Skip to main content

Proposed electricity Bill sparks concerns over privatisation, federalism, consumer rights

By Jag Jivan 
The Union government’s newly released Draft Electricity (Amendment) Bill, 2025 has reignited debate over the future of India’s power sector, with critics warning that the proposed changes could undermine public utilities, state autonomy, and affordable access to electricity. The Bill seeks sweeping reforms that would open the electricity distribution sector to private players, restructure tariffs, and strengthen the Centre’s powers over state electricity policies.
At the core of the Bill is a move to allow multiple distribution licensees to operate in the same area using the existing public-funded network. While the government presents this as a step toward “consumer choice” and competition, critics say it will enable private companies to target high-paying industrial and commercial consumers, leaving public distribution companies (DISCOMs) with loss-making rural and low-income segments. Such an arrangement, they argue, will weaken state utilities, erode cross-subsidies, and push up tariffs for ordinary consumers.
The Bill also proposes the phased removal of cross-subsidies within five years. Cross-subsidisation — where industrial and commercial users pay higher tariffs to offset lower tariffs for households and farmers — has been a key mechanism to ensure affordable electricity for weaker sections. Its removal, opponents warn, would make power unaffordable for millions of rural and low-income consumers.
The draft law introduces measures to deepen market-based trading of electricity, with expanded “open access” and smart metering systems. While such provisions are intended to enhance efficiency and transparency, trade unions and experts fear they will accelerate privatisation, job losses, and tariff volatility. Electricity, they caution, is being transformed from a public necessity into a speculative commodity.
The Bill also grants the Central Government greater authority over state regulatory commissions and renewable energy targets. Critics have described this as a serious blow to India’s federal structure. They argue that the move centralises decision-making in a sector historically managed through state-level policy and planning, and could especially strain opposition-ruled states already facing fiscal constraints.
The Centre of Indian Trade Unions (CITU), which has strongly opposed the Bill, called it “a direct assault on the public electricity system and the right to affordable energy.” In a statement, CITU said, “This draft is part of a wider neoliberal agenda to dismantle the integrated, socially driven electricity framework built over decades and hand over the sector to private monopolies.” The organisation warned that privatisation would lead to large-scale job losses, contractualisation, and outsourcing, even in sensitive sectors such as defence zones.
CITU has demanded the immediate withdrawal of the Draft Electricity (Amendment) Bill, 2025, and urged the government to guarantee electricity as a social right rather than a commercial commodity. “We will launch nationwide campaigns and coordinated actions with other trade unions and people’s movements to demand the complete withdrawal of this anti-people Bill,” said Tapan Sen, General Secretary of CITU.
The Bill, currently open for public feedback, is expected to face strong opposition from state governments, trade unions, and consumer groups in the coming weeks.

Comments

TRENDING

Why Venezuela govt granting amnesty to political prisoners isn't a sign of weakness

By Guillermo Barreto   On 20 May 2017, during a violent protest planned by sectors of the Venezuelan opposition, 21-year-old Orlando Figuera was attacked by a mob that accused him of being a Chavista. After being stabbed, he was doused with gasoline and set on fire in front of everyone present. Young Orlando was admitted to a hospital with multiple wounds and burns covering 80 percent of his body and died 15 days later, on 4 June.

Walk for peace: Buddhist monks and America’s search for healing

By Vidya Bhushan Rawat*  The #BuddhistMonks in the United States have completed their #WalkForPeace after covering nearly 3,700 kilometers in an arduous journey. They reached Washington, DC yesterday. The journey began at the Huong Đạo Vipassana Bhavana Center in Fort Worth, Texas, on October 26, 2025, and concluded in Washington, DC after a 108-day walk. The monks, mainly from Vietnam and Thailand, undertook this journey for peace and mindfulness. Their number ranged between 19 and 24. Led by Venerable Bhikkhu Pannakara (also known as Sư Tuệ Nhân), a Vietnamese-born monk based in the United States, this “Walk for Peace” reflected deeply on the crisis within American society and the search for inner strength among its people.

Pace bowlers who transcended pace bowling prowess to heights unscaled

By Harsh Thakor*   This is my selection and ranking of the most complete and versatile fast bowlers of all time. They are not rated on the basis of statistics or sheer speed, but on all-round pace-bowling skill. I have given preference to technical mastery over raw talent, and versatility over raw pace.

A. R. Rahman's ‘Yethu’ goes viral, celebrating Tamil music on the world stage

By Syed Ali Mujtaba*  Good news for Tamil music lovers—the Mozart of Madras is back in the Tamil music industry with his song “Yethu” from the film “Moonwalk.” The track has climbed international charts, once again placing A. R. Rahman on the global stage.

Bangladesh goes to polls as press freedom concerns surface

By Nava Thakuria*  As Bangladesh heads for its 13th Parliamentary election and a referendum on the July National Charter simultaneously on Thursday (12 February 2026), interim government chief Professor Muhammad Yunus has urged all participating candidates to rise above personal and party interests and prioritize the greater interests of the Muslim-majority nation, regardless of the poll outcomes. 

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Four women lead the way among Tamil Nadu’s Muslim change-makers

By Syed Ali Mujtaba*  A report published by Awaz–The Voice (ATV), a news platform, highlights 10 Muslim change-makers in Tamil Nadu, among whom four are women. These individuals are driving social change through education, the arts, conservation, and activism. Representing diverse fields ranging from environmental protection and literature to political engagement and education, they are working to improve society across the state.

When a lake becomes real estate: The mismanagement of Hyderabad’s waterbodies

By Dr Mansee Bal Bhargava*  Misunderstood, misinterpreted and misguided governance and management of urban lakes in India —illustrated here through Hyderabad —demands urgent attention from Urban Local Bodies (ULBs), the political establishment, the judiciary, the builder–developer lobby, and most importantly, the citizens of Hyderabad. Fundamental misconceptions about urban lakes have shaped policies and practices that systematically misuse, abuse and ultimately erase them—often in the name of urban development.

Why Russian oil has emerged as the flashpoint in India–US trade talks

By N.S. Venkataraman*  In recent years, India has entered into trade agreements with several countries, the latest being agreements with the European Union and the United States. While the India–EU trade agreement has been widely viewed in India as mutually beneficial and balanced, the trade agreement with the United States has generated comparatively greater debate and scrutiny.