Lok Sabha Question No. 3370 (UNSTARRED), answered on 2026-03-12
Subject: Impact of Electricity Amendment Bill
Ministry: POWER
Asked by: Shri Karti P Chidambaram

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.3370 ANSWERED ON 12.03.2026

## IMPACT OF ELECTRICITY AMENDMENT BILL

3370.  SHRI KARTI P CHIDAMBARAM:

Will the Minister of POWER be pleased to state:

- (a) the impact of the Electricity (Amendment) Bill proposals on tariff rationalisation and distribution reforms;
- (b) whether  the  Government  has  assessed  the  financial  viability  of  DISCOMs  postRevamped Distribution Sector Scheme (RDSS) implementation, if so, the details thereof;
- (c) the  measures  taken  to  address  grid  stability  issues  arising  from  increased renewable energy penetration;
- (d) the status of smart metering rollout across States; and
- (e) whether  legislative  or  regulatory  reforms  are  proposed  to  ensure  time-bound payments to power generators and if so, the details thereof?

## A N S W E R

## THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

- (a): The draft  Electricity  (Amendment) Bill,  2025  proposes  several  measures aimed at introducing reforms in the distribution sector, ensuring financial viability of  the  power  sector  as  well  as  economic  competitiveness  through  tariff rationalisation.  The  Bill  reinforces  the  principle  of  cost-reflective  tariffs  and seeks to progressively reduce cross-subsidies, thereby aligning tariffs with the actual  cost  of  supply  leading  to  financial  viability  of  the  power  sector  and reduction of tariff for industries. The draft Bill introduces important reforms to facilitate  competition  in  power  distribution.  While  the  Electricity  Act,  2003 already provides for competition in power supply through multiple distribution licensees in the same area and mandates non-discriminatory open access to the distribution network, but any new distribution licensee is presently required to establish its own network infrastructure. This results in duplication leading to higher system costs. The proposed amendments seek to remove such duplication by enabling the use of the existing distribution network by multiple licensees. For effective implementation, the Bill proposes  to mandate  State  Electricity Regulatory Commissions to establish a transparent framework for the operation of  multiple  distribution  licensees  within  the  same  supply  area.  The  Bill  also proposes  to  exempt  the  distribution  licensees  from  obligation  of  supply  to consumers  having  demand  more  than  1  MW,  in  consultation  with  State

Government. This would reduce fixed cost burden on distribution licensees and would ultimately benefit the consumers in terms of reduced tariff.

- (b): Central  Government,  in  July  2021,  launched  the  Revamped  Distribution Sector Scheme (RDSS) with the objective of improving the quality and reliability of power  supply  to  consumers  through  a  financially  sustainable  and  operationally efficient distribution sector in the country. Under the scheme, financial assistance is  being  provided  to  the  Distribution  Utilities  eligible  under  the  scheme  for upgradation  of  distribution  infrastructure  and  smart  metering  works  based  on meeting  pre-qualifying  criteria  like  timely  issuance  of  tariff  and  true-up  order, timely  publishing  of  quarterly  and  annual  accounts,  timely  payment  to  Gencos, clearing the govt dept dues and achieving basic minimum benchmarks in reforms. As of 28 th  February, 2026, projects worth Rs. 2.83 lakh crore have been sanctioned for 32 States/UTs for loss reduction and smart metering works.

Additionally, following initiatives have been taken by the Central Government to improve financial viability of the distribution utilities:

- i. Sub-ordinate legislations and standard operating procedures have been issued for proper subsidy accounting and timely payment of subsidies by
2. State Governments.
- ii. Sub-ordinate legislations have been framed for automatic pass through of Fuel and Power Purchase Cost Adjustment (FPPCA) and cost-reflective tariff so as to ensure that all prudent costs for supply of electricity are passed through.
- iii. Payment  of  dues  on  time  through  promulgation  of  Electricity  (Late Payment Surcharge and Related Matters) Rules.
- iv. Prudential Norms for providing loans to State Power utilities.
6. v.
7. Performance based additional borrowing space of 0.5% of GSDP.

With these efforts, AT&C losses at national level have reduced from 21.91% in FY21 to 15.04% in FY25, while the ACS-ARR gap has narrowed from ₹0.69/kWh to ₹0.06/kWh. DISCOM  wise  financial and operational parameters  as on 31.03.2025 is enclosed at Annexure - I.

- (c): A number of regulatory and operational measures have been undertaken to address  grid  stability  challenges  arising  from  the  increasing  penetration  of renewable  energy.  These  include  the  formulation  and  implementation  of  the Central Electricity Authority (Technical Standards for Connectivity to the Grid) Regulations and the Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, which prescribe technical and operational requirements for  maintaining  grid  discipline  and  reliability.  In  addition,  flexible  operation  of thermal  generating  units  has  been  promoted  to  support  system  balancing. Further,  transmission  infrastructure  is  being  planned  and  strengthened  in accordance with the National Electricity Plan (Transmission) to facilitate largescale integration of renewable energy. Development of Energy Storage Systems (ESS) like Battery Energy Storage Systems (BESS) and Hydro Pumped Storage System  (PSP)  is  being  facilitated  to  enable  renewable  energy  integration.  A number of measures including Viability Gap Funding for BESS, waiver of interstate transmission charges for ESS, financial support for PSP, bidding guidelines for  procurement  of  ESS,  national  framework  for  ESS  development  have  been

taken to develop ESS, which is essential for integration of renewable sources at large scale in the grid. Renewable Energy Management Centres (REMCs) have also  been  established  for  improved  forecasting,  scheduling,  and  real-time Electricity Regulatory Commission (Ancillary Services) Regulations provide a framework for procuring ancillary services to maintain system frequency and ensure reliable monitoring of renewable generation. In addition, the Central grid operation. (d): Smart metering is one of the critical interventions envisaged under RDSS to improve the Aggregate Technical and Commercial (AT&C) losses. Under RDSS, smart  metering  works  have  been  sanctioned  for  45  distribution  utilities  in  28 States/  UTs.  This  covers  smart  metering  of  19.79  Cr.  consumers,  52.53  Lakh Distribution Transformers and 2.05 Lakh feeders. So far, 4.54 Cr smart meters have been installed under RDSS. In addition, smart meters have been installed by States under their State plans/ other schemes. Overall, 5.97 crore smart meters have been installed across the country under various schemes as on 28 th  February 2026. The State/ UT-wise details of smart metering works under RDSS as on 28th February 2026 are placed at Annexure - II.

(e) :   The  Central  Government  has  notified  the  Electricity  (Late  Payment Surcharge  and  Related  Matters)  Rules,  2022,  as  amended  from  time  to  time, which  provide  a  structured  mechanism  for  liquidation  of  legacy  dues  and  to ensure timely payment of current dues to generating companies, transmission licensees  and  trading  licensees.  These  Rules  have  established  a  payment discipline framework through the levy of late payment surcharge and regulation of  access  to  ensure  adherence  to  payment  schedules.  In  addition,  payment security mechanisms in electricity market transactions have been provided to ensure timely settlement of dues payable to generating companies.

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## ANNEXURE REFERRED IN REPLY TO PART (b) OF UNSTARRED QUESTION NO. 3370 ANSWERED IN THE LOK SABHA ON 12.03.2026

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## DISCOM wise financial and operational parameters as on 31.03.2025

| State/ DISCOM             |   AT&C Loss (%) | ACS-ARR Gap (Rs./kWh)   | Accumulated Surplus/ (Loss) (Rs Cr)   | Total Borrowings (Rs Cr)   |
|---------------------------|-----------------|-------------------------|---------------------------------------|----------------------------|
| State Sector              |           15.4  | 0.11                    | (6,77,561)                            | 7,11,402                   |
| Andaman & Nicobar Islands |           24.14 | 2.22                    | -                                     | -                          |
| Andaman & Nicobar PD      |           24.14 | 2.22                    | -                                     | -                          |
| Andhra Pradesh            |            7.87 | (0.15)                  | (29,420)                              | 77,583                     |
| APCPDCL                   |            7.95 | (0.62)                  | (9,688)                               | 21,204                     |
| APEPDCL                   |            7.7  | (0.02)                  | (7,155)                               | 20,693                     |
| APSPDCL                   |            7.99 | (0.01)                  | (12,577)                              | 35,687                     |
| Arunachal Pradesh         |           46.2  | 0.00                    | -                                     | -                          |
| Arunachal PD              |           46.2  | 0.00                    | -                                     | -                          |
| Assam                     |           15.44 | (0.26)                  | (1,028)                               | 1,131                      |
| APDCL                     |           15.44 | (0.26)                  | (1,028)                               | 1,131                      |
| Bihar                     |           15.51 | (0.41)                  | (16,526)                              | 14,002                     |
| NBPDCL                    |           14.49 | (0.57)                  | (4,917)                               | 6,509                      |
| SBPDCL                    |           16.35 | (0.28)                  | (11,608)                              | 7,494                      |
| Chhattisgarh              |           14.25 | (0.19)                  | (10,423)                              | 5,428                      |
| CSPDCL                    |           14.25 | (0.19)                  | (10,423)                              | 5,428                      |
| Delhi                     |            8.36 | (0.86)                  | -                                     | -                          |
| NDMC                      |            8.36 | (0.86)                  | -                                     | -                          |
| Goa                       |           10.39 | 0.20                    | -                                     | -                          |
| Goa PD                    |           10.39 | 0.20                    | -                                     | -                          |
| Gujarat                   |            8.25 | (0.40)                  | 7,355                                 | 258                        |
| DGVCL                     |            4.26 | (0.46)                  | 2,507                                 | 26                         |
| MGVCL                     |            8.37 | (0.24)                  | 877                                   | 9                          |
| PGVCL                     |           12.73 | (0.44)                  | 2,276                                 | 208                        |
| UGVCL                     |            6.16 | (0.33)                  | 1,695                                 | 15                         |
| Haryana                   |           11.76 | 0.10                    | (27,915)                              | 20,311                     |
| DHBVNL                    |           12.2  | 0.03                    | (13,052)                              | 12,099                     |
| UHBVNL                    |           11.12 | 0.20                    | (14,862)                              | 8,213                      |
| Himachal Pradesh          |           19.44 | 0.23                    | (3,391)                               | 7,024                      |
| HPSEBL                    |           19.44 | 0.23                    | (3,391)                               | 7,024                      |
| Jharkhand                 |           28.19 | 0.95                    | (20,512)                              | 22,381                     |
| JBVNL                     |           28.19 | 0.95                    | (20,512)                              | 22,381                     |
| Karnataka                 |           11.92 | 0.69                    | (34,980)                              | 47,993                     |
| BESCOM                    |           12.5  | 1.21                    | (13,819)                              | 22,611                     |
| CHESCOM                   |            8.76 | 0.36                    | (4,064)                               | 5,410                      |
| GESCOM                    |           13.48 | 0.10                    | (5,661)                               | 6,147                      |
| HESCOM                    |           12.14 | 0.23                    | (11,398)                              | 12,251                     |

| MESCOM         |   10.02 | (0.00)   | (37)       | 1,575    |
|----------------|---------|----------|------------|----------|
| Kerala         |    6.61 | (0.17)   | (38,648)   | 17,638   |
| KSEBL          |    6.61 | (0.17)   | (38,648)   | 17,638   |
| TCED           |    6.94 | (0.13)   | -          | -        |
| Ladakh         |   26.82 | (0.89)   | -          | -        |
| Ladakh PD      |   26.82 | (0.89)   | -          | -        |
| Madhya Pradesh |   22.76 | (0.04)   | (71,394)   | 49,239   |
| MPMaKVVCL      |   29.6  | 0.22     | (30,900)   | 18,176   |
| MPPaKVVCL      |   12.78 | (0.36)   | (12,503)   | 14,184   |
| MPPoKVVCL      |   26.66 | 0.02     | (27,992)   | 16,878   |
| Maharashtra    |   17.69 | 0.56     | (35,671)   | 90,659   |
| BEST           |    5.07 | 0.60     | -          | -        |
| MSEDCL         |   18.09 | (0.70)   | (35,671)   | 90,659   |
| Manipur        |   12.9  | (0.20)   | (290)      | 745      |
| MSPDCL         |   12.9  | (0.20)   | (290)      | 745      |
| Meghalaya      |   17.52 | 0.13     | (4,962)    | 1,474    |
| MePDCL         |   17.52 | 0.13     | (4,962)    | 1,474    |
| Mizoram        |   32.31 | (0.34)   | -          | -        |
| Mizoram PD     |   32.31 | (0.34)   | -          | -        |
| Nagaland       |   48.86 | (0.50)   | -          | -        |
| Nagaland PD    |   48.86 | (0.50)   | -          | -        |
| Puducherry     |   14.72 | (0.64)   | -          | -        |
| Puducherry PD  |   14.72 | (0.64)   | -          | -        |
| Punjab         |   19.21 | (0.30)   | (3,404)    | 17,411   |
| PSPCL          |   19.21 | (0.30)   | (3,404)    | 17,411   |
| Rajasthan      |   15.18 | (0.04)   | (90,303)   | 98,488   |
| AVVNL          |    9.22 | (0.45)   | (25,563)   | 26,126   |
| JdVVNL         |   21.42 | 0.02     | (34,689)   | 36,793   |
| JVVNL          |   13.75 | 0.18     | (30,052)   | 35,569   |
| Sikkim         |   21.84 | 0.33     | -          | -        |
| Sikkim PD      |   21.84 | 0.33     | -          | -        |
| Tamil Nadu     |   10.96 | (0.19)   | (1,19,153) | 1,01,782 |
| TNPDCL         |   10.96 | (0.19)   | (1,19,153) | 1,01,782 |
| Telangana      |   19.84 | 0.27     | (69,741)   | 59,230   |
| TSNPDCL        |   23.22 | 0.53     | (21,399)   | 21,885   |
| TSSPDCL        |   18.51 | 0.17     | (48,342)   | 37,345   |
| Tripura        |   29.61 | 1.40     | (991)      | 842      |
| TSECL          |   29.61 | 1.40     | (991)      | 842      |
| Uttar Pradesh  |   19.54 | 0.73     | (1,00,858) | 61,395   |
| DVVNL          |   19.7  | 1.03     | (33,974)   | 16,412   |
| KESCO          |   14.29 | 1.09     | (5,232)    | 2,243    |
| MVVNL          |   17.7  | 1.11     | (25,236)   | 14,338   |
| PaVVNL         |   11.91 | (0.29)   | (8,782)    | 6,562    |
| PuVVNL         |   30.7  | 1.30     | (27,634)   | 21,840   |
| Uttarakhand    |   15.08 | 0.06     | (5,482)    | 1,729    |

| UPCL                    |   15.08 | 0.06   | (5,482)    | 1,729    |
|-------------------------|---------|--------|------------|----------|
| West Bengal             |   17.17 | (0.03) | 174        | 14,658   |
| WBSEDCL                 |   17.17 | (0.03) | 174        | 14,658   |
| Private Sector          |   10.05 | (0.64) | 30,351     | 14,975   |
| Delhi                   |    6.48 | (1.13) | 22,184     | 2,914    |
| BRPL                    |    6.7  | (0.89) | 12,892     | 894      |
| BYPL                    |    7.15 | (0.95) | 5,650      | 701      |
| TPDDL                   |    5.7  | (1.58) | 3,642      | 1,319    |
| Gujarat                 |    3.63 | (0.42) | 3,892      | 3,562    |
| Torrent Power Ahmedabad |    3.8  | (0.30) | 3,206      | 3,354    |
| Torrent Power Surat     |    3.24 | (0.67) | 686        | 208      |
| Maharashtra             |    4.99 | (2.04) | 1,245      | 3,818    |
| AEML                    |    4.99 | (2.04) | 1,245      | 3,818    |
| Odisha                  |   17.81 | 0.18   | 1,263      | 4,531    |
| TPNODL                  |   12.51 | (0.06) | 480        | 1,006    |
| TPSODL                  |   23.36 | 0.82   | 219        | 1,498    |
| TPWODL                  |   17.64 | 0.36   | 301        | 1,093    |
| TPCODL                  |   19.11 | (0.09) | 262        | 933      |
| Uttar Pradesh           |    8.48 | (0.15) | 1,561      | 0        |
| NPCL                    |    8.48 | (0.15) | 1,561      | 0        |
| West Bengal             |    4.68 | 0.19   | 205        | 151      |
| IPCL                    |    4.68 | 0.19   | 205        | 151      |
| Grand Total             |   15.04 | 0.06   | (6,47,210) | 7,26,378 |

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ANNEXURE-II ANNEXURE REFERRED IN REPLY TO PART (d) OF UNSTARRED QUESTION NO.

## 3370 ANSWERED IN THE LOK SABHA ON 12.03.2026 *************

## State-wise Smart Metering status under RDSS

| State/UTs           | Smart Meters under RDSS (Nos.)   | Smart Meters under RDSS (Nos.)   | Smart Meters under RDSS (Nos.)   |
|---------------------|----------------------------------|----------------------------------|----------------------------------|
| State/UTs           | Sanctioned                       | Awarded                          | Installed                        |
| Andaman and Nicobar | 84,835                           | 84,835                           | -                                |
| Andhra Pradesh      | 59,19,344                        | 59,81,561                        | 26,01,414                        |
| Arunachal Pradesh   | 2,98,250                         | 2,98,250                         | 63,151                           |
| Assam               | 64,45,127                        | 65,58,446                        | 50,36,390                        |
| Bihar               | 26,07,153                        | 25,98,542                        | 22,11,931                        |
| Chhattisgarh        | 61,79,479                        | 73,45,604                        | 36,31,325                        |
| Delhi               | 3,521                            | -                                | -                                |
| Goa                 | 7,50,356                         | 7,50,356                         | 2,775                            |
| Gujarat             | 1,67,87,587                      | 1,67,91,087                      | 41,06,870                        |
| Himachal Pradesh    | 28,41,908                        | 29,18,432                        | 8,36,338                         |
| Jammu and Kashmir   | 14,97,690                        | 14,90,727                        | 6,54,247                         |
| Jharkhand           | 13,62,044                        | 13,62,044                        | 6,53,756                         |
| Kerala              | 1,33,83,001                      | 2,92,960                         | 1,76,657                         |
| Madhya Pradesh      | 1,34,29,206                      | 62,66,494                        | 36,02,845                        |
| Maharashtra         | 2,40,04,866                      | 2,52,73,775                      | 95,31,245                        |
| Manipur             | 1,66,208                         | 1,66,208                         | 40,304                           |
| Meghalaya           | 4,72,743                         | 4,72,743                         | -                                |
| Mizoram             | 2,92,081                         | 2,92,081                         | 30,987                           |
| Nagaland            | 3,23,878                         | 3,23,878                         | 37,231                           |
| Puducherry          | 4,07,052                         | 4,07,052                         | 26,258                           |
| Punjab              | 89,81,414                        | 6,48,607                         | 2,788                            |
| Rajasthan           | 1,47,36,692                      | 1,47,54,023                      | 29,50,007                        |
| Sikkim              | 1,48,542                         | 1,48,542                         | 88,900                           |
| Tamil Nadu          | 3,04,90,774                      | 10,570                           | 9,746                            |
| Tripura             | 5,62,870                         | 5,27,013                         | 2,05,380                         |
| Uttar Pradesh       | 2,85,26,730                      | 2,85,26,730                      | 78,42,941                        |
| Uttarakhand         | 16,49,684                        | 16,49,684                        | 4,86,541                         |
| West Bengal         | 2,10,35,262                      | 40,31,566                        | 6,34,255                         |
| All India Total     | 20,33,88,297                     | 12,99,71,810                     | 4,54,64,282                      |

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