New Electricity Amendment Bill: A Game Changer for India's Power Sector

The Power Ministry has unveiled a draft bill aimed at overhauling the Electricity Act, 2003, with a focus on empowering state regulators and revising tariffs on their own initiative. The proposal seeks to streamline the distribution network, reduce industrial tariffs, and exempt certain sectors from cross-subsidy levies.

Significant amendments aim to address the financial distress in the distribution segment, which has witnessed cumulative losses exceeding Rs 6.9 lakh crore. The bill proposes steps such as empowering state electricity commissions, rationalizing tariffs, and promoting industrial competitiveness by easing regulatory delays.

This ambitious draft emphasizes cleaner energy transitions and enhanced efficiency, proposing measures such as captive generation rules and cybersecurity regulations. It also suggests creating an Electricity Council to foster consensus on reforms, thereby promising a more stable and investor-friendly power sector in India.

(With inputs from agencies.)