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India Unveils Draft Power Law Opening Retail Supply to Private Competition

A 30-day consultation invites feedback on a plan to inject competition into power distribution.

Overview

  • The Union power ministry circulated the draft Electricity (Amendment) Bill, 2025 to states and stakeholders with a 30‑day window for comments.
  • The proposal permits multiple distribution licensees to serve the same area using shared networks with mandated non‑discriminatory open access.
  • State regulators would be empowered to set cost‑reflective tariffs suo moto with revisions effective from April 1, and cross‑subsidies for manufacturing, Indian Railways and metros would be eliminated within five years.
  • A National Electricity Council chaired by the Union Power Minister is proposed, alongside provisions allowing disciplinary action against members of CERC and SERCs in specified cases.
  • The government cites discom stress with cumulative losses of about ₹6.9 lakh crore and generator dues, with reporting flagging Tata Power, Adani, Torrent and CESC as potential beneficiaries, and early political opposition voiced by Kerala’s electricity minister.