Electricity (Amendment) Bill Expected in Budget Session to Reform Power Sector

The Ministry of Power has indicated that the Electricity (Amendment) Bill, 2025, is likely to be introduced in the upcoming Budget session of Parliament.

The proposed amendments seek to bring reforms in the power sector, particularly to improve the financial health of power distribution companies (discoms). The government has said the Bill aims to curb recurring losses by enforcing financial discipline and ensuring timely payments.

While power distribution utilities reported collective profits in FY25 after several loss-making years, many discoms remain financially stressed. The amendments are also intended to promote cooperative federalism, competition and efficiency.

However, power sector unions have opposed the proposals, citing concerns over possible privatisation.