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The Cabinet finalised nine districts in the first phase for giving input- based power distribution franchise. These districts include Satna, Sagar, Narsinghpur, Gwalior, Bhind, Datia, Ujjain, Shajapur and Dewas.
The Cabinet approved the distribution franchise agreement under the project. The agreement has clear cut provisions for penalty in cases of issuance of wrong billing, failure to take prompt action on the complaints and non-removal of hurdles in smooth power supply. In case of recurrence of these complaints the agreement would be cancelled. The Energy Department has been authorised to make necessary amendments in the distribution franchise agreement on the basis of suggestions given at pre-bid meeting and the suggestions given by the power distribution companies.
In order to reduce the risk and to encourage healthy competition the work of distribution franchise in the jurisdiction of a distribution would not be given to more than one tenderer.
The franchise would be appointed on experiment basis and they would provide services to the consumers as agent of the power distribution company. Under the system the licencee's work would continue to be with the distribution. It means that the distribution company would continue to fix the duration of power supply and the distribution hours.
The fee realised from the consumers would be the same as determined by the regulatory commission. The franchise would be appointed for a period of 15 years and it would have to strengthen the distribution system in two years and would have to provide metered to every consumer.
The franchise would make regular supply to consumers as agent of the distribution company. It would also make suitable arrangement for payment of bills by them. The most important work of the distribution franchise is to reduce the distribution losses, which would ultimately benefit the consumers. The franchise system would entail no additional financial burden on the consumers nor would the Government provide any financial assistance to the franchise.
The Cabinet approved the distribution franchise agreement under the project. The agreement has clear cut provisions for penalty in cases of issuance of wrong billing, failure to take prompt action on the complaints and non-removal of hurdles in smooth power supply. In case of recurrence of these complaints the agreement would be cancelled. The Energy Department has been authorised to make necessary amendments in the distribution franchise agreement on the basis of suggestions given at pre-bid meeting and the suggestions given by the power distribution companies.
In order to reduce the risk and to encourage healthy competition the work of distribution franchise in the jurisdiction of a distribution would not be given to more than one tenderer.
The franchise would be appointed on experiment basis and they would provide services to the consumers as agent of the power distribution company. Under the system the licencee's work would continue to be with the distribution. It means that the distribution company would continue to fix the duration of power supply and the distribution hours.
The fee realised from the consumers would be the same as determined by the regulatory commission. The franchise would be appointed for a period of 15 years and it would have to strengthen the distribution system in two years and would have to provide metered to every consumer.
The franchise would make regular supply to consumers as agent of the distribution company. It would also make suitable arrangement for payment of bills by them. The most important work of the distribution franchise is to reduce the distribution losses, which would ultimately benefit the consumers. The franchise system would entail no additional financial burden on the consumers nor would the Government provide any financial assistance to the franchise.
