|Dr. Murhari S. Kele,
pManifold team recently spoke with Dr. Murhari Kele, an industry expert in Power Distribution Franchisee to understand his viewpoints on Future scenario of model. (The views here are personal views, and not to be associated with any company in any forms)
1. Power Distribution Franchisee (PDF), one of the reforms in power distribution utilities has seen ups and downs since its inception in 2007? What is your opinion on privatization of Indian Power Distribution Utilities, and opting Franchisee model as a possible precursor for same (compared with other private models like Delhi PPP model, PPP concessionaire, etc.)?
After inception of The Electricity Act-2003, SEB’s were unbundled in various activities. Power distribution reforms through National Tariff policy & National Electricity policy speaks about the private sector participation in public utilities through various models, like PPP model, franchisee model or full privatisation. These types of operating models are used for turnaround of loss making utilities. Each model is having its own characteristics with risks & challenges. But based on performance of various models for last five years, it shows that private ownership was superior both for PPP & to public ownership. With private ownership there were two models namely Privatisation & second Franchisee. In terms of reduction of system losses the performance of both PPP model in Delhi & Franchisee model in Bhiwandi, the results were dramatic & comparable. These were obtained not only by better management practices, better surveillance etc but also by providing superior services to customers.