Key Messages

The proposed Electricity (Amendment) Bill, 2020, for the Electricity Act, 2003, intends to bring major reforms in the Indian power sector. One of the proposed amendments is in Section 65 of the principal Act.

The proposed amendment is intended to replace this provision with a Direct Benefit Transfer (DBT) scheme. Under this scheme, state governments transfer the subsidy directly to consumers, and DISCOMs then charge the consumers based on the tariff determined by the SERCs.

(*A closely related policy brief can be found at