CHENNAI: The Tamil Nadu Power Distribution Corporation Limited (TNPDCL), the state’s discom, has reissued tenders for installing 3.05 crore smart meters across the state as part of the union government’s Revamped Distribution Sector Scheme (RDSS).
The total value of the tender, which has been floated as six packages, is said to be Rs 19,922.44 crore. The issuance of fresh tenders was necessitated due to the cancellation of the original tenders, issued in August 2023, due to a delay of more than a year.
The tenders were cancelled in December 2024 after Adani Energy Solution Limited (AESL), which emerged as the lowest bidder in one of the four packages, did not agree to reduce the quoted price as demanded by Tamil Nadu that cited the the lower price the company reportedly offered in few other states.
Owing to the inordinate delays, and with the the Union Ministry of Power urging the state to implement the project at the earliest, official sources in TNPDCL said they are planning to expedite the project by finishing the entire tender process and awarding the contract by the end of May and commence the installation work in June.
A senior official said each of the six packages will cover two administrative zones of TNPDCL. Pointing out that the tenders were earlier floated as four packages, the official said, “This time, we have divided the work into six packages to encourage more competition, which is expected to bring down costs and benefit the state,” the official said.
Once one or more Advanced Metering Infrastructure Service Providers (AMISPs), as the service provider is called in the RDSS scheme, are chosen for implementing the project across the state, another official said, they are expecting the installation to be completed in 27 months from the commencement of the work (in June).
The selected AMISP(s) will implement the project under the DBFOOT (Design, Build, Finance, Own, Operate and Transfer) model following the TOTEX approach, covering both the capital and operational expenses.
This would mean that TNPDCL would not pay any money upfront to the AMISP(s), but pay them on a per-meter per-month basis during the project period.
After installation, which is expected to happen over 27 months (2.25 years), the AMISPs will be responsible for operation and maintenance of the meters for another 93 months (7.75 years), following which the smart meters and the infrastructure would be handed over to TNPDCL.
As part of RDSS, the centre will provide a one-time payment of Rs 900 per metre, while the rest will be borne by TNPDCL. Of the 3.05 crore metres, officials said 2.5 crore will be single-phase meters while the remaining will be three-phase meters.
South scene
Among southern states, Tamil Nadu and Andhra Pradesh alone have initiated the smart meter installation process under RDSS. Karnataka decided to install the meters by itself, while Kerala opposed the centre’s RDSS as it would shift power distribution into the hands of corporate companies and impose a huge burden on the public