Maharashtra Chief Minister and Energy Minister Devendra Fadnavis on Tuesday clarified in the State Assembly that the state government has no plans to privatise the state-run power distribution utility, Mahavitaran. Replying to a query raised by member Rais Shaikh during the Question Hour, the Chief Minister strongly defended the "distribution franchise" model, specifically citing the case of the Bhiwandi Circle handled by Torrent Power Limited.
He emphasised that the franchise model has led to an efficient turnaround in areas heavily plagued by distribution inefficiencies, without stripping away the public utility's foundational ownership. Responding to queries regarding the operational outcomes of private franchises in state distribution networks, Chief Minister Fadnavis provided a detailed comparative overview of the Bhiwandi power model.
He said that the introduction of Torrent Power as a distribution franchisee heavily trimmed technical and commercial losses. Prior to the franchise agreement, the region suffered from massive distribution leakage, power theft, and abysmal billing systems.
According to Chief Minister Fadnavis, the operational changes implemented under the agreement successfully brought down aggregate technical and commercial (AT&C) losses while recording a sharp increase in billing and revenue collection efficiencies.
The losses have reduced to around 10 per cent from as high as 41 per cent while the recovery of energy bills has recorded at 98 per cent. Quelling apprehensions surrounding the overarching restructuring of the state's energy infrastructure, Chief Minister Fadnavis reassured the House that the state-run utility company, Mahavitaran (Maharashtra State Electricity Distribution Company Limited), is not on the block for privatisation.
"Introducing localised distribution franchises to upgrade operational networks and stop revenue leakage does not equate to selling state assets. Mahavitaran continues to be a robust, state-managed enterprise," he asserted. He noted that public-private collaborations under franchising agreements are targeted strategies deployed exclusively in high-loss regions to secure a reliable, round-the-clock power supply for residents and industrial units alike, while saving the state exchequer from massive financial drains.
Shaikh claimed that the Bhiwandi franchise model between 2006-2026 has not only been successful but it has emerged as a role model. "The losses, which are cut to around 10 per cent, has put Bhiwandi on top slot compared to Mahavitaran's losses."
He urged Chief Minister Fadnavis to consider providing special incentives for Bhiwandi for improving operational efficiency and reduction in losses. However, the Chief Minister said that it will not be possible in the wake of regulatory protocols. Shaikh also made a strong pitch for applying prepaid system for electricity consumers like mobile service.
Under this system, the consumer number remains static and consumer can buy prepaid for any service provider. He also demanded that the interest should be waived charged from the consumers, especially prior to the implementation of franchise model.