Private Participation in the Indian Power Sector: Lessons from Two Decades of Experience by Mohua Mukherjee

Author:Mohua Mukherjee
Language: eng
Format: epub
Publisher: The World Bank

The previous sections have elaborated on the definitions and modalities of DFs in rural and urban settings. What has been the actual experience on the ground? The following sections summarize the short experience so far.

Review of Rural Franchisee Experiences

Several states have implemented rural DFs in connection with RGGVY schemes. However, the extent of involvement of private players is very limited in such arrangements. In addition, most DFs involve routine outsourcing with only certain activities or responsibilities transferred to the franchisee (usually no capital investment because of the weak financial standing of parties who come forward to participate in rural franchises).

More than 37,000 rural franchisees are in operation, covering more than 216,000 villages across 18 states in the country. Information regarding the nature of franchisees and the number of franchisees appointed and the villages covered across states as of March 31, 2012, is summarized in table 4.4.

Table 4.4 Nature of Franchisees and Number of Franchisees Appointed and Villages Covered across 18 States as of March 31, 2012

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