The document discusses power distribution franchise models in Varanasi, India. It notes that Varanasi faced high distribution losses of over 20% in 2014, leading to financial issues for the local discom. The input and investment based franchise model, where the franchisee is responsible for supply, metering, billing and infrastructure work, is prominent in India. The report analyzes parameters like losses and sales data, as well as market trends and the competitive landscape, to understand opportunities in improving power distribution in Varanasi.

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
© 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. 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. 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. 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. 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. 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. 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. © TechSci Research
9
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Report Name: Varanasi Power Distribution Franchisee Model,
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10. A b o u t U s & D i s c l a i m e r
10
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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
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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
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