Centre to Introduce Electricity Amendment Bill During Budget Session, Says Manohar Lal
The government plans to introduce the Electricity (Amendment) Bill, 2025 in the coming budget session of Parliament. Power minister Manohar Lal said the proposed law aims to stop fresh financial losses at power distribution companies by tightening rules and changing how electricity tariffs are set.
Manohar Lal spoke on Monday during the launch of the IIT-Delhi-CERC-Grid India Centre of Excellence in the national capital. A draft of the Electricity (Amendment) Bill, 2025 had already been released in October by the power ministry to gather comments from stakeholders and the public.
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Key reforms under the Electricity (Amendment) Bill, 2025
The draft Electricity (Amendment) Bill, 2025 suggests several amendments to the Electricity Act. It asks state regulators to approve cost-reflective tariffs. It also proposes simpler entry conditions for multiple distribution licensees and recommends forming a top-level electricity council to drive reforms based on broad agreement.
| Provision | Detail |
|---|---|
| Cross-subsidy removal | End cross-subsidy for manufacturing enterprises, Indian Railways, metro railways within five years. |
| Timeline start | Countdown begins after the amended Act comes into effect. |
Consultations and next steps for the Electricity (Amendment) Bill, 2025
The amendments aim to completely remove cross-subsidies for manufacturing enterprises, the Indian Railways and metro railways within five years of the Act’s amendment. A government official said responses on the Electricity (Amendment) Bill, 2025 have been received, and more talks with major stakeholders are expected during the Chintan Shivir scheduled this week.
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