Kerala pulls out of smart meter project

Kochi: Succumbing to pressure from the left organisations and CPM state leadership, Kerala has pulled out of the electricity smart meter project. As a result, Kerala is bound to lose out on a ‘central’ project worth Rs 10,475 crores.

The centre had decided to grant Rs 8,206 crores for installing the smart meters. Apart from this, the union government had decided to sanction Rs 2,269 crores for minimising electricity losses. Kerala would have also got a non-refundable grant of Rs 2,000 crores if the state government had decided to go ahead with the project.

The Kerala government has dropped the project alleging attempts of ‘privatisation’ and will write a letter to the energy ministry informing them of their reluctance to implement the project. 

The central government had allocated a budget of Rs 3,03,758 crores for implementing the revamped distribution sector scheme (RDSS) across the country. The time period between 2025-26 was set as the deadline for the same as well. 

The primary reason behind Kerala government’s decision is the totex model of billing. As per the model, KSEB will receive their charges from the consumers only after the company which installed the smart meters cut their shares. In addition to this, it is also alleged that the consumers will be forced to pay a rent of Rs 100-Rs 130 every month for such ‘metres’. 

The Kerala government wanted to implement the project using the C-DAC technology. They wanted the electricity regulatory commission to have a final word on the meter rents as well. Due to its decision not to cooperate with the project, Kerala will have to return a major chunk of the grant of Rs 67 crores, which was allotted on a priority basis. 

The state government’s decision might force the Centre to cut short loans that are provided for compensating losses in the electricity sector.