India plans to open its retail electricity market to private companies nationwide, aiming to end the dominance of state-owned power distributors in most states, according to a draft bill from the federal Ministry of Power. A previous attempt in 2022 was met with strong resistance from state-owned distribution companies.
Currently, only a limited number of electricity distribution zones, including the National Capital Region, Odisha, and industrial states such as Maharashtra and Gujarat, have undergone privatisation, as existing regulations do not explicitly permit broader private participation. The vast majority of distribution remains under state control.
Earlier in 2025, Uttar Pradesh, India’s most populous state, invited bids to privatise two of its four power distribution companies. The new draft also proposes allowing multiple private players to operate in the same geographic area, a change that the current Electricity Act does not accommodate.
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