The union power ministry is planning to implement an annuity-based model for transmission and distribution (T&D) of power projects.Ajay Shankar, additional secretary in the power ministry, today said there was natural monopoly in the transmission and distribution system, and the government was thinking of using the annunity-based model to attract private investment.The model was expected to be sucessful as investors would get a fixed return on investment and would not have any risk on return. "It would delink revenue generation from income," he added.The system would have a provision - distance transported to deliver power to the consumer - which would have a bearing on pricing.The model has been in use for road infrastructure and highway projects in the country, and has proved to be reasonably successful, Shankar said.
