Powering Up: State Greenlights ₹735 Cr for Smart Meters

The state government has approved a one-time financial assistance of ₹735 crore for the installation of smart electricity meters under Phase I of the Mukhya Mantri Smart Bill Yojana (MMSBY), aimed at accelerating smart meter deployment without placing an additional burden on small consumers.

The scheme will cover consumers with contract demand up to 2 kW and support the installation of smart meters for approximately 2.78 lakh new connections, replacement of about 8.75 lakh existing non-smart meters, and recovery of costs for meters already installed. Funding for the initiative will be provided through the Special Assistance to States for Capital Investment (SASCI) fund for the financial year 2025–26.

As per the government resolution, ownership of the meters will remain with the Energy Department, while distribution companies (discoms) will be responsible for their operation and maintenance.

The initiative is expected to help reduce aggregate technical and commercial (AT&C) losses, improve billing efficiency and support the integration of renewable energy initiatives such as rooftop solar and the PM-KUSUM scheme. The resolution noted that the financial assistance will be extended to discoms in the form of deferred equity.

News by Rahul Yelligetti.