Presentation on Case I & Case II Bidding Projects ... - Infraline

A Way Forward……….
Transmission and Distribution – next focus area.
Policy formulation to enable participation of more private players and
transparency in transmission and especially in distribution.
The progress of privatization in distribution is slow, mainly due to lack of political
will as it extremely people centric activity.
People think that privatization is against the interest of the consumers
Privatization of distribution is being attempted in two ways.
• The first is the sale of a government-owned discoms to private (eg –Orissa, Delhi,
Ahmedabad, Surat, Mumbai etc) - large mobilization, require major infusion of money,
large risk to to state and private company.
• Second is through appointment of a private distribution franchisee, particularly for loss
making circles (Maharashtra – Bhiwandi, Nagpur, Aurangabad, Uttar Pradesh – Agra
Kanpur, Bihar – Patna, Gaya, Muzzafarpur, Bhagalpur, several others under the pipeline)
- more controlled, focused approach, can be managed with limited funds,
implementation is smooth but slow.
Privatization of distribution circles, under the franchisee model, has so far been
possible only in select states.