India is gearing up for a major overhaul of its electricity sector, reportedly planning to open the retail power market to private companies across the country.

A new draft bill from the Ministry of Power proposes to break the monopoly of state-run electricity distributors and bring in private players such as Adani Power, Tata Power, Torrent Power, and CESC, according to a Reuters report.

If implemented, the reform would mark a turning point for India's power distribution system, which has remained mainly under government control. Only a handful of regions, including Delhi, Odisha, Maharashtra, and Gujarat, currently have privatised electricity supply networks.

An earlier attempt to introduce similar reforms in 2022 was met with resistance from state-owned utilities. But the Centre has renewed its push for change, urging state companies to reduce financial stress and modernise operations.

Earlier this year, Uttar Pradesh began the process of privatising two of its four distribution firms.

According to the Institute for Energy Economics and Financial Analysis (IEEFA), state utilities owed power generators nearly $6.8 billion as of June 2025.

Stocks Watch

Both PowerGrid and NTPC closed 0.9% higher. Private companies ended mixed on Friday. Tata Power closed 0.6% higher, Adani Power ended trade up 0.8%, while Torrent Power declined 0.44%. CESC shares ended little changed at ₹170.4.

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