The Electricity (Amendment) Bill, 2021 seeks to enable power consumers to choose from multiple service providers as in the case with telecom services. According to the Lok Sabha bulletin issued on July 12, 2021, the government has listed it as one of the 17 new bills it plans to introduce in the ongoing Parliament session.

Talking to reporters here, Raut claimed that state electricity companies will be adversely impacted if the bill is passed.

The Rajya Sabha member criticised the Centre for not discussing its provisions with stakeholders, including states.

''The provisions ring a danger bell for state electricity companies. Our party is holding consultations in this regard,'' he said.

The proposed amendments also include de-licensing of the power distribution business.

Notably, West Bengal Chief Minister Mamata Banerjee on Saturday shot off a letter to Prime Minister Narendra Modi, urging him to refrain from ''initiating'' the legislation.

She requested the PM ''to ensure that a broad-based and transparent dialogue on the subject is opened up at the earliest''.

Banerjee underscored that the bill would reduce the role of the state public utility bodies and foster "crony capitalism".