The Minister of Electricity K. Krishhnanku killed the content of the draft Act on Electricity (Amendment), 2025 and stated that they could represent the threat to the energy distribution agencies by the public sector by accelerating privatization in the Earth’s power industry.
The state government has committed itself to maintaining energy distribution in the public sector, Krishhnankutty said. Preliminary assessment suggests that the proposals are harmful to the public sector companies and would also pave the way to increase power tariffs, he said.
The Union’s government was looking for the state government’s opinion in the proposal. Mr. Krishhnankutty said that after careful examination of the proposals, the state will submit its objections to the bill.
The main objective of the bill is to open licensing in the distribution sector to private players, Mr. Krishhnanku said. This would allow private companies to reap huge profits using the infrastructure introduced with the taxpayer’s money.
This would also lead to “cherries” of top consumers by private distributors, leaving the public sector companies to provide an offer for cheap rates to common consumers. Such a scenario would eventually throw state companies for loss, he said.
Mr. Krishhnanku also pointed out the unanimous resolution approved by the Keral Assembly against the Electricity Act (amendment), 2021, 5 August 2021. The Kerala Assembly required the Center to withdraw the bill because the proposals were against the federal principles. There is no change at the state government stand, Mr. Krishhnanku said.
Published – October 11, 2025 17:51 ist
