While private entrepreneurs get a piece of the action in last-mile power reforms of Uttar Pradesh, women in India’s hilly inaccessible terrain can now stake their claim to turning entrepreneurs as well. In yet another public private partnership (PPP), Uttarakhand will soon be using ‘woman power’ to ensure steady and swift electricity bill collections by appointing woman self help groups (SHGs) in the state as authorised franchisees.Over the next two months, the state plans to kick off the woman-friendly franchisee model in 12 sample areas and extend the model throughout all 10 districts of the state by the end of this financial year. “Instead of appointing private entrepreneurs as franchisees for revenue collection at different electrical sub-stations, we are looking at nominating women SHGs to perform the task,” said B M Verma, chairman and managing director, Uttarakhand Power Corp Ltd (UPCL). “This would achieve a dual purpose of women empowerment through gainful employment, as well as timely and efficient bill collection.”The ‘collection-based’ franchisee model being used to rope in women SHGs works on an incentive-based scheme. In a state like Uttarakhand, where average collection efficiency (that is actual money recovered versus amount billed) stands at around 60 per cent, these SHGs will be given incremental commissions for bettering collection efficiency.So, in an area that has a current collection efficiency of 60 per cent, the commission offered to the SHG for maintaining that efficiency would be between 8-9 per cent. A jump in collection efficiency to 70 per cent would mean an ensuing rise in commission to 10 per cent of bill collections. A 70-80 per cent collection efficiency would result in a commission of 12 per cent. While a detailed commission structure is yet to be finalised, the graded incentive scheme that would finally be implemented would be along these lines.The preference accorded to women SHGs in this scheme is an outcome of successful participation with them in the past. A year ago, Uttarakhand appointed women SHGs in 9,500 rural villages, the task of electricity meter reading, installation, bill disbursement and monitoring of power theft.A total of 31 SHGs, covering over 2.25 lakh consumers in all 10 districts of the state were roped into the project and paid for their services. UPCL offered these SHGs Rs 6 for every meter reading, Rs 2 per bill distribution, Rs 50 for regularisation of every illegal connection or getting a new connection, and Rs 60 to replace faulty or un-metered connections. Through such incentives, each member of these SHGs earned between Rs 500 and Rs 3,000 a month. While women were empowered, the state’s revenues from electricity bill collections jumped as well. According to Verma, “In Koddwar area of Uttarakhand, the revenue collected last year went up from Rs 67 lakh to Rs 85 lakh. The revenues collected in the rest of the state have also jumped by 25 per cent.”However, a few hiccups remain for these SHGs in the form of bank guarantees that are to be furbished before being allowed to collect bills. While typically a bank guarantee amounting to two months of current collections at a substation is demanded, SHGs do not have the reserves to furbish the same. Verma says deliberations are on to rope in cooperative societies and regional rural banks to facilitate this and UPCL may also contemplate doing away with the requirement altogether.At the same time, UPCL is also contemplating converting the ‘collection-based franchisees’ to ‘input-based franchisees’ over the next year. This would mean that women SHGs then take up a greater risk of paying the power utility for a dedicated supply of electricity at the start of every month, and ensure their profits through aggressive bill collections. Who said entrepreneurship, women empowerment and PPPs can’t go together?
