India's electricity policy is undergoing major updates, primarily through the proposed Electricity (Amendment) Bill, 2025, focusing on competition, cost-reflective tariffs (protecting subsidies), network sharing for efficiency, and stronger regulation to ensure financial health and grid stability, alongside recent rules allowing consumer energy storage and revised caps for hydro projects. The new framework aims for a financially viable, efficient, and sustainable power sector, aligning with India's clean energy goals.

India's electricity policy is undergoing major updates, primarily through the proposed Electricity (Amendment) Bill, 2025, focusing on competition, cost-reflective tariffs (protecting subsidies), network sharing for efficiency, and stronger regulation to ensure financial health and grid stability, alongside recent rules allowing consumer energy storage and revised caps for hydro projects. The new framework aims for a financially viable, efficient, and sustainable power sector, aligning with India's clean energy goals. 
Key Proposals in the Electricity (Amendment) Bill, 2025:-
Competition & Choice: -
Allows multiple distribution companies (DISCOMs) in one area, promoting competition and consumer choice for suppliers.
Cost-Reflective Tariffs: -
Encourages tariffs that cover costs while safeguarding subsidies for farmers and low-income households.
Network Sharing: -
Enables sharing of distribution networks to avoid duplication and reduce system costs.
Financial Viability: -
Strengthens regulation and accountability to prevent DISCOM distress and attract investment.
Direct Procurement:-
 Facilitates direct power purchasing for large industrial users.
Regulatory Reform: -
Introduces "Electric Line Authority" for better management of power lines and coordination. 
Recent Policy Actions & Rules:-
Energy Storage: -
Electricity (Amendment) Rules, 2025, permit consumer-owned energy storage, boosting grid flexibility.
Hydro Projects: -
Revised rules in August 2025 updated capital expenditure limits for hydro projects, exempting pumped storage from certain concurrences.
Draft National Electricity Policy (2026):-
 Issued for consultation, focusing on 24/7 reliable power, financial viability, data sharing, and cybersecurity. 
Context & Goals:-
These amendments build on the Electricity Act, 2003, to modernize the sector.
They aim to support India's clean energy transition, improve supply quality, and ensure affordability. 
These changes are part of ongoing efforts to create a robust, investment-friendly, and sustainable power market in India. 

MJF Lion ER YK Sharma 

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