New Delhi, 22 May 2006
India has decided to pursue the franchisee route, based on the US concept but modelled to local requirements, to ensure that all 582,000 villages receive power by 2009.
In 2005-06, under the Rajiv Gandhi Grameen Vidyutikaran Yojna, 10,000 villages were electrified, which according to the current definition means connecting the health centre, the community centre, the panchayat or village council and at least 10 percent of the village homes to the power grid.
For 2006-07, the power ministry has set a target of connecting another 40,000 villages to the national power grid, Power Minister Sushil Kumar Shinde said here Monday while launching the national programme on franchisee for village electrification.
“Development of rural electricity franchisees is a very important component of our programme. Besides opening up new employment opportunities to rural men and women, they will also instil a sense of ownership among people,” said Shinde.
The franchisee is for distribution of power in the rural areas through entrepreneurs, NGOs, women self-help groups, users associations, cooperatives and panchayats.
“Wherever the franchisees have been installed already such as Nagaland, Assam, Karnataka, West Bengal, Uttaranchal and Uttar Pradesh, we have received encouraging results such as reduction in power losses as well as increase in efficiency, revenue collection and employment generation,” the minister said.
In Uttaranchal, some franchisees have been able to reduce power losses substantially and increase the revenue collection by as much as 25 percent.
This year franchisees for about 22,000 villages are to be appointed. All those selected would have to sign a commercial agreement along with three months’ security or bank guarantee. Training in power distribution and metering is essential part of the programme, Power Secretary R.V. Shahi said.
The business model worked out allows only 15 percent power losses, mainly due to thefts, and 10 percent commission to the franchisee. But if the power loss is reduced further, the franchisee can look forward to additional commission, Shahi said.
On the target for power generation capacity addition this year, Shahi said while projects for about 40,000 MW were underway, it was expected that “we should be able to complete projects of over 19,500 MW” by the end of fiscal 2006-07.
The ministry was also planning ahead for projects to be executed during the eleventh plan (2007-12) and preparing the tendering process though the actual project execution would be undertaken next year.
“The tender process for generation projects worth Rs.30 billion is being made ready,” said Shahi.
Projects worth Rs.50 billion were envisaged during the current plan period (2002-07), while projects worth around Rs.62 billion are proposed to be developed in the 11th Plan period.
News Source: http://www.newkerala.com