Power Minister Manohar Lal has held consultations with a panel of Members of Parliament on the proposed Electricity (Amendment) Bill, 2025, as the government seeks feedback on changes aimed at strengthening India’s power sector framework, PTI reported.
MPs from various political parties in both the Lok Sabha and Rajya Sabha participated in the meeting of the Parliamentary Consultative Committee of the Ministry of Power, held in New Delhi on Thursday, the ministry said in a statement on Saturday. The consultation was convened to discuss key provisions of the draft Bill, which has been placed in the public domain for stakeholder feedback.
The discussions come amid opposition from power sector employees. The All India Power Engineers Federation (AIPEF) has announced demonstrations on December 23 against the proposed amendments and has extended support to a nationwide strike called by central trade unions and the Samyukt Kisan Morcha, protesting labour law changes and demanding a legally guaranteed minimum support price for crops.
Chairing the meeting, the minister said the Bill seeks to strengthen the legislative foundation of the power sector. He noted that the proposals aim to mandate cost-reflective tariffs and empower regulatory commissions to act suo motu when utilities delay tariff filings. He clarified that state governments may continue to provide subsidies to priority consumer groups such as domestic and agricultural users, and said the changes would not lead to higher costs for such consumers.
According to the statement, the Bill also seeks to reduce distortions caused by cross-subsidies and surcharges to improve the competitiveness of Indian industry, including MSMEs, and support job creation. The minister emphasised the need to ensure reasonable electricity costs for industry.
The draft legislation proposes to empower State Electricity Regulatory Commissions, in consultation with state governments, to exempt distribution companies from supplying large consumers. It also introduces a minimum obligation for using non-fossil fuel-based electricity and enables renewable capacity addition through market mechanisms alongside DISCOM agreements, with the aim of easing financial stress on utilities.
Operational reforms proposed include incorporating Right-of-Way provisions in the Act and enabling distribution network sharing to avoid duplication, which the minister said would benefit consumers.
Responding to concerns, Lal said apprehensions about privatisation, higher costs or adverse impacts on employees were unfounded and that safeguards would be in place.
However, AIPEF chairman Shailendra Dubey has charged that the amendments could eliminate subsidies and cross-subsidies for farmers and poor domestic consumers, leading to higher electricity bills.
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