Government to Introduce Electricity Amendment Bill in Budget Session to Reform Power Distribution

The Indian government plans to introduce the Electricity (Amendment) Bill, 2025, in the upcoming Budget Session to reform the power distribution sector. The bill aims to prevent financial losses for distribution companies by mandating cost-reflective tariffs, allowing multiple distribution licensees per area, and phasing out cross-subsidies within five years. While the sector posted a net profit in FY25, some discoms remain in debt. The government is consulting stakeholders and state governments to address concerns and improve efficiency.