Govt to weigh one of India’s greatest reforms this Parliament session

The Union cabinet may shortly consider the Electricity (Amendment) Bill, 2021, that aims to de-license power supply, allowing multiple distributors in the same area and giving consumers the option to switch power suppliers.

Post the cabinet’s approval, the bill is expected to be introduced in the monsoon session of Parliament that begins on Monday. According to the Lok Sabha bulletin, the bill is in the tentative list of government’s legislative and financial business that is expected to be taken up during the sixth session of the 17th Lok Sabha.

Speaking at a conference organized by lobby group Confederation of Indian Industry (CII), power minister Raj Kumar Singh on Thursday said all stakeholders, including states, industry and the ministries, have been consulted over the proposed amendments.

“Now, it is final, so we have proposed it to be taken up in the cabinet,” Singh said. “It also has a provision for de-licensing distribution, which again is a major reform. And which I think should happen. We have consulted all the states, and no state has raised any objections. Why should they? Because we are not tampering with their present distribution companies. They will continue functioning as they are. But, because we are de-licensing it, other people will have the opportunity to come and compete. Which is as it should be,” Singh added.

Prime Minister Narendra Modi earlier said electricity consumers should be able to choose their supplier like they do with any other retail commodity.