In a major step toward modernizing Tamil Nadu’s electricity distribution system, Electricity Minister V. Senthil Balaji confirmed that tenders for smart meter installation will be floated next week. The project will be funded under a loan from the Rural Electrification Corporation (REC), a central government undertaking, as part of the Revamped Distribution Sector Scheme (RDSS).
“To enhance energy auditing and accounting, smart meters with remote communication features will be installed not only for individual consumers but also across feeders and transformers,” the minister told The New Indian Express.
Key Highlights of the Smart Meter Project:
- The project will follow a TOTEX model (capital + operational expenditure), where the contractor installs and maintains the smart meters for the entire agreement period.
- Consumers will not be charged for the smart meter installation, confirmed the minister.
- A special team has been constituted by Tangedco to conduct feasibility inspections across the state.
Pilot and Funding Details
As a pilot project, over 1 lakh smart meters have already been installed in T-Nagar, Chennai, which provided useful insights for scaling the program across Tamil Nadu.
A senior official added that a private consultant’s report was submitted last year, and the bidding standards, cost structures, and terms of execution are already finalized.
Under the RDSS, the Union Government has allocated ₹3.03 lakh crore to 13 Indian states, with ₹10,790 crore earmarked for Tamil Nadu. Tangedco is expecting 70% of the funds to be released in the first phase.
Works Included Under the Scheme:
- Loss reduction via advanced metering
- Agriculture feeder segregation
- Establishing high voltage distribution systems (HVDS)
- Modernization of double transformer networks
- Improved distribution infrastructure in rural and urban areas
This initiative is expected to boost transparency, reduce energy theft, and enable real-time monitoring of electricity consumption throughout the state.