Jharkhand is ready to hand over power distribution and billing to private parties. Currently, this work is being done by the State Energy Development Corporation’s company Jharkhand Bijli Vitran Nigam Limited. The overall technical and commerce deficit (AT&C LAS) of the company has been high since it came into existence in 2014. This is due to low billing and revenue collection.
This is causing difficulties in operation and better financial performance. In a study conducted to improve the power distribution, comprehensive capital investment in the sector as well as better management and operational efficiency, private partnership has been proposed as a better option. Regarding this, the World Bank’s consultancy, SBI Capital Markets, has prepared a concept note by studying the Public Private Partnership (PPP) model in Jharkhand Bijli Vitran Nigam Limited. It suggests various PPP business models and better models. Based on the concept note, a committee was constituted in the 37th board meeting of the corporation by formulating a proposal in this regard. It may be noteworthy that power is being supplied on this model in major cities including Delhi, Mumbai and states like Rajasthan, Odisha.
In principle, two power area boards of the state have been approved for restoration of distribution licensee in PPP mode at Ranchi and Jamshedpur. For this, transaction advisors will be appointed to prepare documents on legal, human resources and financial management. The approval of the Jharkhand State Electricity Regulatory Commission will be sought for the restoration of the new licensee. A five-member state-level committee has been set up to implement the entire process, chaired by the Development Commissioner, while the members will be CMD of Jharkhand Urja Vikas Nigam Limited and MD of Jharkhand Bijli Vitran Nigam Limited including Secretary, Department of Energy and Planning co-finance.
A tender appraisal committee has also been constituted to implement the power distribution licensee model under PPP mode, headed by Additional Secretary, Department of Energy. While the members will be the chief electrical engineer of the Department of Energy, chief electrical engineer of Bijli Vitran Nigam and chief electrical engineer of Urja Vikas Nigam.
