The main suggestions mandate that regulators determine prices based on market costs, expand the number of utilities operating within the same circles, and specify payment mechanisms and due dates.
India is drafting legislation that would increase competition and reduce debt at its power distribution corporations. Still, it also runs the danger of inciting resentment in a nation where electricity is frequently exploited as a campaign tool.
The proposal will be made before the legislature during the ongoing session, which continues through August 12.
The administration of Prime Minister Narendra Modi claims that the overhaul is necessary to clear a sector that is crucial to its goals for the energy transition but is clogged with 6 trillion rupees ($75 billion) in debt. The modifications, according to critics, open the door for large corporations to dominate the market since wealthy clients would shift to private enterprises, leaving state-run utilities with customers who depend on subsidies.
Last week, Modi claimed there were roughly 2.5 trillion rupees in unpaid invoices and encouraged states to pay their debts. State governments claim that the subsidies shield small companies and vulnerable individuals.