The Kerala Government’s pursuit of its smart meter project faces challenges due to significant financial demands and a lack of relevant industrial infrastructure. Recently, the state revealed plans to establish a consortium of public sector entities for smart meter production, but a substantial investment and years of groundwork are required. The dearth of domestic smart meter manufacturers complicates matters. This endeavor entails a prolonged setup period post technology acquisition and licensing. Chief Minister Pinarayi Vijayan led a high-level meeting, selecting this approach to replace the Union Government’s Revamped Distribution Sector Scheme (RDSS).
Despite the RDSS’s December 31, 2025 deadline for smart meter installation, Kerala’s ruling party, the Communist Party of India (Marxist), rejected the scheme due to its TOTEX (total expenditure) model. In contrast, the state’s approach is a truncated one, focusing only on installing smart meters for around 300,000 industrial and commercial consumers. The Centre’s approval for this project remains uncertain, although the Union Minister of Power New & Renewable Energy has guaranteed approval for a Rs 10,000 crore project alongside an existing Rs 4,000 crore scheme for power distribution overhaul.
The first phase of RDSS, approved by the Centre, involves a total outlay of Rs 10,475.03 crore, with smart meters accounting for Rs 8,175.05 crore. Consumers will bear the majority of this cost, repayable over 93 months. Minister K Krishnankutty explained the cancellation of the KSEB’s smart meter project tender, citing concerns about the TOTEX model’s burden on consumers. The KSEB will carry out meter replacement and software development, utilizing existing infrastructure.
While the state seeks external power procurement to prevent load shedding, electricity from awarded tenders will only arrive by October. Notably, the KSEB has no plans for tariff hikes or usage restrictions.
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