Home India Ministry of Power Union Minister Shri Manohar Lal chairs meeting of the Consul...
Date: 2025-12-20 Category: Press Release State: Union Government Country: India

Union Minister Shri Manohar Lal chairs meeting of the Consultative Committee for Ministry of Power

Issued by Ministry of Power · Not Applicable

Research with AI Agent Chat with Document Generate Summary Translate Helpful Share Add to Project Create Task

Executive Summary & Key Takeaways

**Executive Summary** The Union Minister Shri Manohar Lal chaired a meeting on December 18, 2025, in New Delhi, to discuss the Draft Electricity (Amendment) Bill, 2025. The meeting, held by the Parliamentary Consultative Committee for the Ministry of Power, aimed to consult members on various proposals in the bill, which has been released for stakeholder consultation. The goal of the bill is to strengthen India's power sector, enhance economic competitiveness, and promote sustainable energy use. **Key Points / Main Content** * **Draft Electricity (Amendment) Bill, 2025 (the "Bill")** * Seeks to strengthen the legislative foundation of India's power sector to align with Viksit Bharat @ 2047. * Mandates cost-reflective tariffs and empowers Commissions to act suo-motu on delayed tariff filings. * Allows State Governments to continue providing subsidies to priority consumer groups without increasing costs. * Aims to enhance economic competitiveness for Indian industries, including MSMEs, by reducing cross-subsidies and surcharges. * Empowers SERCs to exempt DISCOMs from supplying large consumers, enabling those consumers to procure power from other sources and reducing the fixed cost burden on DISCOMs. * Proposes a minimum obligation for non-fossil source electricity use. * Enables capacity addition through market mechanisms and agreements by DISCOMs. * Incorporates Right-of-Way provisions and distribution network sharing directly into the Act. * Establishes an Electricity Council to foster cooperative federalism and national consensus on power sector reforms. * Ensures compensation for farmers for land used for laying electric lines, linking it to market rates. * **Other Provisions and Assurances** * Government is committed to enhancing ease of living and ease of doing business through the Bill. * The Bill includes provisions to ensure better service for the general public, reduce financial and compliance burdens, and create a better environment for business. * APTEL strength will be expanded to handle increasing case loads. * Suitable regulatory and policy measures will be taken to ensure no adverse effect on any class of consumers or employees. **Impact Analysis** **State Governments** * **Impact:** May continue to provide subsidies to priority consumer groups. * **Action Required:** Consult with SERCs regarding the exemption of DISCOMs from supplying large consumers. **DISCOMs** * **Impact:** May be exempted from the obligation to supply large consumers. Will have a reduced fixed cost burden due to large consumers procuring power from other sources. * **Action Required:** Enable capacity addition through market mechanisms and agreements. **Large Consumers** * **Impact:** Will have the choice to procure power at competitive rates from other sources and exit from DISCOM supply with reasonable notice. * **Action Required:** Take action based on their individual purchasing decisions. **Indian Industry (including MSMEs)** * **Impact:** Will benefit from reduced distortions caused by cross-subsidies and surcharges, supporting growth and competitiveness. * **Action Required:** None specified. **Smaller Consumers** * **Impact:** Will benefit from the reduced fixed cost burden on DISCOMs associated with supplying electricity to large consumers. * **Action Required:** None specified. **Farmers** * **Impact:** Will receive reasonable compensation for their land used for laying electric lines. * **Action Required:** None specified. **General Public** * **Impact:** To receive better service * **Action Required:** None specified. **Members of Parliament** * **Impact:** Informed on the provisions of the bill * **Action Required:** Support for finalising and passing the bill in Parliament

Key Entities Referenced

Electricity (Amendment) Bill, 2025: Proposed amendment to the existing electricity legislation in India. Aims to strengthen the power sector, enhance competition, promote renewable energy, and improve consumer welfare. Ministry of Power: The central ministry responsible for the development and regulation of the power sector in India. Parliamentary Consultative Committee for the Ministry of Power: Committee consisting of Members of Parliament, advising the Ministry of Power. Appellate Tribunal for Electricity (APTEL): Statutory body that hears appeals against the orders of the regulatory authorities in the electricity sector. Electricity Council: Proposed council to foster cooperative federalism and national consensus on power sector reforms.
Official Source Record View Original Source →
See Full Document Text
Ministry of Power Union Minister Shri Manohar Lal chairs meeting of the Consultative Committee for Ministry of Power Detailed Discussions held on draft Electricity (Amendment ), Bill,2025 प्रव तथ: 20 DEC 2025 5:33PM by PIB Delhi The Meeting of the Parliamentary Consultative Committee for the Ministry of Power was held in New Delhi on 18th December,2025. Shri Manohar Lal, Union Minister for Power and Housing & Urban Affairs chaired the meeting, wherein Members of Parliament of various political parties from Lok Sabha and Rajya Sabha took part in the meeting. The meeting was called by the Minister of Power to consult the members on various proposals in the Draft Electricity (Amendment) Bill, 2025, which had been released by the ministry for consultation of stakeholders. Shri Manohar Lal highlighted that the Draft Electricity (Amendment) Bill, 2025 (“Bill”), is of great national importance as it seeks to strengthen the legislative foundation of India’s power sector in the context of the aspirations for Viksit Bharat @ 2047. After the enactment of the Act in 2003, the country has made commendable progress in all aspects of power sector. However, challenges, especially in the distribution segment in form of persistent financial stress continues. He informed that the provisions in the Bill have been proposed to mandate cost-reflective tariffs and to empower Commissions to act suo- motu when utilities delay tariff filings. He clarified that State Governments may continue to provide subsidies to priority consumer groups such as domestic and agricultural consumers and there may not be any increase in cost for such consumers. This ensures that financial discipline and consumer welfare go hand in hand. The Bill also seeks to enhance economic competitiveness of the Indian industry. By reducing distortions caused by cross-subsidies and surcharges, the Bill aims to support Indian industry, including MSMEs, to grow, expand employment, and compete globally. He emphasised the need to make the cost of electricity reasonable for the industries for the benefit of all the citizens in the country. The Bill also proposes to empower SERCs, in consultation with the State Government, to exempt DISCOMs from the obligation to supply large consumers. These consumers can procure power at competitive rates from other sources. At the same time, the fixed cost burden on DISCOMs associated with supplying electricity to these consumers will be reduced. This will benefit smaller consumers. He clarified that the large consumers will have choice to exit after giving notice with reasonable time. He also noted that supporting the increased use of electricity from non-fossil sources is a collective responsibility. A minimum obligation for the use of non-fossil source electricity is proposed under the Bill. To ensure the availability of cost-competitive and adequate renewable energy, it is proposed that capacityaddition will also be enabled through market mechanisms in addition to through agreements by the DISCOMs, which will also reduce burden on DISCOMs. He also informed that Government is committed to enhance ease of living and ease of doing business. The Bill proposes provisions to ensure better service for the general public, reduce financial and compliance burden, and to create better environment for business. To strengthen regulatory governance, several provisions have been proposed under the draft Bill. The draft Bill also proposes to expand the strength of APTEL to handle increasing case loads. The Bill includes important operational reforms such as incorporating Right-of-Way provisions directly in the Act. The Bill also proposes enabling distribution network sharing to avoid duplication. He emphasised that by allowing sharing of network, the consumers will be benefitted. He clarified that the apprehensions about privatisation and increase in cost or adverse effect on employees has no basis. Suitable regulatory and policy measures will be taken to ensure that there will not be any adverse effect on any class of consumers or employees. The Bill envisages the establishment of the Electricity Council to foster cooperative federalism and national consensus on power sector reforms. The minister assured that Central Government will take necessary steps for reasonable compensation to farmers for their land used for laying of electric lines. He informed the members that Ministry of Power has already issued guidelines for determination of compensation linking it to market rate. Members of Parliament provided several suggestions concerning various provisions of the Bill. They also commended the initiatives and efforts of the power ministry towards building a future-ready power sector. Shri Manohar Lal concluded the meeting by expressing gratitude to the participants for their valuable contributions and sought support in finalising the Bill and passing the bill in Parliament for the benefit of the country. *** NR/AP (रलीज़ आईडी: 2206998) आगंतुक पटल : 537 इस वज्ञ को इन भाषाओ ंम पढ़: Urdu , ही , Tamil

Continue your research