The Centre plans to table the Electricity Amendment Bill in the upcoming Budget Session of Parliament. This is part of efforts to improve efficiency and financial health in India’s power sector.

Ahead of the session, the Ministry of Power will hold a Chintan Shivir on 22nd and 23rd January to discuss recommendations from states and other stakeholders. Power Minister Manohar Lal Khattar said there has been no change in policy on market coupling.

The Minister said the amendments are aimed at strengthening the Electricity Act, 2003. He noted that while generation and transmission have improved, the distribution segment remains under financial stress. Key provisions include cost-reflective tariffs. Moreover, they grant regulators the power to act suo motu if tariff filings are delayed.

The Bill allows state governments to continue subsidies for domestic and agricultural consumers without raising costs. At the same time, it seeks to reduce cross-subsidies and surcharges to improve industrial competitiveness.

It also proposes measures to promote renewable energy, including minimum non-fossil power obligations and market-based capacity addition. In addition, it suggests steps to improve service delivery, strengthen regulation, enable network sharing, and set up an Electricity Council to support cooperative federalism.

The Minister assured that concerns over privatisation, tariff hikes, or job losses are unfounded. He said the Centre will ensure fair compensation for farmers whose land is used for power infrastructure.

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