Press Information Bureau
Government of India
Ministry of Power
16 DEC 2021 5:05PM by PIB Delhi
Status of Upgradation to Prepaid Meters

Government of India has provided funds to the States for implementation of smart metering under National Smart Grid Mission (NSGM) and Integrated Power Development Scheme (IPDS). Further, under the Revamped Distribution Sector Scheme (RDSS) launched by Government of India on 20th July, 2021, provisions have been made to install 25 Crore pre-paid smart meters across the country by March, 2025.  Priority would be accorded to (i) all Electricity Divisions of 500 AMRUT cities, with AT&C Losses > 15%, (ii) all Union Territories, (iii) MSMEs and all other Industrial and Commercial consumers, (iv) all Government offices at Block level and above and (v) other areas with high losses for installation by Dec., 2023. RDSS does not mandate smart metering for agricultural consumers.

The Revamped Distribution Sector Scheme (RDSS) envisages smart metering on OPEX mode and provides financial support to DISCOMs opting for prepaid smart metering.  Under the scheme, in “Other than Special Category States”, a fixed amount of 15% (22.5% in case of Special Category States) of the cost per meter worked out over the whole project period, subject to a maximum of Rs.900/- (Rs.1350/- in case of special category States) per meter in case of consumer meters, will be funded.            

States/UTs would be incentivised for deployment of prepaid Smart meters by December, 2023. An incentive @ 7.5% of the cost per consumer meter worked out for the whole project or Rs.450 per consumer meter, whichever is lower, would be provided for “Other than Special Category States" for prepaid Smart Meters installed within the targeted timeline of first phase mission i.e. by December, 2023. The incentive for Special Category States would be @ 11.25 % of the cost per consumer meter worked out for the whole project or Rs.675 per consumer meter, whichever is lower.

For the purpose of execution of this scheme, all North Eastern States including Sikkim and States of Himachal Pradesh & Uttarakhand and Union Territories of Jammu & Kashmir, Ladakh, Andaman & Nicobar Islands, and Lakshadweep will be treated as Special Category States/UTs.

This information was given by Shri R. K Singh, Union Minister for Power and New and Renewable Energy in a written reply in Lok Sabha today.