Introduction

The Union Power Ministry introduced the Electricity (Amendment) Bill, 2022 in Lok Sabha on August 8. The Power Minister said at the stage of introduction that the Bill could be moved to the Energy Standing Committee of Parliament for broader consultations. But the Opposition has questioned the introduction of the Bill, saying that the Centre has broken the promise made to the farmers that this Bill will not be brought to Parliament. Opposition MPs have also said that the Bill is not only anti-farmer, but also anti-constitutional, and against the spirit of federalism. There are also concerns that the Bill may lead to the end of subsidies for farmers and poor consumers.

In the second part of this two-part Deep Dive podcast, we take a closer look at why state-owned power distribution companies (DISCOMs) are forever making losses– is it purely because they are inefficient, or have they been set up for failure, thanks to an irrational regulatory framework and unrealistic expectations? What would a sustainable and fair model of privatisation that doesn’t encroach on state governments’ sovereignty look like?

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