The Electricity Employees’Federation of India(EEFI)declared that the Bill gets rid of the compulsory no-objection requirement from the Central Government for getting the license in defence facility
Central Trade Unions(CTUs) and power workers federation have actually criticised the Draft Electricity( Amendment )Bill, 2025, describing it an effort by the federal government to enable backdoor entry of personal gamers through several circulation licensees in the very same service location utilizing the exact same public network.
The Centre of Indian Trade Unions (CITU) declared that the Bill permits numerous circulation licensees in the exact same location utilizing the exact same public-funded network, allowing personal companies to cherry-pick high-paying customers while public Discoms serve low-revenue rural and domestic customers.
“This will maim public financial resources, ruin cross-subsidies, and boost tariffs. Smart metering, promoted by the Centre, is the technological tool for this privatisation drive, stated CITU General Secretary Tapan Sen.
The Electricity Employees’ Federation of India (EEFI) declared that the Bill eliminates the obligatory no-objection requirement from the Central Government for acquiring the license in defence facility locations.
“This modification, in the name of ease of working, will raise security threats and functional disputes. Delegating the supply of power to setups of tactical significance with personal licensees might jeopardise nationwide security,” stated EEFI General Secretary Sudip Dutta.
EEFI declared that the explanatory note provided by the Government in addition to this proposed modification exposes a striking confession.
“The Government confesses that after 22 years of the enactment of the Electricity Act, 2003, and regardless of significant structural reforms under the Act, the circulation section continues to deal with extreme monetary tension, with cumulative losses increasing from 26,000 crore to 6.9 lakh crore over the last 22 years,” it included.
EEFI stated that Section 43 (4) empowers regulative commissions to enable customers with a need above 1 MW to move to personal providers, lowering the profits of public Discoms and even more narrowing the scope of cross-subsidy.
At the very same time, the State energies require to keep the agreement need of those high-end customers as back-up, putting an additional monetary problem on state Discoms.
“Again, this permits personal circulation licensees to prevent their universal supply responsibility. They can decline to provide power to any candidate if it is not successful– although there is a minimum limit of 1 MW, this limitation can quickly be customized if such a method is allowed in concept,” the federation declared.
Another problem is the proposed total removal of cross-subsidies within 5 years, particularly for Railways, Metro Rail, and production markets, which will trigger an enormous income shock to utilities.
Cross-subsidies are not inadequacies– they are a social requirement in a nation where millions depend upon cost effective electrical energy for domestic, farming, and income requirements; this is the right of individuals made and secured through long battle, EEFI’s Dutta stated.
CITU too stated that cross-subsidy is a social need, not an inadequacy. “By promoting speculative power markets, the Bill transforms electrical energy– a standard human need– into a tradable product. Such deregulation will cause rate volatility, undependable supply, and the weakening of public control over energy security,” Sen included.
The Bill likewise assaults the federal structure, CiTU stated including, that it provides the Central Government sweeping powers over state energy policy, consisting of control over state regulative commissions and eco-friendly targets.
“It is a direct attack on the federal character of the Constitution and will strike opposition-ruled states currently dealing with financial tension due to prejudiced GST and fund allotments,” CITU stated.
EEFI stated that Section 176 changes the expression “for performing the arrangements” with “for performing the functions” of the Act, approving the Centre unrestricted rule-making powers that bypass parliamentary and public analysis.
Released on October 15, 2025
