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In
the power sector, the PPP model is more focused on the
Distribution Franchise. This model has been implemented
in Maharashtra with MSEDCL participating in it. A distribution
franchise is based upon input model, where an agency
is responsible for supply of power at the input point
and the Franchisee is responsible for all obligations
of distribution license in the Franchisee Area viz :
1. Supply of power
2. Consumer Service
3. Operation and maintenance of distribution network
4. Billing and Collection
5. Compliance with regulatory standards
Need
The
enactment of the Electricity Act 2003 enabled the advent
of competition along the entire electricity value chain.
At the moment, many of the power distribution utilities
are not able to cover their costs, as there is a high
level of theft, poor collection efficiency and high
level of technical losses on account of the overloading
of equipment and high equipment failure rates. The Act
provides for the distribution of electricity through
a distribution franchisee, allowing an entity to undertake
distribution of electricity for a specified area. With
franchising in electricity distribution, it has emerged
as a viable option to bring about efficiency gains in
challenging areas.
The
breakup of the monopoly of the state electricity boards
and acceptance of competition induce dattraction from
the private players. The sector has been plagued with
inefficiencies
Models Followed
The
power sector in India has not witness much PPP activity
as compared to other sectors. The PPP contracts till
date in the power sector have occurred in distribution
franchisee and in UMPP (Ultra Mega Power Projects).
The distribution franchisee agreement is based upon
a contract while in UMPP the projects are happening
on BOO (Build-Own-Operate) Basis.
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PFF
Schemes & Loan Application