The government is preparing to introduce the Electricity Amendment Bill in the upcoming Budget session with the goal of improving discom finances and streamlining reforms in the power sector. While profits have begun to return for many utilities, several discoms remain loss-making.
Union Power Minister Manohar Lal Khattar on Monday indicated that the long-awaited Electricity Amendment Bill is expected to be introduced in the upcoming Budget session of Parliament. The proposed legislation aims to overhaul the power sector and help debt-laden distribution companies regain financial stability. Lal made these remarks during the inauguration of the IIT Delhi CERC Grid India Centre of Excellence in the national capital.
Discoms record profit after years of losses
The power ministry said on Sunday that distribution utilities collectively posted a profit of Rs 2,701 crore in FY25 after suffering losses for many consecutive years. Despite this improvement, nearly 50 discoms across the country continue to remain in the red. Speaking on steps to ensure financial stability across all utilities, Lal said, “In the next Budget session, we are bringing amendments to the Electricity Act so that discoms don’t face losses and receive timely payments”.
Consultations underway with states
A senior ministry official told PTI that a consultation meeting is being scheduled with state representatives to discuss the proposed changes in the law. According to an official document, the Electricity Amendment Bill 2025 is designed to maintain the federal balance, encourage cooperative governance, boost competition, and improve the efficiency of the power sector. The document further states that the amendments will enhance financial discipline within distribution networks while strengthening mechanisms to address long-standing challenges in the sector.
Opposition flags concerns over privatisation
The centre’s push to amend the Electricity Act has triggered opposition from several groups. The All India Power Engineers Federation has criticised the move, arguing that the proposed changes pave the way for privatisation by allowing multiple distribution licensees to use the existing network of government discoms. “The bill seems to support privatisation motives. The central government continues to press ahead with its privatisation agenda through the Electricity (Amendment) Rules,” AIPEF Chairman Shailendra Dubey said.
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