Lok Sabha Question No. 1933 (UNSTARRED), answered on 2025-12-11
Subject: Modernization of Electricity Distribution
Ministry: POWER
Asked by: Shri Shashank Mani

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.1933 ANSWERED ON 11.12.2025

## MODERNIZATION OF ELECTRICITY DISTRIBUTION

1933. SHRI SHASHANK MANI:

Will the Minister of POWER

be pleased to state:

(a) whether  the  Government  has  set  a  target  of  installing  250  million  smart meters across the country by 2025-26 to modernize electricity distribution, improve billing efficiency and reduce aggregate technical and commercial (AT&C) losses;

(b) if so, the details of progress achieved so far under this initiative including the number of smart meters sanctioned, installed and made operational;

(c) whether  around  222  million  smart  meters  have  been  sanctioned  and approximately  22  million  installed  till  date  and  if  so,  the  reasons  for  the  gap between sanctioning and installation of smart meters; and

(d) the major factors affecting the pace of implementation such as financial, technical, logistical or administrative challenges?

## A N S W E R

THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

(a)  to  (d)  :  Government  of  India  launched  the  scheme  of  Revamped  Distribution Sector  Scheme  (RDSS)  in  July  2021  to  support  the  States/  UTs  to  improve  the operational efficiencies and financial sustainability of distribution utilities so as to provide quality and reliable supply of power. One of the key initiatives under the scheme  is  smart  metering  of  consumers,  distribution  transformers  and  feeders. Under the scheme, 20.33 crore smart meters have been sanctioned based on the project proposals submitted by the States. In addition, many States have installed smart meters under their State plan. Till date 4.93 crore smart meters have been installed in the country under various schemes. Sanctioned works are expected to be completed by the scheme sunset date i.e. 31.03.2028.

- …….2.

Smart  metering  helps  improve  the  billing  and  collection  efficiency  of  the DISCOMs and thus would help in reducing losses.

Initially,  there  were  some  challenges  in  the  implementation  of  smart metering works due to the following reasons:

- 1) Inadequate consumer awareness regarding the benefits of smart meters.
- 2) Delay in tendering and awarding of works. Few utilities required longer time period for obtaining board approval issuance of tender documents etc.
- 3) Delay  in  signing  of  Contract  agreement  and  Direct  Debit  Facility  (DDF) agreement by utilities.
- 4) Initial delays in issuing Request for Proposal (RFP) as Smart Metering being new technological initiative.
- 5) Challenges in implementation in Total Expenditure (TOTEX) mode as per the scheme guidelines in some utilities.

To  improve  pace  of  installation,  the  Ministry  has  taken  various  steps including regular follow up with States to enhance the consumer confidence and awareness.  Various  advisories  and  Standard  Operating  Procedures  (SoPs)  have been isssued which include:

-  Prioritisation  of  installation  of  prepaid  smart  meters  for  Government establishments, commercial, industrial and high-load consumers;
-  Incentivising  consumers  for  prepaid  meter  installation  through  rebates  in bill;
-  No  penalty  on  consumer  based  on  maximum  demand  recorded  by  smart meter;
-  Mechanism for recovery of past arrears in easy instalments;
-  Installation of check meters for enhancing confidence in accuracy of smart meters;
-  Smart  meter  mobile  apps  are  being  made  available  to  allow  for  regular tracking of consumption of electricity and for easy recharge;
-  Advance  alerts  for  balance  and  emergency  credit  to  consumers  before disconnection.

Consequently, the works have picked up pace.

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