Centre to Introduce Electricity Amendment Bill During Budget Session, Says Manohar Lal

Published: Tuesday, January 20, 2026, 15:14 [IST]

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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The Indian government intends to introduce the Electricity (Amendment) Bill, 2025 in the upcoming budget session, aiming to prevent financial losses for power distribution companies by modifying tariff setting; the bill also suggests amendments to the Electricity Act, including cross-subsidy removal within five years for manufacturing enterprises, Indian Railways, and metro railways.

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.

Published On January 20, 2026