Power shake-up ahead: Three utility stocks in focus as Electricity Amendment Bill nears Parliament
Subscribe to enjoy similar stories. The government is preparing to table the Electricity Amendment Bill, 2025, in the upcoming Budget Session, setting the stage for a significant overhaul of India’s power distribution sector, according to a news report. Ahead of its introduction, the Ministry of Power is expected to begin consultations with key stakeholders to build consensus around the proposed changes.
At the heart of the Bill is a shift away from the monopoly-based distribution model towards regulated competition. The framework would allow multiple licensees to operate in the same geography using shared network infrastructure, with the aim of improving efficiency, financial sustainability and consumer choice. The reform push comes against the backdrop of persistent stress in the distribution segment, marked by high aggregate technical and commercial losses, weak billing efficiency and tariff distortions that continue to weigh on state-run utilities.
Under the proposed framework, State Electricity Regulatory Commissions would be tasked with enforcing cost-reflective tariffs and uniform wheeling charges, broadly mirroring the competitive transmission model that has helped improve efficiency in power transmission. Against this backdrop, here are a few power sector stocks that investors are closely tracking. Part of the Tata Group, Tata Power is among India’s largest integrated power companies and a key player across generation, transmission and distribution.
Read on livemint.com