Amid push for rural grid extension, distribution franchising could deliver reliable energy access in India

The government is banking on state-owned utilities and a centralized grid, but global trends point to a decentralized model in partnership with private sector, community. A rural franchise model for distribution and revenue collection was operational in more than a dozen states and produced a range of positive results in tens of thousands of villages based on analysis done by TERI. The model relied on nearly 5,000 “Self Help Groups” (SHGs), locally trained community teams responsible for meter reading, bill distribution, and signing up new connections. For efficient management of local power distribution, the government should reactivate the distribution franchise system, observes Mr Debajit Palit, Associate Director, Rural Energy and Livelihoods Division, TERI.