The smart meter project was launched to curb the discrepancies caused by the manual recording of data from electric meters and the calculation of bills. A smart meter calculates electricity consumption through software and telecommunications facilities and sends billing information to the consumer's mobile number.

For this project, a tender worth Rs 20,000 crore was floated in March 2025 and later in November 2025 to install and maintain 3.04 crore meters.

With the change in government in the State, the TVK-led government has decided to drop the project. The move comes after reported irregularities in the functioning of the Electricity Board. Another reason cited is the additional expenditure for the State following its free 200 units of electricity scheme.