When Was the Smart Metering Plan Introduced?

The broader smart metering push came under the Central Government’s RDSS framework. Tamil Nadu’s role was to implement the project through its State power distribution body, Tamil Nadu Power Distribution Corporation Limited.

Under this framework, Tamil Nadu Power Distribution Corporation Limited began moving towards a State-wide smart metering programme by planning to appoint the Advanced Metering Infrastructure service providers through tenders.

Why Was Smart Metering Introduced?

The main reason for introducing smart meters was to reduce problems in manual electricity meter reading. In the existing system, electricity board staff physically visit premises and record meter readings. Reports mention that manual recording can lead to errors, estimated readings, billing discrepancies and consumer complaints.

Smart meters were proposed as a digital alternative. These meters can calculate electricity consumption through software and communication systems and send billing information digitally. The objective was to modernise billing, improve accuracy and reduce manual dependency in meter reading.

What Happened to the Smart Meter Tender?

The Tamil Nadu smart meter project faced repeated tender delays and cancellations before reaching its present uncertain stage. In December 2024, Tamil Nadu Power Distribution Corporation cancelled a global tender after the quoted cost by Adani Energy Solutions Ltd, the lowest bidder for one package, was considered high. That package covered eight districts, including Chennai, and involved more than 82 lakh smart meters.

After cancelling the earlier tenders, TNPDCL re-invited bids in March 2025 under six packages for a much larger rollout covering single-phase meters, three-phase meters, high-tension consumers and distribution transformers.

By August 2025, bids were opened for a revised project to install around :

• 3.04 crore smart meters in two phases
• at an estimated cost of about ₹19,235 crore.

However, the project continued to face review due to cost concerns, tender issues and policy-level reassessment.

Were Smart Meters Already Implemented in Tamil Nadu?

Yes, smart meters were already implemented in Tamil Nadu, but only in selected areas and not as a full State-wide rollout. Around 1.26 lakh smart meters were installed in parts of Chennai, mainly T. Nagar and Kodambakkam, under the Chennai Smart City project.

As per the details published in a September 2018 news article, the installation of smart meters was intended to help TANGEDCO to test digital meter reading and automated billing systems and carry out real-time energy auditing, reduce meter-reading costs, and detect defective or dead meters more quickly.

The plan was to develop an advanced metering and distribution infrastructure under the Chennai Smart City Mission, mainly in T. Nagar and other areas selected under the Area Based Development plan. The objective was to help the utility manage its distribution network more efficiently, prevent grid overloading, and reduce the risk of blackouts.

What is Happening now?

As per the latest reports dated June 6–7, 2026, the Smart meter project appears to be under serious reconsideration.

The smart meter project is being reconsidered for several reasons. Reports suggest that the government may abandon the ₹20,000 crore project following multiple tender cancellations and concerns over irregularities within the Electricity Board.

Another key reason is the scale of financial commitment involved. The Electricity Minister has reportedly stated that the government is still examining the policy aspects of the project, as the total cost could rise to nearly ₹30,000 crore. The State is therefore reviewing the project’s cost, benefits, and practical challenges before taking a final decision.

In addition, the government’s latest election promise to provide 200 units of free electricity is expected to add further financial pressure on Tamil Nadu’s power sector.

So, the government is reportedly considering whether continuing with such a high-cost smart meter project is financially feasible at this stage.

Conclusion

Tamil Nadu’s smart meter project was introduced as part of a larger power-sector modernisation plan under the Central RDSS framework. The State’s electricity distribution body moved to implement it through large tenders covering more than 3 crore meters. However, high quoted costs, repeated tender cancellations, irregularity concerns and financial pressure have pushed the project into uncertainty.

At present, the project appears to be either on hold or being dropped in its current form, depending on the final official decision. The government has not yet issued a clearly traceable official G.O. saying the smart meter project is formally dropped. The safest factual position is that Tamil Nadu has not completed the State-wide smart meter rollout, and the government is now reassessing whether the project should continue.