India is planning laws that would boost competition and lower debt at its power distribution companies, but also risks fomenting anger in a country where electricity is often used as an election sweetener.
Key proposals include allowing more utilities to operate within the same circles, mandating regulators to set tariffs based on market costs, and defining payment procedures and deadlines, according to people with knowledge of the matter, who asked not to be identified as the details aren’t yet public. The bill will be presented to parliament in the current session that runs through Aug. 12.
Prime Minister Narendra Modi’s government says the overhaul is essential to unclog a sector that is key to its energy transition ambitions but is choked with Rs 6 trillion ($75 billion) of debt.
