Report of the task force on private participation in power distribution
A task force on Private Participation in Power Distribution was set up under the chairmanship of Member (Power) Planning Commission. The task force was set up to explore the scope and nature of private power distribution with the objective of harnessing private sector investment and the associated efficiencies. The Task force in turn constituted two sub-groups to examine and evolve the frameworks for the Public Private Partnership Model and the Franchisee Models. This Task Force’s report is being published to disseminate the salient features of the PPP model and the franchisee model in power distribution, with a view to encouraging their adoption by the States. The objective of PPP in distribution would be to ensure zero power cuts, reduced transmission and distribution losses and affordable distribution tariffs. The PPP model also would be consistent with the Electricity Act, which requires distribution to be a licensed business with full regulatory oversight. The ownership of the assets would continue to remain with the Government, and the use of assets would revert to the Government after the concession period. The PPP model would also enable limited recourse financing and Viability Gap Funding support.