Punjab Government's Silence Sparks Controversy Over Electricity Bill
The Punjab government has maintained complete silence regarding the Union Power Ministry's Draft Electricity (Amendment) Bill, 2025, even as the November 7 deadline for submitting comments has passed. The draft legislation, issued on October 9, has triggered widespread concern among power sector employees, engineers, and farmer unions who view it as a roadmap to privatisation of electricity distribution.
Missed Deadline and Internal Conflicts
Sources within the power sector confirmed that detailed objections to the bill had been prepared with clause-wise comments from the Punjab State Electricity Board Engineers' Association (PSEBEA). However, the document remained stuck in the Punjab State Power Corporation Limited's (PSPCL) office despite receiving internal approval. This failure to submit formal objections before the deadline has drawn sharp criticism from various stakeholders.
The PSEBEA has been particularly vocal in its opposition, claiming that the proposed amendments would dismantle India's public electricity framework and hand over profitable segments to private companies. The association highlighted that similar proposals in 2014, 2018, 2020, 2021, and 2022 were withdrawn following widespread resistance from farmers, employees, and consumers.
Key Concerns About the Legislation
Engineers and power sector experts have identified several problematic provisions in the draft bill:
Section 14 amendments would allow multiple distribution licensees in the same area using the same network, enabling private companies to cherry-pick lucrative industrial and commercial consumers. This could leave public distribution companies (DISCOMs) serving only low-revenue rural and domestic consumers.
Section 43(4) would permit consumers with demands above 1 megawatt (MW) to shift to private suppliers, significantly reducing state DISCOM revenue while they remain obligated to maintain backup contract demand.
The separation of content and carriage without creating an independent distribution system operator could lead to conflicts of interest, discrimination risks, and regulatory burdens on understaffed State Electricity Regulatory Commissions (SERCs).
Farmer Unions Join the Protest
Farmer organizations under the Samyukta Kisan Morcha (SKM), Kisan Mazdoor Morcha (KMM), and SKM (non-political) have strongly opposed the amendments. SKM had demanded that the Punjab government convene a special Vidhan Sabha session to pass a resolution against the bill, but no such action was taken.
Jagmohan Singh Patiala, National Coordination Committee Member of SKM, expressed disappointment that no special session was called despite their demands. Union leaders argue that the amendments would ultimately end subsidies for domestic and agricultural consumers, directly affecting Punjab's current policy of providing free power to agriculture consumers and 300 free units per month for domestic consumers.
Growing Resistance Among Employees
Employees of PSPCL – both regular and contractual – have joined the protests against the bill. Balihar Singh, president of the Outsourced PSPCL Contractual Employees Association, described the legislation as a direct roadmap toward privatisation that threatens job security and working conditions.
The resistance from engineers, employees, and farmer unions is intensifying as the state government remains silent. This creates additional challenges for PSPCL, which is already facing internal opposition following the suspension of a chief engineer and termination of the director (generation).
The PSEBEA also raised concerns about centralization of power, noting that provisions expanding the Centre's authority over standards, appointments, renewable targets, and rule-making could weaken India's federal structure. Additionally, amendments related to renewable purchase obligations (RPOs) were criticized for setting low penalties that could effectively price carbon dioxide at only $5-7 per tonne.
