Chintan Shivir of the Ministry of Power will focus on the Electricity Act, Discom’s financial profile

Chintan Shivir of the Ministry of Power will focus on the Electricity Act, Discom’s financial profile

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The Union Power Ministry will hold a two-day brainstorming session with the states later this week during which it will deliberate on key issues facing the sector, including the contentious Electricity Amendment Act and the weak financial profile and performance of Discoms.

The ministry will hold a Chintan Shivir on January 22 and 23, through which it aims to bring together leading decision makers, financial institutions, industrialists, CEOs and key officials from central and state governments who are an integral part of India’s energy sector. Participants brainstorm key and emerging issues in the sector through various thematic sessions.

“The ministry will discuss the Electricity Amendment Act, transmission bottlenecks, strengthening the financial profile of Discoms and a Group of Ministers (GoM) report on Discom health, etc. It will seek responses from the states on these issues, such as what their concerns are on these topics and how to move forward,” a top government official explained.

One of the key issues is the Electricity (Amendment) Bill, 2025, which is facing strong opposition from states, power sector workers’ federations and trade unions. The bill is expected to be introduced in the upcoming budget session, which will begin next week (January 28).

In October last year, the ministry released the draft of the Electricity (Amendment) Bill 2025 for public feedback, followed by criticism from central trade unions (CTUs) and power employees’ federations, who attacked the bill as an attempt to allow backdoor entry of private players and an attack on the federal nature of the Constitution.

Following protests last year, the ministry released an FAQ (Frequently Asked Questions) clarifying various aspects of the bill. It said the progressive reform aims to strengthen the distribution of power through financial discipline, healthy competition and improved efficiency.

Another topic that will be discussed in detail during the high-level brainstorming session is Discom’s health and finances. The government’s suggestions on addressing issues related to the viability of Discom will also be discussed here, a senior government official said.

The government, chaired by Energy Minister Shripad Yesso Naik, has proposed linking electricity tariffs to annual inflation and assessing the performance of regulators in fixing tariffs.

Energy Minister Manohar Lal had already spoken extensively about Discom’s performance at the regional conferences of state energy ministers in Gangtok, Mumbai, Bengaluru, Chandigarh and Patna last year.

“The Chintan Shivir will brainstorm on the performance of Discoms and will seek suggestions from states in this regard,” the official said.

Asked about the Center offering financial incentives to Discoms, the official explained, “The matter was raised at the highest level (PMO). There is general agreement on how to tackle it. But states have to come forward and ask for help, only then the Center can work on this. The demand has to come from the states here. The ministry will discuss this issue with states and seek their views.”

Published on January 20, 2026

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