Reforms in Indian Electricity Sector

The Electricity Amendment Bill 2020 promises the much awaited and needed reforms to India’s electricity sector. The poor financial health of electricity distribution companies (“DISCOMs”) is mainly attributable to operational inefficiencies and policy stagnation. Government of India, realising the necessity of radical reforms in the power sector, has proposed major amendments to its Electricity Act while simultaneously announcing stimulus package for providing short term liquidity infusion in cash strapped power sector. In this article, we have covered the key measures proposed by the Government of India to address the challenges faced by DISCOMs in order to revive India’s power sector.