Budget 2026 | Power Reforms Ahead: Electricity Amendment Bill To Be Introduced In Budget Session

On Sunday, the power ministry said that power distribution utilities have jointly recorded a profit of Rs 2,701 crore in FY25 after having incurred losses for several years.

The bill seeks to bring reforms in the power sector and ensure the profitability of debt-ridden power distribution companies.

Source : Freepik

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Key points generated by AI, verified by newsroom

• Electricity Amendment Bill aims to reform power sector, ensure discom profitability.
• Bill likely introduced in upcoming Parliament Budget session for reforms.
• Amendments seek to prevent discom losses and ensure timely payments.

Power Minister Manohar Lal on Monday said the Electricity Amendment Bill is likely to be introduced in the upcoming Budget session of Parliament.

The bill seeks to bring reforms in the power sector and ensure the profitability of debt-ridden power distribution companies.

The minister made these remarks on the sidelines of the inauguration of the IIT-Delhi-CERC-Grid India Centre of Excellence in the national capital.

On Sunday, the power ministry said that power distribution utilities have jointly recorded a profit of Rs 2,701 crore in FY25 after having incurred losses for several years.

However, about 50 discoms are still in losses, the ministry said.

On strategies to make all discoms profitable, Lal said, "In the next Budget session, we are bringing amendments to the Electricity Act so that discoms don't face losses and receive timely payments".

Also, a consultation meeting is being scheduled with the state representatives to discuss proposed amendments to the Electricity Act, a senior ministry official told PTI.

As per a government document, the Electricity (Amendment) Bill, 2025, also aims to preserve the federal balance, promote cooperative governance, healthy competition, and enhanced efficiency of the sector.

The amendments will not only strengthen the power distribution sector through financial discipline but also strengthen the framework for addressing the challenges of the power sector, as stated in the FAQ on the Electricity (Amendment) Bill, 2025.

The government's ongoing efforts to bring amendments to the Act have also attracted criticism from several sections.

The All India Power Engineers Federation (AIPEF) has opposed it, arguing that the bill proposes multiple distribution licensees to use the existing network of government dioscoms.

"The bill seems to support privatisation motives. The central government continues to press ahead with its privatisation agenda through the Electricity (Amendment) Rules," AIPEF Chairman Shailendra Dubey said. 

(Disclaimer: This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)

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