Search results

The purpose of this paper is to develop an interpretive structural modeling (ISM) of barriers related to viability of Power Distribution Companies (discoms) in India.

Feedback from the Experts of Indian power sector has been taken as the basis to develop the model for barriers to viability of discoms, where major barriers have been identified through extent review of literature and through discussions with experts in the power sector keeping the viability of discoms in focus, and the hierarchical structure of barriers has been developed using ISM.

An interpretive structural model has been developed for discom-related factors (barriers) affecting its viability. The hierarchical structure portrays the impeding factors of viability and showcases that lack of regulatory effectiveness, inadequate tariffs and lack of government’s expenditures on power sector are the key barriers.

This paper has implications for both practitioners and academics. For practitioners, it provides an indicative list of major barriers affecting the viability of Indian discoms. For academics, the methodology used provides a mechanism to conduct an exploratory study by identifying the key variables of interest and emphasizing their interactions through hierarchical structures.

The proposed model for barriers to viability of discoms developed through qualitative modeling technique is a pioneering effort altogether in the context of power distribution companies in India. Understanding contextual relationships among key barriers to viability of discom’s is neglected in existing literature, and this paper makes a contribution in this regard.

The Indian power distribution companies are increasingly recognizing franchising for reviving their high loss-making rural pockets. The motivation for franchising has been a reduction of the franchisor's resource scarcity by bringing in operational efficiency and improved service quality to end consumers. However, there is a dearth of evidence on the influence of the franchisee's operations in addressing the resource scarcity of franchisors in predominantly rural areas. This study contributes towards filling the research gap.

A qualitative embedded multiple case study was conducted. The cases comprised two rural franchisees operating towards attaining the common goal. The study was built on archival analysis, personal observations and semi-structured interviews with the franchisors and franchisee officials across the organization's hierarchical levels. A conceptual model based on the review of prior literature formed the initial set of coding for the study. The data were presented based on within-case and across-case analysis.

The analysis revealed that the contract design impacts the requisite operational efficiency achievement. This variation could be elaborated by factors, such as system adaptation across organizational hierarchy, autonomy and independence, review and feedback systems, monitoring, a professional's attitude, bureaucracy, adaption with the local areas, risk sharing, incentives and compensation structure.

The study findings could be generalized to the extent of similar socio-economic conditions, prevailing governance mechanisms and law and orders. Additionally, since the law does not mandate the regulatory commissions to scrutinize the performance of the franchisees, the study was built on data shared by the franchisees and the discom. Further, this study considered the performance of only two performing franchisees. Matching these actualities with the discoveries of this study remains a continuing project as participation of private players is increasingly being recognized. Therefore, the insights drawn from this study could be used to improve the franchise model and can be scaled up across the nation, regions and sectors.

There is a dearth of literature on franchising in electricity distribution. This study is one of the first studies on studying the franchise system in the electricity distribution sector through the application of a well-accepted management theory.

Management of power distribution companies (discoms) in India has been historically criticized on the ground of inefficient management. Inefficiency in operations triggered management by private franchisees for promotion of managerial and technical expertise. However, franchise contracts have achieved mixed outcomes despite the business model being a decade old in the Indian power distribution sector. Therefore, this study sheds light on the drivers of discoms (principal) with the franchisees (agent) for the achievement of the common performance goals, highlighting the agency issues at multiple levels across the organizational hierarchies. The study seeks to acknowledge the commonalities and differences between and across varying levels.

A qualitative embedded single case study was conducted in an Indian state, namely Odisha. The study was built on archival analysis, personal observations and semi-structured interviews with the franchisors and franchisee officials across the organization's hierarchical levels. A conceptual model based on the review of prior literature formed the set of coding and presentation for the study.

The study provides insights on factors that play a role in effective power distribution management, operational efficiency and improved financial performance through the partnership of the principal and the agent.

The study is predominantly dependent upon interviews. This paved the way for the limitation of human biases. Additionally, deep insights were drawn from a single case study of a discom's decision to hire franchisees. However, this was at the cost of the number of organizations interviewed. The findings of the study could be built across other areas or nations.

There is adequate literature on franchising as a business model. However, literature is lacking in highlighting the commonalities and differences between different contracting parties and their impact on the performance of the contract. Additionally, there is a dearth of literature on franchising in the power distribution sector. Therefore, studying the model from multiple perspectives would contribute to the literature on the power sector and franchising.

Resulting from large government interventions, India could attain 99% electrification in March 2019. However, the consequences are revenue losses due to lack of real-time efforts in bringing operational efficiencies of the power distribution companies (discoms). Distribution franchisees operate as agents to the discoms for performing their contracted functions in smaller high-loss making areas under jurisdiction of a discom. This study aims to explore how rural franchisees help or hinder requisite results.

A qualitative embedded multiple-case study was conducted. The case focused on two franchisees engaged in metering, billing and collection functions of a high-loss-making rural area dominated Indian state-owned discom. Data were collected through documents, personal observations and semi-structured in-depth interviews with franchisee employees situated at different levels of the organizational hierarchy. A review of pertinent literature and government documents was utilized in forming the codes for collecting the data.

It could be argued that franchisees with strong financial capability, human resources support and monitoring and control facilities could contribute effectively in generating revenue from rural and interior electrified mass. The analysis revealed various challenges serving as hindrances in achievement of contracted targeted outcomes. The analysis resulted in highlighting factors that if implemented could result in the needed outcome.

This study could be generalized only to similar socio-economic conditions. The findings could provide policy makers with valuable insights to emphasize on creating win–win situations for all the stakeholders to encourage franchisee participation.

This study is unique, as there is a dearth of empirical evidences relating to operational efficacies of these franchisees.

The purpose of this paper is to assess the training needs based on top management view point for the development of frontline managers (FLM) of Indian power distribution companies (DISCOMs).

DISCOMs’ top managers were interviewed to develop questionnaire items. A total of ten items were identified; the response from the middle managers and FLM were collected with the help of a questionnaire on a five-point Likert type. The Cronbach’s alpha, face and content validity of instrument were performed. The sample population was 364 based on stratified probability proportional to size (PPS) sampling. The statistical tool used for data analysis was chi square through SPSS package.

Top management of DISCOMs for developing training program emphasizes on 10 organizational items. Which when assessed with middle and FLM of DISCOM, the results indicated a disagreement between their opinions suggesting practical implications on training need analysis at these DISCOMs.

The emphasis of top management for identifying the FLM training needs only acknowledges the work environment and customer requirements, whereas the personal and task related factors (other than customer services) affecting their performance are overlooked.

Reforms in the Indian power sector have been introduced only 26 years back. This study explicitly focuses on the DISCOMs at the central India. Present viewpoint of top management on the competency and training needs of their FLM. The Cronbach’s alpha and discriminant validity has been performed.

Distribution and retail supply of electricity is the most important cog in the power sector value chain. Despite several reforms, most of the Discoms are facing huge financial losses and resorting to a tariff hike which may not be a viable solution. The purpose of this paper is to analyze a case study of Tata Power Delhi Distribution Ltd (Tata Power-DDL) which inoculated itself against the financial ills, and demonstrates how a utility can nurture itself and manage the key stakeholder expectation with innovation, ethics, safety, transparency and agility being its cornerstone.

The study analyses the situation for Tata Power-DDL which needs to realign its strategy to meet emerging sustainability challenges. The case covers the aspect of strategic management, strategy formulation and change management system deployment using tools such as strength, weakness, opportunities, threat (SWOT), political economical social technological legal environment (PESTLE), critical success factor and key performance indicator cascade. It touches upon the emerging need for distribution utilities to look beyond economic signals and take social and environmental impacts into the strategy planning process.

It viewed the distribution business beyond its conventional responsibility of making power available to consumers and to provide quality service. A well thought out adaption and adoption of upgraded technology can be a game changer even for a market which is highly regulated and dominated by players in their respective defined territories.

Since the sector is regulated and each utility has a pre-defined set of area of operation with no competition within its licensed area, hence, there is a limited application of applied strategy tools such as SWOT and PESTLE.

Since the sector is regulated and each utility has a pre-defined set of area of operation with no competition within its licensed area, hence, there is a limited application of applied strategy tools such as SWOT and PESTLE.

India as a market is evolving in energy space and utilities are still struggling to have a fundamental structure to meet the agenda of “power to all.” The paper provides the valuable insights into the process of environmental scanning and formulation of organizational strategy to meet the needs of existing and future energy markets.

This paper aims to explain transitions in a socio-technical system characterized by non-economic entities that influence economic activity, i.e. embeddedness and coalitions. The selected socio-technical system is an Indian electric network with an interventionist policy. Its embeddedness and coalitions drive the transition. The insights from such analysis expand socio-technical transition theory and provide valuable insights to practitioners in their policymaking.

The authors need to observe the effects of non-economic institutions in their setting. Moreover, in India, the regional policies influence decision-making; therefore, selected two Indian states. The two Indian states, along with their non-economic entities, provided diverse analytic and heuristic views.

The findings show that coalitions, with their embeddedness in the absence of any mediating policy systems, act as external pressures and influence innovation and the socio-technical system’s transition trajectory. Their coalitions’ embeddedness follows a shaping, not selection logic. Thereby influence innovations in cumulating as stable designs. Such an approach provides benefits in the short-term but not in the long-term.

The study selected two states and examined two of the four trajectories. By considering other states, the authors can obtain more renewable energy investments and further insights into the transformational trajectory.

The study highlights the coalition dynamics specific to the Indian electric power network and its transition trajectories. The non-economic entities influenced transition trajectories, innovation and policymaking of the socio-technical system.

The study expands the socio-technical transition theory by including embeddedness. The embeddedness brings a shaping logic instead of a selection logic.

The twin objectives of power sector reforms in India – improving efficiency and attracting private investment – are far from being achieved. It is commonly acknowledged that competition in the sector can help achieve the objectives of the reforms, but although the Electricity Act of 2003 promised to usher in competition, even after seven years of its enactment there is very little competition in generation and absolutely no competition in retail supply. This paper seeks to find a road map for the introduction of competition in the power sector in India by discussing and drawing upon the US model of deregulating generation and retail supply whilst simultaneously keeping transmission and distribution under regulation.

The study is a historical analysis of deregulation in the US power sector and its relevance for India by drawing upon both primary and secondary resources.

The introduction of competition in the USA has brought substantial gains for the consumer and India can follow this model by mandating all distribution utilities to procure their future requirement of power through open competitive bidding. For retail competition, the system of provider of last resort (POLR) with POLR price being fixed with reference to market price can be the way forward.

This paper offers some practical and implementable suggestions for introducing competition in the power sector in India.