Odisha Government Approves ₹735 Crore Grant for Smart Meter Installation Across State
Smart electricity meters to be provided free for consumers up to 2 kW load from 2025–26
Bhubaneswar : The Odisha government has approved a one-time grant of ₹735 crore to directly fund the installation of smart electricity meters across the state. The decision, taken by the state Cabinet and notified by the Energy Department, aims to modernise power distribution while providing relief to small electricity consumers.
The funding will be implemented during the 2025–26 financial year and will cover both replacement of existing meters and installation of smart meters for new electricity connections.
Smart Meter Rollout for Small Consumers
Under the approved plan, smart electricity meters will be installed for consumers with contract demand (CD) up to and including 2 kW. This includes domestic households and small commercial users.
The initiative covers:
- Replacement of existing non-smart meters
- Installation of smart meters for new electricity connections
The move is expected to improve billing accuracy, enable real-time energy monitoring, and support Odisha’s power sector reforms.
Ownership and Operation Framework
According to the notification, all smart meter assets will remain the property of the Energy Department, Government of Odisha. However, the operation and maintenance of these meters will be handled by the state’s power distribution companies.
The DISCOMs involved include:
- TPCODL (Tata Power Central Odisha Distribution Ltd)
- TPNODL (North Odisha)
- TPSODL (South Odisha)
- TPWODL (Western Odisha)
The government’s financial support will be routed as deferred equity through GRIDCO as part of Odisha’s 49 percent matching contribution in the power distribution structure.
8.75 Lakh Existing Meters to Be Replaced
Official estimates show that around 8.75 lakh existing non-smart electricity meters used by consumers with loads up to 2 kW will be replaced with smart meters.
The capital cost for replacing these meters has been estimated at ₹340 crore.
In addition, about 2.78 lakh new electricity connections will receive smart meters, with an allocation of ₹88 crore. This brings the total capital expenditure on fresh smart meter installations to ₹428 crore.
Meter Rent Fully Abolished for Eligible Consumers
A key benefit of the decision is the complete removal of meter rent for small consumers.
Out of the total ₹735 crore grant, ₹307 crore will be used to cover the written-down value of smart meters already installed for eligible consumers up to March 31, 2025.
Following the Odisha Electricity Regulatory Commission (OERC) tariff order dated March 24, 2025, consumers with contract demand up to 2 kW will no longer pay any meter rent from April 1, 2025.
The state government has clarified that households where smart meters were installed earlier will also be fully covered under this scheme, with no additional financial burden on consumers.
Financial and Regulatory Provisions
Revenue generated from scrapped old meters will be treated as non-tariff income in the Annual Revenue Requirement (ARR), in accordance with OERC tariff regulations.
DISCOMs will be required to submit utilisation certificates to the state government, based on:
- Actual number of smart meters installed
- Verified costs incurred
This mechanism is aimed at ensuring transparency and proper use of public funds.
Boost to Power Sector Reforms in Odisha
The smart meter funding decision is part of Odisha’s broader power sector modernisation programme, focusing on:
- Digital energy management
- Accurate billing and reduced losses
- Consumer-friendly electricity reforms
Officials said the move will strengthen trust between consumers and DISCOMs while improving operational efficiency across Odisha’s electricity distribution network.
