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Centre drafts franchisee model for power supply, urges states to take it up

The plan proposes a "light-handed approach" towards franchisees to incentivise, discount and set tariff (within stipulated range) for electricity supply in an area

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Shreya Jai New Delhi
The Ministry of Power has drafted a model plan for states to have multiple private franchisees as power suppliers, opening up the distribution sector in India. This paves the way for the second round of reforms by the Bharatiya Janata Party (BJP)-led central government to revive the ailing state-owned power distribution companies (discoms).

Power, New and Renewable Energy Minister R K Singh has urged discoms to become wholesalers of electricity and have private power suppliers. But, this is the first time the Centre has officially proposed the idea of having private suppliers through the franchisee model. Officials said this was