UPSC CSE Mains Syllabus: GS-3- Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Draft Electricity Amendment Bill (2020)

Energy scenario in India:


  1. A cash-strapped distribution sector, the weakest link in the value chain.
  2. Operational inefficiencies
  3. Acute financial crunch
  4. High Aggregate Technical and Commercial (AT&C) losses (averaging around 22%)
  5. Unsustainably designed tariff structures
  6. Collection inefficiencies have played havoc with discoms’ cash flows
  7. Delaying payments to generators
  8. Curtailing power purchase
  9. All these dampening investments in the sector.

Draft Electricity Amendment Bill (2020):

The government’s draft Electricity Amendment Bill (2020) that has generated maximum interest, as it promises sweeping structural reforms to fix the health of distribution companies, boost investor sentiments and ensure the long-term sustainability of the power sector. The amendments proposed are forward-looking and impactful, which should pave the way for a thriving power sector.

Some of the key positive tenets of the Bill include the following:

Rationalisation of tariff:

Regulatory ecosystem for dispute resolution:

Private sector participation:

National Renewable Energy Policy:

Source:”Hindustan Times”.


Analyse the concerns ailing the power sector in India. How does the Draft Electricity Amendment Bill (2020) strive to rectify them?