There is an urgent need to re-evaluate the model contours of private sector participation in the power distribution space. The existing IBDF (input-based distribution franchisee) model was conceptualized about 12 years back with the realities that were relevant then. The sector has undergone changes since then and current realities are different from the time when this model was conceptualized. “One size fits all” does not cater to today’s need, hence need of the hour is to work our multiple models of private sector participation to help discoms achieve their objectives within the specified time.
Discoms of today have sufficient capital expenditure sanction to allocate to the overall improvement of the network, hence private sector funds may not be their requirement. But they need urgent support in areas such as high accountability, technology adoption in field, time-bound improvement and players who are ready to work in a rural-urban combine instead of pure urban areas.
Combining the requirements, what should emerge is an alternate capex-light model for private players so that they can replicate their process, technology to improve and transform multiple areas.
Devtosh Chaturvedi in an exclusive interaction with T&D India