Union Power Minister Manohar Lal on Monday said that the Electricity Amendment Bill is expected to be introduced during the forthcoming Budget session of Parliament. The proposed legislation aims to bring structural reforms to the power sector, with a particular focus on improving the financial health of power distribution companies.
The minister made the statement while speaking on the sidelines of the inauguration of the IIT Delhi–CERC–Grid India Centre of Excellence in New Delhi. He said the amendments are intended to ensure that debt-laden distribution companies do not continue to incur losses and receive payments on time.
On Sunday, the power ministry had announced that power distribution utilities collectively recorded a profit of ₹2,701 crore in FY25 after several years of losses. However, the ministry also noted that around 50 discoms are still operating in the red.
Highlighting the government’s strategy to make all distribution companies profitable, Lal said that amendments to the Electricity Act would be brought during the next Budget session to address financial inefficiencies and payment delays.
A senior ministry official said that a consultation meeting with state representatives is being planned to discuss the proposed amendments to the Electricity Act. According to a government document, the Electricity (Amendment) Bill, 2025, seeks to preserve the federal balance while promoting cooperative governance, healthy competition, and greater efficiency in the power sector.
As stated in the FAQs issued on the Electricity (Amendment) Bill, 2025, the proposed changes aim not only to strengthen financial discipline within the power distribution segment but also to enhance the overall framework for addressing sectoral challenges.
However, the government’s move to amend the Act has drawn criticism from certain groups. The All India Power Engineers Federation (AIPEF) has opposed the bill, arguing that it allows multiple distribution licensees to operate using the existing network of government-owned discoms. AIPEF Chairman Shailendra Dubey said the proposed amendments appear to promote privatisation and alleged that the central government is pushing its privatisation agenda through the Electricity (Amendment) Rules.
