Pitching for letting private players operate and maintain its network, Mahadiscom, the cash-starved electricity distribution company of the Maharashtra government, is planning to invite international bids to implement franchisee model in six more locations.
Currently, the model is being successfully implemented in certain parts of Bhiwandi near Mumbai and Nagpur distribution circles, which are operated by Torrent Power and SNDL, respectively.
Mahadiscom, which has a consumer base of over 24 lakh, had also implemented the model in Aurangabad and Jalgaon through GTL and CGL, respectively.
However, since these firms delayed payments to Mahadiscom, their agreements were terminated.
"Since we have two success stories, which have helped us reduce the distribution losses by almost 50 per cent, we feel we should continue this model to ensure efficiency in maintenance of the network and timely collection of dues from our consumers," Mahadiscom director Vishwas Pathak told
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