Franchisee PDF

Final Report
Analysis of rural electrification strategy with

special focus on the franchisee system in the
states of Andhra Pradesh, Karnataka and Orissa
Prepared for
Ministry of Power, Government of India
Project Report No. 2009ER03
www.teriin.org The Energy and Resources Institute

Suggested format for citation
!
" # $
% & '
( ) % * +,
For more information

) - .
/01 /01
& 2 3 4 # 5
6. . 7!8 /01 // /01 /9
% & +
:* ; & < =
T E R I Report No. 2009ER03

Acknowledgements
# 7 -
!> ? ?
?
)
? - & ! 7@&
- ! ! ! ? 2
? 6
# ?
2 # !
. !$ 3 > ? !
" # $ A .
!" # $ ! !
! ?
)
B !" # $
C
! A >>BD
7 # ?
& 2 ? ? !
? ? 2
?
PRO JECT TEAM
" !& E !
3 6 ! & ! 3
> ? &? !
> 3 !. !
& 2 ) !E !
3 2 ! !
- ! !
- 2 ! E !
Acronyms
. .
8 2 ? ? 8
3 4 3 4
.3 # . ? 3
4>F 4) > F
48 4 ? 8?
4 4 #
43 4 #3
. 33 . ? 3 3 8
. - . ) -
. .3 . . ? 3
&. & .
&&> & G & 2 >
& & 2
E>& E > &
> > ?
> " > ? " #
> >
> &.$ > . $
>3& > 3 &
>B > B
" . " # .
"FD " F D )
" .8 " # . 8
"3 4 " #3 4
-EE - E E
-% - %
-$ -
- -
% 4 & % 4 # & ?
%6 . % 6 .
% . % .
$ . $ .
$6$4 $ 6 $ 4 2
$6 . $ 6 .
$ & $ 2 & ?
$3 4 $ 4
E. E .
>. 8 > . 8
)
->D - > D )
. .
.3 . @ ? 3
.38 . ? 3 8
&4 & 2 4 #2
>>BD )? > > B # D )

&E & ? E
3 4 3 4
36> 3 6 >
A& & 2
B B
B -4 B - 4
BB%8 B B % 8

Contents
Acronyms .................................................................................................................. i
Contents...................................................................................................................iii
!"# ! $ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $
1.1 Objective and Scope of the study......................................................................... 2
1.2 Approach and methodology................................................................................. 3
% !& & ! # ' ' ! !( ) " $$$$ *
Minimum Needs Program (MNP).......................................................................... 5
Kutir Jyoti Yojana (KJY) ...................................................................................... 5
Pradhan Mantri Gramodaya Yojana (PMGY) ........................................................ 6
Accelerated Rural Electrification Programme (AREP)........................................... 6
Rural Electricity Supply Technology (REST) Mission........................................... 7
Accelerated electrification of one lakh villages and one crore households.............. 7
Rajiv Gandhi Grameen Vidyutikaran Yojana......................................................... 8
+ " " ) $ $$ $ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $
3.1 Introduction................................................................................................... 11
3.2 Power sector profile....................................................................................... 11
3.3 Rural Electrification in the State .................................................................... 12
3.3.1 Experiences in Rural electrification ............................................................ 13
3.3.2 Rural Electrification schemes in the State ................................................... 15
3.3.2.1 Rajiv Gandhi Grameen Vidyutikaran Yojana ........................................... 15
3.3.3 Franchisee programme within the State: ..................................................... 17
3.4 Evaluation of Franchisee System ................................................................... 21
3.4.1 Selection of Discom.................................................................................... 21
3.4.2 Progress of RGGVY in EPDCL.................................................................. 22
3.4.3 Franchisee operations in EPDCL: ............................................................... 23
3.4.4 Selection of RECS...................................................................................... 24
3.4.5 Business Model of ARECS......................................................................... 24
3.4.6 Snapshot of performance of ARECS........................................................... 27
3.4.7 Progress of Rural Electrification in ARECS................................................ 32
3.5 Consumer survey........................................................................................... 32
3.6 Experience of Rural Electrification and the RECS franchisee model.............. 36
3.7 Conclusion and Recommendation.................................................................. 38
,- - $ $ $ $$ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $$ $ $ $ ,
4.1. Introduction.................................................................................................. 41
4.2. Power sector profile...................................................................................... 41
4.3. Rural Electrification in the State ................................................................... 42
4.3.1 Experience in Rural Electrification ............................................................. 42
4.3.2.2 Nirantara Jyoti Scheme ............................................................................ 46
4.3.3. Franchisee programme within the State...................................................... 47
4.4 Evaluation of Franchisee System ................................................................... 51
4.4.2 Progress of RGGVY in BESCOM .............................................................. 51
4.4.3 Franchises operations in BESCOM............................................................. 54
4.4.4 Selection of District .................................................................................... 56

4.4.5 Business Model of franchisee in Kolar........................................................ 57
4.4.6 Snapshot of performance of franchisee ....................................................... 61
4.4.7 Progress of RGGVY in Kolar ..................................................................... 63
4.5 Consumer Survey .......................................................................................... 64
4.6 Experience of Rural Electrification and franchisee system ............................. 67
4.7 Conclusions and Recommendations............................................................... 70
* ! )) .! " ) / $ $$ $ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $ $$ $ $ $ $ $$ $ $ $ $ $$ $ $ $ 0 +
5.1. Introduction.................................................................................................. 73
5.2. Power sector profile...................................................................................... 73
5.3. Rural Electrification in the State ................................................................... 74
5.3.1 Experience in Rural Electrification ............................................................. 75
5.3.2.2 Gopabandhu Gramina Yojana.................................................................. 78
5.3.2.3 Biju Gram Jyoti ....................................................................................... 79
5.3.3 Rural Electrification Plan (REP) ................................................................. 79
5.3.4. Franchisee programme within the State...................................................... 81
5.4 Evaluation of the Franchisee system .............................................................. 82
5.4.2 Progress of Rural Electrification in SOUTHCO .......................................... 85
5.4.3 Franchisee operations in SOUTHCO .......................................................... 87
5.4.4 Selection of franchisee................................................................................ 88
5.4.5 Business Model of franchisee ..................................................................... 88
5.4.6 Snapshot of performance of franchisee ....................................................... 93
5.4.7 Progress of Rural Electrification in Rambha and Khalikote......................... 94
5.5 Consumer survey........................................................................................... 94
5.6 Experience of Rural Electrification and franchisee system in Orissa .............. 98
5.7 Conclusion and recommendations ............................................................... 100
1 !& '' ! ' #) ! " ! " ! ) $$ $ $ $ $ $ $$ $ $ $ $ $$ $ $ 2+
%% HI 3 @J 3 .$B > I%& > > BD 3 $% 3
3 -4 * K
%% HI 3 I3 $E E %.6 3 - 8 - % $% *
%% HI 3.$ $E J$ " %& -3 $E E %.
%% HI B % B J >I & 3 E$ 3 6$ 8& 3 +
%% HI B E %.6 3 - $ & 83 9
%% HI B .$%3I- EE E$ %&6 & 36 1
%% HI B & - % & 3 I 8D > $E $J 3 . $ % %& +K
%% HI B ' 3 " 6$ 8& 3 & 3 . I 3 3 $ % +*
%% HI H' 3 I3 $E - 8 - % $% $E > > BD % $ 3 3 /+
%% HI H' 3 I3 $E - 8 - % $% $E > > BD % " % " //
%% HI H '3 I3 $E - 8 - % $% $E > > BD % %& 6 & 36 /0

C HAPTER 1 Introduction
!
K L ? !
> ? $? ? 2
! 90 9L 2
# M 1 # @
2 !> ? <> =
) )? > >
B # D ) < >>BD= - 9
2 ? ++!
E? D ! 9 #
@ ? ? 2 +/
4 ? 8 <4 8= 2 #
# 2
E 2 !
? 2 !
>>BD 37 ? 2
2 . < .=
3 2 *!
/K # ? ? 2 >>BD
? ! ? / /
/0 48
<3 7 = E 9 ! 19
>>BD ? <3 7 =
# ?
>>BD > ? N O
2 P! - <- =
?
- ?
//Q Q * K - ! *!
O 3
3 !
" #! $ P
? ? ? 2
? >>BD
! ! !" #
$ 2
1 K !6 2 < = O
> ?
3 P@ E
2$ E 2 1 - @E % //Q+KQ K@&< =
- !>
2 Analysis of rural electrification strategy with special focus on the franchisee
system in the State of Andhra Pradesh, Karnataka, Orissa
1.1 Objective and Scope of the study

2) ?
!
" #A$ C
>>BD ? #
2) ? C
? >>BD
? #
2 ? Q
?
G ?
2) ? ! ? 2
M '
J
3 !$ " #!
J 2
< ! 2 != #
J 2 2
J < !
E ! ! != ?
6 O @ P
?
J Q
? 2
6 ? ? Q Q?
? ?
2
6 2 E 2
? ?
2
J ? ? ?
2

3 Introduction
1.2 Approach and methodology

2
2 '
3
! !
2 ? ? >>BD! 2
2 ? !
A ! ?
4
G ? 2
? >>BD
#
#
? ? # 2
? #
'
. ? 2)
I
>>BD
. ? ? 2
2 #
#
)
3 3
3
! !
" #! $ 6 ! <
? 2 ! 2
. ? 3 =
#
3
2 2 E
3 $
3 !
3 ? ?
2 2
7 >>BD
3 E ! <
= 2
2 >>BD

2 ? ? >>BD
G ? !
'
<E>&=' E>&
E M ?
'$
M
? 3 M
?
? ! 2
3 3 M
E ? M
# ?
2 7 B
? ?
?
3 ! 2 ? M 2 2 2
C HAPTER 2 Overview of Rural Electrification Programs in India
>>BD! ? 2
> ! J
? 2
? ? 2
Minimum Needs Program (MNP)

*K/
2 > 2 ? ?
0 L2 ** ?
L . > ?
? !
? 2
6 ? ? !
2 > ?
) 2 M 2
. > ?
2
3 4
$ )
2 !
# !
2 ! ! M
Kutir Jyoti Yojana (KJY)

"FD < # 4 6 3
. = 2 .
> ? *11@1* 48
I !> ?
? 48
.
3 > ? 2
4 / 91 # !
! ? 2 2 /9
2 ?
! # )
2 # 2 #I
4 ! 2
M
E ! # 2 ? !
2 ?
-% "FD ?
6 ? ! ? ! 2 ? !
-%
2 ? ?
Q 2
?
6 > !
- > D ) < ->D= @
?
< = +@ /
2 ?
Pradhan Mantri Gramodaya Yojana (PMGY)

@ 2) ?
? 2 ? ? ?
? 2 ? ? @
<* L= < L=
! & Q 2 2 2
@ ? 2 #
& Q 2 2 ? 2
3 ! 2 #
G
2
2 > 2
2 G
! ?
Accelerated Rural Electrification Programme (AREP)

!
? ! +@ / 2
3 > ? 3 4
I /L
? 2 3 4! 3 > ?
#.! E .
< E.=! & ? E < &E=!
% 4 # & ? <% 4 &=
2 @
? ! Q 2 Q 2 ?
? @ ?

7 Overview of Rural Electrification Programme in India
Rural Electricity Supply Technology (REST) Mission

> 3 - 3 2
3
? 2 !2
! !
#! !
?
- ! 7
G 2
/ L ) .
I ) 2
7 2 &>
2 2 ) ?
&> 2
# 3 48
? 2
) ? 2 ?
2 2 3 <
3 ? = ? !
L ? !
!2 ?
? )
? 2 2
Accelerated electrification of one lakh villages and one crore households

/@ 9 2
"FD
> I &
. <&. = 2
00 <9= +2 3
> ? 7 #
? 7
7
) . G
/ L )
< ) 2
= ? 2
2 ? 2 . E
48 L ?
"FD
2
2 > 6 ? !

3 4
2 ? #
3 I
?
6 !
>
>>BD ! 9! >>BD
Table 1: The RE programme and the year of its launch
S No Name of the programme Year of launch
1 Minimum Need Programme 1974-75

2 Kutir Jyoti Yojana 1988-89
3 Pradhan Mantri Gramodaya Yojana 2001-02
4 REST Mission 2002-03
5 Accelerated Rural Electrification Programme 2003-04
Accelerated Electrification of One Lakh Villages and One
6 2004-05
Crore Households
7 RGGVY 2005-06
Rajiv Gandhi Grameen Vidyutikaran Yojana

. ! >>BD ?
Box 1: 2 E >
As per Electricity Act- ? E ! .
2003 a franchisee is an 2 2 -
entity authorized by a
distribution licensee to E
distribute electricity on G . ? 2
his behalf in a particular ? 2 > <* L =
area within his area of 3 > ?
supply. % 2
& 2 4 #2 < &4=!
B <B = & G
& 2 > <&&>= )
# >>BD # 2
E 2 !
? 2 !
>BD 7
? 2 .
<= ? @ 2 C< = ?
@ 2 C< = 2 C
< ?= $ A C <?= . @
? 3 < .3= <? = . ? 3
4 3 4 3 .! 0! 2 '
R +/< 0= ++1K@++*K
5 'QQ Q Q S$? ?
9 Overview of Rural Electrification Programme in India
$ A-
Box 2: ? 7 B
Definition of village
electrification $2) ? 2 ?
The definition of electrified ? ! ?
villages has changed over the
2 2
years.
Prior to October 1997 - A 7 2
village was classified as 4 2 !
electrified If electricity was 3 > ?
being used within the revenue 0@1 >>BD #6
boundary of the village for any
purpose whatsoever
After October 1997 - A village ) >>BD 2) M
will be deemed to be
electrified if the electricity is
used in the inhabited locality,
' )
within the revenue boundary
of the village for any purpose < = 2 M
whatsoever. 9 L
After February 2004 - A ? 2 2
village would be declared as # 2
electrified if
1. Basic infrastructure such as
Distribution Transformer
and Distribution lines are . 2
provided in the inhabited M ! ? M #
locality as well as the Dalit @ ? N )
Basti hamlet where it exists.
2. Electricity is provided to < ? L ? 2 = .
public places like Schools, ? 3
Panchayat Office, Health 4 Q3 I ? 2
Centres, Dispensaries, .T -
Community centres etc.
3. The number of households
electrified should be at least ' -
10% of the total number of ? %
households in the village. T - <%T-= %T- ?
L ? 3
#2 ?
6 $ 0 E 2 ! 1! ? 2 ? ?
Figure 1: The RGGVY board that is to be placed in all the RGVY villages
>>BD ? ? !
2 ? >>BD! 2 2
? 2 >>BD ?
2 ? $
?

C HAPTER 3 Andhra Pradesh
3.1 Introduction
!
? $
7K9 K ! K L
+ % /1L
48 2 > 3
& <>3& = 3
< /L= 2 < L=
Andhra
Pradesh
Figure 2 Location of Andhra Pradesh in India
3.2 Power sector profile

O **1P
3 2 M !
. <
.= 3
4 < 3 4= 2
> %.$ @ #
%3.$ @ # 2
2 2
3 /! %3.$ 2
. < %3.$= 2
'
% & 2 . 8 <% &.8=

3 & 2 . 8 <3 &.8=
+ & 2 . 8 < &.8=
/ . & 2 . 8 <. &.8=
! 2 ?
2 2 K 2
!/ . ? 3 < .3=
? & 2 < A&=

1L +@ / 1L
K@ 1 F *!
3 2 !9 -J7! L
L ? ED
*! 2 0 KL!
/ L ? D
2 2
1 # 8
3.3 Rural Electrification in the State

? ? >
** !
0910 2 ? 0909 ?
2 3 ? L
** 9 ?
2 $
0909 ? ! /* K <90L= ?
? >
? 2 .10 + - 9! .
2 7 K K K
? . > ?
> ?
< = 11 ?
48 2
7 O 3 > P 2 2 .
F ! *
8 2 ? 2 1@ *
)
9 'QQ Q Q %&6 & 36
10 'QQ Q Q %&6 & 36
11 > ? !3 > ? M
3 - !
> ? 0
0 0 >>BD

13 Andhra Pradesh
Box 3
In March 2005 when RGGVY was
introduced, there were 6820976 APL ? L 1 4
families and 6401416 BPL families in - 9! 00 9/L
rural areas of the state. 8 48
Source: - Data provided by REC, 12
K+ + L 9* +/L ?
Hyderabad
3.3.1 Experiences in Rural electrification

4 ?
. > ? ! 2 ?
L? 3 2 ** &
4 Q
! 3 L?
3 ? ?
- /
3 4 5 4 5 5
5 'J .
> ? -% ! 3
? 2
3 > ? 2
2 #
M 2 2 J
2 3 > ?
. > ? !
3 2 ? 2
** 13
' 63 5 '
# 2
? 2 ! 2 3
?
2 "FD 3 3
> ? 2
"FD! ? ? 2
+ -
/! +// 1 48
"FD14
2 "FD 3 15
4 ? ? 2 2
13 % ' ** ?
! 7 ? 2
14 'QQ '
15 2 "FD + - 9
" #< "FD = 3 '

! "FD 48 !
? #
?
8 .
! 2
"FD
48 00 9/L
+ +* 3 2 - 916
+ 5 'J
2 ! 2
?
J 2 ? 2
?
.
2 ..
&.8 .. 2 2 ?
++ #? 2
/ 4 75 8 5998 5
:J 2 2
2 !
# # ? 2 M
#
2 17
2 3 &.818
- 9! >>BD
? 2 >>BD
2 2
7 &4
B
2 &4 B
+ 48 48
16 - 9! 01 *K0 8 0/ / 048
17 0!. $ 2 ED
* . &.8! &.8! % &.8! 3 &.8
18 ! . $ 2 ED
. &.8! &.8! % &.8! 3 &.8

15 Andhra Pradesh
+ 0! O
P 2 . > ? !
19
< = 0 !
?
2 2 6 3
3.3.2 Rural Electrification schemes in the State

3 .
!
2 > ? >>BD
>>BD
2
3.3.2.1 Rajiv Gandhi Grameen Vidyutikaran Yojana

E >>BD! 3 > ?
& 3.$- <. &.8! &.8!
% &.8 3 &.8= .
& 7
? / .3
7
>>BD ? .3 ?
3 > ?
. ) < =
Box: 4
As per the Rural Electrification Policy of the Central Government REP of the State Government should map
and detail the electrification delivery mechanisms (grid or stand alone) considering inter alia the available
technologies, environmental norms, fuel availability, number of un-electrified households, distance from the
existing grid etc. The Plan should also be intimated to the Appropriate Commission. Under proviso to Section
43 of the Electricity Act 2003, the Appropriate Commission while giving additional time, if any, for discharge of
the universal service obligations would ensure that the national goal of providing access to households by year
2009 is complied with.
I >>BD! ? 2
2 ?
? ? 2
2 ? ? ?
2 48
+ 2
19 >>BD '$
E 2 1 - @E % //Q+KQ K@&< = - !
>

2 K ! &
! 3 &.8!
0 ! ? 2 2 + !
& $ 2 ! 9
2 3 &.8
3 &.8
2 ! 7
) ?
& 2 *
. &.8! &.8
% &.8! 2 / .320
2 )
2 ?
& ! ? !
9 - * 4 )
$ 2 *! .3 ? #
)
. &.8! &.8 +
% &.8 ?
) 2 2 !
2 % &.8 2 #
& % &.8 ?
91 ? . &.8
&.8 ? * + /?
? 3 ! 2 48 !
& % &.8
+ +/K 2 . &.8 &.8 09 09
K*0/K ?
20 % ' .3 ? .3

17 Andhra Pradesh
Table 2: Status of implementation of RGGVY as in January, 2010

Plan Period (during which
the DPR were
10th Plan 11th Plan
sanctioned)
PIA CPDCL EPDCL NPDCL SPDCL CPDCL EPDCL NPDCL ARECS CESS CRES RECSL
Number of districts
4 4 3 6 2 1 2 1 1 1 1
covered
Number of Target 4429 7018 4055 6121 1954 1323 1938 143 173 104 223
villages for
intensive Achieved 81.44% 73.37% 69.22% 77.45% 46.62% 22.98% 81.58% 0.00% 0.00% 0.00% 0.00%
electrification
Number of Target 485121 636640 295554 697002 49250 245334 90616 39368 92200 29200 14835
BPL
connections Achieved 75.99% 72.16% 88.92% 120.51% 132.52% 32.46% 144.95% 0.00% 0.00% 0.00% 0.00%
sanctioned
Number of Target 765632 893112 453286 1054131 91168 296310 245574 87616 15170 32281 19848
rural
households Achieved 65.34% 55.77% 64.67% 92.32% 126.27% 38.58% 61.87% 0.00% 0.00% 0.00% 0.00%
sanctioned
Sanctioned cost of
14874.9 19645.31 10733.37 19562.39 3117.29 8021.12 5081.45 1094 481.67 804.13 594.2
projects (Rs Lakhs)
Amount released (Rs.
10154.62 132139 6540.85 14637.61 0 2007.18 2334.7 341.32 245.17 188.06 139.77
Lakhs)
Source: http://rggvy.gov.in/rggvy/rggvyportal/index.html (Last accessed on 3rd February 2010)
I >>BD 3
? 2 ?
) E ? ?
? 2
3.3.3 Franchisee programme within the State:

E
3 7 *0*@K
? 2 #
2 2 3 2 ?
4 .3
$ >>BD .!
! .3
! "
*0* @K 2 3 . ?
3 3 # 3
O . ? 3 3 8 P
.3 3 ! 2
.! ) 2

. ?
? 2 M
2 2) ? . ? 21
'
. ? M #7 2
#
# ? 2 ?
+
/
2
2 # C
? 2 #! $A-
2 2 A
&
?
!
#
! ?
2 7 2 ? !
2 3 4 ?
? 22 $2 ?
"
* ? 3
! / &
2 . 9
? 2 2 3 > ?
. ? 2
) . 7
'
# . ? 3
< .3= B #
21 > ? 3 @ 2 3
6 2
22 > ? 3 @ 2 3
6 2

19 Andhra Pradesh
. . ? 3
<. .3= BG
+ . ? 3 3 8 <. 33= !
"
/ . ? 3 8 < .38=! .
# $
.3 ! $A- E
$A- M
? 2 &.8
? ? 2 2
&.8 #
'
' #
2 M 2
4 ! ?
$A- ?
' ?
M 2 7
! #
+ #$ '
?
2 # # !
2 ?
2 ? A.
! ? $A- 2
# ? A.
2 ? 2 ? ! &.8
M
%&
I
$A- 2 # 7
2 23 3
> ? ! ? J 3 6 >
<J36>! # & #> - -
23
% '$ 2 ! # +0/ ! ?
/+*/ 0 < ?
# 7 ! ! 7 =

3 # = # 24
2 ? $A- ?
#2 <*
# ? = # ? 2
M $A-
? ! ? 2 < 9
9
=
!
#? > 8 @- #
E 1 $ 2 0
2 &.8 " -
- 3 # - # 3 2 M ! #
M ? !*
$A- E
&.8
' "B 8
2 ?
( - & 2 <& .=
) 2
2 G
# Q ?
? 2
*+
2 + $A-
/K K L $ 2 ! 0
00 L - ! 1
Table 3: Performance of franchisee on certain parameters in franchised area of

Mondemkhal feeder
S No Parameter As on 18.10.2006 As in May 2008
1 Number of connections 2482 3313
2 DTR failure rate 2 NIL
Metered sales as
3 52.20% 76.68%
percentage of input energy
24 $ - - 3 # !
3 ! ? 2
1@ *! - N O%
- 3 P ED K@ 1
2 G

21 Andhra Pradesh
S No Parameter As on 18.10.2006 As in May 2008

4 Line losses 47.70% 26.62%
Reliability and quality of
5 65% 97%
supply
Source: Data provided by EPDCL.
Note: The number of consumers in the area has further increased to 6003 by March 2009
due to release of services under RGGVY. Also revenue collection of the area increased from
Rs 80019 in October 2006, to Rs 225293 in March 2009.
*+
& &.8 2
2 2 2 2 !
2 ! $A- " 2 ?
? )
2 ? 2 ?
$A-
3.4 Evaluation of Franchisee System

$ 3 !
.3 $A- ! .3 2
*0*@K 25 !
7 2 .3 /!
" # $ .3
2
! .3! @
! ? ? & 2
.3 &
3.4.1 Selection of Discom

$ /& ! .3
) &.8< .3=! 3 &.8< .3=
% &.8< .3=26 & ! &.8
? 7
>>BD 27 2 /
25 2 3
26 % ' . &.8 .3
2 .3
27 % ' .3 2
.3 ? >>BD
2
& .3

Table 4: Discom wise amounts sanctioned during 11th plan period in Andhra
Pradesh.
Discom Sanctioned amount (Rs Crore)
EPDCL 80
NPDCL 51
SPDCL Nil
Source Data provided by REC of Andhra Pradesh
3.4.2 Progress of RGGVY in EPDCL

? 9 ! &.8 2
! >>BD
>>BD ?
? ! &4 B !
! 2 &4 B Q?
2
%
& /&
>>BD / F !
0K 1L 2 ! ?
7 K+ +K L ?
2 K 0L 48
2 9
Table 5: District wise details of the projects sanctioned during 10th plan period
under RGGVY in EPDCL
Amount Number of villages
Sanctioned Number of BPL
released sanctioned for
Districts amount connections
(Rs crores) till intensive
(Rs. crores) sanctioned
January, 2009 electrification
West Godavari 32.73 24.83 1141 87831
Visakhapatnam 66.67 41.35 2620 204113
Vizianagaram 41.86 29.34 1438 149755
Srikakulum 55.17 36.65 1819 194941
Source:http://rggvy.gov.in/rggvy/rggvyportal/index.html (Last accessed on 3rd February, 2010)
%
& +& N !
>>BD > ?
.3 <B # = . .3 <B G =
) F ! ? #
>>BD 2 .3
. .3 > ? ! ?
*1L ? 2
+ /0L 48 ? 2
2 0

23 Andhra Pradesh
Table 6: District wise details of the projects sanctioned during 11th plan period under RGGVY
in geographical jurisdiction of EPDCL
Districts Sanctioned Amount Number of electrified Number of BPL
project Cost released villages sanctioned for connections
(Rs. Crores) (Rs Crores) intensive electrification sanctioned
till January,
2010
East GodavariI 80.21 20.07 1323 245334
Visakhapatnam 10.94 3.44 143 39368
Vizianagaram 8.04 1.89 104 29200
Source http://rggvy.gov.in/rggvy/rggvyportal/index.html (Last accessed on 3rd February, 2010)
>>BD 3
> ? ! &.8 2 $A-
. .3
!
) &8!
2 2
3.4.3 Franchisee operations in EPDCL:

)
&.8! .3! 2 B #
.3! *K/
. ? 3 ! # ?
? # *K0 E ! &.8
$A- ++
Table 7: Details of the franchisee operations in SOUTHCO

Franchisee Cooperative societies O&M franchises
Number of
2 10
franchisee working
Area coverage Ankapalli and Cheepurupalli 11 kv feeders at 10 places
Selection procedure Nominated by the State Through proposal discussion.

Government Preference given to WSHG
Franchisee model Rural cooperative society with

O&M franchisee
O&M
Capacity building Sometimes training imparted

plan RECS and also sometimes by Proper training imparted by utility
utility.
Commercial Franchisee deposits amount on

Expenses on man power
arrangements input bill issued by SOUTHCO
deployed, vehicles, office space
based on pre-agreed tariff on
etc are reimbursed from
monthly bass and collects arrears,
SOUTHCO
meter rent, etc from consumers

Franchisee Cooperative societies O&M franchises
Incentive 1. No work related incentive.

RECS are acting as licensee.
mechanisms 2. Fixed monthly remuneration
Hence their earning depends on
for franchisee & its
their performance w.r.t. AT&C loss.
employees.
Monitoring Senior officials of the utility of

mechanisms APERC monitors the progress. concerned circle reviews the
performance on monthly basis.
.3 2
.3
3.4.4 Selection of RECS

.3 &.8
.3 < # B # = . .3 <
. BG = $ .3!
.3 2 2
.3 >>BD
2 1
Table 8: RGGVY funds sanctioned to ARECS and CRECS during 11th plan
RECS Sanctioned Cost ( in Rs. Crores)
Visakhapatnam (ARECS) 10.94
Vizianagaram (CRECS) 8.04

Source Data collected from REC, Delhi
3.4.5 Business Model of ARECS

.3 B # !
*K/ . ? 3
# ? ?
% ? 2 *K028 .3 2 7
M 2 & 2 3
8 ! 8
! **129
28 % ' ? $ A-
*K9 ? > $ - % *9K &
* KK 9 ! 7 2 - ! .!
7 ! 3
? 2
7 + +
29 $ . 2 .3 ED 0

25 Andhra Pradesh
" 93 9 4 4 )
.3 B # !
9+ ? ! +1 91 #
<J 3 = ?
" # !- #! ? ! 3 22 ? #
- < 7 # =
.3 2 +
Vishakhapatn
Andhra
Pradesh
Figure 3. Area of operation of ARECS
Legend Five mandals under the jurisdiction of ARECS are: 1) Anakapalle; 2) Parawada; 3) Munagapaka; 4)
Kasimkota; 5) Sabbavaram
K
#
) !) ! 2 2 # #
.3
5 4 8 8
% ? 2 *K0! /K ? !
9+ ? +1 ! 4 *1 !
! ?
J ? !
? ?
3 > ?
*19! O
! 5 ! ;5 P <$6$4=
3 > ? 48
? 2
0+ ! !
2 I

!
? 2 2
*19! 2 2
! < 3 (
<8 3 3 , $ " -
$ $ "
" ." I
!2 ! 2 2
!
2 30
*1 N ! . -5 <8 3 = .3
! . > ? ? 2
? ?
? 48
.3 4 ?
> ? .3
! 2
! 2 /9! ? ?
"FD > F 3
/
F D ) .3
Figure 4: One of the houses which was electrified under Jnatha Yojana
30 2 2

27 Andhra Pradesh
3.4.6 Snapshot of performance of ARECS

3
/+ K1 -
* ? 2
? K/ !
? > ?
.
;5>)5998 4
4.;) / 5 44
&.8 43 7 2
. 43 .3 #
2 ! ! ? 2 3 > ?
31
! 2 48
! 3 > ? ? 2
.3 2 &.8 43
2 M
2 ? 2 2 3 > ? 2
.3 ! 2
2 &.8
# 2
43 &.8
- 32
9
3 9! . ) 2
43 43
43 3. 19 Q ED 9 ED
0 ? 2 !
43 00 Q
? J 2 ?
.3 2 2 2 2
M 2
2 ED 9 ED *2 + L 2 *!
43 .3 2 2 ED
0! &.8
K/ Q 4 !3 > ? ? 2
48
31 9@ 0
32 /! 3 .
. 3 !% & ! < ) % / 1=

.3 7 2
. &.8
&.8 2 ? 7 B
5
2 .3 2
? ED *K0 +K K
. 2 / K
2 ED 1 2
9 /0 2 ED *
. ? 3 ! 2
2 2 ED
* 2 7 9 #!
1!0+/ ! 19!*
! ! 0*
! KK & .))
895 3
2 3 &.8
19 -I ED 9 -I ED *
2 *
Table 9: Energy purchase approved by the commission (in MU) for ARECS for various
years
Year 2004-05 2005-06 2006-07 2007-08 2008-09
Energy purchase
approved by 85 90 106 115 112
commission (in MU)
Source Tariff order of APERC for ARECS for the FY 2005-06, 2006-07, 2007-08 and 2008-09
2
?
8
? 2 ?
ED 0 2 indicated 2
Table 10: Year wise total approved sales in ARECS area (in MU).
2005-06 2006-07 2007-08 2008-09
Sales 75.97 89.86 97.75 95.76

Source Tariff order of APERC for ARECS for various years
33 & ? 2 .3

29 Andhra Pradesh
2 ! ?
2 7 0L & .3
2
?
& ED *! .3
2 *9 K0 -I 2
Table 11: Category wise sales and revenue of ARECS for FY 09
S No Category Sales (MU) Revenue (Rs cr)
1 LT I Domestic 37.81 7.084
2 LT II Non Domestic 4.11 2.162
3 LT III Industrial 11.28 4.88
4 LT IV Cottage Industries 0.01 0.0019
5 LT V Irrigation and Agriculture 36.5 0.0696
6 LT VI Local Bodies and street lights 2.53 0.427
7 LT VI B PWS schemes 2.88 0.072
8 LT VII General Purpose 0.62 0.246
9 LT VIII Temporary Supply 0.03 0.0164
Total 95.76 14.9589

Source Tariff order of APERC for AERCS for FY 09
ED *!
+1 L ! ?
/KL 2
> ?
2
K L ! ?
+ 0 L ? .3
!? 9
$A- 7 ? ++
ED 0 / ED *
2 7 < 7
= 90 . >
1K L K

Table 12: The O& M expense of society for various years (in Rs Crore)
Wages Total Expenditure

A&G R&M O& M
and (excluding power
Expenses Expenses Total
Salaries purchase)
2005-06 2.62 0.38 0.32 3.32 5.61
2006-07 2.90 0.38 0.32 3.60 6.09
2007-08 3.50 0.15 0.35 4.00 6.73
2008-09 3.70 0.15 0.35 4.20 7.20

Source Tariff order of APERC for Ankapalli for various years
9 .3
2
Figure 5: Transformer with installed meter in ARECS
; 4
4 8
3 ? ?
11 L + 3 2 /34
* L2 ED 035 2
*1L < 7
> ? ? !
# ?
34 Annexure A; Compliance to Directive Issued in APER Orders On ARR/ ERC filled by the
RESCO for FY 2001-02,2002-03. & 2003-04, Tariff order of APERC for ARECS for the FY
2005-06
35 Annexure A; Compliance to Directive Issued in APER Orders On ARR/ ERC filled by the
RESCO for FY 2001-02,2002-03. & 2003-04Tariff order of APERC for ARECS for the FY
2006-07

31 Andhra Pradesh
=2 ED 1@ *36 2
.3 L
'
A& ! 2 .
! ? 2
+
Table 13: Approved T&D losses of the society for over various years.
FY 2005-06 2006-07 2007-08 2008-09
Loss level (in %) 15.59% 15.00% 15.00% 15.00%

Source Tariff order of APERC for ARECS for various years
ED *! A. 0 +KL
2 / )
.3 8
Table 14: T&D loss, collection and billing efficiency of the society for the FY 2009
Energy recorded in DT meters (in kWh) 122278888
Energy billed (in kWh) 104350904
T&D loss level 14.66%
Billing efficiency 100%
Collection efficiency 98%
Source Data provided by ARECS

Note: The collection efficiency shown above is excluding the due from the Government of
Andhra Pradesh for various services like Government services, rural drinking water schemes
and streetlights services of minor gram panchayats
)59989
? / M !
1 K
? > ?
5 ) .) /
3 2 1 .3.!
# ? 2 2 2
? ?
7
36 & ? 2 .3

3.4.7 Progress of Rural Electrification in ARECS

I >>BD! .3 2 ?
9+ ? ! +1 91 J 3
? 4 &4
B ! .3 +1!101
48 7 1 K9
! >>BD 2 9
Table 15 Plan of action under RGGVY.
Project cost as sent to REC (Rs Crores) 8.0752
No of BPL connection to be issued 38,868
Technical infrastructure to be developed
a) 15 kvA (single phase) DT 150
b) 11kv line 64 km
c) LT line 104 km
Source Data provided by ARECS
4 */ 2
>>BD 37 L
2 .3 & ! .&
2 2
& 2 ? H
? H
? 48 ? !
2 48 2
.3 # ) 2
) ! ? #!
) ! .3!
? # !
2 #
48 ?
< > ?
? = >>BD #
3 M #
) .3 ?
3.5 Consumer survey

?
N 2 .3 2
M ? ?
37 & ? 2 .! &

33 Andhra Pradesh
2 8 48
$ ? 1 ?
? ? ?
" # !I ? !
? - # !4 # ?
!" ? !
? ? 3 22 ? B ?
!3 ? 8 #
? ! L
? ? 2
? ++ + 8
48
. ? 2
M
? M ! 2 !M
? # .3 " ?
2 M 2@
8 5 9
7 /*L 8 0KL 48
?
9 2 + L
48
2 9 2 1L 8
U n it c o n s u m p t io n p e r m o n t h
Unit consumption per month
5 0 .0 0 % 80.00% 67.66%
4 3 .7 5 %
3 7 .5 0 % 60.00%
4 0 .0 0 %
percentage
40.00% 31.84%
3 0 .0 0 %
p e r c e n ta g e
1 8 .7 5 %
2 0 .0 0 % 20.00%
1 0 .0 0 % 0.00%
less than 50 50-100
0 .0 0 %
l e ss t h a n 5 0 5 0 - 10 0 M o r e t h a n 10 0 unit
BPL Consumers
A PL C o n s u m e rs
Figure 6: Monthly consumption of APL and BPL domestic consumers surveyed in

RECS area
& 4 5998

$ M
? .3 &.8 !
*KL 8 */L 48 7
? 2 .3 +L 8
0L 48 ?
2 .3 &.8 % ?
7 ? .3
Table 16: Voltage of supply in RECS area in comparison with EPDCL area
Voltage of supply in comparison with EPDCL areas
Same Better Very good
APL 1 7 24
BPL 12 26 163
' 2 ? 2 2 2 ?
< 8U+ 4 8U =
75 8 4 4 5 5
J M 2 M 2 !
+L 8 L 48 7
! 1 L 8 9*L 4 8
7 0L 8
/ L 48 7
M 2 K
Table 17: Frequency of transformer burn out
Transformer burn out

High Normal Cant say
APL 1 26 5
BPL 2 118 81
Note In above table number indicates the number of consumers surveyed (APL = 32 and
BPL = 201)
8 4 8
- 2 <1 L 8
K*L 4 8= 7
7 ?
M K

35 Andhra Pradesh
Availability of electricity Availability of Electricity
81.25% 18.75% 79.10% 20.90%

No
0% 50% 100% 0% 50% 100%

percentage Percentage
Yes No Yes No
8 48
Figure 7: Availability of Electricity when required
! 9 8 )
- 1 L 2 8 4 8<1 L 8
11L 4 8= 7 ? ?
? 2 .3 ? .3
# ? ? +
# 2 <2 > ?
= 48
1
Over all service provided Overall service provided

Consumers
Consumers
88% 12%
BPL
81% 19%
APL
0% 20% 40% 60% 80% 100%

0% 20% 40% 60% 80% 100%
Percentage Percentage
Yes No Yes No
8 48
Figure 8: Overall service provided by ARECS
9 @)5 4 )
& ? ! ++ ? K
3
0 7 #
.3 K
'
2
+ ?

844 8
& ? ?
&3- 2
.E8N
3.6 Experience of Rural Electrification and the RECS franchisee model

3
>>BD ! ?
2 !
#
7
2 2
75 8 44 8 9
J >>BD # 48
8 7 *K
K0 - 9
? ? M 48
) 2 2
2 19L 4 8N !
! ? 2 $ 2 *
# 2 2 138
& . 7
) 2
2 G !
? ?
& 48
48
" 9 ; '
& ! >>BD!
2 2 48
? 2
3 ED 48 8
? 2
2 2 @ 48
2 & & &.8
2 48 2
& 1 8# 7 !
9 #
' > 4 6 3
38 & )
) 2 2 -

37 Andhra Pradesh
>>BD
7
.G 7
# >>BD! ? 2
? 2 . .
?
?
" 8 5 9 938 4
2 7 #
++ & ! .
G 2
? 2 G
! 7 )
3 7
2 #
3 4 5 9 9
2
! 2 ?
4 2
! 48
! 2 ?
?
? 2
? 2 # < # =
I >>BD .3
7 +9! 48
9 5
?
2 !
!
? L
.3 ) !
M ! 2 )
2 7 ) #
) M
? 2
?
J ? !
2
? 7
2

39 & ? )
? 7 #
. ?
2 2
3 4
4 8
6 2
2
2 E ? 9
? ) Q?
# Q 2
2 # ? ? ?
4 ! 2
? 2 2
! ! #
2 +
2 ?
2 ? 2
2
' 3
A. ? ED * 0 +KL
?
8 2 ?
? A. 4
# ? ? 2
2 2
?
#? ? 2
E !
# 2
7 2
7 ? 2
>>BD
3.7 Conclusion and Recommendation

4 7 !
39 % ' 2

39 Andhra Pradesh
? 2
? ?
2
#
?
A. ? ?
8 2
2 ! 2
? ! ?
# ! 7 2 3
. A3 > ?
2 2
7 2 J36>
? 2 ?
& '
2 2 ? 36> #
2
? ? O
%
- 3 P K@ 1 1@
*
7 #
2 G
?
36>
2 2
#
2 2 G 36>
#
" (
2 . ? ?
! #6 ! 2
? ? 2
. ? 3 40 6 ? ! ! 2
# #
. ? ! ! 2 6
! 2 #
2
!2
40 % ' ! 2 M
7 . ? 3

)
>>BD ? ?
? ?
>>BD
2
?
? 2
>>BD 3 > ? 9@ 0
>>BD # 9@0
2
? 2
?
2
C 2
&&> ) ? ! 2
>>BD
) ))
!
2 ? &&>
) # % 2#
!- ! 2
#
2 2
@ 2 @2 41.
? 2
7 &
&&> ) ? &&>
) >>BD
.3 2 !
? ? !
2
.3
2
41 'QQ ? ? Q

C HAPTER 4 Karnataka
4.1. Introduction
J 7 * M
# !" #
2 ? +
!
9 00L /L
2 48
2 2 >&
7 ? 2
" # 2 *
Karnataka
Figure 9: Geographical Location of Karnataka in India
4.2. Power sector profile

" #N ** N
? ? ***
" #3 4 <"3 4= 2
!
B B % 8 <BB%8='
#
" # . 8
<" .8=' #
3 2 M !" # .
<" .=
!" .8
2 #
! !" .8 2
2 ! :
1. Bangalore Electricity Supply Company (BESCOM)
2. Mangalore Electricity Supply Company (MESCOM)
3. Hubli Electricity Supply Company (HESCOM)
4. Gulbarga Electricity Supply Company (GESCOM)
/! - 3.$- 2 &
- 3.$- A . 3 .
<. 3.$-= 4 #
! " .8 2 #
&
2 ? !& 2
)
F *!
*009 -J +L
) ! # 2 " # .
8 <" .8=! +L ? (
9 ! M 3
. > 9 +/L! ? ? 2
. > / 1/L D
2 2 K K )
4.3. Rural Electrification in the State

J 0!KK 2 ? !
" # 7 L
*11! 2 >>BD $ ?
? ?
? ! ?
? **K /
2 7 L
! 2
? 0!KK *1 *L K! 00
? $ */
? ! 1+ ? 2
? ?
2
4.3.1 Experience in Rural Electrification

$ ? !
2 ?
?
? #&
2
2 7 L ?
/ ?
* / 3
2 ? 2 *11
? 2 2
42Power Scenario at Glance published by CEA in July 2009

43 Estimates are based on energy available in 2008-09 and population projections by Indiastat.com
43 Karnataka
. > ? 3 > ?
3 > ? "3 4
7 ? 2
> ? 2 4
. > ?
# -% ? 2 2
3 > ? J
G ? 2 2 .
> ? ! 7 3 > ?
# ? 2 2 2
! ! "3 4 2 ?
?
+ , /$
# ? ! 4
2 3 > ? 2 G "FD
I "FD!
!/K0!9K/ " #
- /!
3 "FD
M
2 ?
48
&
- -
7
*0+! ?
2 2 6#
# !
2 > B <>B =
?
2 M ! . ? 3
>B 2 ?
? ? 2 ?
2 >B
2
2 7
? 2
?
! 2 !
? 2

2 ? ! ? ?
. > ?

3 > ? "3 4
? 2 ? ! #
M 2 2
# 2 ! & .! A
2 # ?
. > ? ((&= I 2
>>BD ? 2
M 2
6 2 8 A 2 Q
&4 B 2 M
! 3 > ?
<8 )3
/
? 2

>>BD!
. 9&
6 # . ? 3 . 3.$-!
4 3.$-! > 3.$-! 6 3.$-! - 3.$- A 6 # !
&
. ? 3 2
7 #!
>>BD!
3 ? >>BD 2
2 1 ?
? ? 2 2 ?
? ! 2
2 48
? 2 1 ?
>>BD
2 1 / !
) ! ?
1 L ? #
E ?
1 L 48
& !K&
>>BD 0
" #44 - 3.$- #
2 Q #
> 3.$- ?
? 1L ?
44 Note: 2 DPRs were sanctioned for Belgaum district

45 Karnataka
48 2 2
! # 2
? ? 48
# 1L ? ! 2
#
Table 18: Status of implementation of RGVVY as in January 2010
Plan period (during which

DPR s were sanctioned) 10th 11th
PIA BESCOM CESCOM GESCOM HESCOM CESCOM GESCOM HESCOM MESCOM Hukeri
Number of districts
covered 5 4 4 5 1 1 2 2 1
Number of Target 10,543 5,649 2,588 2,668 422 1,344 2,350 2,504 123
villages for
intensive Achieved
electrification (%) 92.55% 82.88% 86.90% 96.51% 85.31% 18.75% 56.89% 0.00% 0%
Target 188,904 182,339 128,602 171,652 22,781 58,973 82,087 42,527 14074
Number of
BPL Achieved
connections (%) 98.72% 99.38% 93.93% 88.60% 156.71% 0.00% 51.08% 0.00% 0%
Number of
connections
to rural
households Target 368,160 434,780 249,726 363,667 69,762 130,939 197,806 100,564 17393
(including
BPL Achieved
households) (%) 59.30% 45.96% 56.44% 45.41% 57.32% 0.00% 21.94% 0.00% 0%
Sanctioned cost of projects
(Rs. Crores) 123.27 111.75 78.38 95.59 11.32 43.25 70.67 53.85 7.21
Amount released (Rs.
Crores) 163.1 114.49 97.35 108.38 8.49 14.18 55.36 26.15 0
Source http://rggvy.gov.in/rggvy/rggvyportal/plgsheet3.jsp (Last accessed on 3rd February, 2010)
48 >>BD
Figure 10: Connections in a BPL household released under RGGVY in

Karnataka
Box: 5
Why feeder segregation is important:
If agricultural and non agricultural load of rural areas are catered through the same feeders then quality of supply
to non agricultural consumers will be affected. This is because most of the state of the country ensures three
phase power supply to agricultural consumer only for limited hours, which is much lower then the hours of supply
to non agricultural
T E R consumers.
I Report No. But2009ER03
the agricultural consumers may interfere with the supply line so as to run their
pump set even if supply is only in one or two phase. This causes extra load on DTC, there by affecting the life of
DTC, besides causing a drop in tail end voltage. Thus to protect the rural non agricultural consumers from
agricultural load and to ascertain quality supply for extended duration, network segregation, for supply to
agricultural and non agricultural consumers, is important. This may be ensured by segregation of feeders for
supply to agricultural and non agricultural consumers.
4.3.2.2 Nirantara Jyoti Scheme

M
2 3 > ?
% F <%F= 3
" #
2 2
) !2 ! - #
"
? /
E !
> ? " #
! # !
? ! 2
2
2) ? %F '
? ? 2 ?
?
? 2 M 2
4
Q2
2 #
2 ? 2
2 - #! " 1 9K
. - # K/ ?
/+K # # I )
? 2 2
3
/ & .
+ 8 2
) !
'
# E
2 # ? K
#
, E
2 # ? 90 #
*

47 Karnataka
& 4 3.$-
) 2 ?
? 2 9L & .
2 ? 9 L
4.3.3. Franchisee programme within the State

7 E
!
>>BD *0* .3
2 6# # #
2
8 ! 6 3.$-!
3 7 > B
<>B = E ? 2
2 M
& 3.$- " #
- E E <-EE= /
6 3.$- 7 4
E < 4E=
' . ! /
' !0
*0* 6 . 2 /
?
2 7 2
?
7
2 ! .3!
? ? ! ?
2 # 4 !
! A !
2 2 ?
? 2
2 2) ? 6 . '
7 !M # !
2 #
? ? #
! ?
!
" .!
9 45
3 2 3 2 " .
45 ? 8Q Q 0! / % ? 2 0!
? 2 2
&
O7 . ?
P! 2 %
. ? ! ! 6 .
? ? !
! 7 KL!
7 *9L 7
46 3 2
! ?
2 C ?
M
47
3
! 6 3.$-! >B
2 >B 2
? >
>B ! 2 2 >B
2 > >B 2
! 2 ! ? !
? 2
A ?
!2 >B
? ? $
2 # >B 2
> !
! 2 2
4 3.$-
ED 9! >>BD
2
>>BD ? 3 ?
7 ? ! ? !
3 > ? ? >B E
4 ! >
>B > ? !
>B - E E <-EE=
> ? >B
2 2
2 2 >B
2 ! >>BD
! ? 4 . E
-EE *K*K >>BD ? 48
46 National Rural Electric Cooperative association 2002, Experiences in Cooperative Rural

Electrification and implications for India, A background paper
47 Stakeholder interactions in the state of Karnataka
48 'QQ Q2 Q QE S3 S S3

49 Karnataka
# -EE ! 2 .!
0 O?
E !" #
- P49
1KL
& 2 / */L & 2 0 E
2
$A- # 2 ?
E 2 ? !
2
Box No: 6
In 2002 Karnataka began experimenting with the use of the panchayati raj system to improve revenue realization in rural areas, with
a view to improve revenue sustainability. With USAID support on capacity building of Karnatakas Gram Panchayat (GPs), by
leveraging USAIDs own experience in South Asia, under the project Participatory Rural Energy Services in Karnataka (PRESK).
Four talukas of BESCOM namely Dodabellapur, Chintamani, Molakamuru & Gubbi were selected for this. The taluka covered a total
of 112 Gram Panchayats and 1143 villages. The programme aimed at changing the perception of rural consumers and encouraging
communications between consumers, BESCOM, and the State Government This programme was a big leap towards the
understanding, that rural people are not averse to new technologies or responsibilities and that the rural consumers have the
willingness to pay for the services rendered to meet their needs as long as there are not discouraging.
E E <EE= E 2 ! *!
9K E 3 !
" 4 6 3.$- ! 9K
2 2 4 E
< 4E=
; ' 4E 6 3.$-
& 2 ! / 4E ? 4
4E 2 ?
4E 2
& 2 ! 1 4E
# 2
2 #
!2 2 6
? # ?
!
4E 4
E
"5 4 #: $ C 2 ? 2
4E
49 ! K! O ? E
!" # - P! ) % 0 +*
9 4; ' !2 !
? 2 2 !
! !
!
;
2 4E M ? ?
? G !2 4E
7 C ? 2
4E ?
5 '
!
? 4E ?
4E *L ?
G M 2 ? 2
E ? L 2 ! 4E
L 2
4E ! !
F *! 4E EE
2 Q 2 4E
? 4 .
>>BD 2 4E
2 ? 2
6 ! ? 2
2 EE 4E $
? 2
2
1 '
2 EE M *9L
!
E ? L 2 ? 2 ? ! EE !
7 0
E ? L ? 2
? EE
E ?
2 ! 6 3.$-
50 % ' 7 EE
-EE 4 3.$- 2
2 M
51 Karnataka
E &
6 3.$- 7
EE
4.4 Evaluation of Franchisee System

! -EE
2 6 3.$- >B
2
? +09 -EE *K*K >>BD ?
EE 9K
) 6 3.$- .3 6 #
#
? -EE E
!
-EE " # '
-EE &
&
& 2 2
.

-EE &
3 ! & @
4 3.$- ? 7
>>BD < 2 *=!
& @
Table 19: Discom wise amount sanctioned during 10th plan period in Karnataka.
Discom Sanctioned Project Cost (Rs crore)
BESCOM 183.78
CESC 122.49
GESCOM 34.61
HESCOM 140.53
Source Karnataka REC
? ? ?
>>BD 4 3.$-
4.4.2 Progress of RGGVY in BESCOM

3 ! 4 3.$- ? 7 L
2
51 % ' .3 2 !
" #
"3 4
>>BD ! / @ Q @
? < . # =
4 3.$- >>BD ) 4 3.$-
? ?
9 5 23 9
& !9& 9
43.$- 2 ! / @
? ! ) 4 3.$-! ?
2 4 ! 9/+
? ? 2 ? 9
4 3.$-
Table 20 Status of RGGVY in BESCOM as on January, 2010

Sanctioned Electrification of
Amount Intensive electrification No of connections to No of connections to
District cost un/de-electrified
released of electrified villages rural household BPL household
(Rs. Crores) villages
Target Achieved Target Achieved Target Achieved Target Achieved
Bangalore
26.04 33.79 0 0 2043 1793 73493 53291 39406 35103
Rural
Chitradurga 29.23 38.54 2 2 1174 1113 72162 40989 36188 39571
Davangere 29.72 39.58 0 0 795 755 96885 43904 50472 41266
Kolar 22.01 29.38 0 0 3307 3248 75787 48958 36744 42165
Tumkur 16.26 19.82 12 10 3224 2849 49833 31170 26094 28379
Total 123.27 163.10 14 12 10543 9758 368160 218312 188904 186484
Source: http://rggvy.gov.in/rggvy/rggvyportal/plgsheet3.jsp (Last accessed on 3rd February 2010)
F ! + + L !
4 3.$-! 2 7
*+L ? ? 2 ?
7 9*L ?
2 *1 K L
48 ? 2
9 5 39
2 ? & !
4 3.$- 2 !
>>BD % & ? 2 ?
1 !#$

53 Karnataka
A& ? ? 4 3.$-
2 ?
ED K! 4 3.$- ? !
? 2 " . 4 ED 0!
A& ? ? 2 ?
2 2 " .
T&D loss level

30
25
20
15
10
5
% 0
loss
2002-03 2003-04 2005-06 2006-07 2007-08 2008-09
Year
Approved Actual
5 A& 4 3.$- ?
3 ' 4 3.$- ? 52
2
ED K 2
3 # 2
? 2 2 53
G
2
2 .
& . & .
3 7 2 % F
2
? M
2 00Q "B 2 ! "B
& . 2
Table 21: Year wise number of stations, feeders and
DTCs
Year Stations Feeders DTCs

FY-08 32 71 8676
FY-09 48 331 12856
3 '& 4 3.$-
& 4 3.$- 2
! & . 2 >>BD
52 % ' 2 " . ED /@ 9
53 . 0! $ 4 3.$- ED *
?
2 2
2 -EE ? 2
2
? ED *! ? ? ED 1
Table 22: Billing and collection efficiency for FY 2008 & 2009
Year billing collection
2007-08 93.4 93.65
2008-09 96.23 96.86
3 '& 4 3.$
)5
" # > ? 2 4G F Q
" F <
= 4 3.$- ? 2 ?
2 > " 4 ? 2 4 3.$-!
2 !
2 4FQ"F " .
2 > ? J ? 2
2 ? 2 2 > " 2 ? ?
4 3.$-
4
4
" # 2
?
2 2
M 2 2 54
4.4.3 Franchises operations in BESCOM

-EE 4 3.$-
2 2 +
Table 23: Details of the franchise models operations in BESCOM

Franchisee MFF
Number of franchisee working 946
Area of operation Gram Panchayat
Selection procedure Education qualification based scrutiny followed with
personal interview
Franchisee model Revenue based collection franchisee
Capacity building plan Training of 10 days at the time of appointment
including practical training
Commercial arrangements MFF deposits amount equal to 12 months of average
revenue collection of the area.
54 ED 9 4 3.$-
55 Karnataka
Franchisee MFF
Incentive mechanisms MFF gets incentive linked with the realization against
the fixed baseline
Monitoring mechanisms MFF performance continuously monitored by
BESCOM officials
>B
>>BD J >>BD
>B -EE
*
O ? P
3 ! O
> B !P
? >
! "
>B 4 3.$- ! +!
& ? # 3 !
2 ! + #
#
H ? - !
4 2 !$
"
>B 2
? 2 ?
2 ? 4 3.$-
? 2
+ 2
#
- !2 !2 2 ?
G
& ?
+
/ 2 8
? G& ! 6! . !3 A
- / 6 < 7 J
!6 !3 =
9 ? 4 #2

1 &22
/ / /! -EE E
>B ?
& > 4
>>BD! 2
>>BD ? ! >B
-EE ?
>B ? 4 .
E ! 2 .
! ? >B -EE
4.4.4 Selection of District

-EE ? !
? -EE N
6
! & !
# -EE E !
& 2 2
? ? >>BD 2 -EE
E # > ?
2
>>BD #! 7
? 7 2 -EE
>>BD ?
2 ? 4 3.$- &
" # 6 2 4 3.$-
2 / ? 2 >>BD ?
4 3.$-
Table 24: District wise targeted RGGVY villages under RGGVY in BESCOM
Targeted Targeted EV for
Total number of
UEV for intensive
targeted villages
electrification electrification
Bangalore Urban 0 0 0
Bangalore Rural 0 2043 2043
Tumkur 12 3224 3236
Kolar 0 3307 3307
Davangere 0 795 795
Chitradurga 0 1174 1174
Source Data provided by REC Bangalore
Note UEV- Un-electrified villages, EV- Electrified villages Bangalore urban is not covered
under the RGGVY scheme

57 Karnataka
? 2 / 7 4 3.$-! "
7 2 ? >>BD
6 @
( 93 ' 4-
"
2 @ " # $
+1K 0 !
7 K L ? 9 2 ?
!" !4 !- !- 2 !3 ?
4 3.$-
" E
Kolar
Figure 12 Geographical location of Kolar District in Karnataka
4.4.5 Business Model of franchisee in Kolar
$
-EE
'3 " 4/ ? 2
? 2
-EE > 2
2
?
(3 " $4
/ ?
? >
2
$ ? 2 2 -EE
55 http://kolar.nic.in/aboutkolar.htm
? 2 ?
2 '
5"
- I2
$ ! - I 2 ?
2 -EE
-EE >
-EE 2 ? ? 8 < 2 ? 1
=! 8 ! 8 + 89 2 / 6 56
# " &22
-EE 4 3.$-
4 3.$- 4 ! -EE
2 Q 2 Q
$ 4 3.$-
#
2 -EE C
- !2 !2 2 ! ?
G ? G
. !
4 3.$- 4 3.$-
?
+ E ? ? 8
& ! ! 6! .
3 A- / 6 < 7
J 3 !6 3 = 4 !
2 2 -EE
/ ? 2 #2
9 ? A
!
0 . 4 3.$-
& .
K 3 2 -EE
7
2 2 Q
2 4 3.$-
) # 2
< 2 =
56 % '8 ' 4FQ"F C8 '& C 8 +'

. C 8 9'
59 Karnataka
@
G
6
2 #
2 4 3.$-
6 7 "
- I! -EE ? ? 2 #
9 ?
2 # 2
9 ! ? 9
9 ! ? 2
9
+ K9 ! ? K9
!
?
2 " ' -EE 2 1L
! 2)
7 9 ! 2 .
2 8 " / 1L
? ? 2 ?
2 2) 7
9 ? 2 -EEN
E ? ! Q@
4 8 ! -EE 2 ?
AB 4 3 &
2 4 3.$- 2
2
! ? ? 2 U< ? = < !
=
"
4 3.$- ?
2 ? 4 3.$- 2
9
5 "
& 2 ! ?
2 4 3.$- -EE ? 2
2 6 ?

2 . > -
< =! 4 3.$- 2
2 2 2
,
2 2 4 3.$- 7
- I ?
4 3.$-
4 3.$-! !
2 ?
-EE ?
-EE
2
2 -EE
3. 4 3.$-! -EE
2 ?
.
4 3.$- ? -EE
+
4 3.$- 2 .
4 3.$- 2
-EE % 2 -EE
.
Box: 7
Methodology for calculation of baseline
MFF are responsible for billing and collection from consumers of LT2, LT3 and LT5 below 40 HP
installation and LT1 consumers with consumption above 18 units. The baseline is calculated on the
basis of realization achieved in the last 12 months. The method used for the calculation of baseline
in any Gram Panchayat area has been explained below
Let the 12 months demand of LT2, LT3 and LT5 below 40 HP installation consumers be
= X units
Hence, average of 12 months demand of LT2, LT3 and LT5 below 40 HP installation consumers be,
A = X/12 units
Let the 12 months demand of LT1 consumers above 18 units be = Y units
Hence, 33% of average 12 months demand of LT1 consumers above 18 units is, B = Y/12 *0.33
units
Thus the base line collection target of MFF on monthly basis is = A+B.

61 Karnataka
Box: 8
Analysis of incentive to be paid to MFF
It is interesting to see how the incentive and penalty mechanism effects the earning of MFF.
Let the baseline target for MFF =Rs X
Let Collection be = Rs Y
Case I: If revenue collection is less than baseline i.e. if Y< X
Thus incentive, Z is = lower of (8% of Y or 5000)
Also Penalty is on per Rs 10,000 short fall of the baseline
Therefore, Penalty will be = 8% of Z
Hence, Total incentive to be paid is = Z - 8% of Z
= Z * (0.92)
Case II: If revenue collection is equal to baseline i.e. if Y = X
Thus incentive, Z is = lower of (8% of Y or 5000))
In this case penalty will be =0
Hence, Total incentive to be paid is =Z
Case III: If revenue collection is more than baseline i.e. if Y> X
Thus incentive, Z is = lower of (8% of Y or 5000)+ lower of ((8% of (100000 Y) or 5000)
In this case penalty will be = 0
Hence, Total incentive to be paid is = Z
4.4.6 Snapshot of performance of franchisee
6
$ 2
? 2 2 E
? # G
2
& 2 4 3.$- -
1! 1 L -EE " 2 ?
2 *L
-EE ? ? 2
*L
-EE ? 2 ?
% 2 ?
2
2 9! 2 - * 7 K L
2 ? 2 $
+ L 7 L
* L 2
L
? ? * L 2

Table 25: Number of MFF with the range in which their collection (w.r.t. baseline) lies
S No Range Frequency
1 Less than 90% 31
2 90% to 100% 17
3 100% to 110% 59
4 110% to 120% 31
5 Above 120% 28
3 '& ? 2 4 3.$-
2 -EE ? 2
? 2 2
2 ? 7 ?
2 -EE ED * ?
7 ?
? 2
4 3.$- -EE
2 ! ?
< = ?
2 1L
Impact on revenue
< 7 4FA =
4 3.$- 11L ED L
ED * $
4 3.$-! 2 4 3.$- !
4 3.$-
? 2 !
2 9L ? !
&
& / ? G "
+ ? ?
" ? ED 0 ED *
12000
Collection in Rupees (Lakhs)
10000
8000
6000
4000
2000
0
2005-06 2006-07 2007-08 2008-09
Figure 13: Revenue collection in Kolar division, BESCOM

Source: Data provided by BESCOM

63 Karnataka
) +
-EE 2
!2 2
" E /
2 7 /9
40
T&D losses in percentage

35
30
25
20
15
10
5
0
2005-06 2006-07 2007-08 2008-09
Figure 14: T&D losses in Kolar division, BESCOM

Source: Data provided by BESCOM
4.4.7 Progress of RGGVY in Kolar

& >>BD "
!
4 3.$-
& 2 *! *1 + L
? ? 2 ?
/ K9L 48
2 0 & 4 3.$-
? 4 ?
# >>BD
? ?
Table 26: Progress of kolar under RGGVY as in January 2009

District Sanctioned Electrification of Intensive
Amount No of connections to No of connections to
cost un/de-electrified electrification of
released rural household BPL household
(Rs. Crores) villages electrified villages
Target Achieved Target Achieved Target Achieved Target Achieved
Kolar 22.01 29.38 0 0 3307 3248 75787 48958 36744 42165
3 ' 'QQ ? ? Q ? Q ? Q + ) <8 + E 2 =
>>BD! ? "
! >>BD! ? ? 2
?
48 $ 2 *! L
2 ? *1 L
? 2 . ? 2
/ K9L 48
4.5 Consumer Survey

M ?
N 2 @
M ? ? ?
48 8
E < 1> =
0?
E < ? > =
? E ! L !
0? < 09 =!
? 2 K ? 48 8
?
Table 27: Category wise consumers surveyed

Consumer category Number of consumers
Percentage
surveyed
BPL domestic 105 36.3%
APL domestic 60 63.63%
. ? 2 @
M ?
M ! !2 !M !A
? 2 # -EE
? 2
G 2 C
8 5 9
- 0KL 8 K+L 48
9
2 ?
2

65 Karnataka
APL consumers BPL consumers
40 60
Number of responses
50
30
40
Number of
re s p o n s e s 20 30
20
10
10
0 0
L e s s th a n 5 0 u n i ts 5 0 - 1 0 0 u n i ts Less than 50 units 50-100 units

m o r e th a n 1 0 0 u n i ts more than 100 units
Figure 15: Monthly consumption of consumers surveyed in Kolar
& 4 5998
M N
2 ? ? ! )
? 1 L
4 8A 9 L 8
?
Table 28: Voltage of supply in franchised area in comparison to recent years
Improved Same Deteriorated No response

APL 14 8 22 16
BPL 0 15 60 30
Maintenance services
M N
2 ? ? ! +1L 8
! ? ! +9L
8 ? 3 !/ L 48
+ L
? ?
2
4 3.$- 2
! ? ?
?
Table 29: Improvement in maintenance services in past few years
Improved Same Worsened No response

APL 2 23 14 21
BPL 6 44 33 22

8 4 8
In response to a survey question regarding availability of
electricity when required the most approximately 50% of
both APL and BPL consumers reported that electricity is
available at the time of requirement. 3 BPL consumers (out of
105) and 5 APL consumers (out of 60) have not responded to
this question.
53.3% 49.5%
8.3% 2.9%
38.4% 41.6%
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
No Yes No response No Yes No response
Figure 16: Responses of consumers surveyed in Kolar
! 4 9 83
4 3
- 7
? ? 2 ? # !
2 @ @ $ /48
8 7
? ? 2
1.7% 98.3% 3 .8 % 9 6 .2 %
0% 50%
No Yes 100% 0% N5 0o % Ye s 100%
Figure 17: Monthly consumption of consumers surveyed in Kolar
5 9
$ 0L ? 7
? M
$ 2 ?
? G 2 '

67 Karnataka
! 2
-EE 2
2 ? <*0 /L ?
2 2
#J = 2 -EE
- ) <1*L= ?
? 2 2 -EE
2
#
? M
? ? E !
2 ? <2
? M
= ?
< + =
? 57
4.6 Experience of Rural Electrification and franchisee system

3 7 L 2
>>BD 2?
>>BD
2 7
# >>BD
# # N
G
7 2 # 7 2
& , . (
? 7 L
2 >>BD
ED *1* 4
?
?
8 4 ? 2
2 2 #
2
2 2
?
>>BD
2
7
57 % 'J #
2 2
>>BD M
?
" - ,
J >>BD ? ?
2
! '
- # ? 2 M
2
#
? # ? 2
2
4 3.$- # K
K
8
*
2 ? >>BD #
2 2 158 4
*K*K ? 59 >>BD
# 2 2
2 / ? 4
7 -EE 2 ? 2
? ? 2
2 ?
!
-EE
& ? "
?
> # ? - # E
-EE ?
2 ? #
2
# 2 6
? ?
2
2 4 !
? ! 2 ?
http://rggvy.gov.in/rggvy/rggvyportal/index.html
58
http://powermin.nic.in/bharatnirman/pdf/Franchisee_Syste
59
m_in_States.pdf
69 Karnataka
4 3.$-! ?
' ,
3
? 2
? 2 2
?
M E !
?
7 2
2 ? -EE
-EE ? ?
2 -EE 7
2 ?
2 ? 2
? ? O
3
P
7 K L -EE! " ! 2 2 ?
2
2
2 #
2 2 A
-EE !
?
? 2 -EE
J 2
E !
> )2 4 !
? # 2
1 77 < =! 2
Q ! #
?
?
) - $
& 2 2 4 3.$-
" .8 -EE ! # ! ?
)2
--E ? Q
2 2

M 2
#
& ! -EE #
# ? )2 2
2 ? ? 2
2 2
) $ 3
& -EE 7
? - I 7
- I
# - I 2
7 ? - I 2
(
- -EE 7
2 7
7 2 2
-EE 2 ?
!
7
& ! -EE
#
2 4 2
2 2
Figure 18 position of meter in one of the rural household of BESCO,
4.7 Conclusions and Recommendations

$ 2 -EE
! 7 #
7 Q 2
>>BD !
'

71 Karnataka
5 9 44 3 5
? 2
>>BD ? 3
2 2 #
# -EE -EE
? >>BD
# 2 ! ?
2 2
>>BD ?
2
7
3 $
3 *K > !
O 2 ? !
2 #
$A- 2 P
-EE " # 3
? # !
? -EE A& B
-EE " #
7 . ? Q J36>
# 2
2
7 ? -EE < ? 7
2 = Q
Q ?
7 . ? 3 Q J36> 2
)2 7
7 ? 2
//K !
? - I2
2
? 7
-EE < ? -EE=
J36>Q . ? 3 ! - I 2
? ?
- I # -EE 2
-EE ! - I 2
2

C HAPTER 5 Orissa (Odisha)
5.1. Introduction
$
7 99 M # /+ #
&? + ? ! 19L
+0 K < . =
/KL 2 48
& 2 !
G
6 ? !
2 ? !
3 V! ?
$
*
Figure 19 Geographical location of Orissa
5.2. Power sector profile

> ? $ 3 !
**9! ! **0
$ 4 <$3 4= ? $ 6
. <$6 .= > . $
<> &.$= $ . <$ .=
2
? 2 J
4 # I3& +9
. !> &.$
**1 2 2@ ?
2 '
. 3 . $ 8
<. 3.$=
% 3 . $ 8
<% 3.$=
+ J 3 . $ 8
<J 3.$=
/ 3 3 . $ 8
<3$I 6.$=
***! > &.$ ? 9 L & !

? 2 ! ?
+*L L
2 J 43 3 M
J 3.$! 3$I 6.$ % 3.$ 2 I3
2 3 M . 3.$ 8 9!
3
2 $ . 0. 3
I <. 3I= 2
2 ? 2
. 3.$ /! $ .
8 <$ .8= ?
> &.$ $ .8
> &.$
!. 2 3 I <. 3I =!
? 2
$ .8
$ +9 9
-J F ! *! 1L
) 0 ? M
3 . > 19 L ? 2
. > 1 90L D
2 2
9 9 0
5.3. Rural Electrification in the State

** ! /0!*1* 2 ? !
+ !1 9 ? - **K!
K L ? $
60 Power Scenario at Glance published by CEA in July 2009

61 Estimates are based on energy available in 2008-09 from CEA and population
projections by Indiastat.com
75 Orissa
? ? ! ?
*L62
! 2 ? $
/K!9 * 6 ? ! 0! +9 ?
- 063 2
?
? **K /< 2 7
=
? ?
?
5.3.1 Experience in Rural Electrification

> ? $
? 3
? 3
2 2 '
$ ' > 44 5 5 4 83
9 " )!
? G $3 4
2
$3 4 J $3 4 & 3.$-
? G !
2 !2 ? 2
+ ? 2 ?
? G
Table 30: Year wise electrified villages in Orissa

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03
Number of villages
737 800 817 748 195 105 225
electrified
Source: Data compiled from Indiastat.com
2 ?
?
*** 2 2
# & 3.$- #
98 9 8 45 5
2
' 6 9 95 8 5
2 ! 2
62 Data compiled from Indiastat.com and http://recindia.nic.in/download/Orissa.pdf

63 Data complied from Indiastat.com
' 6 8
2 2
2 H ? N
- !4 2 64
$ G 2 2 Q
+9L Q2 9L
?
1 K9
%$ 4 " 9
9
2 ?
?
? ?
? Q& ?
) ?
#! ? 2
) ?
2 &
2 #
+$ " 4
45 5 9 4
5
4 @ '
8 - -8 ?
?
# 6 ? !
2 & 65
,$ " 4
45 3 5 96
9 4 3
? 2
# 2 ? #
? ! !
? 2 ? 3 ?
2 2
2
? 2 2 # !
!2 2 2 #
2 & 3.$-
? 66
64 Compendium of orders on bulk and retail supply tariff and revenue requirements for
2001/02 and 2002/03, OERC

65 2005, K Ramanathan, Shahid Hasan, Privatization of electricity distribution- The
Orissa experience, TERI

66 State Government has also identified such villages in REP
77 Orissa

! ? ?
? # "FD! B ->D !
> ? $
7 3 3
2 2

!3 ? ?
>>BD! . > ? N
? 3 > ? M
. 2 3 I # < % .!
%6 . >. 8=! & 3.$- <. 3I! % 3.$! J 3.$!
3$I 6.$= .
. 3I
I >>BD! $ ? 2
2 + ?
? 2 2 ?
? ?
2 48
&
! % . 2 ? 2
%6 . 2 % .
& 0
%6 .
& K &
& ! ? 2 %6 .
% .
>. 8 $
& 1 2 +
>. 8 ?
3 ? # 1 2
$ % . ? 2
%6 . Q ? $
? 48 2
% . %6 . ?

Table 31 Targets and achievements of PIAs as on January 2010

Plan period (during which DPR s were
10th 11th
sanctioned)
POWER
PIA NTPC NHPC NTPC NHPC
GRID
Number of districts covered 2 2 10 4 12
Number of un/de- Target 1197 1405 5217 4452 5624

electrified villages Achieved (%) 88.39% 71.81% 24.67% 1.12% 8.55%
Number of BPL Target 164389 170691 1164249 310022 1376512
connections Achieved (%) 100.00% 59.20% 16.55% 8.52% 4.77%
Number of villages for Target 1907 2730 7641 2985 13729
intensive electrification Achieved (%) 44.83% 51.50% 8.69% 10.65% 4.15%
Sanctioned cost of projects
234.60 199.50 1109.91 445.07 1586.02
(Rs. Crores)
Amount released (Rs. Crores) 217.5028 143.9863 511.4005 147.9985 549.0604
Source http://rggvy.gov.in/rggvy/rggvyportal/index.html (Last accessed on 1st February
2010)
& ? 2 2
? ? ?
2 48
$ 2 * ? 7 H
5.3.2.2 Gopabandhu Gramina Yojana

K+ . !
Box: 9 ) < = ? 2 O
Backward Regions Grant Fund (BRGF) @ ? P 3 > ?
Programme was launched in 2006 by
GoI to provide financial resources for >>D!
supplementing and converging existing $ 2 0 2) ? ?
development inflows in identified 250 ? ?
districts of 27 States. In Orissa 19
districts are covered under the BRGF 4)! 3 # < !
programme. = ? ? ?
? 4 #
> E
# 2 ?
>>D !
! > ? !
>>BD E 2
3 > ?
2 ! >
> ? < = ?
# 7
! 2 2 2

79 Orissa
? Q 2
< = 0 < 0@ K
@ = 00 .
0@ K K@ 1
K # 1/ #
! ?
5.3.2.3 Biju Gram Jyoti

3 2 K! ? $ 4>FD
? ? 2 ?
>>BD
? Q 2
<
? >>BD=
" F <4 8=
+ G 8
& 2
4>FD 3 > ?
! 2 2 ? 4>FD
+ / ?
+ /2 # E ! 7 7
? Q 2 +9 #
? Q 2 #
2 # ? 9 # + -
*! ? 2 +KL ? Q
2 ++/ * 9 ?
5.3.3 Rural Electrification Plan (REP)

3 +/ . > ?
O P ?
3 / 9 ! +! 3
> ? < = F
* 2 !
? M !
$ 7 H "
G 2 '
1. " @
7 . > 1+ L
@ 3
) < =

45 47.96%
40
35
30 8.71%
-5.54%
Billion units
25 14.99% -5.13%
20
15
10
5
0
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
Estimated power demand Actual/Planned/Expected generation
Figure 20 Demand supply position of power of Orissa

Source REP for the state of Orissa
Note Figures for 2007-08 are based on actual and for remaining years are estimated by
State Government,
" @ @
M 7
7 ) ? 2
2 +
7 2
Table 32: Year-wise spread of funds required (in Rs. crores) for creation of sub-
transmission infrastructure as per REP
Total
Particulars FY 08 FY 09 FY 10 FY 11 FY 12
cost
Rural Electricity Distribution
backbone and Village Electricity 71.64 1027.06 1609.04 322.32 117.77 3148.19
infrastructure under RGGVY
Strengthening of existing rural

61.84 141.2 235.25 187.55 149.18 775.02
infrastructure by
Source REP for Orissa
3 ? .
> ? ? &
>>BD! M
2 2 3 > ?
2 ?
# .! E.! % 4 &
+ + @
I !> ? $ /K! K
? < /K!9 *= >>BD
? !091
E ? ? ?
2 3 N !
2 2
2 2 M 2 ?
2
81 Orissa
/ ! @3 N
4 # <4 =
2 ? 2 2
? 7<
? =
2
2 . !
!
2
2 $ . ? &
.
9 , ,
) - @> ?
2 ) 2
?
2 $ 2
& ? <$ & =
/K+ ? 2 @
5.3.4. Franchisee programme within the State

$ 2 # ; 5
3 ***! H ?
- J 3.$
? ? 2 ! ?
!B
4 3 <B43 = 2 ?
?
# G ! G
G
J 3.$
2 B .
<B . = 3 !& A
4 ? " 2 B .
! ? G
# 2
J 3.$ 2 B . ?
! ?
& 2 ! J 3.$
2 95 ; < 4E= > 2
4 ? " 2 4E
!2 2 ! ? ! ?
! ?
!
% 3.$ ; 2 ? F)
& 1 " 2 4E

? ! $A- ? !
!2 2 ! !
A. 2 9L G
2 *
67 % 3.$
/ 2 ? 68
. 3I < . 3.$= 5 ;
4 3 & 2 1! 2
J # Q J
! . 3I 36> 2 #
% !B 4) # &
36> ? 2 ? 2 2
2
. E !$ # ? 4
E $ #
3$I 6.$ 2
; 2 " # 2@ ? > )
1 5 ;
2 36>
? ?
? " % #
5.4 Evaluation of the Franchisee system

E $ 2 @
2 ! E 2
? ? E
& 3.$- ! ! J 3.$! 3$I 6.$
% 3.$ $ & 3.$- 2
>>BD
? 2

E ? 2 3$I 6.$ >>BD
& ? ? 2 ++ 2
2 &
>>BD &
Table 33: Amount sanctioned under RGGVY scheme for X and XI plan for
different licensee of Orissa
67 Tariff order issued by OERC dated March 2009, for financial year 2009-10
68 Tariff order issued by OERC dated March 2009, for financial year 2009-10

83 Orissa
Number of DPRs Amount sanctioned

sanctioned (Rs. Crores)
X plan XI plan X plan XI plan
WESCO 0 9 0 897.18
NESCO 0 5 0 881.59
SOUTHCO 0 8 0 988.15
CESU 2 7 234.60 573.58
Source rggvy.gov.in/
#3 '!#
3 *** 3$I 6.$ $
? /K! M# ? 90
# ! ! 1*L
1200
1000
800
Million units
600
400
200
0
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Domestic General purpose Industrial

Agricultural Water w orks Railw ay traction
Others
5 % . 3$I 6.$
Source Data provided by SOUTHCO office
. @ 3$I 6.$
? . > + /L ?
?
9L +@ / + L 1@ * 6 ? !
?

//L / L
G # 3$I 6.$
12
60.00%
Tariff (Paisa per unit)
10
50.00%
8
% AT&C losses
40.00%
6
30.00%
4
2 20.00%
0 10.00%
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
0.00%
Agricultural 2004-05 2005-06 2006-07 2007-08
Industrial
General purpose (Commercial)
Domestic
Figure 22 Consumer tariff for categories of consumers in SOUTHCO Figure 23 Year wise AT&C losses of SOUTHCO
Source Data provided by SOUTHCO office Source Tariff order issued by OERC dated March 2009
" 4!
. @ 3 < 3 = A.
3$I 6.$
+ ? 3
A. 3$I 6.$ ?
/ @/9L ? %
A. ? ? & 3 .$N
3$I 6.$ $ . 2
?
& J 4 # ! @ 2
! !
140
A p p r o ve d A u d i te d
120
100
80
R s c ro re s
60
40
20
0
2 0 0 1 -0 2 2 0 0 2 -0 3 2 0 0 3 -0 4 2 0 0 4 -0 5 2 0 0 5 -0 6 2 0 0 6 -0 7 2 0 0 7 -0 8
5 %, D ? $A- 7 3$I 6.$

Source Tariff order issued by OERC dated March 2009

85 Orissa
& ? ? $
2 9
56 , - -
-
D ? $A- 7
3$I 6.$ /
$A- ?
? 9@ 0
$A- ? 2 M
& 2
0@ K & ? $A-
? 3$I 6.$
? Q M A- ? ?
< 2 +/=
Table 34: Comparison between approved and audited R&M expenses (in Rs
crore)
Years 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Approved 15.57 16.82 16.38 13.25 18.55 17.35 18.38
Audited 9.29 6.43 9.93 8.43 6.07 5.54 5.5
Source Tariff order issued by OERC dated 20th March 2009 for the FY 2010
8 A- ?
2 #
5.4.2 Progress of Rural Electrification in SOUTHCO

+@ /! +* 0L /!+0+ ?
3$I 6.$ E 0 2
@ ? % 2 ?
3$I 6.$ . > L 0
1@ * //L ?
3$I 6.$
10000
8000
6000
4000
2000
0
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Figure 26 Percentage of electrified and un-electrified villages in area under

operation of SOUTHCO
*7
2 +9 ? ? !
48 ! ?
>>BD 1 3$I 6.$ &
> ) > ) K
0 !& - 1
Table 35: Targets under RGGVY scheme in 8 districts of SOUTHCO

Un/de Electrified Number of BPL Sanctioned Amount
electrified villages for connections to project cost released till
Districts
villages intensive be covered (Rs. crores) October 2009
electrification (Rs crores)
Gajapati 721 746 58,428 83.10 58.79
Ganjam 684 1,984 112,263 116.39 85.19
Baudh 733 376 66,599 72.40 22.01
Koratput 1,279 579 208,158 189.19 96.38
Malkangiri 833 165 54,731 91.16 31.64
Nabarangapur 550 350 111,897 125.12 64.68
Kandhamal 1,604 756 79,924 148.83 39.46
Rayagada 2,063 402 127,550 161.93 46.35
Source 'QQ ? ? Q ? Q ? Q 7 <8
E 2 =
> ) > ) ! F *! K L
? 2 ?
2 9*L 48
3 !K L Q @ ? ? 2
9 L ? ? 2
? - # ! ? #
87 Orissa
48
$ 2 * ? +*L
2 ? 2
K +L 48
& 3$I 6.$!

$ . 2 ?
A- 7 >>BD
2 ? 3 > ?
2 ?
?
5.4.3 Franchisee operations in SOUTHCO

3$I 6.$ 4E ? . 2
E 2 +0 2
E
Table 36: Details of the franchisee operations in SOUTHCO

Franchisee Enzen Global Solutions Pvt. Ltd. ISRRA BISMAYA
Area coverage Rambha & Khalikote Sub-divisions Kancharu section under Aska Nuagaon section under Aska
Through proposal submitted and Through proposal submitted and Through proposal submitted and
Selection procedure
mutual discussion mutual discussion mutual discussion
Previous track record and financial Previous track record involving Previous track record involving
Selection criteria
strength of company social activities in proposed area social activities in proposed area
Revenue collection and consumer Revenue collection and consumer
Franchisee model Input based
services services
Capacity building Training has been provided to Training has been provided Training has been provided
plan employees of the franchisee through CIRE through CIRE
Franchisee deposits amount on
Expenses on man power Expenses on man power
input bill issued by SOUTHCO
Commercial deployed, vehicles, office space deployed, vehicles, office space
based on pre-agreed tariff on
arrangements etc are reimbursed from etc are reimbursed from
monthly bass and collects arrears,
SOUTHCO SOUTHCO
meter rent, etc from consumers
1. Rs.77 per consumer on
1. 15% of arrears collected till
consumer coverage of more
cut-off date
than 75%
2. 25% of PDC69 arrears
Incentive 2. Rs.40 per consumer for
collected till cut-off date No incentive
mechanisms addition of new consumer
3. 50% of penal amount realized
3. 15% of penal amount realized
from consumers for
from consumers for
unauthorized use of electricity
unauthorized use of electricity
Meeting of steering committee is
Senior Engineer of concerned Senior Engineer of concerned
Monitoring scheduled every month at
circle review the performance circle review the performance
mechanisms corporate office of SOUTHCO to
every month every month
monitor performance of franchisee
Source: Information provided by SOUTHCO
69

5.4.4 Selection of franchisee

3 ! G > 2 3 ? 8
2 3$I 6.$
?
# $ ! ?
3$I 6.$
> 2 K
2 #
5 : %0 - 2 2 $
3$I 6.$ G > 2 ? 8 4
5.4.5 Business Model of franchisee

)
2 " # 2@ ? > )
# ?
B # ! ! ! 3 !
! !2
2 2 K9L 2 70 ?
**K 2 3 > ? ! 99L
> ) 48
70 'QQ )
89 Orissa
5 %A G > 2 3 ? 8 2 " #
) 9
3$I 6.$ ? 4E -
1! 2 ? G > 2
2 M ?
)2! 2 ! ?
6 ! 2 2
G > 2 2 M !
4E 2 " # 2@ ?
5 44 3
71
G > 2 01 ?
2 " # ? +/
2 +K ? 7 ? 2
1
* L ? 2
9L
71 & ? 2 3$I 6.$

Table 37 Profile of franchised area
Consumer profile- Rambha and Khalikote sub-divisions

Domestic 31478
Kutir Jyoti 397
General Purpose (Commercial) 1707
Street Light 34
Agricultural 205
Public Water Work 77
Small industry 171
Medium industry 29
Specific public purpose 197
& 2 ! ?
! "B <
2 * " # =
<#J = 2
- 84 5 44 3 5
E 2 G > 2 3$I 6.$
7 0 ! 1 ?
! 1 $A- ? - ! 1
"
2 '
$ 9 44 3 :
A. ? KL
? 2 2
? 2@ ?
?
? ? # !
2 2
2 2 #C 6
A8 ! ! 2
! 2 2 M
%$ 9 4)!# !:
2 ) $A- 7 !
6 A8 ! 2
91 Orissa
! 2 M
G! !
2 7 ?
# ? 2 M #
? ?
? #
? ! 2
L
+$ 3 95 98
)!# !
D @ 2 2 3$I 6.$
2 2 ? 2 +1
Table 38: Agreed input rate between Enzen and SOUTHCO
Average realization Agreed input energy rate (Rs/Kwh)

Subdivision FOR 2007-08
(Rs./KWh) 2008-09 2009-10 2010-11 2011-12 2012-13
Rambha 0.49 0.55 0.60 0.64 0.68 0.72

Khalikote 0.55 0.62 0.66 0.7 0.74 0.78
$ . !
2 ? '
9 -
: ?
U 2 2
U ! ! ! ! U C U C
U @ C U
U ? < 2@
7 =
U 4 < 2@
7 =
U ?
U ?
< 2@ =
U ?
< 2@ =
U ? @
< 2@ =
U ?
< 2@ =

,$ 5
G 2 3
2 $ . 3$I 6.$
2 2
?
3$I 6.$ 2 G
2
! 2
*$ 3
2 *8
E @
2
? &
@ 2
E G
G 2
E 3$I 6.$
E 2
3$I 6.$! # G 2 ?
1$ ) 5 8 9
G > 2 !
2 # ! +K # 9K #
2 " # ?
M ?
2) ?
? ?
2 2 3$I 6.$
0$ " 95
7 2
2 '
3$I 6.$N @ @ G N
) ?
5 ? !
3$I 6.$N
G N
8 G ? 2
?
? ? 2
7 2 ! 2 $ .

93 Orissa
5.4.6 Snapshot of performance of franchisee

- ? G A.
2 " # 2 ? *< =
*<2=! ? 2 2@
? ! G 2
< 2 3$I 6.$ G > 2 = 9
< 9=! " # 2@ ? !
2 / 6 ? ! " #
2@ ? G ? ? !
?
120 90% 120 90%

80% 80%
100 100
70%
% AT&C losses
70%
Paisa per unit

% AT&C losses
80 60%
Paisa per unit
80 60%
50% 50%
60 60
40%
40%
40 30%
40 30%
20 Base line 20%
20 Base line
Base line
20%
10%
10% 0 0%
0 0%
Apr-08 Aug-08 Dec-08 Apr-09
Apr-08 Jul-08 Oct-08 Jan-09 Apr-09
Realization per unit AT&C

Realization per unit
Figure 29(a) Performance of franchisee in Rambha sub-division Figure 29(b) Performance of franchisee in Khallikote sub-division
Note Sharp hike in realization per unit is resultant of high arrear recovery from government departments during February
. ! A. ? G
2 " #
2@ ? ? 2 +* G
> 2 A. 2 0L
2 2@ ? ? A.
" # 2@ ? ? G
? G
Table 39: Performance review of franchisee

Rambha Khalikote
Parameters
2007-08 2008-09 2007-08 2008-09
Collection efficiency 67% 84% 63% 71%
AT&C losses 81% 75% 77% 77%
Realization per unit (Paisa/KWh) 49 59 55 51

5.4.7 Progress of Rural Electrification in Rambha and Khalikote

D 2 @ ?
2 " # 2@ ? +
+ ?
Figure 30 Status of village electrification in Rambha Figure 31 Status of village electrification in Khalikote
Source Data provided by SOUTHCO office Source Data provided by SOUTHCO office
+@ /! K 0L /1 ? 2 2@ ?
1/ 0KL ?
+/ @ ? >>BD
1@ * " # 2@ ? 1 1L /+ ?
@ + * +L
? 1@ * ! 01 ?
2 2@ ? 0 *?
5.5 Consumer survey

?
N 2 @
M ? ? ? 8
48 ! 8
/K ?
2 /
Table 40: Consumer category wise surveyed consumers

Consumer category Number of consumers surveyed Percentage
BPL domestic 120 48.58%
APL domestic 79 31.98%
Commercial consumer 48 19.44%
? ? 2
? &
? ? 2 2
? ? ! 2

95 Orissa
2
48
. ? 2 @
M ? M !
!2 !M ?
" ? G
2 M 2@
Electricity Consumption
- 9KL 8 <
=
2 9 !
1 L 48
9 48
? < =! ?
? 2 < + =
82.5%
80 100
Number of responses
Number of responses
80
60
60
40
40
20 20 7.5% 10%
0 0
Less than 50 units 50 to 100 units Less than 50 units 50 to 100 units
More than 100 units Not yet billed (New Connection) Not yet billed (New Connection)
Figure 32: Electricity consumption of consumers surveyed in Orissa
Voltage of supply
M N
2 ? ? ! /1L
8 ? ! /*L
48 48
8 ? ?
M ! ?
Table 41: Voltage of supply in franchised area in comparison to pre-franchisee

Improved Same Deteriorated No response
APL (Com and Dom) 62 13 51 1
BPL 25 23 59 13
Note: Above table number indicates the number of consumers surveyed

75 8 4 4 5 5
? M ?
2 ! 7 99L
2 8 48
Table 42: Frequency of transformer burnout

Increased Remained same Decreased
APL (Com and Dom) 39 73 15
BPL 36 65 19
Note: In above table number indicates the number of consumers surveyed (APL = 32 and
BPL = 201)
8 4 8
E 7 8 0 L 48
? 2
M ' ?
40% 60%
44% 56%
Y es
Y es
0% 50% 100% No
No
Figure 33 Responses of consumers surveyed in Orissa
Overall service provided by the franchisee

% 99L <2 8 48 =
7 ? ? 2
? G
! ! !
2 ?
?

97 Orissa
55.1%
44.8% 45.8%
Yes No Yes No 54.2%
Figure 34 Responses of consumers surveyed in Orissa
Consumer Complaints
L o w v o lta g e o f Low voltage of

s u p p ly supply
Fre q u e n t p o w e r Frequent power cuts

c u ts
Ir r e g u la r Irregular
m a in ta n a n c e maintainance
Ir r e g u la r /E x c e s s Irregular/Excess
B illin g Billing
C o r r u p t f ie ld s t a f f
Corrupt field staff
Non-
Non-responsiveness
r e s p o n s iv e n e s s t o
to complaints
c o m p la in t s
In s in c e r ity t o s e r v e
0 20 40 60 80 0 50 100
Insincerity to serve
N o . o f re s p o n s e s No. of responses
Figure 35 Complaints of consumers surveyed in Orissa
3 ! 7 !
2
2 -
? M
3 2 ?
'
- 2 2
$ 2
6 2 ?
?
3 2 ?
. 2
2
-
& ? 2 )
? 1 K1L
? <2 8 4 8=
2 ?
", -
2 ? 2 ! 8
? ?
2 2 .E8!
!
? 2
7 &
2 ? #
2 ? ! 2
)
5.6 Experience of Rural Electrification and franchisee system in Orissa

# ?
2 ?
2 3 7
? ?
2 ! 2 2 '
& . -
3 > ? # ? ?
2
4>FD ?
>>D ?
?
?
&
3 ? 2
# ? 2 7
*** ? 2 ?
4 . 4E
3 2 >>BD

99 Orissa
' - .
& G > 2 !
7 2
) ! ! ?
! 3$I 6.$
? #! 2 G
> 2 ! L ?
3 ! ? ? !
? ? 2
! 2 # ?
1(
( 1 ,
2 # 4 2
G A. 0 L 0
? % / 2
@ 0@ K 19* -I
9 -I !
-3 &.8<- 3 & 2 .
8 = ? 2 &E < 2
= 4 8< 8 =
&E < ? 2 ? /Q#J =
8 2 #
#?
? 2 4
& ! !
? ! ? 8 < =
#! 2 /@ /@
A.
0 L 0 /L *!
01L 11L
& / L K 9L
$ -
? G
? 2 2 ? !<
9 / = 3$I 6.$ M
A- ? !2
2 ?
2 A.
8 A- ? 2 2
@ ? 2 M
?
2

100Analysis of rural electrification strategy with special focus on the franchisee
$ . 9 /L > E7
A- ? & G
>>BD ?
3 > ? 2 ? 2 6 ?
3 " #
? ?
2
>>BD 2
? 2 &
4$ ( *7
M ? M
>>BD 7 $ .
G !3 > ? !
2 !
) )
I >>BD! ? 2
48 $ 2 *! 4 8
? 2 1KL +
48 $
& $ + &
+ ! K& -
1 2 ? % .
2 2 %6 . 2
&
+,
& ? 2 ? M
? )
E !
2 !?
@
5.7 Conclusion and recommendations

$ 2 7
# ! ?
&
3$I 6.$!
& 2
@ 7 )
?
M ?

101Orissa
&
2 # ?
2
G > 2 6 ?
2 E
4 !
2 M
2 2 2
& 3.$- 7
? Q Q ? 7
2 4 !- !
?
2 ? 2
< 47 =
1
E ? ?
? &
2 2 2
? 2 !
? ! <
=!
4$ ( *7
$ . A- 7
>>BD! 2
!3 > ? ! 2 !
? 2
2 #
- ,
%
? ? 2 O
? P ? 2 ?
? 2 2
& 2 > ? 2 #'
2 Q ! ! > ?
2 #2 & ) ?
M
? 9 2 ? ? 2
2 ? ) Q 2
. 2 B 2
? 2 ?
2 2
2 )

( - , .
$ ?
2 2
?
#
& M A-
? 7
2

Chapter 6 Overall Conclusion and Recommendations
2
C ! M
7 ? ? A
>>BD 2
!2 ?
48 M 2 G
E ? 2
2 ? ? 3 7
G 2 :
-
?
2
3 2
# !
2 2 ?
? 2
?
7 M ?
?
? ? >>BD ?
2 . > ?
" 9 5 96 9
2 2 ? ? 2
) 2
2 ?
#C 2 ! ! ! ! 2
3 > ?
&&>
3 > ?
) 2 #2 & ?
? ) ? 2 ?
? 2 Q )
. 2 2
G B ?
2 2 ? ) 2
?
&&> ?
2 2
?
? 2 # ?
M
2 2 ? -EE 2
" # $ ! ? !
M !
E 2
4 E ! 2 2 ?
4 !
? ! G > 2 $ ?
! .
4
-EE 8
? E ? ?
2 2
$ *7
! .
" #
? A- 7 >>BD
6 ?
$ . ? ?
3 > ?
2 ? A- 7 E
2 2 !
? >>BD
3 > ? # M
? 2
?
-
>>BD #
1
?
& 2
9@0 2 2 >- 2
? 2 ? E !
2 ?
2 E
! -
. 2 E ?
! !
3 N
#
#!
2 ! ? )
2

105 Overall Conclusion and Recommendations
! 2 ?
7
? ? # ?
- , .
2 #
M ? 2 ? ?
#
2 3 .N
? M 7
? 2
2 > ? ?
2 ?
3 > ?
&
? !
?
7 N J36> . ?
" (
J 7 2
2
2 2 <2 =
? < #6
= ? ? 2
6 ? ! ! 2
# #
2

Annexure I State-wise coverage under RGGVY as on 1st September
200972 73
Table 43: State wise coverage of villages and Rhh under RGGVY
In un-electrified In electrified villages Total (a) ( c ) Of
Milestones (b) Rhhs
villages (a) villages (a) villages covered Villages which BPL
NORTHERN REGION
Haryana 0 5985 5985 569686 224073
Himachal
93 10668 10759 36479 12448
Pradesh
J&K 283 6050 6333 295221 136730
Punjab 0 11840 11840 405023 148860
Rajasthan 4454 34841 39295 2229442 1750118
Uttar Pradesh 30802 3287 34089 1694075 1120648
Uttaranchal 1469 14105 15574 357309 281615
Chattisgarh 1132 16333 17465 1285545 777165
WESTERN REGION
Gujarat 0 17934 17934 1595853 955150
Madhya
806 34094 34900 2653536 1376242
Pradesh
Maharashtra 6 40292 40298 2633742 1876391
SOUTHERN REGION
Andhra
0 27481 27481 3954128 2592140
Pradesh
Karnataka 132 28191 28323 1932797 891939
Kerala 0 38 38 23799 17834
Tamil Nadu 0 12416 12416 1692235 545511
EASTERN REGION
Bihar 23211 6651 29862 6022036 2762455
Jharkhand 19737 7622 27359 2926260 1691797
Odisha 17895 28992 46887 4858292 3185863
West Bengal 4573 24775 29348 3974005 2699734
NORTH-EASTERN REGION
Assam 8525 13330 21855 1414828 991656
Meghalaya 1943 3536 5479 188648 11647
Arunachal
2129 1756 3885 76407 40810
Pradesh
Mizoram 137 570 707 44334 27417
Manipur 882 1378 2260 192148 107369
72 'QQ Q2 Q QB S6 2
73 8 % //Q Q *@ !> ? !- ! K - *
In un-electrified In electrified villages Total (a) ( c ) Of

Milestones (b) Rhhs
villages (a) villages (a) villages covered Villages which BPL
Nagaland 105 1152 1257 142992 69900
Tripura 160 642 802 228759 194730
Sikkim 25 418 443 28166 11458
TOTAL 118499 354375 472874 41455745 24606500
Source: 'QQ Q2 Q QB S6 2 !
% ? 2 ! * 8 % //Q Q *@ !> ? !- ! K -
*
% ' ' C 4 8' 4 ? 8 C

Annexure II Status of franchisee implementation
Table 44: As on 1st September 2009
Proposals Type of franchisee (a+b)
(a)
(b) Other Franchisee s in
RGGVY
villages place (Total no.
villages
of villages)
NORTHERN REGION
Haryana Revenue collection based
6078 58 6136
franchisee in place
Himachal Pradesh
J&K
Punjab Fresh NIT issued for spot
205 205
billing
Rajasthan Revenue collection based
Franchises in place. Gram
Vidyut Pradinidhi are also
36 134 170
being appointed at Gram
Panchayat level to help
the villagers
Uttar Pradesh Revenue collection based
Franchises operating (404
nos.). Feedback Ventures
4447 16965 21413
have been appointed as
consultants for finalization
for input based Franchises
Uttaranchal Revenue collection based
model in operation by self
434 2906 3340
help groups (women
participation) (31 nos.)
Chattisgarh Revenue collection based
936 936
Franchises in place
WESTERN REGION
Gujarat Revenue collection based
model operating in
MGVCL and outsourcing 2735 1737 4472
of various activities in
DGVCL
Madhya Pradesh Revenue collection based
297 14 311
Franchises in place
Maharashtra 4052 4052
SOUTHERN REGION
Andhra Pradesh Revenue collection based
model operating and 2
227 7656 7883
Discoms have appointed
junior lineman as village
Karnataka Revenue collection and
19675 182 19857
input based
Kerala
Lakshadweep
Tamil Nadu
EASTERN REGION
Bihar For rural areas revenue
collection based model is
5250 5250
operating and for urban
areas input based revenue
Jharkhand
Orissa Revenue collection based
8406 8406
model
Proposals Type of franchisee (a+b)

(a)
(b) Other Franchisee s in
RGGVY
villages place (Total no.
villages
of villages)
West Bengal Revenue collection based
10580 3800 14380
model by self help groups
NORTH-EASTERN
REGION
Assam Revenue collection based
2383 2383
franchisee in place
Meghalaya
Arunachal Pradesh
Mizoram
Manipur
Nagaland Village Electricity
Management Boards
(VEMB) introduced by 552 552
Village Council as input
based
Tripura
Sikkim
TOTAL 16 52085 47660 99745
Source http://www.powermin.nic.in/bharatnirman/pdf/Franchisee_System_in_States.pdf, last accessed on 1st
November, 2009

Annexure III Scope of work and Terms of reference74
Scope of work
2) ?
!$ " #
< 3 =
# 3 !
2) ? '@
? >>BD
?
# 2 ?
Q ?
G ?
@
2
Terms of reference
# 2
G
J
3 !$ " #!
J 2
< ! 2 != #
J 2 2
J < !
E ! ! != ?
6 O @ P
?
J Q
? 2
6 ? ? Q Q?
? ?
2
6 2 E 2
? ?
2
J ? ? ?
2
74 8 K - *% //Q Q *@ !> ? !- K -
*

Annexure IV Interview Guides for stateholders
3 6 5
1 Name and address of correspondent:
2 Contact No.
3 Year of start of operation:
4 Area covered under franchisee operation
S No Distribution Name of Name of the Rating KVA Line length /
Transformer the feeder sub station /MVA No of poles Dom Comm Agri Other
1
2
3
4
5
5 Number of villages covered in which the franchisee is operating:
a) RGGVY________ b) Non-RGGVY ________
6 Billing cycle: a) Meter reading: Monthly/bimonthly
b) Bill payment: Monthly/bimonthly
7 Please specify the nature of your organisation a) Individual
b) Firm
c) NGO
d) SHG
e) Cooperative
f) Panchayat
8 Are you aware of franchisee guidelines by REC
Yes No
9 Please specify the type of franchisee your organisation

is
10 Roles and responsibilities of franchisee as per the a) Meter reading
contract: b) Bill printing
c) Bill distribution
d) Bill collection
e) Minor technical repairs
f) Major technical repairs
g) :Providing new connection
h) Redressal of consumer grievances regarding
minor repair
11 For new connection, is there any delay or
discrimination in providing household connection to Yes No
BPL and other economically weaker sections
12 Number of employed staff of the franchisee a) Full time
b) Part time contract basis
13 Number of staff members of the franchisee as per their a) No of engineers_________

qualification b) No of ITI technicians/diploma _______
c) No of graduates _________
d) No of Class XII pass outes ________
e) Others________
14 What was the franchisee selection method? a) Open bidding/tendering

b) Nomination/selection
15 How is the support from the utility a) Complete
b) Moderate
c) No support
16 Please indicate the duration of supply of electricity for
1) Urban and semi urban areas
2) Rural areas
17 Is the utility conducting any training programme for the
staff of franchisee
Yes No
If yes
a) What were the topics of training course
conducted by utility
b) How many staff from the franchisee attended
such trainings?
18 According to your experience/ perception which type of a) Technical

training will be helpful/ is required for the staff b) Billing accounting and book keeping
members of the franchisee? c) Any other (please specify
19 Please provide the annual financial statements for the last 2 years
20 Please indicate the Guarantee amount paid for a) Yes/No ______

obtaining the franchisee b) Amount ____
c) No. of months of billing amount for which
security is paid _____
21 Has the franchisee conducted any survey of consumer
and consumer load in the operational before starting Yes No
the venture and for what purpose the franchisee has
done the survey.
If Yes, please provide the copy of same
22 Have you made any investments for strengthening

distribution system? Yes No
If Yes please provide the details of the amount

invested along with the work undertaken since the
franchisee was allotted.
23 What is the typical average monthly bill of households

(Rs/month)
24 What is the mechanism for metering, billing and
collection?
How many people are involved in the
process?
Who takes the meter readings? (Work force
salary of the meter readers/ incentives)
Where are the bills printed?
Who collects the money? (Work force,
salary/incentives)

115
25 Please indicate the average amount spent per

consumer for a complete billing cycle? (meter reading,
calculating and printing the bill, delivering the bill to the
consumers premises, and collecting money from the
consumer)
26 Is there any increased in number of consumer after

franchising? Yes No
If Yes, please provide the number of consumer on

yearly basis for different category of consumers.
27 Is there any increased in revenue realization after

franchising? Yes No
If Yes, please provide the percentage increase in

revenue realization along with the total realization over
the years.
28 Out of the total current connections, how many

connections were regularized after taking over by
franchisee? (If possible please give the details on
yearly basis since the incorporation of the franchisee)
29 The socio economic condition of the area (e.g. local a) Improved significantly
employment) has b) In the process of improvement
c) No difference
30 Please list, if any, other improvements/ developments on the socio economic aspects in the area after the
franchisee has been incorporate
31 What are the distribution and commercial loss for

different districts/ sub divisions of the franchised area?
32 What the franchisee is doing to improve the billing an collection efficiency and what are barriers as per your
experience
33 What is the level of satisfaction of the consumer in the a. Mostly

franchised area. (Please provide the reason for your b. Some of them are satisfied
response.) c. Not much
Have you carried any consumer satisfaction survey?

If yes, please give a copy of the study
34 Consumers support towards the system a. Highly supporting
b. Moderate
c. No support
35 On an average what is the monthly bill of household
(Rs/month)?
Following questions should be filled by input-based franchisee only?
1 What is the bulk supply tariff and who fixed the BST?
2 Is it commercially viable to franchisee
Yes No

3 What is the current T&D loss in your area of loss?

How much is permissible?
4 Is the franchisee regularly monitoring the T&D loss?

If yes, how is the monitoring done Yes No
5 Retail tariff of the franchisee
6 Please provide the following details

S. No DT location Energy Percentage Energy Billing Collection Average
recorded in of billing billed kWh efficiency efficiency revenue
DT meter realization
kWh

117
5 6 5
1 Consumer category wise electricity sales, demand and tariff for FY 2003-04, 2004-05, 2005-06, 2006-07,
2007-08 and 2008-09:
Serial Number Consumer Number of Electricity sales Electricity Tariff Rs./kWh

category consumers (MU) demand (MW)
2 Total electricity supply in the state and sources for FY 2008-09:
Serial No. Generating unit Energy purchased (kWh)

1
2
3
4
5
6
3 While applying for approval of annual Yes No

revenue requirement and retail tariffs has
the distribution licensee mentioned about
assets created with capital subsidy given
from Central Government under RGGVY?
If yes, do the Commission has given benefit

of the capital subsidy to rural consumers
while approving retail tariffs as outlined in
Para 7.5 of Rural Electrification policy?
4 According to Para 8.6 of REP , Yes No

Commission is supposed to lay down
guidelines for projects receiving subsidy as
opposed to tariff determination on case to
case basis. Has such guidelines been
prescribed?
If yes, than can you please provide us the

latest guidelines?
5 Has the regulator conducted any study to Yes No

anticipate increase in demand because of
implementation of RGGVY

6 Has the state government recommended to Yes No

Commission the category of persons/cases
wherein provisions of section 12 shall not be
applicable to persons mentioned in section
13 of the Act?
If yes, has the commission notified the

regulation related to the provision
7 Has the distribution licensee applied for Yes No

determination of bulk supply tariff for a
person exempted under section 13 or for a
franchisee in its licensee area?
8 Has the Commission stipulated any Yes No

conditions and restrictions in the interest of
rural consumers as provided in para 9.20 of
REP
9 Please mention the category of consumers to which state government provides subsidy for electricity supply.
Also please indicate category wise subsidy paid by the government for the FY 2003-04, 2004-05, 2005-06,
2006-07, 2007-08 and 2008-09 for the entire state.
10 What role the commission see for itself, vis--vis franchisee, especially for setting bulk supply tariff for input
based franchisee?
11 What are your views regarding different types of Franchises?
12 How are the Franchises regulated?

119
) 6 5
1 Name of Respondent :
2 Designation:
3 Total no of villages in the state as per Census 2001:
st
4 Please give the number of electrified and un-electrified villages/ hamlets in the state as on 31 March of the
FY
S.N Year No of No. of un-electrified No of electrified No. of un-electrified

o electrified Villages hamlets hamlets
Villages
1 2003-04
2 2004-05
3 2005-06
4 2006-07
5 2007-08
6 2008-09
5 Total no of remote villages that cannot be connected through grid:
S.No Distribution Number of villages that can not Name of the villages
Company be connected to the grid
1
2
3
4
5
6 Is the sate getting subsidy under RGGVY? Yes No

If yes, what is the sanctioned subsidy
amount till for 2204-05, 2005-06, 2006-07 &
2008-09 and the area for which the amount
has been sanctioned?
7 Is the sate getting any loan / grant from Yes No

multilateral donor agencies for rural
electrification?
If Yes, please indicate the schemes through

which the loan/grant is implemented and the
amount?

8 Has the sate notified the Rural Electrification Yes No

Plan as required in Rural Electrification
Policy, 2006?
If yes, than please attach an updated copy

of the same.
If no, please indicate the probable time of

notification.
9 Is there any policy / scheme for rural Yes No

electrification apart from RGGVY?

of the same.
10 Is the state giving subsidy for rural Yes No

electrification to distribution companies?
If Yes then give the amount sanctioned for

different utilities for the FY 2003-04, 2004- Year Amount of subsidy
05,2005- 06, 2006- 07, 2007- 08, 2008- 09 FY 2003-04
FY 2004- 05
FY 2005- 06
FY 2006- 07
FY 2007- 08
FY 2008- 09
11 Is there a policy/scheme for rural industries, Yes No

distributed generation and renewable energy
projects?

of the same.
12 Does the state have a franchisee scheme? Yes No
If yes, than please provide an updated copy

of the same.
13 Which franchise model has been selected in

the state for implementation and why?
14 What is the selection process of

Franchises?

121
15 How many Franchises have been installed

st
till 31 March 2009?
Please provide coverage details of

Franchises and the year of its establishment
16 Whether the state government notified Yes No

district level committee as per the Para 6.1
of Rural Electrification Policy?
17 Is there any mechanism in place to ensure Yes No

that district committees are meeting
regularly?
18 Is there any awareness campaign on Yes No

electricity related issues among panchayats
as mentioned in the Para 6.5 of Rural
Electrification Policy?
19 Is there any mass media communication Yes No

programs instituted by the state government
to encourage communities to take up
electricity distribution as mentioned in the
Para 7.11 of Rural Electrification Policy?
20 Is there a roadmap for appropriate capacity Yes No

building of Franchises, panchayati
institutions and consumer associations as
mentioned in the Para 9.12 of Rural
Electrification Policy?
21 Is there any mechanism for coordination in Yes No

policy and planning for load development
especially in rural areas as mentioned in the
Para7.2 of Rural Electrification Policy?
22 Has the state government recommended to

the Commission for granting exemption
under section 12 of Act to category of cases/
persons specified in section 13 of the Act?
(refer 9.4 of Rural Electrification Policy)

# 8 6 5
1 Name of Respondent:
2 Designation:
3 Total no. of electrified villages, households and BPL households
Years 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Number of electrified
villages
Number of
households
BPL households
4 Total no. of unelectrified villages, households and BPL households
Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Number of un-
electrified villages
Number of un-
electrified
households
Number of un-
electrified BPL
households
5 Please provide AT&C losses for the following years:
Serial No. Year AT&C losses Billing and Collection efficiency
1 2003-04
2 2004-05
3 2005-06
4 2006-07
5 2007-08
6 2008-09
6 Consumer category wise electricity sales, demand and tariff for 2003-04, 2004-05, 2005-06, 200-07, 2007-08,
2008-09
Serial Consumer Number of Electricity sales Electricity demand Tariff
No. category consumers (MU) (MW) Rs./kWh
1
2
3
4
5
6
7
Space for specific comment (if any)
7 Please give details of the energy purchased from various generating units for 2003-04, 2004-05, 2005-06,
2006-07, 2007-08, 2008-09:
Energy purchased (kWh)
Serial Generating 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
No. unit

123
8 Total no. of DPRs (in the first and second phase) related to RGGVY as sanctioned by MoP and the information
related with it:
S.No Name No. of un- No. of un- No. of un- Project Sanctioned Released
of electrified electrified electrified BPL cost amount amount
district villages and households and households and
the villages to the household the BPL families
be covered to be covered to be covered
1
2
3
4
5
6
9 Does the utility have any separate office or
department for rural electrification? If yes, than Yes No
please provide the organisation structure for rural
electrification department and the model for rural
electrification?
10 Please provide details regarding monitoring
mechanisms for construction quality and cost
control criteria for the selection of village for
electrification, fund release modalities for RGGVY
11 Capacity and HRD strategy for utility officials and
Franchises
12 Please provide a copy of cost of supply study, if
conducted, by the utility.
13 Is there a standardised design and specifications
for equipments used for rural electrification? Yes No
14 Does the utility conduct customer meets,

awareness campaigns, load surveys, load Yes No
intensification efforts
15 Is the utility working for the segregation of
feeders? Yes No
If yes, give the status as on date
If no, what is the road map for feeder

16 Does the utility conduct energy audit for loss
identification? Yes No
17 Does the utility have mechanisms like prepaid

cards, spot billing, smart cards and computerised Yes No
billing and collection?
18 Does the utility have tie up with rural banks and
micro-finance institutions for arranging loans to Yes No
customers for connection charges, or for other
load enhancing activities?
19 What is the consumer grievance redressal
mechanism for rural areas?
20 Please provide following franchisee details:
Area coverage

Details of selection procedure
Selection criteria
Mode of selection
Model of franchisee
Capacity building plan
Incentive mechanisms
Commercial arrangements and monitoring

mechanisms
Training plan and whether there was a franchisee
development cell or nodal officer
21 In case franchisee has been installed in districts, how
does the utility ensure that consumer redressal
mechanisms are adhered to by Franchises?
22 Does utility maintain reliability indices for rural areas?
Yes No
If so, what types of indices are maintained?
Please provide the details for last 5 years

23 Is there any difference in reliability of supply in
franchised vis--vis non-franchised area? Yes No
24 What are the future plans of the Utility for

strengthening the franchise system and what are the
critical issues for the transition?
25 Please provide details regarding utilitys efforts in local
participation women, self help groups, NGOs,
cooperatives and panchayats and district level
committee:
26 Please provide annual financial statements for FY07 and FY08:
27 Please provide break-up for operating expenses, capital employed and revenue:

Annexure V Franchisee models
7E >>BD '
Model A: Revenue Franchisee- collection based

# 2 ?
2 ! ? ! !
? # ?
2 #
? 2 #
3 . E 2
2 ? ? ?
2
? ? '
< 2
= ? !
? ?
? 7
& 2 #
# ?
Model B: Revenue Franchisee Input based

2 !
? 2 2
? 2
2 2
2
2 2
2 E 2 2 '
2 #B < =
Q
?
#B
2 ? 2 2
? ?
?
E 2
Model C: Input based Franchisee

? 4 -
2
@ Q
2 #B
? ? 2
? 2
Model D: Operation & Maintenance Franchisee

!
. 2 ? ! I ?
#B A 8 2
2 2
) < =!
$A-
Model E: Rural Electric Co-operative Societies

G
? G !
2 2 2
2
! !2 !
! !
7
@ ? ? ? '
$ G 2
$ 2 2
<-$ = # '
? )
2 @ ? !

127
4 &
2 2 @ ? <
2 ? =!
% @ ? 2
2 !
. @ ?
Model F: Electric cooperative society operations management through contracting

? 2 ? @ !#
4$&
7
7 Q G 2 !
Q 2 ?
2 @
& <
Q G = 2
@ ?

Annexure VI Consumer Tariff for Andhra Pradesh
Consumer Tariff for EPDCL

129

Source: Table 88: RST of EPDCL for FY 2009-10

131
Consumer Tariff for BESCOM for FY 2009-10
ANNEX-5
PROPOSED AND APPROVED REVENUE FOR FY10 OF BESCOM
Category Description Approved as per Approved as per

CDT RST
Energy Total Energy Total
Sales Revenue Sales Revenu
(MU) (Rs Crs) (MU) e (Rs
Crs)
LT1 Bhagya Jyothi/Kutir Jyothi 116.52 49.04 116.52 0.00
LT2(a) (i) Dom. / AEH - Applicable to Bangalore 3077.76 1154.50 3077.76 1154.50
Metropolitan Area and other Municipal
Corporation Areas.
LT2(a) Dom. / AEH - Applicable to areas coming 462.02 148.82 462.02 148.82
(ii) under Urban Local Bodies
LT2(a) Dom. / AEH - Applicable to areas coming 343.13 98.98 343.13 98.98
(iii) under Village Panchayats
LT2(b) (i) Pvt. Educational Institutions Applicable to 23.47 14.42 23.47 14.42
areas of Municipal Corporations Area &
Urban Local Bodies
LT2(b) Pvt. Educational Institutions Applicable to 2.88 1.69 2.88 1.69
(ii) areas coming under Village Panchayats
LT3 (i) Commercial - Applicable to Bangalore 1032.92 704.64 1032.92 704.64
Metropolitan Area
LT3 (ii) Commercial - Applicable in areas under
ULBs other than those covered under LT3 (i)
LT3 (iii) Commercial - Applicable to areas coming
under Village Panchayats
LT4(a) (i) IP<=10HP - Unmetered 4008.70 584.69 4008.70 0.00
IP<=10HP - Meter requisitioned, but not
fixed
IP<=10HP - Metered
LT4(a) IP<=10HP - Urban feeders
(ii)
LT4(b) IP>10HP 6.20 0.88 6.20 0.88
LT4(c ) IP<=10HP - Nurseries 1.97 0.32 1.97 0.32
(i)
LT4(c ) IP>10HP - Nurseries
(ii)
LT5 (a) Industrial - Applicable to Bangalore 633.23 298.84 633.23 298.84
Metropolitan Area
LT5 (b) Industrial - Applicable to all other areas 276.49 142.33 276.49 142.33
other than under LT5(a)
LT6(a) Water supply 406.30 152.31 406.30 152.31
LT6(b) Public lighting 320.00 136.95 320.00 136.95
LT7 Temporary supply 106.35 71.79 106.35 71.79
LT Total 10817.94 3560.20 10817.94 2926.47
HT1 Water supply & sewerage 465.31 178.46 465.31 178.46
HT2(a) (i) Industrial - Applicable to Bangalore 2076.70 1066.34 2076.70 1066.34
Metropolitan Area
HT2(a) Industrial - Applicable to areas other than 1598.93 810.48 1598.93 810.48
(ii) those under HT2(a) (ii)
HT2(b) (i) Commercial - Applicable to Bangalore 2366.51 1588.38 2366.51 1588.38
Metropolitan Area
HT2(b) Commercial - Applicable to areas other than 122.74 81.76 122.74 81.76
(ii) those under HT2(b) (ii)
HT3(a) (i) Lift Irrigation - Applicable to lift irrigation 1.56 0.36 1.56 0.36
schemes under Govt
HT3(a) Lift Irrigation - Applicable to lift irrigation
(ii) schemes under private & societies not
covered under HT3(a) (iii)
HT3(a) Lift Irrigation - Applicable to lift irrigation
(iii) under private & societies - Urban feeders
HT3(b) Irrigation - 0.38 0.10 0.38 0.10
Nurseries/Horticulture/Plantations
HT4(a) Residential Apartments - Applicable to 78.95 34.36 78.95 34.36
Bangalore Metropolitan Area & other City
Corportations
HT4(b) Residential Apartments - Applicable to all 8.46 3.96 8.46 3.96
other ULBs other than those under HT4(a)
HT4(c) Residential Apartments - Applicable to areas 1.17 0.45 1.17 0.45
under Village Panchayats
HT Total 6720.71 3764.65 6720.71 3764.65
Miscellaneous Revenue 57.07 57.07

133
Total 17538.65 7381.92 17538.65 6748.19
Revenue without BJ/KJ & IP Set Installations 6748.19

Page - 242
Source: KERC Tariff Order for BESCOM for the FY 2010

Consumer Tariff for Orissa

RST for the FY 2009-10

135
Source: Tariff Order for FY 2009-10


Annexure VII Demand supply gap of power sector in India
Table 45 Year wise energy deficit/ surplus in India

Period Requirement (MU) Availability (MU) Energy deficit/surplus (MU)
2002-03 545983 497890 -48093
2003-04 559264 519398 -39866
2004-05 591373 548115 -43258
2005-06 631757 578819 -52938
2006-07 690587 624495 -66092
2007-08 739345 666007 -73338
2008-09 774324 689021 -85303
April-June ,2009 202238 182412 -19826
Source CEA Power scenario at glance published by CEA, July 2009
138Analysis of rural electrification strategy with special focus on the franchisee system in the State of Andhra Pradesh, Karnataka, Orissa

Annexure VIII: Stakeholders discussion
Table 46: Karnataka

Details/stakehol Energy Department REC KERC KPTCL BESCOM BESCOM -Kolar Franchises Local Govt.
ders District
Perception on - Improvement in -Comprehensive - No - Quality of - Strength- - Infrastructure - Better facility Improved
RGGY infrastructure scheme feedback supply ened the improvement - Improved - accessibility
- Better access - increased access from needs to be distribution - Tail end voltage quality - quality
- boost to economic - benefit to BPL hhs ESCOMs studied structure and increased - coverage
development - improved rural on RGGY - Not helped in - Connections - infrastructure
economy planned in creating added
keeping with infrastructure - Easy capital
the future - Tail end
demand voltage
- Built improved
infrastructur - Positive
e in rural impact on
areas economic
growth
Perception on Improvement in Improved revenue - - Not much - increased - Increase in - Collections Improvement
Franchisee collections collections improvem improve- revenue collections, revenue improved - in billing
Franchisee not ent in ment in collections - billing - Bridge gap - collection
required in some collection billing - - Support in between - consumer
areas such as - led to - MFFs not disconnection ESCOMS and awareness
Mangalore district of correc- directly - Motivation of consumers
Karnataka tions of selected consumers - Consumer
defaults - Assoc- - Active awareness
iations participation in Jan - Efficiency in
demanding samparka Sabhas billing
permanency
Details/stakehol Energy Department REC KERC KPTCL BESCOM BESCOM -Kolar Franchises Local Govt.
ders District
View of Basic model started in - Basic model for Staff - Weakness - The - Current model - Good model -
Franchisee 2003 revenue collection shortage in the model revenue performing very
model led to - Analysis of franchisee well
initiation of the same is has been
revenue required successful
franchisee - After feeder
in segregation
Karnataka is done, IBF
may be
thought of
Issues GVPs are forming Issues with Free power - Low income - Irregular
associations the entire leads to after supply
demanding regular system resistance to implementatio
Govt. jobs metering and n of new
also affects agreement
financial
health of the
utility
Recommendatio Feeder segregation Performance Proper Bifurcation - Franchises - Wave off of
ns by the monitoring for implement of feeders Should be arrears
stakeholders Franchises required ation is permanent
required employees of
the ESCOMS

141
Table 47: Orissa

Details/stakeholders Energy Department REC OERC PIA (NHPC, NTPC SOUTHCO, Enzen Global
and PGCIL) WESCO and
NESCO
Perception on RGGY - improvement in -comprehensive - appropriate - built - will help - Better facility
infrastructure scheme scheme for infrastructure in private utility - Improved
- better access of - will increase rural areas. rural areas - Tail end quality
electricity to rural access of electricity - financial voltage will
consumers and BPL in rural areas assistance to improve in
household - beneficial for BPL private rural areas
- boost to economic hhs utilities will - Positive
development - will improved rural help them to impact on
-Will have huge economy implement economic
impact of power the scheme growth
scenario of the state. in their area - will have
impact on the
over all health
of distribution
the network
Perception on -will help in - better system and - will bring its NA - increased NA
Franchisee decreasing the is very important for competency revenue
losses and rural areas. for better collections
increasing financial meant of - will help in
sustainability. distribution decreasing
system the losses
View on Franchisee -should focus more n - better than revenue -- better than NA - The revenue - Good model
model decreasing the based collection revenue franchisee
looses model based has been
-should be replicated - is appropriate collection successful
in other subdivisions model for Orissa model - After feeder
also segregation is
done, IBF
may be
thought of
Issues Success of existing Impact of -limited number of - O&M - voltage drop at
franchisee is must so base line subcontractors for expense tail end due to
as to attract and the supply of needs to be improper
franchises in other consumer material and for increased to configuration of
area- mix on the carrying the maintain the distribution

Details/stakeholders Energy Department REC OERC PIA (NHPC, NTPC SOUTHCO, Enzen Global
and PGCIL) WESCO and
NESCO
- all the help required input based physical work over all network
by the franchisee franchisee effects the timely network - existence of
should be provided - bid for completion of - increase in large number of
by the utility implementin projects load from defective meters
g franchisee - problem created rural areas and non
was revised by some local with the metering of
twice by people of non implementatio many
SOUTHCO RGGVY villages n of consumers
- need more franchisee - apprehension
support from local - demand and about the
authorities supply gap is accuracy of
expected to base line figures
increase
Recommendations by - Bihar model may - -baseline NA - O&M - replace
the stakeholders also be replicated and expense on defective meters
- feeder segregation consumer the network and install new
should be focused mix should developed meters to un-
- franchisee will be be properly under metered
implement in many fixed so as RGGVY consumers
areas to attract should be Strengthen
franchises either allowed distribution
-focus on by network
increasing commission Timely
efficiency or should be implementation
and plugging supplemented of RGGVY
the leakage by the Govt.

Annexure IX: Status of implementation of RGGVY in Orissa
F !
Plan Name of the District PIA Sanctioned Amount Electrification of Un-/De- Intensive Electrification No. of Connections to BPL
period Project Cost Released (in Electrified villages of Electrified villages Households
(in Rs. Crore) Rs.Crore)
Target Achieved Target Achieved Target Achieved
Anugul NTPC 119.9146 110.8 594 516 1034 371 94614 94614
Gajapati NHPC 83.109 58.7954 721 572 746 587 58428 43524
10th
Ganjam NHPC 116.3911 85.1909 684 437 1984 819 112263 57531
Nayagarh NTPC 114.6889 106.7028 603 542 873 484 69775 69775
Balangir NTPC 127.4864 53.9486 464 93 1300 19 153039 13452
Baleshwar POWER GRID 159.2228 47.3365 174 52 2445 237 168238 7741
Baragarh NTPC 95.6157 40.9647 117 84 1062 117 136314 18452
Baudh NHPC 72.4005 22.019 733 0 376 0 66599 4607
Bhadrak POWER GRID 94.2704 25.4164 289 43 953 95 69203 2762
Cuttack POWER GRID 133.6061 40.9666 161 49 1693 16 146757 11818
11th Debararh NTPC 42.8663 21.8959 354 262 344 58 46115 19635
Dhenkanal NTPC 85.8521 42.4234 250 172 817 140 47531 20817
Jagatsinghapur POWER GRID 84.9433 42.5409 116 59 1113 57 97029 7432
Jajapur (1) POWER GRID 13.608 2.9573 5 0 198 0 16293 0
Jajapur (2) POWER GRID 170.9333 47.6299 127 28 1446 12 143761 1230
Jharsuguda NTPC 33.6734 16.72 45 30 308 23 24393 2575
Kalahandi NTPC 193.9776 100.44 1100 118 917 53 216253 12575
Annexure X: Status of implementation of RGGVY in Karnataka
F !
Plan Name of the PIA Sanctioned Amount Electrification of Intensive Rural Households BPL Households
Period District Cost (Rs Released un-electrified Electrification including BPL
Lakhs) Rs.Lakhs)
Target Achieve Target. Achievem Target Achieve Target Achieve
ment ent ment ment
BANGALORE
RURAL BESCOM 2604.31 3379.57 0 0 2043 1793 73493 53291 39406 35103
CHITRADURGA BESCOM 2923.54 3854.75 2 2 1174 1113 72162 40989 36188 39571
DAVANGERE BESCOM 2972 3957.67 0 0 795 755 96885 43904 50472 41266
KOLAR BESCOM 2201.02 2938.07 0 0 3307 3248 75787 48958 36744 42165
TUMKUR BESCOM 1626.24 2180.53 12 10 3224 2849 49833 31170 26094 28379
HASSAN CESCOM 3253.64 4531.6 35 34 2471 2274 159925 65529 41565 60062
KODAGU CESCOM 3360.92 1283.72 0 0 296 70 96394 2928 39669 2928
MANDYA CESCOM 819.03 1208.53 0 0 1404 1216 26384 34986 8760 30109
10th MYSORE CESCOM 3741.88 4424.77 0 0 1478 1122 152077 96361 92345 88109
BELLARY GESCOM 2253.91 2645.45 0 0 537 525 89477 40573 45889 38077
BIDAR GESCOM 1673.53 2125.4 0 0 613 610 48316 33351 25863 25863
KOPPAL GESCOM 1732.68 2205.26 0 0 624 438 55761 32506 28515 28515
RAICHUR GESCOM 2178.25 2758.55 0 0 814 676 56172 34514 28335 28335
BAGALKOT HESCOM 2557.08 3177.57 0 0 604 604 63203 38151 33477 36427
BIJAPUR HESCOM 2329.21 2365.1 0 0 665 583 90658 37546 48899 32439
DHARWAD HESCOM 1329.37 1624.93 0 0 388 388 31806 23138 21936 21936
GADAG HESCOM 1382.01 1409.74 0 0 321 318 116443 24615 27911 21351
HAVERI HESCOM 1961.37 2260.19 0 0 690 682 61557 41678 39429 39939
CHAMRAJNAGAR CESCOM 1131.81 849.46 0 0 422 360 69762 39991 22781 35699
11th GULBARGA GESCOM 4325.24 1418.32 0 0 1344 252 130939 0 58973 0
145
BELGAUM HESCOM 4580.21 3411.22 5 0 1131 729 163192 29278 62430 28249
UTTARA
KANNADA HESCOM 2487.24 2124.54 29 12 1219 608 34614 14123 19657 13682
CHIKMAGALUR MESCOM 3041.15 1291.77 1 0 1033 0 58600 0 19429 0
SHIMOGA MESCOM 2344.15 1323.07 48 0 1471 0 41964 0 23098 0
BELGAUM Hukari 721.8 0 0 0 123 0 17393 0 14074 0

.
Annexure XI: Status of implementation of RGGVY in Andhra Pradesh
F !
S Name of the PIA Sanctioned Amount Electrification of Villages House hold including BPL household
No. District Cost (Rs. Released BPL
Lakhs) (Rs
Lakhs)
Coverage Achievement Coverage Achievement Coverage Achievement

in No. in No. in No.
10th ANANTAPUR CPDCL 2355.05 1811.1 926 841 104721 118981 51408 85055
KURNOOL CPDCL 3718.15 2213.04 902 525 219554 141732 135203 112986
MAHBUBNAGAR CPDCL 5661.54 3774.44 1477 1117 324419 145325 220158 111712
NALGONDA CPDCL 3140.16 2356.04 1124 1124 116938 94230 78352 58902
SRIKAKULAM EPDCL 5517.61 3665.35 1819 1671 215971 148766 194941 141633
WEST GODAVARI EPDCL 3273.4 2482.91 1141 769 223160 99201 87831 74470
VISAKHAPATNAM EPDCL 6667.56 4135.89 2620 1409 248207 128623 204113 128578
VIZIANAGARAM EPDCL 4186.74 2934.24 1438 1300 205774 121522 149755 114740
ADILABAD NPDCL 4202.24 3417.58 1760 1314 163539 110259 103184 103414
KHAMMAM NPDCL 3891.85 1592.33 1245 955 148666 100692 132334 87078
NIZAMABAD NPDCL 2639.28 1530.94 1050 538 141081 82171 60036 72324
CHITTOOR SPDCL 3653.2 3085.06 1274 1025 201850 160613 120186 147770
CUDDAPAH SPDCL 3146.58 2326.77 954 890 165842 140693 104205 110785
GUNTUR SPDCL 3180.8 2178.27 694 416 151836 189075 135273 179848
KRISHNA SPDCL 2776.05 2086.46 1005 725 168225 167391 87774 123091
147
NELLORE SPDCL 3420.91 2487.75 1127 997 201478 139454 121931 133300
PRAKASAM SPDCL 3384.85 2473.3 1067 688 164900 175951 127633 145183
RANGAREDDI CPDCL 940.83 0 893 476 35175 65987 14883 24638
MEDAK CPDCL 2176.46 0 1061 435 55993 49127 34367 40627
EAST GODAVARI EPDCL 8021.12 2007.18 1323 304 296310 114314 245334 79647
KARIMNAGAR NPDCL 1903.84 1245.72 935 723 70229 76073 19417 67996
11th WARANGAL NPDCL 3177.61 1088.98 1003 858 175345 75867 71199 63351
Vishkhapatnam ARECS 1094 341.32 143 0 87616 0 39368 0
CHITTOOR RECSL 594.2 139.77 223 0 19848 0 14835 0
VIZIANAGARAM CRES 804.13 188.06 104 0 32281 0 29200 0
KARIMNAGAR CESS 481.67 245.17 173 0 15170 0 9220 0

Franchisee PDF

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Franchisee PDF

Загружено:

Авторское право:

Доступные форматы

Final Report

Analysis of rural electrification strategy with

Project Report No. 2009ER03

www.teriin.org The Energy and Resources Institute

For more information

T E R I Report No. 2009ER03

>>BD )? > > B # D )

T E R I Report No. 2009ER03

T E R I Report No. 2009ER03

T E R I Report No. 2009ER03

1.1 Objective and Scope of the study

T E R I Report No. 2009ER03

1.2 Approach and methodology

T E R I Report No. 2009ER03

Minimum Needs Program (MNP)

Kutir Jyoti Yojana (KJY)

Pradhan Mantri Gramodaya Yojana (PMGY)

Accelerated Rural Electrification Programme (AREP)

T E R I Report No. 2009ER03

Rural Electricity Supply Technology (REST) Mission

Accelerated electrification of one lakh villages and one crore households

T E R I Report No. 2009ER03

Table 1: The RE programme and the year of its launch

S No Name of the programme Year of launch

1 Minimum Need Programme 1974-75

Rajiv Gandhi Grameen Vidyutikaran Yojana

T E R I Report No. 2009ER03

Figure 2 Location of Andhra Pradesh in India

3.2 Power sector profile

% & 2 . 8 <% &.8=

? & 2 < A&=

3.3 Rural Electrification in the State

T E R I Report No. 2009ER03

3.3.1 Experiences in Rural electrification

T E R I Report No. 2009ER03

T E R I Report No. 2009ER03

3.3.2 Rural Electrification schemes in the State

3.3.2.1 Rajiv Gandhi Grameen Vidyutikaran Yojana

T E R I Report No. 2009ER03

T E R I Report No. 2009ER03

Table 2: Status of implementation of RGGVY as in January, 2010

3.3.3 Franchisee programme within the State:

T E R I Report No. 2009ER03

T E R I Report No. 2009ER03

T E R I Report No. 2009ER03

Table 3: Performance of franchisee on certain parameters in franchised area of

T E R I Report No. 2009ER03

S No Parameter As on 18.10.2006 As in May 2008

3.4 Evaluation of Franchisee System

3.4.1 Selection of Discom

T E R I Report No. 2009ER03

3.4.2 Progress of RGGVY in EPDCL

T E R I Report No. 2009ER03

3.4.3 Franchisee operations in EPDCL:

Table 7: Details of the franchisee operations in SOUTHCO

Area coverage Ankapalli and Cheepurupalli 11 kv feeders at 10 places

Selection procedure Nominated by the State Through proposal discussion.

Franchisee model Rural cooperative society with

Capacity building Sometimes training imparted

Commercial Franchisee deposits amount on

T E R I Report No. 2009ER03

Franchisee Cooperative societies O&M franchises

Incentive 1. No work related incentive.