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ARTICLE · 20 NOVEMBER 2025

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Draft Electricity (Amendment) Bill, 2025: Background, Overview And Salient Features

JSA Advocates & Solicitors
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JSA Advocates & Solicitors

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The Ministry of Power ("MoP") has issued the Draft Electricity (Amendment) Bill, 2025 ("Draft Bill"), along with an explanatory note on October 9, 2025. The proposed amendments to the Electricity Act, 2003 ("Act")...

IndiaEnergy and Natural Resources

The Ministry of Power ("MoP") has issued the Draft Electricity (Amendment) Bill, 2025 ("Draft Bill"), along with an explanatory note on October 9, 2025. The proposed amendments to the Electricity Act, 2003 ("Act") through the Draft Bill, aims to ensure cost-reflective tariffs, rationalisation of high industrial rates, improve the financial viability of distribution companies (Discoms), among others. Comments on the Draft Bill can be submitted by November 8, 2025.

Background

The Act was enacted after a nation-wide consultation1 to consolidate laws2 relating to generation, transmission, distribution, trading and use of electricity in India which had evolved over a century. The Act sets out clear objectives to:

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