1. INTRODUCTION
On October 9, 2025, the Ministry of Power released the Draft
Electricity (Amendment) Bill, 2025 ("Amendment
Bill"), inviting public comments and suggestions.
The Amendment Bill represents the first major overhaul of the
Electricity Act, 2003 ("Electricity
Act"), in almost two decades and seeks to reform the
Indian power sector to make it financially resilient,
environmentally sustainable, and capable of supporting globally
competitive industries. To achieve these objectives, the Amendment
Bill introduces several key measures, including the following:
2. REFORMS IN THE POWER DISTRIBUTION SECTOR
2.1. Cost-Reflective Tariffs and Suo Motu Tariff
Determination