Power Minister Manohar Lal holds consultation with MPs panel on draft Electricity Bill

New Delhi, Dec 21 (PTI) Power Minister Manohar Lal held a meeting with a panel of Members of Parliament to discuss proposals of the draft Electricity (Amendment) Bill, an official statement said on Saturday.

MPs from various political parties in Lok Sabha and Rajya Sabha took part in the meeting held here on Thursday, the Power Ministry said in a statement. The meeting was called by the minister to consult the members on various proposals in the Draft Electricity (Amendment) Bill, 2025, which had been released by the ministry for stakeholder consultation, it further said.

The consultation was held amid protests by the power engineers' body, All India Power Engineers Federation (AIPEF), which has scheduled demonstrations on December 23 against the proposed electricity bill. The body also pledged support for a nationwide strike on the same day, joining the central trade unions and the farmers' body, Samyukt Kisan Morcha (SKM), in protesting the new labour laws and demanding a guaranteed minimum support price for crops.

Chairing the meeting of the Parliamentary Consultative Committee of the Ministry of Power, Manohar Lal said that the Electricity (Amendment) Bill aims to strengthen the legislative foundation of India's power sector, the statement said.

Lal highlighted that the provisions in the Bill have been proposed to mandate cost-reflective tariffs and to empower Commissions to act suo- motu when utilities delay tariff filings. He clarified that State Governments may continue to provide subsidies to priority consumer groups such as domestic and agricultural consumers and there may not be any increase in cost for such consumers.

This ensures that financial discipline and consumer welfare go hand in hand. The Bill also seeks to enhance the economic competitiveness of the Indian industry. By reducing distortions caused by cross-subsidies and surcharges, the Bill aims to support Indian industry, including MSMEs, to grow, expand employment, and compete globally.

He emphasised the need to make the cost of electricity reasonable for the industries for the benefit of all the citizens in the country. The Bill also proposes to empower SERCs, in consultation with the State Government, to exempt DISCOMs from the obligation to supply large consumers.

A minimum obligation for the use of non-fossil source electricity is proposed under the Bill. To ensure the availability of cost-competitive and adequate renewable energy, it is proposed that capacity addition will also be enabled through market mechanisms in addition to through agreements by the DISCOMs, which will also reduce the burden on DISCOMs.

Lal further informed that the Bill includes important operational reforms such as incorporating Right-of-Way provisions directly in the Act. It also proposes enabling distribution network sharing to avoid duplication. He emphasised that allowing network sharing will benefit consumers.

The Minister clarified to the attendees that the apprehensions about privatisation and increase in cost or adverse effect on employees has no basis. Suitable regulatory and policy measures will be taken to ensure that there will not be any adverse effect on any class of consumers or employees.

AIPEF Chairman Shailendra Dubey has charged that the amendments will do away with subsidies and cross subsidies in the sectors meant for farmers and poor domestic consumers, which would lead to inflated bills. PTI ABI MR