Indian states left to decide power distribution model
Indian states may choose between the Public Private Partnership model and the Franchise Model in power distribution.
In the report of the Task Force on Private Participation in Power Distribution published by the Planning Commission, the Task Force endorsed both the models, “leaving it to the States to choose a model that they think is more suited to their needs.”
The report concluded: “Given the importance of the power sector to the economy, the paucity of budgetary resources and the deteriorating financial health of the distribution companies, it is important to restore order in the power distribution sector."