The Odisha government has decided to directly fund the installation of smart electricity meters across the state, approving a one-time grant of ₹735 crore for the financial year 2025–26. The decision follows a Cabinet approval and a notification issued by the Energy Department.
Under the scheme, smart meters will be installed for electricity consumers with contract demand (CD) up to and including 2 kW. This includes replacement of existing non-smart meters as well as installation for new electricity connections. While ownership of the smart meters will remain with the state Energy Department, their operation and maintenance will be handled by the respective power distribution companies (DISCOMs). The government funding will be treated as deferred equity toward the state’s 49 per cent matching contribution through GRIDCO.
According to official estimates, around 8.75 lakh existing non-smart meters will be replaced at a capital cost of ₹340 crore. Additionally, smart meters will be installed for approximately 2.78 lakh new electricity connections, with an allocation of ₹88 crore. The total capital expenditure for fresh installations and replacements will amount to ₹428 crore.
The remaining ₹307 crore from the approved grant will be used to cover the written-down value of unrecovered costs for smart meters already installed for eligible consumers up to March 31, 2025. As a result, consumers with contract demand up to 2 kW will no longer be required to pay meter rent from April 1, 2025, in line with the tariff order abolishing such charges.
The state government clarified that the cost burden of smart meters installed before March 2025 will be fully absorbed through this grant. Revenue generated from scrapped old meters will be treated as non-tariff income, and DISCOMs will be required to submit utilisation certificates based on the actual number of meters installed and expenditure incurred.
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