Union Cabinet clears big changes to Electricity Act
The government released a draft of the Electricity (Amendment) Bill in October 2025 and is likely to introduce those amendments in the upcoming budget session, aiming to shake up how power is distributed in India.
The new bill—set for discussion in Parliament's budget session from January 28, 2026—opens the door for multiple electricity companies (discoms) to operate on their own or shared networks, making things more competitive.
Why should you care?
If you use a lot of electricity (think big businesses or campuses), supply rules could change after state regulators weigh in.
The reforms also let states set tariffs that actually reflect costs and plan to end cross-subsidies for industries and metros.
There's a push for more renewable energy, with penalties if targets aren't met.
While this could mean better service and more choices down the road, some groups worry it favors privatization over public good.