A distribution franchisee (DF) acts as an intermediary between the distribution licensee and its customers. In a broader sense, the licensee provides exclusive sale rights to an agency, which is solely responsible for maintaining distribution and collection in the specified area. The Electricity Act, 2003 provides for the setting up of a distribution franchisee business in a specified area within the area of supply of the licensee, with no separate license or approval from the State Commission. This arrangement presents a win-win situation with significant advantages to both the distribution company as well as to the end customers.
CS is keen for area franchisees in suitable locations on a viable format. It has extensive in-house expertise to take this to a profitable level.
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