Gujarat to rope in NGOs, co-ops for power distribution

The Gujarat government is planning to develop a co-operative model for distribution of electricity in the state. A part of national project, the government would rope in NGOs, users associations, co-operatives or individual entrepreneurs, and panchayat institutions as rural distribution franchisee.

A detailed project report has been prepared by various consultants. With Gujarat having a strong co-operative base, a model like this could be effective and help prevent power pilferage, said a senior government official.

"While the assets will remain with the company, the services will be outsourced to co-operatives with good track record," he said.

According to power ministry data, Gujarat has 588,5961 households, of which 164,1203 are unelectrified, i.e 29.7 per cent. The state ranks 14th in the country as far as rural electrification is concerned.

Meanwhile, the Jyotigram Yojana and Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) have been implemented in rural areas.

The Centre has also launched a scheme for rural electricity infrastructure and household electrification for providing electricity to all households in the next five years. "According to the scheme, 66/11KV substations in rural areas, electrification for all rural households, and un-electrified villages and habitations, and additional distribution transformer centres would be set up," said the official.

Of the total outlay, capital subsidy would account for 90 per cent. "However, for the projects to be eligible for capital subsidy under the scheme, prior commitment of the states shall be required for deployment for franchisees for the management of rural distribution under the projects. Under such arrangement, NGOs, users association, co-operatives or individual entrepreneurs, and panchayat institutions would be associated as rural distribution franchisees," he said.

It may be recalled that Verghese Kurien, father of milk revolution, had suggested such a model in the 1980s. The concept was: have one meter per village and the power would be distributed on a co-operative basis.