Centre Asks States to Expedite Process to Instal Smart Metering System

Tagged as one of the largest initiatives taken by the Power Ministry, the installation process for the smart metering system was launched in July 2021.  Till date, States like Assam, Bihar, Gujarat and MP have already awarded the works. Most of the remaining states have issued tenders and are in various stages of awarding works.

New Delhi: Being aware of the fact that only 80 lakh smart meters have been installed across the country under the Government of India’s Revamped Distribution Sector Scheme (RDSS), the Power Ministry has asked all States and UTs to initiate the process to instal smart meters at the earliest.

The installation process for the smart metering system was launched in July 2021. Till date, States like Assam, Bihar, Gujarat and MP have already awarded the works. Most of the remaining states have issued tenders and are in various stages of awarding works. Launched under the RDSS, the government aims to instal 25 crore smart meters at consumer (Distribution Transformer) DT, and feeder level by the year 2025-26. Smart metering works of states amounting to Rs 1.35 lakh crore covering more than 20.5 crore consumers have been approved till April 2023 and this is one of the largest initiatives taken by the Power Ministry.

“Ministry is regularly following up with the states and DISCOMs on the progress of tendering and award of works for smart metering works. Furthermore, the Ministry is continually engaging with the nodal agencies and states to resolve issues, if any, related to implementation. There is a bi-weekly review meeting to undertake a structured review of the smart metering works being undertaken by the states under the chairmanship of secretary (power), Government of India,” an official in the Power Ministry told ETV Bharat.

To ensure that there is no constraint in the supply of technologically updated and good quality smart meters, an Expert Group of Smart Metering (EGSM) has been created to engage with the states as well as the industry to ensure a smooth rollout of a smart metering implementation plan under the scheme, the official said.

A recent meeting chaired by power secretary Pankaj Agarwal has also pointed out that considering the present pace of installation of smart meters, the target of installation of 25 crore smart meters by the year 2025 seems to be a herculean task. The Ministry, however, has stated that the pace of installation of smart meters will accelerate in the coming years as the work related to it is at various stages of the tendering process. Under the RDSS, the Ministry of Power has already sanctioned projects worth Rs 2.54 lakh crore with gross budgetary support (GBS) of about Rs 1.0 lakh crore for smart metering and loss reduction works.

“The prime responsibility of issuing of tenders, awarding the works and implementation of the projects under RDSS lies with the respective distribution utilities and State government concerned,” the official said. Fund requirements for next year will be worked out based on expected progress of works based on scheme guidelines, the official added.

The objective of RDSS is to improve the quality, reliability and affordability of power supply to consumers through a financially sustainable and operationally efficient distribution sector. It also aims to reduce the aggregate Technical & Commercial (AT&C) losses to pan-India levels of 12-15 per cent and the Average Cost of Supply (ASC) – Average Revenue Realised (ARR) gap to zero by 2024-25. The scheme has a total layout of Rs 3,03,758 crore, including gross budgetary support of Rs 97,631 crore.