The government is likely to introduce the Electricity (Amendment) Bill, 2025, in the upcoming Budget session, Union Power Minister Manohar Lal Khattar said on Monday.He said the proposed Amendments aim to reduce losses in the power distribution sector, ensure timely payments to distribution companies (discoms) and create a framework to identify and address the root causes of financial stress.Speaking to the media on the sidelines of the inauguration of the Centre of Excellence (CoE) for Regulatory Affairs in the Power Sector at IIT-Delhi, Khattar said persistent losses in the distribution segment were unsustainable not only for power utilities, but also for state governments.“If these losses continue, even the state governments will not be able to afford them. Ultimately, the burden will fall on consumers,” he said.On January 3, The Tribune broke the news that the government was preparing to table the controversial Electricity Amendment Bill-2025 in the upcoming Budget session. The Ministry of Power will start structured meetings with industry groups, unions and other stakeholders on the draft Bill, following receipt of comments. State governments will also be consulted on January 22–23.The minister highlighted the impact of the Revamped Distribution Sector Scheme (RDSS), under which several corrective measures have been implemented, including system upgrades, smart metering and steps to reduce line losses. These interventions, he said, had begun to deliver tangible results.Khattar noted that while there were around 50 discoms across the country and some continued to incur losses, the sector as a whole had posted an overall profit of approximately Rs 2,700 crore. This represents a sharp improvement from a loss of Rs 25,000 crore recorded in the previous financial year, 2023–24.Addressing the strategy for loss-making discoms, the minister said the proposed amendments to the Electricity Act would introduce stricter conditions to prevent future losses, while ensuring that discoms receive their dues on time. He added that all issues related to financial losses would be addressed through the Amendments, the details of which will be presented in Parliament.According to Khattar, “If discoms have begun reporting profits, it signals a rise in investor confidence across all segments of the power sector. This shift is expected to attract a large number of investors toward privatisation initiatives.”“The sector is no longer viewed solely as a loss-making enterprise, as signs of profitability have started to emerge. Private discoms and institutions typically enter the sector based on clear commercial considerations, and the current trend reflects their growing interest. This development is being seen as a significant achievement for the power sector,” Khattar said.Notably, India’s power distribution utilities recorded a collective Profit After Tax (PAT) of Rs 2,701 crore in FY 2024–25, marking a significant turnaround after years of losses following the unbundling and corporatisation of state electricity boards.The Electricity (Amendment) Bill, 2025, aims to create a future-ready electricity sector that delivers reliable, affordable and high-quality power to every consumer. The Bill empowers State Electricity Regulatory Commissions (SERCs) to determine cost-reflective wheeling charges to ensure adequate network development by all the distribution licensees in accordance with the framework established by the SERCs.