PUDUCHERRY: The Government of Puducherry has decided to implement the Smart Metering Project for power consumers under a post-paid system, reversing its earlier decision to adopt a prepaid model.
Consumers will now have the option to voluntarily migrate to the prepaid mode, according to a government order issued on December 30, 2024.
The revised approval comes after opposition from various political parties and civil society organisations for the pre-paid Smart Meter Project. Puducherry Power Minister A Namassivayam in November last submitted a memorandum to Union Minister for Power Manohar Lal Khattar in New Delhi stating that there was “stiff resistance” from people for implementing the prepaid Smart Meter Project in Puducherry. The Centre should consider implementing the scheme with a post-paid plan option during the initial stages.
Initially, there were challenges in awarding the original contract under the prepaid model. The Electricity Department of Puducherry had previously planned to award the project to M/s. Genus Power Infrastructure Limited with an estimated cost of Rs 393.63 crore. However, due to the expiration of the bid validity and the refusal of the initial bidder to extend it, the project was re-tendered.
Following the revised bidding process, M/s. Apraava Energy Pvt. Ltd. emerged as the successful bidder with a quoted price of Rs 383.59 crore. The government has now approved the expenditure for the post-paid smart metering project under the "Revamped Distribution Sector Scheme" (RDSS) notified by the Ministry of Power.
The Smart meter project will be implemented on a TOTEX (Total Expenditure) model, with provisions for cost variations Payments will be facilitated through a Direct Debit Facility under a quadripartite agreement involving the Electricity Department, the contractor, and financial institutions, stating the order. The Finance Department has cleared the revised proposal, and the project is set to proceed under the revised framework.
The move is expected to enhance billing efficiency and encourage gradual adoption of the prepaid model.