In a landmark move to modernize the state’s energy infrastructure and provide significant financial relief to consumers, the Odisha government has approved a one-time grant of ₹735 crore for the installation of smart electricity meters. The decision, notified on Saturday following a Cabinet approval, is set for implementation in the financial year 2025–26.
The initiative specifically targets electricity consumers with a contract demand (CD) of up to and including 2 kW. This strategic intervention is designed to enhance billing accuracy and grid efficiency while easing the financial burden on small-scale users.
Breakdown of the ₹735 Crore Grant:
The total allocation is divided into two primary components:
₹428 Crore for Infrastructure (Capital Expenditure): * Replacement: Approximately 8.75 lakh existing non-smart meters will be replaced with smart meters at an estimated cost of ₹340 crore.
New Connections: About 2.78 lakh new electricity connections will receive smart meters, with ₹88 crore earmarked for this purpose.
₹307 Crore for Debt Clearance: This portion will cover the written-down value (WDV) of unrecovered costs for smart meters already installed for eligible consumers up to March 31, 2025.
Key Benefits and Financial Changes:
Meter Rent Abolished: Following an OERC tariff order dated March 24, 2025, consumers with a CD up to 2 kW will no longer pay meter rent effective from April 1, 2025. This applies to both existing smart meter users and those receiving new ones.
Government Ownership: While the smart meter assets will technically belong to the Energy Department, Government of Odisha, they will be operated and maintained by the respective DISCOMs (TPCODL, TPNODL, TPSODL, and TPWODL).
Funding Mechanism: The grant will be passed on as deferred equity towards the state’s 49 percent matching contribution through GRIDCO.
Accountability and Revenue:
The government has established strict transparency protocols. DISCOMs are required to submit utilization certificates based on actual installations and costs. Furthermore, any revenue generated from the scrap of replaced non-smart meters will be treated as non-tariff income in the Annual Revenue Requirement (ARR), ensuring that the value of old assets is accounted for in line with OERC regulations.
This modernization drive marks a pivotal step in Odisha’s energy sector, ensuring that nearly 11.5 lakh households and small businesses transition to a more efficient and transparent digital metering system without incurring additional costs.