Power subsidy
Centre, states must find common ground
Updated At : 06:33 AM Oct 20, 2025 IST
THE politically sensitive issue of power subsidy is back in the spotlight. The Centre is keen to roll out reforms for making the electricity sector commercially robust and ensuring affordable supply for all. The Power Ministry recently released the draft Electricity (Amendment) Bill, 2025, and sought public feedback within 30 days. The draft Bill proposes to phase out cross-subsidies within five years; it is estimated that industrial and commercial users are being charged up to 30 per cent above the supply cost to fund cheaper (or free) electricity for agricultural and domestic purposes.
