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GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
UNSTARRED QUESTION NO.3370
ANSWERED ON 12.03.2026
IMPACT OF ELECTRICITY AMENDMENT BILL
3370. SHRI KARTI P CHIDAMBARAM:
Will the Minister of POWER
be pleased to state:
(a) the impact of the Electricity (Amendment) Bill proposals on tariff rationalisation
and distribution reforms;
(b) whether the Government has assessed the financial viability of DISCOMs post-
Revamped Distribution Sector Scheme (RDSS) implementation, if so, the details thereof;
(c) the measures taken to address grid stability issues arising from increased
renewable energy penetration;
(d) the status of smart metering rollout across States; and
(e) whether legislative or regulatory reforms are proposed to ensure time-bound
payments to power generators and if so, the details thereof?
A N S W E R
THE MINISTER OF STATE IN THE MINISTRY OF POWER
(SHRI SHRIPAD NAIK)
(a): The draft Electricity (Amendment) Bill, 2025 proposes several measures
aimed at introducing reforms in the distribution sector, ensuring financial viability
of the power sector as well as economic competitiveness through tariff
rationalisation. The Bill reinforces the principle of cost-reflective tariffs and
seeks to progressively reduce cross-subsidies, thereby aligning tariffs with the
actual cost of supply leading to financial viability of the power sector and
reduction of tariff for industries. The draft Bill introduces important reforms to
facilitate competition in power distribution. While the Electricity Act, 2003
already provides for competition in power supply through multiple distribution
licensees in the same area and mandates non-discriminatory open access to the
distribution network, but any new distribution licensee is presently required to
establish its own network infrastructure. This results in duplication leading to
higher system costs. The proposed amendments seek to remove such duplication
by enabling the use of the existing distribution network by multiple licensees. For
effective implementation, the Bill proposes to mandate State Electricity
Regulatory Commissions to establish a transparent framework for the operation
of multiple distribution licensees within the same supply area. The Bill also
proposes to exempt the distribution licensees from obligation of supply to
consumers having demand more than 1 MW, in consultation with StateGovernment. This would reduce fixed cost burden on distribution licensees and
would ultimately benefit the consumers in terms of reduced tariff.
(b): Central Government, in July 2021, launched the Revamped Distribution
Sector Scheme (RDSS) with the objective of improving the quality and reliability of
power supply to consumers through a financially sustainable and operationally
efficient distribution sector in the country. Under the scheme, financial assistance
is being provided to the Distribution Utilities eligible under the scheme for
upgradation of distribution infrastructure and smart metering works based on
meeting pre-qualifying criteria like timely issuance of tariff and true-up order,
timely publishing of quarterly and annual accounts, timely payment to Gencos,
clearing the govt dept dues and achieving basic minimum benchmarks in reforms.
As of 28th February, 2026, projects worth Rs. 2.83 lakh crore have been sanctioned
for 32 States/UTs for loss reduction and smart metering works.
Additionally, following initiatives have been taken by the Central Government
to improve financial viability of the distribution utilities:
i. Sub-ordinate legislations and standard operating procedures have been
issued for proper subsidy accounting and timely payment of subsidies by
State Governments.
ii. Sub-ordinate legislations have been framed for automatic pass through of
Fuel and Power Purchase Cost Adjustment (FPPCA) and cost-reflective
tariff so as to ensure that all prudent costs for supply of electricity are
passed through.
iii. Payment of dues on time through promulgation of Electricity (Late
Payment Surcharge and Related Matters) Rules.
iv. Prudential Norms for providing loans to State Power utilities.
v. Performance based additional borrowing space of 0.5% of GSDP.
With these efforts, AT&C losses at national level have reduced from 21.91%
in FY21 to 15.04% in FY25, while the ACS-ARR gap has narrowed from ₹0.69/kWh
to ₹0.06/kWh. DISCOM wise financial and operational parameters as on
31.03.2025 is enclosed at Annexure – I.
(c): A number of regulatory and operational measures have been undertaken to
address grid stability challenges arising from the increasing penetration of
renewable energy. These include the formulation and implementation of the
Central Electricity Authority (Technical Standards for Connectivity to the Grid)
Regulations and the Central Electricity Regulatory Commission (Indian Electricity
Grid Code) Regulations, which prescribe technical and operational requirements
for maintaining grid discipline and reliability. In addition, flexible operation of
thermal generating units has been promoted to support system balancing.
Further, transmission infrastructure is being planned and strengthened in
accordance with the National Electricity Plan (Transmission) to facilitate large-
scale integration of renewable energy. Development of Energy Storage Systems
(ESS) like Battery Energy Storage Systems (BESS) and Hydro Pumped Storage
System (PSP) is being facilitated to enable renewable energy integration. A
number of measures including Viability Gap Funding for BESS, waiver of inter-
state transmission charges for ESS, financial support for PSP, bidding guidelines
for procurement of ESS, national framework for ESS development have beentaken to develop ESS, which is essential for integration of renewable sources at
large scale in the grid. Renewable Energy Management Centres (REMCs) have
also been established for improved forecasting, scheduling, and real-time
monitoring of renewable generation. In addition, the Central Electricity
Regulatory Commission (Ancillary Services) Regulations provide a framework for
procuring ancillary services to maintain system frequency and ensure reliable
grid operation.
(d): Smart metering is one of the critical interventions envisaged under RDSS
to improve the Aggregate Technical and Commercial (AT&C) losses. Under RDSS,
smart metering works have been sanctioned for 45 distribution utilities in 28
States/ UTs. This covers smart metering of 19.79 Cr. consumers, 52.53 Lakh
Distribution Transformers and 2.05 Lakh feeders. So far, 4.54 Cr smart meters
have been installed under RDSS. In addition, smart meters have been installed by
States under their State plans/ other schemes. Overall, 5.97 crore smart meters
have been installed across the country under various schemes as on 28th February
2026. The State/ UT-wise details of smart metering works under RDSS as on 28th
February 2026 are placed at Annexure – II.
(e) : The Central Government has notified the Electricity (Late Payment
Surcharge and Related Matters) Rules, 2022, as amended from time to time,
which provide a structured mechanism for liquidation of legacy dues and to
ensure timely payment of current dues to generating companies, transmission
licensees and trading licensees. These Rules have established a payment
discipline framework through the levy of late payment surcharge and regulation
of access to ensure adherence to payment schedules. In addition, payment
security mechanisms in electricity market transactions have been provided to
ensure timely settlement of dues payable to generating companies.
***************ANNEXURE-I
ANNEXURE REFERRED IN REPLY TO PART (b) OF UNSTARRED QUESTION NO.
3370 ANSWERED IN THE LOK SABHA ON 12.03.2026
*************
DISCOM wise financial and operational parameters as on 31.03.2025
ACS-ARR Accumulated Total
State/ DISCOM AT&C Loss (%) Gap Surplus/ (Loss) Borrowings
(Rs./kWh) (Rs Cr) (Rs Cr)
State Sector 15.40 0.11 (6,77,561) 7,11,402
- -
Andaman & Nicobar Islands 24.14 2.22
- -
Andaman & Nicobar PD 24.14 2.22
Andhra Pradesh 7.87 (0.15) (29,420) 77,583
APCPDCL 7.95 (0.62) (9,688) 21,204
APEPDCL 7.70 (0.02) (7,155) 20,693
APSPDCL 7.99 (0.01) (12,577) 35,687
- -
Arunachal Pradesh 46.20 0.00
- -
Arunachal PD 46.20 0.00
Assam 15.44 (0.26) (1,028) 1,131
APDCL 15.44 (0.26) (1,028) 1,131
Bihar 15.51 (0.41) (16,526) 14,002
NBPDCL 14.49 (0.57) (4,917) 6,509
SBPDCL 16.35 (0.28) (11,608) 7,494
Chhattisgarh 14.25 (0.19) (10,423) 5,428
CSPDCL 14.25 (0.19) (10,423) 5,428
- -
Delhi 8.36 (0.86)
- -
NDMC 8.36 (0.86)
- -
Goa 10.39 0.20
- -
Goa PD 10.39 0.20
Gujarat 8.25 (0.40) 7,355 258
DGVCL 4.26 (0.46) 2,507 26
MGVCL 8.37 (0.24) 877 9
PGVCL 12.73 (0.44) 2,276 208
UGVCL 6.16 (0.33) 1,695 15
Haryana 11.76 0.10 (27,915) 20,311
DHBVNL 12.20 0.03 (13,052) 12,099
UHBVNL 11.12 0.20 (14,862) 8,213
Himachal Pradesh 19.44 0.23 (3,391) 7,024
HPSEBL 19.44 0.23 (3,391) 7,024
Jharkhand 28.19 0.95 (20,512) 22,381
JBVNL 28.19 0.95 (20,512) 22,381
Karnataka 11.92 0.69 (34,980) 47,993
BESCOM 12.50 1.21 (13,819) 22,611
CHESCOM 8.76 0.36 (4,064) 5,410
GESCOM 13.48 0.10 (5,661) 6,147
HESCOM 12.14 0.23 (11,398) 12,251MESCOM 10.02 (0.00) (37) 1,575
Kerala 6.61 (0.17) (38,648) 17,638
KSEBL 6.61 (0.17) (38,648) 17,638
TCED 6.94 (0.13) - -
Ladakh 26.82 (0.89) - -
Ladakh PD 26.82 (0.89) - -
Madhya Pradesh 22.76 (0.04) (71,394) 49,239
MPMaKVVCL 29.60 0.22 (30,900) 18,176
MPPaKVVCL 12.78 (0.36) (12,503) 14,184
MPPoKVVCL 26.66 0.02 (27,992) 16,878
Maharashtra 17.69 0.56 (35,671) 90,659
BEST 5.07 0.60 - -
MSEDCL 18.09 (0.70) (35,671) 90,659
Manipur 12.90 (0.20) (290) 745
MSPDCL 12.90 (0.20) (290) 745
Meghalaya 17.52 0.13 (4,962) 1,474
MePDCL 17.52 0.13 (4,962) 1,474
Mizoram 32.31 (0.34) - -
Mizoram PD 32.31 (0.34) - -
Nagaland 48.86 (0.50) - -
Nagaland PD 48.86 (0.50) - -
Puducherry 14.72 (0.64) - -
Puducherry PD 14.72 (0.64) - -
Punjab 19.21 (0.30) (3,404) 17,411
PSPCL 19.21 (0.30) (3,404) 17,411
Rajasthan 15.18 (0.04) (90,303) 98,488
AVVNL 9.22 (0.45) (25,563) 26,126
JdVVNL 21.42 0.02 (34,689) 36,793
JVVNL 13.75 0.18 (30,052) 35,569
Sikkim 21.84 0.33 - -
Sikkim PD 21.84 0.33 - -
Tamil Nadu 10.96 (0.19) (1,19,153) 1,01,782
TNPDCL 10.96 (0.19) (1,19,153) 1,01,782
Telangana 19.84 0.27 (69,741) 59,230
TSNPDCL 23.22 0.53 (21,399) 21,885
TSSPDCL 18.51 0.17 (48,342) 37,345
Tripura 29.61 1.40 (991) 842
TSECL 29.61 1.40 (991) 842
Uttar Pradesh 19.54 0.73 (1,00,858) 61,395
DVVNL 19.70 1.03 (33,974) 16,412
KESCO 14.29 1.09 (5,232) 2,243
MVVNL 17.70 1.11 (25,236) 14,338
PaVVNL 11.91 (0.29) (8,782) 6,562
PuVVNL 30.70 1.30 (27,634) 21,840
Uttarakhand 15.08 0.06 (5,482) 1,729UPCL 15.08 0.06 (5,482) 1,729
West Bengal 17.17 (0.03) 174 14,658
WBSEDCL 17.17 (0.03) 174 14,658
Private Sector 10.05 (0.64) 30,351 14,975
Delhi 6.48 (1.13) 22,184 2,914
BRPL 6.70 (0.89) 12,892 894
BYPL 7.15 (0.95) 5,650 701
TPDDL 5.70 (1.58) 3,642 1,319
Gujarat 3.63 (0.42) 3,892 3,562
Torrent Power Ahmedabad 3.80 (0.30) 3,206 3,354
Torrent Power Surat 3.24 (0.67) 686 208
Maharashtra 4.99 (2.04) 1,245 3,818
AEML 4.99 (2.04) 1,245 3,818
Odisha 17.81 0.18 1,263 4,531
TPNODL 12.51 (0.06) 480 1,006
TPSODL 23.36 0.82 219 1,498
TPWODL 17.64 0.36 301 1,093
TPCODL 19.11 (0.09) 262 933
Uttar Pradesh 8.48 (0.15) 1,561 0
NPCL 8.48 (0.15) 1,561 0
West Bengal 4.68 0.19 205 151
IPCL 4.68 0.19 205 151
Grand Total 15.04 0.06 (6,47,210) 7,26,378
***************ANNEXURE-II
ANNEXURE REFERRED IN REPLY TO PART (d) OF UNSTARRED QUESTION NO.
3370 ANSWERED IN THE LOK SABHA ON 12.03.2026
*************
State-wise Smart Metering status under RDSS
Smart Meters under RDSS (Nos.)
State/UTs
Sanctioned Awarded Installed
Andaman and Nicobar 84,835 84,835 -
Andhra Pradesh 59,19,344 59,81,561 26,01,414
Arunachal Pradesh 2,98,250 2,98,250 63,151
Assam 64,45,127 65,58,446 50,36,390
Bihar 26,07,153 25,98,542 22,11,931
Chhattisgarh 61,79,479 73,45,604 36,31,325
Delhi 3,521 - -
Goa 7,50,356 7,50,356 2,775
Gujarat 1,67,87,587 1,67,91,087 41,06,870
Himachal Pradesh 28,41,908 29,18,432 8,36,338
Jammu and Kashmir 14,97,690 14,90,727 6,54,247
Jharkhand 13,62,044 13,62,044 6,53,756
Kerala 1,33,83,001 2,92,960 1,76,657
Madhya Pradesh 1,34,29,206 62,66,494 36,02,845
Maharashtra 2,40,04,866 2,52,73,775 95,31,245
Manipur 1,66,208 1,66,208 40,304
Meghalaya 4,72,743 4,72,743 -
Mizoram 2,92,081 2,92,081 30,987
Nagaland 3,23,878 3,23,878 37,231
Puducherry 4,07,052 4,07,052 26,258
Punjab 89,81,414 6,48,607 2,788
Rajasthan 1,47,36,692 1,47,54,023 29,50,007
Sikkim 1,48,542 1,48,542 88,900
Tamil Nadu 3,04,90,774 10,570 9,746
Tripura 5,62,870 5,27,013 2,05,380
Uttar Pradesh 2,85,26,730 2,85,26,730 78,42,941
Uttarakhand 16,49,684 16,49,684 4,86,541
West Bengal 2,10,35,262 40,31,566 6,34,255
All India Total 20,33,88,297 12,99,71,810 4,54,64,282
***********