9 months ago
India Extends Feedback Deadline for Draft Electricity Bill Amid Opposition
The government wants to change some rules about electricity in India.
They wrote down new ideas in a draft bill and asked people for their opinions.
Some people who work in electricity, farmers, and others who care about these issues didn't like the ideas.
They said the changes could let private companies take over parts of the electricity system, which they think is bad.
They also asked for more time to think about the new rules.
So, the government decided to give everyone more time to share their thoughts.
They will now listen to everyone's feedback until the end of November before deciding what to do next.
This is because the electricity system has had money problems, and the government thinks new rules might help.
The Union Ministry of Power has extended the feedback deadline for the draft Electricity (Amendment) Bill 2025 to November 30.
The extension was granted following requests from various stakeholders, including power-sector employees, farmers, and activists, who needed more time to review the draft.
Opponents fear the proposed amendments could lead to the privatization of the electricity sector, weaken state powers, and threaten jobs.
The draft Bill's provisions, such as allowing multiple distribution licensees, are criticized for potentially enabling 'backdoor privatization'.
Despite 22 years of reforms, the electricity sector's financial health has reportedly deteriorated, with cumulative distribution losses increasing significantly.
- Who
- Union Ministry of Power, power-sector employees, farmers, activists, states, Punjab Government, Bharatiya Kisan Union (Dakaunda), Punjab State Electricity Board Engineers’ Association (PSEBEA), All India Power Engineers Federation
- What
- Extension of the feedback deadline for the draft Electricity (Amendment) Bill 2025
- Where
- India
- When
- Deadline extended to November 30; initial deadline was November 8; draft circulated on October 9
- Why
- To allow more time for stakeholders, including state governments, employees, farmers, and activists, to study and provide feedback on the proposed amendments, which have faced significant opposition.
Opposition Groups
Union Ministry of Power
Concerns about Privatization and Sector Health
Opposition Groups
The proposed amendments could dismantle India’s publicly built electricity framework, hand over profitable segments to private companies, weaken states’ powers, and threaten the livelihoods of thousands of power-sector employees. Multiple distribution licensees could lead to 'backdoor privatization,' with private firms targeting profitable consumers and leaving state companies with less profitable ones.
Union Ministry of Power
The amendments are being considered due to the deterioration of the sector's financial health over 22 years of reforms, with cumulative distribution losses ballooning significantly. Further reforms are deemed necessary.
Stakeholder Consultation
Opposition Groups
There is a need for meaningful stakeholder consultation, and pushing reforms without it will harm the public power sector. Many stakeholders requested more time to study the provisions.
Union Ministry of Power
The deadline for feedback has been extended to November 30 following requests from stakeholders seeking more time to study the provisions.
State Government's Role
Opposition Groups
State governments, like Punjab, should take a clear stand and pass resolutions against the Bill, as well as send official representations clarifying their position.
Union Ministry of Power
The Union Ministry of Power has circulated the draft Bill among states and is receiving feedback.
Key facts
- Bill Name
- Draft Electricity (Amendment) Bill 2025
- Initial Feedback Deadline
- November 8
- Extended Feedback Deadline
- November 30
- Circulation Date
- October 9
- Cumulative Distribution Losses
- Rs 26,000 crore to Rs 6.9 lakh crore (over 22 years under Electricity Act 2003)
Quotes
PSEBEA
an engineers' body quoting from the Central Government’s explanatory note
“Pushing further reforms without meaningful stakeholder consultation will be the last nail in the coffin of India’s public power sector.”
indianexpress.com
“backdoor privatisation”
indianexpress.com
Jagmohan Singh Patiala
state general secretary of the Bharatiya Kisan Union (Dakaunda)
“We hope the Punjab Government will now call a special Vidhan Sabha session to pass a resolution against this Bill. Farmer unions, employee bodies, and activists have already submitted their objections to the Centre with copies sent to the chief minister.”
indianexpress.com
Ajaypal Singh Atwal
general secretary of the Punjab State Electricity Board Engineers’ Association (PSEBEA)
“But the Punjab Government must also send its official representation. It is important for the state to clarify its position on the draft Bill.”
indianexpress.com
Sources
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