BHUBANESWAR: In a bid to accelerate installation of smart electricity meters by allaying the concerns of consumers, the state government has approved a one-time financial assistance of Rs 735 crore for the current financial year.
The initiative, under Mukhya Mantri Smart Bill Yojana (MMSBY)-Installation of Smart Meters Phase-I, will cover all electricity consumers having contract demand (CD) up to and including 2 kW. The scheme aims to ensure rapid installation of smart meters without putting any financial burden on small consumers.
A resolution of the Energy department said the capital cost of Rs 735 crore will cover installation of smart meters for approximately 2.78 lakh new connections, replacement of about 8.75 lakh existing non-smart meters and payment of the unrecovered cost (written down value) of smart meters already installed up to March 31, 2025, for which meter rent has been discontinued from April 1, 2025.
The financial assistance from the government will be provided through Special Assistance to State for Capital Investment (SASCI) fund for 2025-26. “The funds will be part of state’s capital expenditure and passed on to discoms as deferred equity through GRIDCO, forming the state’s 49 per cent matching contribution,” said the resolution.
While the Energy department will retain ownership of the smart meter assets, the discoms will be responsible for operation and maintenance. Revenue generated from scrapped meters will be treated as non-tariff income under existing tariff regulations.
The Tata Power-managed TPCODL, TPNODL, TPSODL and TPWODL have been instructed to submit utilisation certificates based on actual expenditure and the number of meters installed for ensuring transparency and accountability in implementation.
The decision follows the state government’s communication to the Odisha Electricity Regulatory Commission (OERC) on the annual revenue requirement (ARR) and determination of tariff for 2025-26. Accordingly, OERC in its tariff order on March 24, 2025 abolished meter rent for consumers in this category.
The government said that the scheme will help reduce AT&C losses, improve billing efficiency, lower consumer grievances and strengthen power system planning through access to realtime consumption data. Smart meters will also facilitate integration of rooftop solar, PM-KUSUM and PM-Surya Ghar renewable energy initiatives, it said.