Power distribution through franchisee system
	19:22 IST

Lok Sabha In order to ensure revenue sustainability of the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) scheme to maintain the infrastructure being created and to provide uninterrupted quality power, deployment of franchisees has been made mandatory for management of rural distribution through franchisees who could be Non-Governmental Organizations (NGOs), Users Association, Cooperative or individual entrepreneurs. This helps in minimizing the Aggregate Technical and Commercial (AT&C) losses besides improving the rural power distribution system. Under Accelerated Power Development and Reforms Programme (APDRP), Ministry has also advised State Power Utilities to franchise electricity distribution system in such towns where Aggregate Technical and Commercial (AT&C) Losses are comparatively higher and the utility itself fails to reduce the losses significantly. All the 27 States implementing RGGVY, having executed tripartite and quadripartite agreements, have consented to deploy franchisees for management of rural distribution system under RGGVY. REC as a nodal agency for RGGVY has circulated guidelines covering various models of franchisee to facilitate selection and deployment of franchisees in rural areas. Under APDRP, during various reviews by the Ministry, Utilities have agreed to adopt franchisee system in towns running with high AT&C losses. This information was given by Union Power Minister Shri Sushilkumar Shinde in a written reply to a question in the Lok Sabha today. PRA:NC