Electricity Amendment Bill will be introduced in Budget Session: Manohar Lal

The government plans to introduce the Electricity (Amendment) Bill, 2025, in the upcoming budget session to prevent losses for distribution companies. The bill proposes cost-reflective tariffs, multiple distribution licensees, and phasing out cros...

New Delhi: The government will in the upcoming budget session of Parliament, table the Electricity (Amendment) Bill, 2025, which will have provisions that would prevent distribution companies from incurring further losses, power minister Manohar Lal said on Monday.

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

A draft amendment bill was put out by the ministry in October for views.


The bill proposed a slew of changes to the Electricity Act, including mandating state regulators to set cost-reflective tariffs, easing rules for multiple distribution licensees, and creating a high-level electricity council to take forward consensus-based reforms in the sector. The amendments seek to fully eliminate cross-subsidy for manufacturing enterprises, the Indian Railways and metro railways within five years after the Act is amended.

Public comments have been received and further discussions with major stakeholders are likely in the upcoming Chintan Shivir this week, a government official said.
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