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• Buoyed by the experiment of appointing franchisees in handling power distribution in some areas, which not only reduced distribution losses but also increased revenue and quality of supply, the state is aiming to repeat the same in its power generation. However, consumers are in a quandary over the new plan. Maharashtra Power Generation Company Ltd (Mahagenco) homing in on private sector companies that may be interested in running its loss-making units so as to convert them into profit-making enterprises without a hike in the power tariff. A specialist in the power sector feared that the private firms that showed interest in managing Mahagenco's units and could later bring in imported coal and ask for a tariff hike, which Mahagenco or the Maharashtra Electricity Regulatory Commission ( MERC) might consider in future. This might increase the cost of power for consumers, he added. However, power expert Ashok Pendse said the old units did not have the capacity to receive more than 15% imported coal.

• "Even if private generators use 15% imported coal and manage the unit professionally, the cost of generation can come down to make it a profitable unit," he said. Meanwhile, Mahagenco officials clarified that "no extra tariff hike" clause would be the main factor in handing over generation plants to private franchisees. Even though it could not be confirmed, private companies like Tata, Reliance, India Bulls, Torrent and others could show interest in running power plants. "Professional management could make the old power plants profitable," added Pendse. However, the Mahagenco official said the response from private players has been lukewarm.

• "We have asked for expression of interest from private firms to run two of our power units in Bhusawal. It is not that Mahagenco can't run them, but we are seeking parties that can manage the units with better coal supply but at the same tariff," said a Mahagenco official. Generation plants in Koradi were also in line for privatization and in-principal approval has already been given by the Mahagenco board for appointment of franchisees, officials said. Regular tenders will be floated in a few months if the private parties show interest, officials added. "Workers should not feel insecure as they will be accommodated in other Mahagenco plants after the appointment of franchisees," an official said.

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