The Parliamentary Consultative Committee for the Ministry of Power met in New Delhi on 18th December 2025, chaired by Shri Manohar Lal, Union Minister for Power and Housing & Urban Affairs. Members of Parliament from various parties in the Lok Sabha and Rajya Sabha participated in the meeting.
The meeting was convened to consult MPs on the Draft Electricity (Amendment) Bill, 2025, released by the ministry for stakeholder consultation.
Shri Manohar Lal highlighted the Bill’s national importance, stating: “The Draft Electricity (Amendment) Bill, 2025 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.”
He noted that while India has made significant progress since the 2003 Act, challenges persist in the distribution sector, particularly financial stress. The Bill proposes cost-reflective tariffs and empowers Commissions to act suo-motu if utilities delay tariff filings, while ensuring that State Governments can continue subsidies for domestic and agricultural consumers.
The Minister added that the Bill aims to enhance the economic competitiveness of Indian industry, reduce cross-subsidy distortions, and support MSMEs. He said: “We need to make the cost of electricity reasonable for the industries for the benefit of all the citizens in the country.”
Provisions in the Bill also allow large consumers to procure power competitively while reducing DISCOMs’ fixed cost burden, benefiting smaller consumers. On renewable energy, the Bill proposes a minimum obligation for non-fossil electricity use and enables capacity addition through market mechanisms to ensure cost-competitive renewable supply.
Shri Manohar Lal further emphasized the Bill’s focus on ease of living and doing business, operational reforms, and regulatory governance. He said: “By allowing sharing of network, the consumers will be benefitted.”
He clarified that concerns about privatisation or adverse effects on costs and employees have no basis.
The Bill also proposes the establishment of the Electricity Council to promote cooperative federalism, and the government will ensure reasonable compensation to farmers for land used for electric lines.
Members of Parliament provided suggestions and commended the Ministry of Power for its efforts to build a future-ready power sector.
Concluding the meeting, Shri Manohar Lal expressed gratitude to the participants and stated: “I seek your support in finalising the Bill and passing the bill in Parliament for the benefit of the country.”
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