CHENNAI: Tamil Nadu Power Distribution Corporation Limited (TNPDCL) has cancelled the tenders floated as four packages in August 2023 for procuring smart meters under the union government's Revamped Distribution Sector Scheme.
The decision was taken during the recent board meeting, though an official announcement is yet to be made. Sources indicate that the power utility is expected to float fresh tenders soon, as the deadline to implement the smart meter scheme is set for March 2025.
TNIE was the first to report on December 5, 2024, that Adani Energy Solutions Limited (AESL) was the Lowest Bidder (L1) in the first package of the project although negotiations on the pricing were still under way.
A senior official told TNIE, "AESL had initially quoted Rs 120 for single-phase meters and Rs 169 for three-phase meters as per metre per month charge for operation and maintenance. During negotiations, the company agreed to reduce the rates to Rs 96 and Rs 139 respectively. However, AESL had quoted Rs 70 and Rs 120 for similar meters in Puducherry, which was a significant difference." TNPDCL therefore decided to cancel the tender process altogether, the official added.
The union government has directed all electricity distribution companies (discoms) across India to complete the tender process by March 2025 and begin installation without delay, another official said.
TNPDCL is yet to make progress in its target of installing over three crore smart meters.
"If the power utility fails to implement the smart meter project on time, the subsidy provided under the scheme may be converted into loans. This puts TNPDCL under pressure to expedite the tender process," the official added.