Ease of doing Distribution Franchisee business - Muzaffarpur Local Intelligence

Muzaffarpur located at  26°07′N 85°24′E. The district occupies an area of 3173 km. Muzaffarpur lies between the Burhi Gandak River and Furdoo nallah. Muzaffarpur is one of the many gateways to Nepal.

Region	Muzaffarpur
Municipal Corporation	Muzaffarpur Municipal Corporation
No. of Household	650,882(2001)
Male population	2,517,500
Female population	2,261,110
Total population	4,778,610
Density(peoples/sq.km)	1,506
Slum population	77456 (2011)

Ease of doing Distribution Franchisee business - Gaya Local Intelligence

Gaya is located at 24.78°N 85.0°E. Gaya is the second largest city of Bihar. Gaya is 100 kilometers south of Patna, the capital city of Bihar. Situated on the banks of Phalgu. It is surrounded by small rocky hills by three sides and the river flowing on the fourth (eastern) side.

Region	Gaya
Municipal Corporation	Gaya Municipal Corporation
No. of Household	510,968(2001)
Male population	2,266,865
Female population	2,112,518
Total population	4,379,383
Density(peoples/sq.km)	880
Slum population	26620(2011)

Ease of doing Distribution Franchisee business - PESU Local Intelligence

Apart from technical & financial parameters it is important for the bidders to evaluate the local intelligence for its operation & ease of setting up a business. pManifold has developed a process to research on the local intelligence through its network & secondary research to provide bidders with glimpse of the region on Demographics - Social & Economical, Political stability & activities & enable them making right decisions. Below is the quick snapshot from the local intelligence report from pManifold on Ease of Operationalizing Distribution Franchisee.

Patna is the capital city of Bihar state. It is located on the south bank of the Ganges River. The city is approximately 35 km long and 16 km to 18 km wide. The table below shows the quick facts about the region

	Patna
Municipal Corporation	Patna Municipal Corporation (PMC)
No. of Household	726,364 (Census 2001)
Male population	3,051,117
Female population	2,721,687
Total population	5,772,804
Density(peoples/sq.km)	1,803
Slum households	15163
Slum population	63.5% (Census 2001)
Literacy Rate	72.47%

Bihar calls again: Revised 4 Power Distribution Franchisees for Patna, Muzaffarpur, Bhahalpur and Gaya

Bihar State Electricity Board (BSEB), after a long gap of nearly 2 years has come back, issuing revised Request for Proposal (RFP) for appointment of Distribution Franchisee for following areas/regions:

• PESU Area
• Muzaffarpur town and adjoining areas 
• Gaya town and adjoining areas
• Bhagalpur town and adjoining areas

At last, BSEB got a final go ahead from the High Court to re-initiate its privatization initiative for Power supply, which went into long litigation detour with earlier entrusted Essar Power group. Having not received formal acceptance from Essar to its issued LOI in-time, BSEB has cancelled the bid, and issued fresh tender on Oct 22, 2012.

The model is 15 years Input Based DF, with below compared heterogeneity in Network, Consumers and Revenue. Key parameters like Consumer Base, Connected Load (MW), Unit Sales (MUs), Revenue Billed (Rs. Cr.) and Revenue Collected (Rs. Cr.) for all the areas/regions are compared across consumer categories (broadly Residential, Commercial, Industrial (LT & HT), Irrigation).

Other important parameters like Losses, Average Billing, Collection Efficiency are shown below. Few excerpts from the same are as follows:

• Input Units is highest for PESU, followed by Muzaffarpur, Gaya and Bhagalpur
• Transmission & Distribution (T&D) losses is highest for Gaya, followed by Bhagalpur, Muzaffarpur and PESU
• Collection Efficiency is least for Bhagalpur and highest for PESU
• Calculated AT&C losses is highest for Gaya, followed by Bhagalpur, PESU and Muzaffarpur.

Important Dates:

• A pre-bid meeting is scheduled on 16th Nov, 2012.
• Last date of submission of Technical bid - 17th Dec, 2012.

We wish good turnout and rationale bidding for these new coming DF opportunities. pManifold services include for DF turnkey bid advisory including Partner Identification, Technical Due-Diligence, Financial Bid Modeling and Bid Preparation. For more details, contact at rahul.bagdia@pmanifold.com or kunjan.bagdia@pmanifold.com

RFP can be downloaded from the following link: http://tenders.bih.nic.in/tenderdocs/TD-01-21-10-2012.pdf

Posted by: Kunjan Bagdia @ pManifold

'Financial Institutions with outstanding debt to Discoms should take Equity position under planned restructuring to bring effective Performance Management' says Amulya Charan

Mr. Amulya Charan, Chief Mentor, Power Trading and Advocacy at Tata Power has 22+ years of experience in the Indian Power Sector, spanning Generation, Transmission, Distribution and Trading. With senior Mgmt. roles at NTPC, Power Grid, Tata Power Ltd., he was ex- MD at Tata Power Trading Company Ltd for four years. Mr. Charan shared following views in recent meet with pManifold.

Question 1: What are the Key Issues with our Discoms?

• SEB Financial Health – another sub-prime crisis in the making
• The cash losses of SEBs have increased 40x FY05-09 to a colossal Rs 284 bn and AT&C losses continue to scare at 28% (All India)
• These losses along with theft of electricity and insufficient increase in tariffs have been the reason for staggering financial losses and curtailing their ability to service their customers
• The investment by discoms in upgrading the distribution infra is much lower than required due to unavailability or limited availability of cash

• High Debt exposure of lenders to the Power Sector
• Outstanding debt of state power utilities have grown to a staggering Rs 6 lakh crore or 6% of the GDP. Roughly a third of these are loans taken to fund past losses which cannot be serviced through tariff hikes and, hence, are being considered for a benign restructuring by the Centre. Unless big reforms are undertaken to stem losses and spur revenue streams, these liabilities would grow further to Rs 7.3 lakh crore by March 2013. This looks like a reasonable estimate, given that annual losses (after receipt of subsidy) of discoms in the country were Rs 42,415 crore in 2009-10, up 18% over the previous year.