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Centre to Table Electricity Amendment Bill in Budget Session

The push is aimed at enforcing cost-reflective tariffs to move loss‑making discoms toward viability.

Overview

  • Power Minister Manohar Lal Khattar said the bill will be introduced in the Budget session beginning 28 January, with a two‑day Chintan Shivir on 22–23 January to finalize inputs with states.
  • The draft mandates cost‑reflective tariffs and empowers regulators to set rates on a suo motu basis if utilities delay filings to ensure timely tariff determination.
  • State regulators may exempt discoms from the obligation to supply large consumers, allowing those users to procure competitively, with exit options subject to notice.
  • The amendment enables multiple suppliers to use existing distribution networks under non‑discriminatory open access, a step AIPEF criticizes as paving the way for privatization.
  • The ministry reported a cumulative FY25 profit of ₹2,701 crore for discoms but about 50 remain in losses, and the bill targets timely payments and stronger financial discipline.