Daijiworld Media Network – New Delhi

New Delhi, Oct 10: In a major reform push, India plans to open its retail electricity market to private companies across the country, ending the long-standing dominance of state-run power distributors, according to a draft bill from the Union Power Ministry cited by Reuters on Friday.

The move could pave the way for leading private firms such as Adani Enterprises, Tata Power, Torrent Power, and CESC to expand their presence nationwide.

A similar reform proposal in 2022 had met stiff resistance from state-run utilities. Currently, only a few regions — including the National Capital Region (NCR), Odisha, and industrial states like Maharashtra and Gujarat — have privatised power distribution, while most states remain under public control and suffer from heavy financial losses.

The Centre has been urging state utilities to curb losses, strengthen balance sheets, and modernise ageing infrastructure. Earlier this year, Uttar Pradesh, India’s most populous state, invited bids to privatise two of its four distribution companies.

As of June 2025, state power utilities owed generators nearly $6.78 billion, creating a liquidity crunch for independent power producers and limiting credit flow in the energy sector, according to the Institute for Energy Economics and Financial Analysis (IEEFA).

The draft bill also proposes a key change to the Electricity Act, allowing multiple private retailers to operate within the same distribution area, a reform that could foster competition and improve service quality for consumers.