The central government plan for a new franchise model to attract private companies into the power supply in various states will interest them, say sector officials and experts.
However, they add, more needs to be done for making this viable. The Union ministry of power has drafted a model plan, for multiple private franchisees as power suppliers in states. Business Standard reported on this earlier in the month.
It proposes a “light-handed approach” towards franchisees to incentivise, discount and set rates (within a stipulated range) for supply in an area. Industry officials say there is interest in the model but full privatisation in the supply segment would be a better step.
