Archive · 19 Jan 2026
Govt May Introduce Electricity Amendment Bill 2025
The Indian government is planning to introduce a new bill called the Electricity (Amendment) Bill, 2025, during the upcoming Budget Session of Parliament.
This bill aims to make changes to the power distribution sector to ensure that there are no losses for the companies that distribute electricity.
The government says this will bring better service, greater efficiency, and more choices for consumers.
They also say it will encourage competition between government and private electricity companies.
Some groups, like trade unions, have criticized the bill, saying it might allow private companies to take over and that it goes against the federal structure of the country.
The government has responded by saying that the bill will actually preserve the balance between the central and state governments and promote cooperative governance.
Additionally, a new center for excellence has been set up at IIT-Delhi to help with regulatory research and training in the power sector.
The Union government may introduce the Electricity (Amendment) Bill, 2025, in the upcoming Budget Session of Parliament.
The bill aims to open up the power distribution sector and ensure zero discom losses.
The draft bill was released in October 2025 and faced criticism from Central Trade Unions and power employees’ federations.
The government has emphasized that the bill is a progressive reform aimed at strengthening the power distribution sector through financial discipline, healthy competition, and enhanced efficiency.
A new IIT-Delhi-CERC-Grid India Centre of Excellence has been established for regulatory research, capacity building, and knowledge dissemination in the power sector.
- Who
- Union government, Power Minister Manohar Lal, Central Trade Unions, power employees’ federations
- What
- Introduction of the Electricity (Amendment) Bill, 2025
- When
- Upcoming Budget Session of Parliament
- Where
- Parliament, India
- Why
- To open up the power distribution sector and ensure zero discom losses
Government and Supporters
Critics (Central Trade Unions and Power Employees' Federations)
Bill's Impact on Private Players
Government and Supporters
The bill encourages healthy competition between government and private discoms, ensuring a level playing field and better service for consumers.
Critics (Central Trade Unions and Power Employees' Federations)
The bill is seen as an attempt to allow backdoor entry of private players, potentially undermining government discoms.
Federal Structure
Government and Supporters
The bill preserves the federal balance and promotes cooperative governance, with states retaining significant regulatory control.
Critics (Central Trade Unions and Power Employees' Federations)
The bill is criticized as an assault on the federal character of the Constitution, potentially encroaching on states' autonomy.
- Bill Name
- Electricity (Amendment) Bill, 2025
- Objective
- Open up power distribution sector, ensure zero discom losses
- Session
- Upcoming Budget Session of Parliament
- Draft Release
- October 2025
- Criticism
- Central Trade Unions and power employees’ federations
- Government Stance
- Progressive reform for financial discipline, healthy competition, and enhanced efficiency
- Consultative Body
- Proposed electricity council for policy consensus
- Centre of Excellence
- IIT-Delhi-CERC-Grid India Centre of Excellence for regulatory research and capacity building
Sources
Govt may table Electricity (Amendment) Bill in Budget session
Centre of Excellence for Regulatory Affairs in Power Sector launched at IIT Delhi
Govt may table Electricity (Amendment) Bill in Budget session
Centre may table Electricity (Amendment) bill in budget session to reform power distribution
