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Varanasi Power Distribution Franchisee Model, 2015

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High aggregate technical and commercial losses, distribution losses and electricity thefts in Varanasi district call for implementation of Power Distribution Franchise Model

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Varanasi Power Distribution Franchisee Model, 2015

  1. 1. M a r k e t I n t e l l i g e n c e . C o n s u l t i n g Varanasi Power Distribution Franchise Model, 2015
  2. 2. 2 © TechSci Research I n d u s t r y B r i e f Power Distribution Franchise (DF) is a public-private partnership in the power distribution sector and it works as an intermediary between distribution utility and the end consumers. The concept of franchise model in electricity distribution was introduced to reduce the financial losses incurred by state discom due to huge Aggregate Technical & Commercial (AT&C) losses. Distribution Franchise model has been implemented in various Indian cities for supplying electricity to the consumers, and was able to bring down the AT&C losses by more than 20% during its period of operation. Over the years, government of India has continuously been voicing intentions of implementing distribution franchise model in 200 cities based on the success of distribution franchisees in the cities of Maharashtra, Uttar Pradesh and Odisha. In Varanasi, AT&C losses were over 30% in 2014, resulting in inadequate power supply, thereby calling for the implementation of distribution franchise model in the district. According to TechSci Research report “Varanasi Power Distribution Franchise Model, 2015”, Varanasi district faced huge distribution losses of over 20% in 2014, which led to financial distress of the Poorvanchal Vidyut Vitaran Nigam Limited (Varanasi discom). The report underlines that AT&C losses in Varanasi district occur due to electricity theft, low metering efficiency, improper meter reading, faulty meters, inefficient billing and low collection efficiency. The report also reveals that Input and Investment based Franchise Model is the most prominent franchise model for distribution of electricity in India. Under this model, the franchisee is responsible for supply of power, metering, billing and collection of revenues as well as for up gradation and expansion of distribution infrastructure. Currently, prominent companies that are operating as power distribution franchisees in the country are Torrent Power, SPML Infra, Essel Utilities, Feedback Energy Distribution Company and CESC Limited. “Varanasi Power Distribution Franchise Model, 2015” discusses the following aspects related to Power Distribution Franchise Market in Varanasi District: • Varanasi District Power Sector Outlook • Analysis of parameters like AT&C Losses, Consumer Load data, Energy Sales data, etc. • Policy & Regulatory Landscape • Changing Market Trends & Emerging Opportunities • Competitive Landscape & Strategic Recommendations
  3. 3. R e s e a r c h M e t h o d o l o g y 3 © TechSci Research Baseline Methodology : For the study, TechSci Research gathered information through both primary and secondary research surveys with Poorvanchal Vidyut Vitaran Nigam Limited (Varanasi Discom) and other reliable secondary sources. We also put through exhaustive search of credible paid databases such as Business Week, Factiva, Hoovers, etc. including our internal database. Our team of analysts has then prudently evaluated all the collected information and presented the same in chronological order to depict a meaningful and clear picture of the Power scenario in Varanasi district and different distribution franchisee models. While compiling the data, we have also cross checked all the collected information from multiple sources and data warehouses, so as to present the most accurate and precise information of the concerned industry. Sources : Central Electricity Authority of India, Poorvanchal Vidyut Vitaran Nigam Limited, Uttar Pradesh Power Corporation Limited, Power Finance Corporation Limited, World Bank, etc. Companies Interviewed PuVVNL, SPML Infra Ltd., CESC, Torrent Power, CESC Ltd, Tata Power Corporation Ltd., Spanco Ltd., Essel Utilities Distribution Company Limited
  4. 4. Ta b l e o f C o n t e n t s 4 © TechSci Research 1. Research Methodology 2. Analyst View 3. Product Overview 4. India Power Sector Outlook 4.1. Installed Capacity 4.1.1. By Source (Thermal, Hydro, Renewable, Nuclear) 4.1.2. By Sector (Private, State, Central) 4.1.3. By Fuel (Coal, Hydro, Gas, Wind, Others) 4.2. Regional Snapshot 4.2.1. Power Supply Position 4.2.2. Peak Demand 4.2.3. AT&C Losses 4.3. Institutional Framework 5. Uttar Pradesh Power Sector Outlook 5.1. Installed Capacity 5.1.1. By Source (Thermal, Hydro, Renewable, Nuclear) 5.1.2. By Sector (Private, State, Central) 5.2. Distribution Companies Energy Outlook 5.2.1. By Input Energy 5.2.2. By Energy Sold 5.2.3. Distribution Losses 5.2.4. AT&C Losses
  5. 5. Ta b l e o f C o n t e n t s © TechSci Research 3 5.3. Electricity Share 5.3.1. By End User Segment 5.4. Revenue Assessment Share 5.4.1. By End User Segment 6. Purvanchal Vidyut Vitaran Nigam Limited Outlook 6.1. Market Size 6.1.1. By Consumer 6.1.2. By Connected Load 6.1.3. By Power Purchase 6.1.4. By Power Sold 6.1.5. By Distribution Losses 6.1.6. By AT&C Losses 7. Distribution Franchisee Models 7.1. By Type 7.2. Bidding Overview 7.2.1. Power Distribution Franchisee Selection Process 7.2.2. Formats for Bid Submission 7.2.3. Financial Capability 7.2.4. Pre-Qualification Criteria 8. Varanasi District Power Sector Overview 9. Varanasi District Power Sector Outlook 9.1. Power Consumption
  6. 6. Ta b l e o f C o n t e n t s © TechSci Research 3 9.1.1. By Consumer 9.2. By Division (Electricity Portfolio) 9.3. Market Size & Forecast 9.3.1. Number of Consumer 9.3.2. Connected Load 9.3.3. Energy Input & Sold 9.3.4. Distribution Losses 9.3.5. Collection Efficiency 9.3.6. AT&C Losses 10. Market Dynamics 10.1. Drivers 10.2. Challenges 11. Market Trends and Developments 11.1. Privatization of Distribution Sector 11.2. Improve Financial Status of Discom 11.3. Entry of New Players 11.4. Input Based Franchisee with Incremental Revenue Share Model 11.5. Government Support 12. Policy & Regulatory Landscape 13. India Economic Profile 14. Competitive Landscape 14.1. Company Profiles
  7. 7. Ta b l e o f C o n t e n t s © TechSci Research 3 14.1.1. Torrent Power Limited 14.1.2. Essel Utilities Distribution Company Limited 14.1.3. SPML Infra Limited 14.1.4. Feedback Energy Distribution Company Limited 14.1.5. CESC Limited 14.1.6. Tata Power Corporation Limited 14.1.7. Crompton Greaves Limited 14.1.8. Spanco Limited 14.1.9. Shyam Indus Power Solutions Private Limited 14.1.10. Enzen Global Solutions Private Limited 15. Strategic Recommendations 16. About Us & Disclaimer
  8. 8. S a m p l e d a t a - S n a p s h o t 8 © TechSci Research PuVVNL Total Metered and Unmetered Consumers, 2010-2014 (Lakhs) 10.00 20.00 30.00 40.00 50.00 15.00 30.00 45.00 60.00 75.00 2010 2011 2012 2013 2014 No. of Consumers No. of Unmetered Connections 10.00 20.00 30.00 40.00 50.00 2010 2011 2012 2013 2014 PuVVNL Connected Load (MW), 2010-2014 10 20 30 40 50 15 30 45 60 75 2010 2011 2012 2013 2014 Power Purchased (Mkwh) Power Sold (Mkwh) PuVVNL Power Purchased and Power Sold (Million KWh), 2010-2014 Promoter , 25.00% Non Institutions, 25.00% Domestic Investment Institutions, 25.00% Foreign Investment Institutions, 25.00% 10.00 20.00 30.00 40.00 50.00 2010 2011 2012 2013 2014 Revenues, 2010 - 2014 (INR Crore) Shareholding Pattern, March 2015 10 20 30 40 50 2010 2011 2012 2013 2014 10.00 20.00 30.00 40.00 50.00 2010 2011 2012 2013 2014 Debt-Equity Ratio , 2010 – 2014EBITDA , 2010 - 2014 (INR Crore) Torrent Power Ltd., Financial Analysis, 2010-2014 10 20 30 9 18 27 8 16 24 7 14 21 2011 2012 2013 ACS Avg. Revenue (without subsidy) Gap w/o Subsidy Gap with Subsidy PuVVNL ACS, Avg. Revenue, Gap (without subsidy and with subsidy), 2011-2013 (INR/kwh) 20.00% 20.00% 20.00% 20.00% 20.00% Coal Hydro Gas Wind Others* India Total Installed Power Capacity (MW), By Type of Fuel, As of March 2015
  9. 9. © TechSci Research 9 R e p o r t O r d e r i n g License Type Price Electronic Access - Single User License $2000 CD-ROM Mail Delivery $2500 Hard Copy Mail Delivery $3000 Electronic Access - Multi-User License $4500 To View Sample OR Purchase Report Report Price Report Name: Varanasi Power Distribution Franchisee Model, 2015
  10. 10. A b o u t U s & D i s c l a i m e r 10 © TechSci Research TechSci Research – North America 2950, Boundary Road, Burnaby, British Columbia, Canada Tel: +1- 646- 360-1656 Email: sales@techsciresearch.com www.techsciresearch.com About Us : TechSci Research is a global market research and consulting company with offices in Canada, the UK and India. TechSci Research provides market research reports in a number of areas to organizations. The company uses innovative business models that focus on improving productivity, while ensuring creation of high-quality reports. The proprietary forecasting models use various analyses of both industry-specific and macroeconomic variables on a state-by-state basis to produce a unique ‘bottom-up’ model of a country, regional and global industry prospects. Combined with the detailed analysis of company activity and industry trends, the result is a uniquely rich evaluation of the opportunities available in the market. TechSci Research currently tracks power industry in more than 35 countries. Related Reports Global Fuel Cell Market Forecast and Opportunities, 2020 India Lithium-ion Batteries Market Forecast and Opportunities, 2020 India UPS Market Forecast and Opportunities, 2020 Partial List of Clients Disclaimer : The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made that it is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sources including which it considers reliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of any information and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that it has no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts, can change without notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internal consumption. Usage of the same for purpose other than internal will require prior approval of TechSci Research. TechSci Research – Europe 54, Oldbrook, Bretton, Peterborough, United Kingdom Email: sales@techsciresearch.com www.techsciresearch.com TechSci Research – Asia-Pacific A – 51, Sector -57, Noida, National Capital Region, U.P. - India Tel: +91-120-4523900 Email: sales@techsciresearch.com www.techsciresearch.com

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