The rollout of 25 crore prepaid smart meters is an integral part of the Revamped Distribution Sector Scheme (RDSS). The development is also significant as it would usher in the culture of “prepayment” in the power distribution sector. It is widely believed, and rightly so, that prepayment would be a big step towards making power discoms – especially the state government-owned ones – commercially efficient.
Smart metering under RDSS is also being complemented by loss-reduction works aimed at mitigating technical losses. Thus, the RDSS is addressing both the technical and commercial aspects of the power distribution value chain.It was recently informed in Parliament that of the total Rs.1,45,754 crore sanctioned for loss-reduction works, contracts worth Rs.1,12,390 crore (or over 75 per cent) have already been awarded. Further, the physical progress of loss-reduction works is currently nearly 25 per cent. This is encouraging.
On the other hand, smart metering under RDSS needs to pick up pace. According to official statistics, as of March 18, 2025, a total of 19.78 crore consumer smart meters were sanctioned under RDSS. This does not include other meters like distribution transformer (DT) meters and feeder meters, though they are much lesser in number. Around 58 per cent of this quantum has been awarded, which is about 11.40 crore meters.
In some states like Tamil Nadu, the award of smart meter contracts – worth a significant 3 crore meters — has got delayed. In many other states, the pace of smart meter deployment is seen to be very slow. This is understandable as smart meter rollouts are at the last link of the value chain – the consumer. Nevertheless, the pace needs to improve.
Overall, only around 1.31 crore consumer smart meters have been installed nationwide, which is just about 11 per cent of the volume awarded. It is also learnt that some AMISPs have amassed large orders but are going pathetically slow on the execution front.
The top five states in terms of consumer smart meters sanctioned under RDSS include Uttar Pradesh, Tamil Nadu, Maharashtra, West Bengal and Bihar – in that order. Collectively, in these five states a total of 10.36 crore meters have been sanctioned of which around 56 per cent have been awarded. However, the actual number of meters installed is barely 9 per cent of what has been awarded.
Smart metering will indeed be a challenging task, considering India’s diverse topography and the technical sophistication of smart meters. However, it is important to realize that smart meters, especially prepaid ones, are very critical for India. They will be the much needed bridge that will help state discoms reach the cherished and hitherto elusive goal of commercial efficiency.
Featured photograph source: IntelliSmart Infrastructure Pvt Ltd
The author of this article, Venugopal Pillai, is Editor, T&D India, and may be reached on venugopal.pillai@tndindia.com. Views are personal.