+
India to Open Retail Power Market to Private Firms
POWER & RENEWABLE ENERGY

India to Open Retail Power Market to Private Firms

India is planning to open its retail electricity market to private companies across the country, ending decades of dominance by state-run distributors, according to a draft bill released by the federal power ministry on Friday.

The proposal would enable private firms such as Adani Enterprises, Tata Power, Torrent Power, and CESC to expand their operations nationwide. A previous attempt to introduce such reforms in 2022 faced strong opposition from state-run power distribution companies.

Currently, only a few electricity distribution zones — including the National Capital Region, Odisha, and industrial states such as Maharashtra and Gujarat — have been privatised, as the existing laws do not explicitly permit wider private participation. The majority of India’s power distribution remains under state control, with utilities burdened by heavy financial losses.

The central government has been urging state power boards to reduce losses, strengthen their finances, and modernise outdated infrastructure. Earlier this year, Uttar Pradesh, India’s most populous state, invited bids to privatise two of its four power distribution companies.

As of June 2025, state utilities owed power generators around Rs 566 billion (USD 6.78 billion), creating severe liquidity constraints for independent power producers and limiting credit availability across the sector, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA).

The draft bill also proposes allowing multiple private players to operate within the same distribution area — a move that would break the existing monopoly structure under the Electricity Act. If implemented, the reform could mark one of the most significant overhauls of India’s power sector in decades, potentially improving competition, service quality, and financial efficiency.

India is planning to open its retail electricity market to private companies across the country, ending decades of dominance by state-run distributors, according to a draft bill released by the federal power ministry on Friday. The proposal would enable private firms such as Adani Enterprises, Tata Power, Torrent Power, and CESC to expand their operations nationwide. A previous attempt to introduce such reforms in 2022 faced strong opposition from state-run power distribution companies. Currently, only a few electricity distribution zones — including the National Capital Region, Odisha, and industrial states such as Maharashtra and Gujarat — have been privatised, as the existing laws do not explicitly permit wider private participation. The majority of India’s power distribution remains under state control, with utilities burdened by heavy financial losses. The central government has been urging state power boards to reduce losses, strengthen their finances, and modernise outdated infrastructure. Earlier this year, Uttar Pradesh, India’s most populous state, invited bids to privatise two of its four power distribution companies. As of June 2025, state utilities owed power generators around Rs 566 billion (USD 6.78 billion), creating severe liquidity constraints for independent power producers and limiting credit availability across the sector, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA). The draft bill also proposes allowing multiple private players to operate within the same distribution area — a move that would break the existing monopoly structure under the Electricity Act. If implemented, the reform could mark one of the most significant overhauls of India’s power sector in decades, potentially improving competition, service quality, and financial efficiency.

Next Story
Infrastructure Transport

MMRDA Installs 325-Tonne Steel Spans on Mumbai Metro Line 4

The Mumbai Metropolitan Region Development Authority (MMRDA) has achieved a key construction milestone on Metro Line 4 with the successful installation of three large steel spans at Bhandup West during overnight operations.The spans, together weighing 325 metric tonnes, were launched using eight heavy-duty cranes and 12 multi-axle vehicles. The operation required precise engineering and meticulous planning to minimise disruption in the densely populated suburban area.Due to effective inter-agency coordination, the work—originally scheduled across four nights—was completed within just two n..

Next Story
Infrastructure Transport

CMRL Targets March 2027 Opening for Vadapalani–Panagal Park

Chennai Metro Rail Limited (CMRL) is progressing as scheduled to open the Vadapalani–Panagal Park section of Phase II’s Corridor 4 by March 2027. The 3.5 km underground stretch is part of the 26.1 km Corridor 4 connecting Lighthouse with Poonamallee Bypass.Construction activities are advancing steadily, with tunnelling works between Vadapalani and Panagal Park already completed. Track-laying operations are expected to commence shortly. At Panagal Park station, structural works have reached the concourse and platform levels, while excavation continues at the lowest level.CMRL is also consid..

Next Story
Infrastructure Transport

Maha-Metro Invites Pune Metro Civil Maintenance Bids

Maharashtra Metro Rail Corporation Limited (Maha-Metro) has invited bids for the annual civil maintenance contract of the Pune Metro Rail Project. The tender, bearing ID and number P1-O&M-20/2025, is scheduled to close on 23 February 2026, with a pre-bid meeting slated for 10 February 2026. The earnest money deposit (EMD) for the contract is Rs 3,50,500, and the duration of the contract is one year.The scope of work includes annual civil maintenance of 28 elevated and underground stations, 28.079 km of elevated viaduct including steel bridges, 12.15 km of tunnels, and two depots under the ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App