The Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) has cancelled the global tender for smart electricity meters, where Adani Group had emerged as the lowest bidder (L1) for one of the four packages, citing high costs quoted by Adani Energy Suppl.

Due to this, Tamil Nadu is likely to remain behind several other States in smart meter installations.

TNPDCL plans to re-tender, which could delay the installation by at least six months, according to sources.

RDSS project

The State energy utility launched a ₹19,000-crore smart meter installation project under the Central government’s Revamped Distribution Sector Scheme (RDSS), aiming to install 3.03 crore smart meters across Tamil Nadu. The selected contractor would be responsible for installation, communication set-up, integration and maintenance for 10 years.

The tender covered four batches with varying meter quantities. Four companies participated, with Adani being the lowest bidder. However, Adani’s quoted price exceeded the TNPDCL’s budget and was higher than prices in neighbouring States, even after price reductions. Consequently, the tender process was cancelled, and a re-tender will be called soon.

Currently, Tamil Nadu is behind at least 15 other States in smart meter installations. As of December 11, 2024, only around 1.4 lakh smart meters have been installed, including 1.3 lakh consumer meters — though none under RDSS, for which Tamil Nadu has to the highest allocation of 30 million metres. States are required to install smart meters for consumers, distribution transformers (DT) and feeders, with the Central government approving a total of 19.79 crore consumer meters, 52 lakh DT meters and 1.88 lakh feeder meters nationwide.

A State that fails to meet the RDSS target will face financial implications, such as reduced central financial assistance and non-allowance of additional borrowing powers.