (CTUs) and power employees’ federations attacking the Bill as an attempt to allow backdoor entry of private players and an assault on the federal character of the Constitution.
Progressive reform
Following protests last year, the Ministry issued FAQs (frequently asked questions) emphasising that it is a progressive reform aimed at strengthening the power distribution sector through financial discipline, healthy competition and enhanced efficiency.
“The Bill encourages healthy competition between the government and private discoms in electricity supply under the supervision of SERCs. This will mean better service, greater efficiency, and real choice for consumers,” it added.
Consultative process
On the issue of a state’s autonomy, the Ministry explained that electricity is in the Concurrent List, enabling Centre and States to legislate. The Bill envisages implementation of reforms through a consultative process between them.
“The proposed electricity council will serve as a consultative body to build policy consensus. At the same time, SERCs will continue to determine tariffs, issue licences and regulate Intrastate activities. The Bill thus preserves the federal balance, promotes cooperative governance, and strengthens the framework for addressing the challenges of the power sector,” it added.
On allegations of cherry picking by private players, the FAQs explain that government discoms will continue to operate alongside private licensees in a regulated, level-playing environment. Competition would reduce costs, improve efficiency and service quality.
The IIT-Delhi-CERC-Grid India Centre of Excellence is envisaged as a national hub for regulatory research, capacity building, advisory support and knowledge dissemination..
Published on January 19, 2026
