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Emerging regulatory challenges facing the Indian rural electrification programme

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  • Bhattacharyya, Subhes C.
  • Srivastava, Leena

Abstract

The purpose of this paper is to present and analyse the regulatory issues emerging from the newly launched programme of rural electricity access in India. We focus on two broad areas, namely regulatory issues related to the organisation/structuring of the activities and issues related to subsidy and tariffs. The paper looks into the alternative organisational arrangements being used by the programme and identifies problem areas through a responsibility mapping. The tariff principle being followed by the programme is then analysed considering the alternative organisational forms and issues related to such pricing policies are identified. Possible alternative pricing options are then suggested. The paper finds that while the franchisee model is an innovative idea, it raises issues that the regulators should be concerned with. The programme has so far relied on the simplest franchisee model because of its ease of implementation but a transition to more complex alternatives would require careful considerations.

Suggested Citation

  • Bhattacharyya, Subhes C. & Srivastava, Leena, 2009. "Emerging regulatory challenges facing the Indian rural electrification programme," Energy Policy, Elsevier, vol. 37(1), pages 68-79, January.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:1:p:68-79
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    References listed on IDEAS

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    1. Subhes C. Bhattacharyya, 2006. "Universal electrification: will the new electrification programme succeed in India?," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 30(2), pages 105-123, June.
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    Cited by:

    1. Balachandra, P., 2011. "Modern energy access to all in rural India: An integrated implementation strategy," Energy Policy, Elsevier, vol. 39(12), pages 7803-7814.
    2. Niebert Blair & Dirk Pons & Susan Krumdieck, 2019. "Electrification in Remote Communities: Assessing the Value of Electricity Using a Community Action Research Approach in Kabakaburi, Guyana," Sustainability, MDPI, vol. 11(9), pages 1-31, May.
    3. Bhattacharyya, Subhes C., 2013. "To regulate or not to regulate off-grid electricity access in developing countries," Energy Policy, Elsevier, vol. 63(C), pages 494-503.
    4. Chauhan, Anurag & Saini, R.P., 2015. "Renewable energy based off-grid rural electrification in Uttarakhand state of India: Technology options, modelling method, barriers and recommendations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 662-681.
    5. Kumar, Ashish & Shankar, Ravi & Momaya, Kiran & Gupte, Sandeep, 2010. "The market for wireless electricity: The case of India," Energy Policy, Elsevier, vol. 38(3), pages 1537-1547, March.
    6. Dugoua, Eugenie & Liu, Ruinan & Urpelainen, Johannes, 2017. "Geographic and socio-economic barriers to rural electrification: New evidence from Indian villages," Energy Policy, Elsevier, vol. 106(C), pages 278-287.
    7. Balachandra, P., 2011. "Dynamics of rural energy access in India: An assessment," Energy, Elsevier, vol. 36(9), pages 5556-5567.

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      Keywords

      RGGVY Tariff issues Franchisee;

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