NESCO/WESCO/SOUTHCO EXPRESSION OF INTEREST FOR ELECTRICITY DISTRIBUTION FRANCHISEE

The State of Orissa has got funds of Rs 3,600 Crores sanctioned under Rajiv Gandhi Grameen Vidyutikaran Yojana

(RGGVY) scheme and it aims to provide electricity supply to more than 31 lakh BPL consumers under the scheme. The

objective of the scheme is to ensure sustainability of electricity supply, qualitative transformation of the electricity

distribution system to facilitate better social and economic outcomes by appointing franchisees in all four utilities in

Orissa viz; CESU, NESCO, WESCO and SOUTHCO.

As per the provisions of Section 14 of the Electricity Act, 2003, a franchisee appointed and duly authorized to act on

behalf of an electricity distribution utility to perform the obligations of the utility in the franchised area, will not

require a license to carry out such activities and the utility continues to be responsible for the acts of the franchisee.

NESCO, WESCO and SOUTHCO are the 3 Electricity Distribution Companies, distributing electricity to approximately 19

lakh consumers as per the license granted by the Orissa Electricity Regulatory Commission under the Electricity Act,

2003. To improve operational & commercial efficiencies of the utilities and to raise the standard of services for

increased customer satisfaction, especially in rural and hilly areas, the utilities envisage involvement of franchisees

who can be local NGOs, Users Association, Cooperatives, registered Companies, individual entrepreneurs, Trusts, SHGs

or the Panchayati Raj Institutions. Franchisees ensure community participation in managing power distribution,

thereby generating employment opportunity as well.

Pursuant to these, the Utilities invite “Expression of Interest” from individual/organizations from the categories

mentioned above for appointment as a Collection Based Distribution Franchisee (CBDF) for a period of 9 months, with

an option to switch over to Input Based Distribution Franchisee (IBDF) for a period of about three years.

Identified Areas for deployment of Franchisee:

Area Name District Utility

Sohela Sub Division Bargarh WESCO

Bahanaga Sub Division Balasore NESCO

Bhandaripokhari-1 Section Bhadrak NESCO

Tihidi Sub Division Bhadrak NESCO

Basudevpur Sub Division Bhadrak NESCO

Bari Sub Division Jajpur NESCO

Bhanjanagar – 1 Subdivision Ganjam SOUTHCO

Bhanjanagar-2 Sub Division Ganjam SOUTHCO

Belaguntha Sub Division Ganjam SOUTHCO

Polosara Sub Division Ganjam SOUTHCO

Soroda Sub Division Ganjam SOUTHCO

Scope of Work – Collection Based Franchisee (Phase-I):

• Reading consumers’ meters

• Spot Bill generation through spot billing machines

• Revenue realization

• Disconnection/Re-connection of defaulting services

• Surveillance to curb theft of electricity, equipment or appliances

• Revenue Management including AT&C loss reduction

• Complaints Management

• Customer Management and service

Scope of Work – Input Based Franchisee (Phase-II):

During Phase-II, apart from the activities to be carried out in Phase-I the franchisee shall be billed for energy injected

in the project area at pre determined Input Rate and consequently, the scope of this contract will be expanded to

include revenue ownership and operation and maintenance responsibilities of project area.

The scope of work mentioned is indicative only and the Utilities reserve the right to modify the scope of work at its

sole discretion.

The draft of Franchisee Agreement and Franchisee Application Form are available on the website of the Utilities i.e.

www.orissadiscoms.com, www.wescoorissa.com, www.nescoorissa.com, www.southcoorissa.com and in the Offices

of GM (Commerce) of NESCO, WESCO and SOUTHCO.

Instruction to Applicant

1 Submission of Application

Applicant should submit the Letter of Expression of Interest and a duly filled ‘Franchisee Application Form and

supporting documents as mentioned in ‘Franchisee Application Form’ attached. These documents shall be

submitted in duplicate to the address given below by 4:00 PM on 11th February’2011. An interactive

session/meeting/Interview will be conducted by the Utilities thereafter after giving pre-intimation to the

shortlisted applicants.

2 Earnest Money Deposit

a) Applicant shall submit Earnest Money Deposit (EMD) of an amount of Rs. 50,000 (Rupees Fifty Thousand

only) in the form of Demand Draft on a Nationalized Public Sector Bank/Scheduled Bank in favour of the

“NORTH EASTERN ELECTRICITY SUPPLY COMPANY OF ORISSA LIMITED” payable at Bhubaneswar.

b) Applications which are not accompanied by the above EMD shall be rejected as non-responsive.

c) For successful applicant, EMD shall be adjusted against the Security Deposit. For unsuccessful applicants,

EMD shall be released after the signing of Franchise Agreement by the successful applicant.

d) EMD submitted by an applicant shall be liable to forfeiture, if

a. If the Applicant withdraws its proposal.

b. If the successful Bidder fails to acknowledge the Letter of Intent (LoI) as accepted, within 15 calendar

days from date of issue of Letter of Intent (LoI).

c. If the successful Applicant fails to provide the Security Deposit within the stipulated time or any

extension thereof provided by the Utilities.

d. If the successful Applicant fails to sign the Distribution Franchisee Agreement within 30 days of

issuance of LoI or any extension thereof provided by the Utilities.

e. If any information or document furnished by the Applicant turns out to be misleading or untrue in

any material respect.

f. If the successful Applicant fails to take over the designated franchise area or express inability to

takeover under any pretext.

3 The applications will be evaluated based on following.

Broad Criteria Weight

Institutional Vibrancy 20%

Work Experience 20%

Financial Position 25%

Local area presence 20%

Interaction 15%

Utilities reserves the right for short listing/rejecting any firm without providing any reason thereof, and the firm shall

have no cause of action or claim against the Utilities or its officers, employees, successors or assignees for rejection of

any application.

Chief Executive Officer (Commerce) (NESCO, WESCO and SOUTHCO)

Registered Office: Plot - N-1/22, Nayapalli,

Bhubaneswar, Orissa – 751015

Phone – 0674-2558677 Contact Persons of DISCOMs

NESCO: Shri S. C. Singha Sr. G.M. (Commerce)9337611127

Shri S.D. Bhanj DGM 9937022203

WESCO: Shri G. C. Mohanty GM. (Commerce) 9437057189

Shri Ashish Panda D.M (Franchisee Cell) 9437150149

SOUTHCO: Shri S. K. Choudhury Sr. G.M. (Commerce)9437959900

Shri Subrat Routray D.M. (Franchisee Cell) 9437959778

Registered Office: Shri Sandeep Misra DGM (RA) 9338707434

SAVE ELECTRICITY IN THE INTEREST OF NATION