Union Power Minister Manohar Lal Khattar chaired a Parliamentary Consultative Committee meeting of the Ministry of Power on Thursday, 23 July 2026, focused on proposed reforms to India's electricity distribution sector. Members of Parliament reviewed the Draft Electricity (Amendment) Bill, 2025 and the Draft National Electricity Policy, 2026, offering suggestions on a framework that could fundamentally reshape how power reaches consumers.

Context

The meeting centred on a proposed 'Shared Network, Multiple Licensees' framework, under which the physical distribution network would remain a common infrastructure layer while multiple service providers compete to supply power over it. Minister Khattar said discussions aimed at expanding consumer choice, improving service delivery, strengthening competition, and building a 'more efficient, reliable, and future-ready power distribution sector.'

The Parliamentary Consultative Committee is a statutory body of Members of Parliament that deliberates on ministry-specific policies and legislative proposals before they advance further in the legislative process. Input gathered at such meetings typically informs revisions to draft legislation.

Policy Backdrop

The proposed amendments build on a reform lineage stretching back to the Electricity Act, 2003, which unbundled state electricity boards, introduced open access, and established state electricity regulatory commissions. A National Electricity Policy followed in 2005, setting targets for universal access, rural electrification, and financial viability of distribution utilities.

An earlier Electricity (Amendment) Bill, 2021 had similarly sought to separate the carriage and content functions in distribution — a concept mirroring the telecom sector's shared-infrastructure model — but lapsed when the 17th Lok Sabha was dissolved. The Draft Electricity (Amendment) Bill, 2025 revives and refines that approach, with the 'Shared Network, Multiple Licensees' framework as its centrepiece.

Successive governments have pursued incremental reforms to address chronic financial losses and operational inefficiencies in power distribution, which remains predominantly under state government control through state distribution companies, known as discoms. The broader modernisation agenda also encompasses renewable energy integration and smart-grid upgrades.

Stakeholders and Impact

If enacted, the framework would most directly affect electricity consumers across India, who could gain the ability to choose their power supplier — a right currently unavailable to most households and small businesses. State discoms, many of which carry substantial debt, would face new competitive pressure on their retail supply businesses while potentially retaining roles as network operators.

State electricity regulators would need to design and enforce rules governing shared access to distribution infrastructure, a technically and commercially complex undertaking. Industry observers note that the model's success would depend heavily on how states implement the framework, given that distribution remains a concurrent subject with significant state-level discretion.

What's Next

The immediate next step is the tabling of the Draft Electricity (Amendment) Bill, 2025 in Parliament, followed by broader legislative debate. The Draft National Electricity Policy, 2026 will also require state-level consultations before finalisation, given the federal dimensions of power distribution governance.

The pace and outcome of those consultations will determine whether India's long-pending distribution reforms move from draft to statute — and whether the 'Shared Network, Multiple Licensees' model avoids the fate of its 2021 predecessor.