Haryana is all set to introduce reforms in the power distribution system in the state by incorporating private players as distribution franchisee.
Financial Commissioner, Power Madhusudan Prasad told Business Standard that Chief Minister Bhupinder Singh Hooda had given the approval for this significant initiative.
He apprised that the consultant(s) would be hired for conducting a credible survey in the two districts of Gurgaon and Panipat shortlisted for implementing the power distribution reforms.
“The private player may have the tendency to inflate the figures regarding the number of consumers, projected and connected load so a baseline survey by an independent agency is indispensable before fixing the terms and conditions of the distribution model,” he said.
According to him, Haryana had a transmission and distribution (T&D) loss of about 29 per cent. This initiative, he said, would help check not only T&D losses but also enhance efficiency in management of distribution.
The bidding parameter was yet to be decided but the franchisee should be in place by the end of 2010, he said.
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Haryana has two power distribution networks; Uttar and Dakshin Haryana Distribution Nigam. One district from each (Panipat from Uttar Haryana and Gurgaon from Dakshin Haryana Nigam) has been picked on pilot basis.
Haryana’s initiative has been inspired by Maharashtra’s successful implementation of Franchisee Distribution Model at Bhiwandi. Prasad said that Mahrashtra brought down its T&D losses from 68 per cent to 22 per cent at Bhiwandi within two years of the introduction of this model.
He apprised that the state was expected to get funding from Accelerated Power Development and Reform Programme (APDRP) for reducing the T&D losses. The Detailed Project Report (DPR) had been sent to the Centre and the funds drawn on this account would be utilised for this initiative, he added.