Smart meter battle intensifies, Kerala in quandary over high cost amidst pressure from Centre

Thiruvananthapuram: The debates around instituting pre-paid smart meters are intensifying. While employee unions like CITU, INTUC, and AITUC stand together in their opposition, BJP is the sole supporter on the scene. Chief Minister Pinarayi Vijayan has informed the electricity department that this need not be implemented entirely in the private sector as per the model suggested by the Centre. 

Although KSEB went ahead with the tender proceedings related to the smart meter, the lowest tender received is higher than what KSEB suggested. KSEB estimated an amount of Rs 2400 crores for 37 lakh smart meters. But the lowest quote on the tender was Rs 3475 crores. 

KSEB is interested in re-inviting tenders but there is no guarantee that the price will come down. Although it was decided that this tender would be canceled, this move has not been made. 

The companies did not cede to demands that the quote be reduced. Accordingly, the cost for one smart meter would be Rs 9300 while KSEB had expected it to be Rs 6000. The Centre's subsidy is only 15%. The remaining amount will need to be paid by the consumer in 93 installments to private contractors. 

The state government knows that this project cannot be implemented at this high rate. With pressure from the Centre, the electricity department is perplexed about how to go about it.