Mumbai, July 1: Maharashtra Chief Minister Devendra Fadnavis clarified in the state assembly that there are no plans to privatize the state-run electricity distribution company, Mahavitaran.
During the question hour, in response to member Rais Sheikh’s inquiry, the Chief Minister strongly defended the distribution franchise model, particularly citing the Bhivandi circle managed by Torrent Power Limited.
He emphasized that the franchise model has improved operations in areas previously plagued by significant deficiencies in electricity distribution, while still ensuring that the ownership of public utility remains with the government.
Addressing questions related to the outcomes of private franchise operations in the state’s distribution network, Fadnavis provided a detailed comparative analysis of the Bhivandi power model.
He stated that the entry of Torrent Power as a distribution franchise has led to a substantial reduction in technical and commercial losses.
Before the franchise agreement, the area faced severe issues such as high electricity distribution losses, power theft, and a poor billing system.
According to Fadnavis, the changes made under the agreement successfully reduced total technical and commercial losses (AT&C) while significantly enhancing billing and revenue collection capabilities.
Losses have decreased from 41% to approximately 10%, while electricity bill recovery has reached 98%.
To address concerns regarding major changes in the state’s energy infrastructure, Fadnavis reassured the assembly that the state-owned company, Mahavitaran, will not be privatized.
He stated, “Bringing in local distribution franchises to improve operational networks and prevent revenue losses does not mean selling government assets. Mahavitaran will remain a strong, state-operated company.”
He explained that the goal of public-private collaboration under the franchise agreement is to provide residents and industrial units in high-loss areas with 24-hour reliable electricity supply, while also protecting the government treasury from significant financial losses.
Sheikh claimed that the Bhivandi franchise model has not only been successful from 2006 to 2026 but has also emerged as a role model.
He urged Chief Minister Fadnavis to consider special incentives to enhance operational efficiency and reduce losses in Bhivandi.
However, the Chief Minister noted that such actions would not be feasible due to regulations and procedures.
Sheikh also strongly advocated for the implementation of a prepaid system for electricity consumers, similar to mobile services.
In this system, the consumer’s number remains the same, allowing them to choose prepaid services from any service provider.
He further demanded the waiver of interest charged to consumers, especially for the period before the franchise model was implemented.
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