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Issues & Challenges in Rural Electrification Presented by  Anudeep Yadav, Roll No-10 MBA (III Sem )Power Management National Power Training Institute
Background  Study report is based on participation in live project for implementation of rural distribution franchisee model under RGGVY In  Jharkhand
Why Care about it?
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Rural Electrification ,[object Object],Overall………………..Difference between Developing & Developed  nation.
About the Presentation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Rural Electrification –a background To finance RE schemes and promote rural electricity co-operatives for funding rural electrification projects across the country. Provide a single point light connection (60w) to all Below Poverty Line (BPL) households in the country.100% grant for one time cost Provided additional financial assistance for minimum services by the central government to all states on a 90% loan and 10% grant basis. These included basic need areas. ,[object Object],[object Object],[object Object],Key initiatives
Rural Electrification –a background ,[object Object],Exclusively targeted states with less than 65% rural electrification (by the old definition), provides 100% loans for last mile connectivity. Provides an interest subsidy of 4% to states for RE programs. The AREP covers electrification of un-electrified villages and household electrification Objective was the electrification of all villages and households progressively by year 2012 through local renewable energy sources and decentralized technologies, along with the conventional grid connection . ,[object Object],[object Object]
Rajeev Gandhi Grameen Vidyutikaran Yojna (RGGVY)  An introduction ,[object Object],[object Object],[object Object],[object Object],[object Object]
Rajeev Gandhi Grameen Vidyutikaran Yojna (RGGVY)-  An introduction ,[object Object],[object Object],[object Object],[object Object]
Rajeev Gandhi Grameen Vidyutikaran Yojna (RGGVY)-  An introduction ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Back
Issues & Challenges in Current RGGVY Franchisee Implementations Why Bother ?  Franchisee system  is going to be the ultimate agent responsible for  delivery of rural electrification’s sustainability. Franchisee’s Failure means …..  All Tax payers money involved in  capital subsidy ends up in  this after few years …….. Rs 70 billion additional  allocated in latest budget
Issues & Challenges in Current RGGVY Franchisee Implementations ,[object Object],[object Object],[object Object],[object Object],Structural Consumer Mix issues. Franchisee Units. Commercial Viability of Franchisees. Institutional Capacity building. RGGVY issues. Key Concerns
Issues & Challenges in Current RGGVY Franchisee Implementations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Defunct Cap Banks Shaky Transformer terminations
Issues & Challenges in Current RGGVY Franchisee Implementations ,[object Object],Structural ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Franchisee Model Analysis. What is missing? Representativity- Few criterion for Benchmarking. Affordability- Sustainability- Replicability-
Comparative Analysis Models  >> Model A   Model B Model C Model D Model E Model F Benchmarks  Representativity Better Low Lower Lowest Best Best Affordability Neutral  Neutral  Neutral  Neutral  Neutral  Neutral Sustainability Limited Limited  Better Best Limited Better Replicability Better Limited Limited Limited Best Best
Rural electrification, a in depth analysis Attributed to US psychologist Kurt Lewin, it analyzes the change factors for subject under consideration. ,[object Object],Proposes the concept of Enabling forces and restraining forces  .
Rural electrification, a in depth analysis Sustainable Rural Power  Distribution  Corruption in utility & Consumers Consumer’s dissatisfaction Utility Staff Connivance Remote Locations Political patronage for malpractices Socio political pressure groups Issues related to law & order Misgovernance in Utility Central Govt  Development Plans Funding Support  From Govt Consumer’s attitude for free electricity. Perceived benefits of development  by community Successful Int’l Experiences Enablers Restrainers
Rural electrification, a in depth analysis ,[object Object],Common Business process used to map the variance between required and existing conditions. Gap 1-  Main nodal Agency REC’s focus & Requirement. Mission & Vision statements of REC say, “To facilitate  availability of electricity for accelerated growth and for  enrichment of quality of life of rural and semi-urban  population” Focus need to be added to “ facilitating sustainable rural electrification” Gap 2-  Lack of Regulatory participation. Gap 3-  Working Agencies & Community  Perception. Gap 4-  State Utilities & Consumers Perception
Rural electrification, a in depth analysis ,[object Object],[object Object],[object Object],[object Object],In  Nutshell Back
International Experiences ,[object Object],[object Object],[object Object],Latin Americas Costarica  functions with  cooperative  model, funding them with soft loans. Mexico however doesn’t uses the participative model, subsidy levels  remain    higher. Rural Systems are in losses. Asia Bangladesh ,Philippines  have successfully implemented  cooperative  models with performance based subsidies. Africa Ethiopia, Uganda are successfully using community owned micro hydro DDG systems
Indian Experiences Input based franchisee model & its  Variants have been proposed  ! ,[object Object],[object Object],[object Object],[object Object],Survival chances of Present System aren’t bright after initial few years.
Proposed Solution- a modified model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Existing Model F has been chosen as guidance
Proposed Solution- a modified model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Proposed Solution- a modified model Rural Electricity Co operative Society ( RECS)-Benchmark Review Sustainability-  Comphrensive treatment, provides for technical and    commercial excellence through outsourcing.  Model  >> RECS  Benchmarks  Representativity Best Affordability Neutral  Sustainability Best Replicability Best
back Thank You   Queries are welcome
Franchisee Model Analysis. What is missing? Representativity-  Provides ample scope for decentralized  decision  making due to limited scope of work . ,[object Object],Affordability-  The point remains unaffected.  Sustainability-  No Comphrensive treatment, very limited scope,    not recommended for long period.  Replicability-  Limited Scope increases the replicability      with different players adapting to the requirements fast. Back
Franchisee Model Analysis. What is missing? Representativity-  Levels of Participation remains limited, as    scope is widened higher levels are required ,[object Object],Affordability-  Affordability remains unaffected with utility    determining the prices.  Sustainability-  Sustainability has been increased considerably as.    But far away from comphrensive focus. Replicability-  Replicability becomes limited as players success would    depend on the various socio-cultural ,political  trends. Back
Franchisee Model Analysis. What is missing? Representativity-  No change in the extent of decentralized    decision making,& is a major constraint. ,[object Object],Affordability-  Unaffected. Sustainability-  Franchisee operations get more improved focus. Replicability-  On account of more comphrensive scope, it becomes      further limited due to similar reasons as in model B. Back
Franchisee Model Analysis. What is missing? Representativity-  Status quo in the extent of decentralized      decision making,& is a major constraint. ,[object Object],Affordability-  Unaffected. Sustainability-  Franchisee operations get more comphrensive    focus, desirable Replicability-  Further reduces to a new low. Back
Franchisee Model Analysis. What is missing? Representativity-  Improves participation to requisite standards. ,[object Object],Affordability-  Unaffected. Sustainability-  Franchisee operations have limited scope   not desirable levels. Replicability-  Attains a much improved levels, a desirable position. Back
Franchisee Model Analysis. What is missing? Representativity-  Maintains  participation to requisite standards. ,[object Object],Affordability-  Unaffected. Sustainability-  Franchisee operations have improved scope   , more comphrensive focus required. Replicability-  Maintains improved levels, a desirable position. Back

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Internship Presentation Anudeep Final

  • 1. Issues & Challenges in Rural Electrification Presented by Anudeep Yadav, Roll No-10 MBA (III Sem )Power Management National Power Training Institute
  • 2. Background Study report is based on participation in live project for implementation of rural distribution franchisee model under RGGVY In Jharkhand
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11. Issues & Challenges in Current RGGVY Franchisee Implementations Why Bother ? Franchisee system is going to be the ultimate agent responsible for delivery of rural electrification’s sustainability. Franchisee’s Failure means ….. All Tax payers money involved in capital subsidy ends up in this after few years …….. Rs 70 billion additional allocated in latest budget
  • 12.
  • 13.
  • 14.
  • 15. Franchisee Model Analysis. What is missing? Representativity- Few criterion for Benchmarking. Affordability- Sustainability- Replicability-
  • 16. Comparative Analysis Models >> Model A Model B Model C Model D Model E Model F Benchmarks Representativity Better Low Lower Lowest Best Best Affordability Neutral Neutral Neutral Neutral Neutral Neutral Sustainability Limited Limited Better Best Limited Better Replicability Better Limited Limited Limited Best Best
  • 17.
  • 18. Rural electrification, a in depth analysis Sustainable Rural Power Distribution Corruption in utility & Consumers Consumer’s dissatisfaction Utility Staff Connivance Remote Locations Political patronage for malpractices Socio political pressure groups Issues related to law & order Misgovernance in Utility Central Govt Development Plans Funding Support From Govt Consumer’s attitude for free electricity. Perceived benefits of development by community Successful Int’l Experiences Enablers Restrainers
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25. Proposed Solution- a modified model Rural Electricity Co operative Society ( RECS)-Benchmark Review Sustainability- Comphrensive treatment, provides for technical and commercial excellence through outsourcing. Model >> RECS Benchmarks Representativity Best Affordability Neutral Sustainability Best Replicability Best
  • 26. back Thank You Queries are welcome
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.

Editor's Notes

  1. National rural electric Co-op Association Univ of minnosota ‘s agricult deptt and dist utility in red wing farms area experiment.