The Centre’s bid to amend the Electricity Act 2003 and unleash another set of reforms comes at a time when the thermal power sector is showing signs of renewed investor interest after being bogged down by the “twin balance sheet crisis” for over a decade.

The proposed amendments also come against the background of cumulative losses worth over Rs 6.9 lakh crore in the distribution segment. The electricity value chain has seen multiple reforms-linked financial bailout packages over the last two decades and more, but all have produced sub-optimal outcomes.

The goal of creating a sustainable and financially resilient electricity sector looked elusive. Of course, releasing electricity subsidy amounts from state budgets has been rather prompt in recent years, helping ease the payment issues th

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