Energy Minister K.J. George Asserts Transparency in Smart Meter Tender Process, Compliance with KTPP Act
Bangalore: The smart meter tender process has been conducted transparently, and the BJP’s allegations on this matter are baseless, said Energy Minister K.J. George.
The press conference, held at Vidhana Soudha in the presence of Energy Minister KJ George, Energy Department’s Additional Chief Secretary Gaurav Gupta, KPTCL Managing Director Pankaj Kumar Pandey, and BESCOM MD Shivashankara, detailed the state’s power situation and smart meter installation.
“As per the order of the Karnataka Electricity Regulatory Commission (KERC), meters are being installed only for new and temporary connections in the state. For this, a meeting was held based on the pre-bid tender process following the KTPP Act, the doubts of the participating contractors were clarified, and the tender was invited,” speaking at a press conference in Vidhana Soudha today, Energy Minister KJ George added, emphasizing the fairness and transparency of the process.
“When the BJP raised the issue of smart meters in the Legislative Assembly, I had assured them that I would respond. I was prepared to give my answer the following day, and when the session began, I requested the opportunity to speak. However, the Speaker said I could respond after the budget discussion. However, during the Chief Minister’s response, the BJP caused a disturbance, preventing the session from continuing. They disrupted the proceedings and stopped me from replying. Now, the BJP is making unfounded allegations against me,” he said.
“If we had implemented the central government’s revised Distribution Sector Scheme (RDSS) or followed the central government’s instructions, we would have had to install smart meters for not only new and temporary connections but also for existing connections (2.16 crore). However, we chose not to do so to avoid burdening the customers. As per the KERC order, smart meters are only installed for new and temporary connections. Since public welfare is our top priority, we made this decision,” KJ George added.
The Energy Minister added that installing smart meters in our state differs from that of other states. In states where the RDSS has been implemented, electricity supply companies install smart meters in all households at once (bulk replacement) and include the technical maintenance costs in the monthly bill.
However, in our state, regulations require that customers bear the cost of the electricity meters themselves. Since the RDSS has not been implemented here, we are installing smart meters only for new and temporary connections, and customers must pay for the meter (₹4,998 for a single-phase meter),” KJ George added.
According to the directives of the Central Energy Authority, the Ministry of Energy of the Government of India formulated the RDSS (Revamped Distribution Sector Scheme) for the year 2021-22 and issued guidelines. The government stated that if electricity supply companies, including their subsidies, clear all outstanding dues, the central government would provide a subsidy of ₹900 per meter or 15% of the meter cost for installing smart meters. Following this, other states implemented the scheme, installing smart meters for all customers’ connections simultaneously. However, our state did not implement the scheme,” Energy Minister KJ George noted.
Tender Process as per the Regulations
As per the regulations, the tender process followed the Standard Bidding Documents provided by the Ministry of Power and complied with the KTPP Act. The tender was issued on September 26, 2024. The contract was awarded to Rajashree Electricals, which submitted the lowest bid, on December 23, 2024,” the Energy Minister explained.
Since the RDSS scheme is not yet implemented in the state, the cost of smart meters and the price of Advanced Metering Infrastructure (AMI) technology are being separately sourced through a tender process. This process follows the rules outlined in Clause KW 4 of the KTPP Act, with financial pre-qualification requirements in place. Rajashree Electricals, which has been in operation for 15 years and has a turnover of ₹354 crore.
As per the Standard Bidding Documents (SBD) and the terms outlined in the tender, Rajashree Electricals has entered into agreements with three reputed companies namely, Schneider, Genus, and Opus to manufacture smart meters. Similarly, as per the SBD and the terms mentioned in the tender, they have partnered with BCITS, a company providing software services,” KJ George said.
Allegations of BCITS being Blacklisted baseless
“Addressing the allegation that BCITS was blacklisted, the minister clarified that this matter was thoroughly reviewed during the tender process. BCITS is currently providing services to 23 electricity supply companies across various states under the RDSS scheme and has not been blacklisted by any government or agency. The Eastern Uttar Pradesh Electricity Distribution Corporation (Varanasi) had restricted BCITS from participating in tenders between January 6, 2023, and January 5, 2025. However, Rajashree Electricals, the L1 bidder in the current tender, only entered an agreement with BCITS after the restriction period concluded. Hence, BCITS backlisted is baseless this,” Energy Minister KJ George noted.
What is the difference between the meter cost and the software cost?
If we compare the meter cost and maintenance charges separately, in BESCOM, the meter cost is ₹4,998 and the maintenance cost is ₹75. In other states’ electricity supply companies, if the technical maintenance cost is set at ₹75, the meter cost in those states ranges from ₹4,200 to ₹6,800,” he said.
KJ George explained that in states where the RDSS is being used, all old meters are replaced with smart meters at once. Buying the meters in large quantities helps reduce costs. Replacing meters in a whole area also cuts down on transportation and staffing costs. This makes the process faster. In these states, smart meters use Radio Frequency (RF) or GPRS technology to communicate. These meters, which can’t be swapped out easily, are cheaper than the ones that can be swapped.
“In our state, smart meters are installed exclusively for temporary and new connections. As a result, the number of smart meters being purchased is significantly lower than in other states, making bulk purchasing unfeasible. Each new connection requires a separate visit for smart meter installation, which increases transportation and staffing costs,” KJ George said.
“The smart meters being installed in the state are designed with both Radio Frequency (RF) and GPRS technologies, allowing for interchangeability when needed (Swappable Model). Following a thorough review of all these factors, BESCOM’s technical committee has concluded that the state’s price for smart meters is fair,” KJ George noted.
“A direct comparison is inaccurate since there is a difference in the smart meter purchasing rules between other states and our state. However, including the central government subsidy, the monthly cost for each smart meter and technical maintenance over 10 years is as follows: ₹120.34 in Maharashtra, ₹117.81 in West Bengal, ₹148.88 in Sikkim, ₹130.30 in Manipur, and ₹115.84 in Madhya Pradesh. In Karnataka, this amount is only ₹116.65. Therefore, the claim that the smart meter cost is higher in Karnataka than in other states is far from the truth,” he clarified.
What are the features of a smart meter?
Smart meters, which differ from traditional models, are equipped with a GPS-based communication system for data collection and offer server and cloud connectivity. Utilizing Advanced Metering Infrastructure (AMI) technology, these meters enable direct communication between customers and BESCOM by gathering electricity usage data. Users can monitor real-time electricity usage, voltage, and power factor through a mobile app and access recharge options. Customers can make advance payments and recharge for their desired duration, allowing them to use electricity as needed. In a power outage, electricity can be restored immediately upon bill payment.
What is RDSS?
“Following the Central Energy Authority directive, the Ministry of Power introduced the Revamped Distribution Sector Scheme (RDSS) in 2021-22. Under this scheme, the central government would provide 60% of funding for developing electrical infrastructure if accepted. Additionally, the central government would contribute 15% of the total cost, or maximum of ₹900, to replace smart meters. However, the scheme stipulated that state governments could only benefit if they cleared any outstanding subsidies and dues owed to the respective electricity supply companies. Furthermore, it was mandatory for all customers to install smart meters. Since the government did not agree to these conditions at that time, the state did not accept the central RDSS scheme. Had the central government’s RDSS scheme been accepted, all customers, including existing ones, would have been required to install smart meters. Under the RDSS scheme, the pricing for smart meters and software is determined,” it was clarified.
