Financial Daily from THE HINDU group of publications
Tuesday, Oct 11, 2005


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Marketing - Channels and Franchises
Industry & Economy - Power


Govt test markets 5 franchisee models for rural electrification

Anil Sasi

New Delhi , Oct. 10

THE Government has zeroed in on five variants of the `franchisee model' for executing rural electrification projects.

The models are being put to test currently in hamlets in Orissa, Assam, Karnataka, West Bengal and Nagaland.

The Power Ministry plans to replicate the successful models across the country on a larger scale to achieve complete household electrification over the next five years.

The Ministry, which is betting heavily on the franchisee model whereby local bodies such as cooperatives, individual entrepreneurs and panchayats are involved in the execution or management of rural electrification projects for a fee, has kicked off work on `site-specific' models.

For instance, in Assam, `single point supply through user associations' is being tried out, under which inhabitants of a cluster of villages form an association, which handles power distribution from the feeder level onwards.

The association, which gets an outlay from the Government for setting up new connections and for the upkeep of the system, is also entrusted with the task of collecting charges from users.

In rural Karnataka, a `Gram Vidyut Pratinidhi' model is being tried out under which a person is chosen by the villagers, on the lines of a chief executive, and is given the responsibility of overseeing the work of the State-owned utilities. In the Sunderbans, an `off-grid solution' model is being experimented with, under which a cooperative formed by villagers would set up stand-alone power generating systems such as bagasse-fuelled captive units.

The cooperative has to collect charges from users , part of which goes into paying back the investments incurred by the Government on setting up the unit.

In Nagaland, a model involving `Village Electricity Management Boards' is being tried out.

In West Bengal, self-help groups and non-governmental organisations have been roped in to oversee the implementation of the rural electrification projects.

"The basic aim of all the franchisee models being tested out currently is to include the local population as much as possible in the planning and execution of the projects that the State funds.

"Also, with the end-users becoming stakeholders in the projects, the collection efficiency goes up in a big way and operating these projects becomes sustainable in the long run," a Government official said.

Till now, rural electrification projects have not made much headway, since there have not been too private sector players willing to execute them.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Tata Safari Dicor

Stories in this Section
HLL plans to enter liquid detergent market with Omo


Air Deccan to hike fares 15 pc; Re 1, Rs 500 fares to remain
ESPN-Star to telecast mixed martial arts game
Dentsu India ties up with Pakistan's Evernew
SBI festive offer
Hind Paper offers incentives to dealers
Virus lures PC users with Brad Pitt
Swiss TravelClub to be transferred to Miles & More
Govt test markets 5 franchisee models for rural electrification
Marico arm buys toilet soap brand in Bangladesh
Customised home theatre systems push Onkyo sales
Rasna launches health drink
Jet Air launches Web check-in facility


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line