Power Minister Backs Smart Meter Project, Met with Opposition from CPM

Will Kerala Reject Central Government’s Smart Meter Scheme? Decision Hinges on Power Minister’s Meeting with Chief Minister.

The fate of Kerala’s involvement in the Revamped Distribution Sector Scheme (RDSS) hangs in the balance, as the state government contemplates withdrawing from the project. The Communist Party of India (Marxist), or CPM, has taken a stance against implementing the scheme, causing a conflict of interest.

CPM leaders firmly assert that the state government will adhere to the Central Committee’s (CC) resolution opposing the project. The CC reached this decision after consulting with leadership in Kerala. They highlighted the corporate-driven nature of the smart meter project and its potential to burden the public, including farmers.

In contrast, the CPM-led Left Democratic Front (LDF) State Government in Kerala expressed concerns about the TOTEX (total expenditure) model proposed by the Centre. Despite reservations, the government is not entirely against the project itself.

Kerala’s initial plan was to install 37 lakh smart meters. Opposition from trade unions in the power sector and certain CPM leaders hindered the project’s progress.

The project’s contentious point lies in the contracting company’s responsibility to install and maintain meters at its expense, recovering costs from customers. The CPM strongly opposes this approach, viewing it as a way to benefit private monopolies.

Minister K Krishnankutty, a supporter of the project, sought a three-month extension from the Centre after the CPM’s objection. He believes discontinuing the project would be detrimental and urges a swift resolution.

The Electricity Minister’s efforts to find an alternative approach were in vain, as the Union Ministry of Power insisted on the TOTEX model. A meeting on August 25, with the chief minister in attendance, aims to decide the project’s path forward.

The project deadline is December 31, 2025, with participating states receiving a Rs 9,000 crore central grant. The overarching goal is to reduce power distribution losses and bridge the revenue gap by 2024-25, as outlined by the Government of India’s scheme.