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The central government has been urging state power boards to reduce losses, strengthen their finances, and modernise outdated infrastructure.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 Urban

13 Firms Apply Under PLI Scheme with Rs 19.14 bn Investment

The fourth round of the Production Linked Incentive (PLI) Scheme for White Goods, covering air conditioners and LED lights, has attracted 13 applications with a committed investment of Rs 19.14 billion. The Department for Promotion of Industry and Internal Trade (DPIIT) had kept the window open from 15 September to 10 November 2025. Over half of the new applicants are Micro, Small and Medium Enterprises (MSMEs), signalling rising confidence among smaller manufacturers in joining the domestic AC and LED components value chain. Of the 13 applicants, one is an existing beneficiary that has pledg..

Next Story
Infrastructure Urban

TEC, SRMIST Partner to Boost Indigenous Telecom R&D and Standards

The Telecommunication Engineering Centre (TEC), the technical arm of the Department of Telecommunications (DoT), has signed an MoU with the SRM Institute of Science and Technology (SRMIST) to collaborate on research, joint studies, and technical contributions in advanced telecom technologies and global standardisation. The partnership focuses on creating India-specific standards, test frameworks, and contributions to future network technologies including 6G, Artificial Intelligence (AI), Non-Terrestrial Networks (NTN), and Quantum Communication. It also seeks to strengthen India’s role in I..

Next Story
Infrastructure Urban

C-DOT, NAM InfoCom Partner to Develop Mission-Critical MCX System

The Centre for Development of Telematics (C-DOT) has signed an agreement with NAM InfoCom Private to jointly develop an indigenous Mission Critical Communication System (MCX) solution. The collaboration is a major step towards strengthening India’s public safety and emergency communication infrastructure. Under the C-DOT MCX Alliance, the organisation has partnered with 10 entities—primarily startups—to build a comprehensive MCX ecosystem. The new MCX platform is aligned with 3GPP standards and supports Mission Critical Push-to-Talk, Mission Critical Data, and Mission Critical Video ser..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement