The Ministry of Power is an institution of the Government of India primarily responsible for the maintenance and regulation of the national power sector. It was established as an independent ministry on July 2, 1992, during the P. V. Narasimha Rao government, by splitting from the earlier Ministry of Energy Sources. This restructuring was undertaken to oversee electricity production, infrastructure development, and policy formulation for thermal and hydro power generation, transmission, and distribution. The Ministry's mandate is shaped by the fact that electricity is a Concurrent subject under Entry 38 of List III (Seventh Schedule) of the Constitution of India.
Its core mechanism involves administering key legislation, most notably the Electricity Act, 2003, which consolidated laws for the sector, promoted competition, and established regulatory commissions. Key provisions of this Act include the freedom to generate electricity without a license under Section 7 and the mandate for the Central Government to prepare a national policy for rural electrification under Section 4. The Ministry also administers the Energy Conservation Act, 2001. Related institutions under its administrative control include the Rural Electrification Corporation (REC) and the Power Finance Corporation (PFC).
The Ministry has recently implemented changes, including reforms from the Jan Vishwas (Amendment of Provisions) Act, 2026, which was notified on April 8, 2026, to decriminalize minor offenses in the power sector, with amendments to the Electricity Act, 2003 taking effect from June 1, 2026. Additionally, the Electricity (Amendment) Rules, 2026, amended Rule 3 of the Electricity Rules, 2005, to strengthen the framework for captive generating plants and clarify ownership provisions.