The DMK-led Tamil Nadu government has scrapped a global tender for the installation of smart meters, even though Adani Energy Solutions Ltd (AESL) was the lowest bidder for the project. The decision, which has sparked considerable debate, was made by the Tamil Nadu Generation and Distribution Corporation (Tangedco).
Tangedco cited the “high costs” quoted by Adani Energy Solutions Ltd as the primary reason for cancelling the tender, despite AESL offering the lowest bid for one of the four packages. The package in question involved installing smart meters in four districts, including Chennai, Kancheepuram, and Chengalpattu. AESL’s bid, however, was deemed “unacceptable” by Tangedco officials, even after negotiations to bring down the costs.
The project, which was part of the larger initiative to digitise the state’s power distribution system, aimed to install 8.2 million smart meters across Tamil Nadu, with a budget of Rs 19,000 crore provided by the central government under the Revamped Distribution Sector Scheme. The smart meters were to be installed across all electricity connections in the state, except for agricultural connections.
Despite the tender cancellation, Tangedco remains committed to the project and plans to reissue the tenders soon. According to sources, all four tenders issued in August 2023, which included the three other packages for different districts, were cancelled for “administrative reasons.”
The project for the installation of smart meters was preceded by a pilot project in Chennai’s T Nagar under the Smart City initiative in 2018. The pilot saw the deployment of 1.1 lakh smart meters, laying the groundwork for a potential statewide rollout. However, the recent decision to scrap the tenders has raised questions about the next steps in the implementation process.
The cancellation of the tenders has also stirred political controversy in Tamil Nadu. Allegations have surfaced, linking the decision to possible favouritism towards the Adani Group. In the last week of February, Chief Minister M. K. Stalin denied reports that he had met with Adani Group chairman Gautam Adani. In a statement made during the state assembly, Stalin refuted the accusations, asserting, “Neither Adani met me, nor did I meet him. Do you need any further clarification?”
Stalin further denied any ties between his government and the Adani Group, asserting that public-sector entities, such as the Solar Energy Corporation of India (SECI), were responsible for the Tamil Nadu electricity board’s solar power procurement agreements—not Adani Group companies.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
