Odisha govt to install smart meters, Rs 735 crore one-time grant approved

The Odisha government will directly fund the installation of smart electricity meters across the state, approving a one-time grant of Rs 735 crore for the financial year 2025–26, following a Cabinet decision and a subsequent notification by the Energy Department.

Under the decision, notified on Saturday, smart meters will be installed for electricity consumers with contract demand (CD) up to and including 2 kW, covering both replacement of existing non-smart meters and new electricity connections.

Further, while the smart meter assets will belong to the Energy Department, Government of Odisha, the meters will be operated and maintained by the respective DISCOMs, including Tata Power's TPCODL, TPNODL, TPSODL, and TPWODL. The government funding will be passed on as deferred equity towards the state’s 49 percent matching contribution through GRIDCO.

8.75 Lakh Existing Meters To Be Replaced

As per official details, around 8.75 lakh existing non-smart meters used by consumers with up to 2 kW load will be replaced with smart meters. The estimated capital cost for this replacement is Rs 340 crore.

In addition, smart meters will be installed for approximately 2.78 lakh new electricity connections, for which Rs 88 crore has been earmarked. The total capital expenditure on the installation of smart meters under the scheme will therefore stand at Rs 428 crore.

Meter Rent Abolished

As per reports, the remaining Rs 307 crore out of the total Rs 735 crore allocation will be used to cover the written-down value (WDV) of unrecovered costs of smart meters already installed for eligible consumers up to March 31, 2025.

These consumers will no longer be required to pay meter rent from April 1, 2025, following the Odisha Electricity Regulatory Commission (OERC) tariff order dated March 24, 2025, which abolished meter rent for consumers with contract demand up to 2 kW.

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The state government clarified that consumers who had smart meters installed before March 2025 will not bear any meter rent burden, with the government absorbing the cost through this one-time grant.

Revenue generated from scrap of replaced meters will be treated as non-tariff income in the Annual Revenue Requirement, in line with OERC tariff regulations. DISCOMs will be required to submit utilisation certificates based on the actual number of meters installed and costs incurred.