The Indian power stocks were on a rise on Monday as the central government today introduced the Electricity (Amendment) Bill, 2022 in the Lok Sabha amid protests by opposition parties. At 12:47 pm the S&P BSE Power index climbed 1.48 percent to 4765.2 on the BSE.

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Shares of major power stocks are trading in the green. JSW Energy is up by 6.7 percent while Siemens Ltd has climbed by over 4 percent on the BSE.

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Adani Green and ABB India are up by nearly 2.4 percent from the previous close on the BSE. Shares of state-owned National Thermal Power Corporation which recently reported a 16.9 percent year-on-year (YoY) jump in net profit for the quarter ended June 2022 are up 2.3 percent trading at Rs 159.5. Torrent Power shares were also trading higher by 1.3 percent from the previous close on the BSE.

However, shares of Tata Power, Adani Power and NHPC are trading red and are down by 1 percent, 0.7 percent and 0.6 percent, respectively.

What is the Electricity Amendment Bill?

The Electricity Amendment Bill which is likely to be introduced in the parliament today aims to transform the power distribution sector, which is the weakest link in the power chain, by enabling competition, strengthening payment security and giving regulatory commissions more power.

The proposed amendments are to the Electricity Act, 2003 which was enacted to consolidate laws pertaining to electricity generation, transmission, distribution, trading, and use and generally to promote the development of electricity.

Also read: 27 lakh power sector employees to protest against Electricity Amendment Bill, 2022

The Union Cabinet approved the Bill last Wednesday. It allows other distribution licensees to use their network for retail distribution of electricity.

“The amendments to the Act are also necessary for a view of the importance of green energy for our environment in the context of global climate change concerns and our international commitments to increase the share of renewable energy,” said, the government.

As part of the amendments, the National Load Despatch Centre will be strengthened to ensure grid security and to make the power system in the country more economically and efficiently efficient.

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(Edited by : Nishtha Pandey)

First Published:Aug 8, 2022 2:47 PM IST