A senior MahaVitaran official said it has been proposed to appoint a distribution franchisee in this area, which has distribution losses of more than 40% for low tension consumers besides low collection efficiency.
After giving out areas with high power distribution losses, such as Bhiwandi, Jalgaon, Aurangabad and Nagpur, to franchisees, the Maharashtra State Electricity Distribution Company Limited (MahaVitaran) now plans to appoint a distribution franchisee in the Shil-Mumbra-Kalwa sub-division in Thane district.
The sub-division has around 1.50 lakh consumers.
A senior MahaVitaran official said it has been proposed to appoint a distribution franchisee in this area, which has distribution losses of more than 40% for low tension consumers besides low collection efficiency. The official added that one of the main reasons for these high losses was power theft.
In January 2007, MahaVitaran appointed a distribution franchisee at Bhiwandi in Thane district for 10 years. Officials said this had helped reduce distribution losses from 44% to 18% in four years and increase collection efficiency to almost 100%. The 721sq km textile town has around 1.60 lakh consumers.
Later, three divisions in the Nagpur urban circle (Mahal, Gandhibagh and Civil Lines), two divisions in Aurangabad (Aurangabad I and II) and Jalgaon were also handed over to distribution franchisees in 2011.
Distribution franchisees are supposed to reduce the distribution and commercial losses, improve the metering system and collection efficiencies and upgrade the quality of services given to consumers.
Though critics have pointed out that appointing distribution franchisees amounted to “creeping privatisation,” experts feel this public-private partnership model will help create private expertise in the realm of power distribution.
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