Hotline: 1800 102 2007
Hotline: 1800 102 2007
Search Business Opportunities

Electricity Distribution Companies Will Soon Supply Power Via Franchise Model, Providing new business opportunities

The Power Ministry stated that the government is looking to implement an electricity distribution franchise model for helping the power distribution companies in India.

By Content Writer
Electricity Distribution Companies Will Soon Supply Power Via Franchise Model, Providing new business opportunities

Franchising has become an emerging business opportunity for budding entrepreneurs. It is now a globally accepted business model, especially in the emerging private sectors all across the globe. Entrepreneurs can be seen shifting their gears towards the franchise-based business models for transforming their business’ vision into realities.

Even the government is now relying on the franchise model for transforming the nation’s power distribution scenario. Distribution serves the most important function in India’s power supply chain. Power Distribution Franchisee is neither a new concept in India nor the popular one.

It has been over a decade, when the first power distribution franchise was incepted in Bhiwandi, as an experimental basis, got an overwhelming success. The franchise model saw a good momentum after the success story of Bhiwandi in power distribution.

Recently, the Power Ministry stated that the government is looking to implement an electricity distribution franchise model for helping the power distribution companies in India. According to the sources, the state power distribution companies (Discoms) will have to hand over electricity supply businesses to multiple licensees or franchisees to get central government assistance or loans from the Power Finance Corporation.

This will be opening doors for many franchise business opportunities for aspiring entrepreneurs in this segment.

A Win-Win Situation

The power distribution is one of the most vital components of the country, yet it is the weakest link. According to reports, the state power distribution companies are undergoing massive financial losses. In fact, the combined losses of state-owned power discoms by the end of the year 2018 were ₹40,295 crore. Along with this, the Discoms continue to face power theft, billing inefficiencies and regulatory delays in tariff increases, resulting in financial losses. While the government’s Ujjwal Discom Assurance Yojana (UDAY) scheme seeks to reduce discom losses, there was hardly any impact on their financial status.

Therefore, it is thus believed that privatization can be the key to overcome the sector’s commercial challenges. It is conjectured that implementing electricity distribution franchise model might help cut down financial losses along with helping companies to become efficient in terms of billing and collection of electricity dues.

Franchising: Common Solution to Many Problems

Power Distribution Franchisee is promising business opportunity if done correctly. Past records prove that the franchise distribution can provide a common solution to many problems related to the supply of electricity.

The franchise distribution model will not only assist in reducing the losses but will also ensure 24/7 power supply along with penalties on discoms on performance issues, provide subsidy on electricity via Direct Benefit Transfer (DBT) and also to not let inefficiencies of the discoms be passed on to the consumers through a hike in tariff.

The franchise model will be generating new business opportunities for potential entrepreneurs along with presenting a revamped India

In the Franchise model, the tender on an area will be given out to the highest bidder by the respective state distribution companies to any private company which manages billing and collection on behalf of the discom. The franchise model will be curated keeping the distribution companies in mind. It will be coming along with a short term plan where the entire focus will be on separating content and carriage in the electricity business.

The franchise has to ensure a targeted collection on electricity dues for the period of the contract for the particular area.  There are several different models with this framework, including the revenue-based collection franchisee model and the input-based franchise model.

Comment
image
image
mobile
address
star franchise india
jayabalan : 28, Aug 2019 at 01:37 PM
i am interested
Ikram khan : 28, Aug 2019 at 06:10 PM
We are interested for electric power franchise & Distribution network for dehli west up or uttranchal please gove me detail for better understanding this concept. . Regrds ikram khan .. Yash business group u can send me detail by whtsup also
Ikram khan : 28, Aug 2019 at 06:10 PM
We are interested for electric power franchise & Distribution network for dehli west up or uttranchal please gove me detail for better understanding this concept. . Regrds ikram khan .. Yash business group u can send me detail by whtsup also
Rohan : 28, Aug 2019 at 06:42 PM
I wnt to knw detailed abt this franchise abt power distribution
Sazzad hossain : 28, Aug 2019 at 07:47 PM
I am interested for electricity franchise
Jayant singh : 28, Aug 2019 at 09:19 PM
How to get electricity distribution franchises
Hari krishnan : 28, Aug 2019 at 09:30 PM
Interested
Md azam : 29, Aug 2019 at 08:40 AM
I am interested electricity distribution frenchise
Sameer Kumar : 29, Aug 2019 at 12:15 PM
Contact me
Avinash KHILLAN : 29, Aug 2019 at 01:04 PM
Very good idea to boost distribution and collection network but the staff angged by the franchisee should not be reliable but better to install prepaid meters under Franchisee distribution control.
Sudhanshu Malik : 29, Aug 2019 at 03:11 PM
Franchise for bareilly
Somnath Roy : 29, Aug 2019 at 03:41 PM
I am interested for power distribution franchise for westbengal.
Bhupesh srivastVa : 30, Aug 2019 at 09:50 AM
Want to franchise
JOHNY KOIKARA PAUL : 30, Aug 2019 at 06:22 PM
I am interested....pl send me the details
pritam prakash gugale : 31, Aug 2019 at 12:52 PM
I am interested for power distribution franchise for Ahmednagar,maharashtra, 414001 plz give me details . thanks
Jonathan : 02, Sep 2019 at 11:42 PM
Am interested for Discom franchise for Odisha.Please revert me back with details for further processing.
rahul : 07, Sep 2019 at 12:29 AM
pls contact
ANAND JINWALA : 07, Sep 2019 at 06:21 PM
I am interested to take a franchise of Electrifying. I am interested for Surat (Gujarat).
Related opportunities
  • Surveillance Equipments
    About Us: VICOM Security (P) Ltd is a professionally managed Security -Surveillance,..
    Locations looking for expansion West bengal
    Establishment year 1995
    Franchising Launch Date 2018
    Investment size
    Space required 250
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Circus avenue West bengal
  • Others Food Service
    About Us : A fast growing chain of Premium Cafes ! Established..
    Locations looking for expansion Maharashtra
    Establishment year 2016
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Others Food Service
    About Us: ​Cake Me Away is a renowned bakery, offering sweet..
    Locations looking for expansion Maharashtra
    Establishment year 2010
    Franchising Launch Date 2019
    Investment size Rs. 10lac - 20lac
    Space required 180
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Designer
    About Us: Elite Footwear is a brainchild of an entrepreneur; Sri..
    Locations looking for expansion West bengal
    Establishment year 1960
    Franchising Launch Date 2019
    Investment size Rs. 20lac - 30lac
    Space required 1200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater kolkata West bengal
Insta-Subscribe to
The Franchising World
Magazine
tfw-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts

pincode
ads ads ads ads