The Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) has cancelled its global tender for smart electricity meters, with Adani Group having emerged as the lowest bidder (L1) for one of the four proposed packages. The cancellation is attributed to the high prices quoted by Adani Energy Solutions.
As a result, Tamil Nadu may fall behind several other states in the installation of smart meters. TNPDCL plans to issue a new tender, which is expected to delay the project by at least six months, according to insider reports.
This initiative is part of a ₹19,000-crore project to install smart meters under the Central government’s Revamped Distribution Sector Scheme (RDSS), with a goal of installing 3.03 crore smart meters throughout Tamil Nadu. The chosen contractor will be responsible for the installation, communication setup, integration, and maintenance of these meters for a period of 10 years.
The tender included four batches with differing quantities of meters, with four companies participating in the bidding process. Although Adani was the lowest bidder, its quoted price exceeded TNPDCL’s budget and was higher than those of neighboring states, even after price adjustments. Consequently, the tender was scrapped, and a new tender will be announced shortly.
Currently, Tamil Nadu lags behind at least 15 other states in smart meter installations, having installed approximately 1.4 lakh smart meters by December 11, 2024. This figure includes around 1.3 lakh consumer meters, though none was installed under the RDSS scheme, for which Tamil Nadu has the largest allocation of 30 million meters. States are required to install smart meters for consumers, distribution transformers, and feeders, with the central government approving a total of 19.79 crore consumer meters, 52 lakh distribution transformer meters, and 1.88 lakh feeder meters across the country.
Failure to meet RDSS targets could result in financial repercussions for the state, including decreased central financial assistance and restrictions on additional borrowing powers.
