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Franchisee model can recover bill money: Maharashtra government

The decision comes in the wake of consumers of these areas not paying their electricity bills on time, and the model is likely to be implemented form this month itself.

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The Maharashtra government has planned to try out the franchisee model for power consumers in Kalwa, Mumbra and Diva of Thane district. The decision comes in the wake of consumers of these areas not paying their electricity bills on time, and the model is likely to be implemented form this month itself.

Under this model, a company would not only make an agreement with Maharashtra State Electricity Distribution Company Limited (MSEDCL) for power purchase but also distribute electricity, do metering, billing, revenue collection, repair and maintenance, customer service, capital expenditure, and issue new connections.

“We will soon be finalising the bidder for Kalwa, Diva and Mumbra. With this model we expect the losses (50-55%) to come down,” said Vishwas Pathak, Director, MSEB Holding Company, the parent company of the trifurcated distribution, transmission and generation companies.

According to sources, the losses are to the tune of Rs 350 crore. MSEDCL officials said collection of bill amounts from these locations has become difficult. This model has been a success in Bhiwandi where Torrent Power was given the job.

The power company has stated that there are only a few villages in Nandurbar and Gadchiroli districts where houses do not have power connection. They are likely to be given connection within a month. As for power cuts, MSEDCL is ready to handle at least 35,000 MW of electricity, of which 25,000 MW will be readily available. “We do not claim that there is no load shedding in villages. We are trying to ensure that it does not happen. In October, there was a sudden surge of 4,000 MW and we managed to procure electricity,” added Pathak.

PLIGHT OF MSEDCL

  • Losses are to the tune of Rs 350 crore 
     
  • MSEDCL officials said collection from Kalwa, Mumbra & Diva have become difficult
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