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Power network sharing proposal needs to address legacy PPAs: Former secy
Business Standard
|October 16, 2025
The ambitious proposal by the power ministry to allow network sharing between distribution licensees operating in the same geographical area will face three key challenges, said a former bureaucrat.
According to him, they include sharing of fixed cost of legacy power purchase agreements (PPAs), crosssubsidy burden and discom losses above normative levels.
The proposal is part of the new Electricity (Amendment) Bill 2025 floated by the ministry for public consultation.
This provision for network sharing among distribution licensees was there in the last Electricity (Amendment) Bill too. That Bill lapsed in 2024.
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