In an effort to ensure the revenue sustainability of the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), maintain infrastructure and provide uninterrupted quality power, the Ministry of Power, Government of India has made deployment of franchisees mandatory for management of rural distribution network.
It is expected that the franchisees deployed could include non-governmental organizations (NGOs), users' associations and cooperative or individual entrepreneurs. This is expected to help in minimising the Aggregate Technical and Commercial (AT&C) losses besides improving the rural power distribution system. Under the Accelerated Power Development and Reforms Programme (APDRP), the Ministry of Power, GoI has also advised the State Power Utilities to franchise the electricity distribution system in such towns where the AT&C losses are comparatively high and the utility itself fails to reduce the losses significantly.
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