Page 63 - Policy & Economic Report - July 2025

July 2026 POLICY AND ECONOMIC
ROEILPO&RGTAS MARKET

As India progresses towards becoming a developed nation, Samudra Manthan represents a
transformational national initiative that will unlock the country's offshore energy resources,
strengthen long-term energy security, deepen technological capabilities, and create enduring value
for the economy and future generations.

Over the past decade, the Government has undertaken transformative reforms across the upstream
sector, including opening almost the entire offshore acreage for exploration, modernising the
legislative and contractual framework, and strengthening the National Data Repository. Building on
these reforms, Samudra Manthan will usher in a new era of accelerated offshore exploration through
strategic public investment, cutting-edge technologies and world-class infrastructure.

8. Meeting of Consultative Committee for the Ministry of Power Held

The Consultative Committee of the Ministry of Power met under the chairmanship of Union Minister
for Power and Housing & Urban Affairs, Shri Manohar Lal, to deliberate on the proposed framework
for parallel distribution licensing aimed at promoting consumer choice, improving service quality and
ensuring efficient utilisation of electricity distribution infrastructure. The meeting was attended by
Shri Shripad Yesso Naik, Minister of State for Power, Members of Parliament who are members of the
Consultative Committee, Secretary, Ministry of Power and senior officials of Ministry of Power.

Addressing the Committee, the Union Minister stated that the Electricity Act, 2003 had successfully
introduced competition in electricity generation, transmission and trading, while distribution remains
the only major segment where competition continues to be limited. He emphasized that as India
moves towards becoming a developed nation under the vision of Viksit Bharat @2047, consumers will
increasingly expect reliable, affordable and high-quality electricity supply comparable to global
standards.

It was discussed that while the existing legal framework permits more than one distribution licensee
in the same area, it requires each licensee to establish its own distribution network. This results in
duplication of poles, lines and substations, increases capital expenditure and discourages fresh
investment, ultimately leading to inefficient utilization of resources.

The proposed framework seeking to enable competition in electricity supply without requiring
duplication of the physical distribution network was discussed in detail. Under the proposal, existing
distribution licensees will continue to own, operate and maintain their networks. New distribution
licensees will be able to use the existing network by paying regulated wheeling charges, while
retaining the option to develop their own network wherever permitted by the concerned State
Electricity Regulatory Commission.

The Minister highlighted that the detailed implementation framework would be developed by the
State Electricity Regulatory Commissions to ensure fairness, transparency and non-discriminatory
access to the network. The proposal also fully protects the interests of incumbent distribution

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