Power shortage: `Go for distribution franchise model'

Mumbai: Dr Pramod Deo, Chairman of Maharashtra State Regulatory Commission, has suggested introduction of the `distribution franchise model' or Pune model in other cities in Maharashtra to overcome the current power shortage.

He was speaking to the media at the sidelines of a function at Indian Merchants Chamber on Thursday.

The model was first implemented in Pune and today the city has zero load shedding.

About 30 companies in Pune have started using their idle generators to produce 90 MW power, which was supplied to the consumers during power cuts. This helped the grid to use the available power for other area.

Pune consumers pay extra 42 paise for every unit they consume over 300 units for the enhanced power supply. Maharashtra State Electricity Distribution Company Ltd compensates these companies for power supply. Dr Deo said the Pune model would be successful in areas, which do not have high transmission and distribution losses and recovery of dues is high. This model will help avoid setting up of additional power stations.