Bill for amending Electricity Act sent for consultation

The Union power ministry has circulated the proposed Electricity (Amendment) Bill, 2021, for inter-ministerial consultation and has also sent it to the law and justice ministry for vetting, a government official aware of the development said.

The proposed amendments aim to de-license power distribution and increase competition, unleashing next-generation power sector reforms in India. After Cabinet approval, the government aims to introduce and pass the Bill in the current session of Parliament.

Prime Minister Narendra Modi has said an electricity consumer should be able to choose his supplier like any other retail commodity. The Union budget presented last month proposed to create a framework to allow consumers to choose their electricity suppliers. “The amendment has been circulated now for inter-ministerial comments,” the official cited above said on the condition of anonymity.