New Delhi, Dec. 4 -- The Ministry of Power has addressed concerns regarding proposals to issue multiple electricity distribution licenses in a single area, as envisaged under the Electricity (Amendment) Bill, 2025.

Existing Framework and Proposal

Minister of State for Power Shripad Naik, in a written reply in the Lok Sabha on Thursday, highlighted that under Section 14 of the Electricity Act, 2003, multiple distribution licenses can be granted in the same area to promote competition and efficiency.

Currently, licensees must maintain separate networks, resulting in duplication and higher operational costs.

To address this, the Government has proposed enabling distribution licensees to supply electricity using either their own or a shar...