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Electricity Amendment Bill, 2025 Remains Under Stakeholder Consultation: Government

The draft Electricity (Amendment) Bill, 2025 is still in the consultation phase, with the government continuing to seek feedback from a wide range of stakeholders, Parliament was informed on Thursday.

In a written reply to the Lok Sabha, Minister of State for Power Shripad Naik said that stakeholder comments on the proposed legislation were invited on October 9, 2025, and the consultation process is currently ongoing.

“The draft Electricity (Amendment) Bill, 2025 is under consultation with stakeholders,” Naik stated, responding to a parliamentary query.

Bill May Be Introduced in Budget Session

Earlier, on January 19, Union Power Minister Manohar Lal had indicated that the government may introduce the Electricity (Amendment) Bill, 2025 during the upcoming Budget Session of Parliament. However, it remains unclear whether the Bill will be tabled in the ongoing session.

Focus on Financial Viability and Market Reforms

Highlighting the intent behind the proposed amendments, Naik said the reforms are aimed at improving the financial sustainability of power distribution companies (discoms), which he described as essential for ensuring reliable and affordable electricity supply.

The draft Bill proposes cost-reflective tariffs and seeks to empower electricity regulatory commissions to determine tariffs suo motu, with effect from April 1 each year. The government believes these measures will help address structural inefficiencies in the power sector.

According to Naik, high industrial tariffs, cross-subsidisation, and rising power procurement costs have adversely impacted industrial competitiveness. The proposed changes aim to rationalise tariffs, unlock electricity demand, reduce overall power costs, and enhance India’s economic productivity and global competitiveness.

Broader Reform Agenda

The draft legislation also seeks to promote competition, strengthen regulatory accountability, and accelerate India’s transition towards non-fossil fuel-based electricity generation, in line with the government’s long-term vision of Viksit Bharat @2047.

Opposition and Clarifications

The Power Ministry had released the draft Bill for public feedback in October 2025, following which it faced criticism from central trade unions and power sector employee federations. Critics argued that the amendments could allow the backdoor entry of private players and undermine the federal structure of the Constitution.

In response to protests, the Ministry later issued a frequently asked questions (FAQ) document, clarifying that the proposed reforms are intended to strengthen the power distribution sector through financial discipline, healthy competition, and improved operational efficiency, rather than dilute public sector participation.