ENA Sectors 2025-10-10 18:25:12 <p><span style="font-size:14px"><strong>New Delhi, Oct 10 (KNN)</strong> The Indian government has proposed a major reform in the power sector by allowing private companies to enter the electricity retail market, according to a draft bill released by the Ministry of Power. </span></p> <p><span style="font-size:14px">The move aims to introduce competition, enhance service quality, and improve efficiency in electricity distribution, which has so far been dominated by state-run utilities.</span></p> <p><span style="font-size:14px">If implemented, the new law would permit private players such as Adani Power, Tata Power, Torrent Power, and CESC to sell electricity directly to consumers. </span></p> <p><span style="font-size:14px"> Currently, most retail distribution is handled by state-owned discoms (distribution companies), which face challenges such as high transmission losses, delayed subsidy payments, and mounting debts.</span></p> <p><span style="font-size:14px">The draft bill seeks to end the regional monopoly of state discoms by enabling multiple suppliers to operate within the same area. </span></p> <p><span style="font-size:14px">Consumers would be able to choose their electricity provider, similar to how telecom users can choose mobile networks. </span></p> <p><span style="font-size:14px">The government expects that competition among retailers will lead to improved service, greater reliability, and possibly more affordable tariffs.</span></p> <p><span style="font-size:14px">However, the proposal also raises concerns about implementation challenges. Regulators will need to ensure equal access to the power grid for all suppliers, protect small consumers, and manage cross-subsidies that help maintain affordable rates for low-income households. </span></p> <p><span style="font-size:14px">Experts have also emphasised the need for strong oversight to prevent market manipulation and ensure fair competition.</span></p> <p><span style="font-size:14px">If passed, this reform could mark one of the biggest transformations in Indias energy landscape, fostering private investment and paving the way for a more dynamic, consumer-driven electricity market.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 43768 https://knnindia.co.in/news/newsdetails/sectors/draft-electricity-bill-allows-power-retail-sector-to-private-companies 2025-10-10 18:25:12 knnindia.co.in