CHENNAI: After cancelling two smart meter tenders, Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) has made a fresh attempt to implement its long-pending smart metering programme, planning to install around 1.74 crore smart meters across the Chennai Metropolitan Area (CMA) and municipal corporations across the state.
The latest exercise is expected to give a fresh push to the rollout of smart meters, which will replace conventional meters and enable TNPDCL to digitally monitor electricity consumption and reduce billing errors. The system will also pave the way for monthly billing.
Of the seven packages floated in the latest tender, two cover 56.85 lakh consumer connections in Chennai. The first covers 30 lakh low-tension (LT) consumers in Chennai Central, excluding T Nagar, Chennai North and Chennai West, and includes Avadi Municipal Corporation. The second covers 26.85 lakh consumers in Chennai South-1 and South-2.
The remaining 23 municipal corporations have been divided into four packages, covering 1.12 crore consumer connections. Six corporations in Kancheepuram, Villupuram, Vellore and Tiruvannamalai districts form one package, while five corporations in Erode and Karur districts form another. Tiruchy, Thanjavur and Erode corporations are grouped in another package, while Madurai and Tirunelveli form the fourth package.
Alongside consumer metering, the TNPDCL is seeking to install 4.72 lakh smart meters on distribution transformers across all 38 districts. These meters will allow the utility to digitally monitor electricity flows at the transformer level, providing a wider picture of distribution losses and network performance.
The smart metering system will also enable remote operations. Connections can be disconnected remotely if bills remain unpaid after the due date and restored after payment or recharge, reducing the need for physical intervention.
The TNPDCL has planned a phased rollout under the latest tender. The first 5% of consumer meters are to become operational by the eighth month after the execution of the contract. The rollout is expected to reach 40% by the 15th month, with the entire connections covered by the 27th month.
The utility first floated a tender in August 2023 to install smart meters for all consumer connections except hut and agricultural services. The tender was cancelled in December 2024 due to poor participation from bidders and high maintenance costs quoted by them.
The TNPDCL floated fresh bids in March 2025 and subsequently decided to implement the project in two phases. The first phase was to cover 1.44 crore smart meters for all LT three-phase consumers, single-phase consumers with bimonthly consumption above 400 units, all high-tension consumers and distribution transformers. The second phase, covering the remaining consumers, was to be taken up after successful implementation of the first phase.
The original project was planned as a single-phase rollout at an estimated cost of Rs 19,235 crore. Under the revised plan, the first phase covered 1.44 crore meters, including 93.59 lakh single-phase and 45.57 lakh three-phase LT meters. The second phase was to cover the remaining 1.57 crore single-phase and 3.90 lakh three-phase meters. The tender was subsequently cancelled after the bids were opened following the change of government.
A senior TNPDCL official said the utility was confident of awarding the smart metering contract this time as prices had come down.
“After the installation of smart meters, we will implement monthly billing in CMA and other municipal corporations,” the official said.