← External Forces: Digital & Technology (all topics)
Smart meters (RDSS)
What it is
The Revamped Distribution Sector Scheme funds prepaid smart meter rollout and loss-reduction works, targeting AT&C losses of 12-15%. Around 250 million smart meters were envisaged with a total outlay near Rs 3.04 trillion
Most deployment runs on a DBFOOT model where the meter provider funds installation and recovers it over the concession
Impact on industries
- Converts a capex sale into an annuity - the provider earns a per-meter charge over the concession rather than a one-time equipment margin
- Directly attacks the discom revenue problem by enabling prepaid billing and accurate measurement, which is the root of the sector's losses
- The provider funds the capex upfront and carries discom counterparty risk across a long concession, so working capital and collection risk are severe
- Rollout runs well behind target on consumer resistance and political hesitancy over prepaid billing, though FY27 power budget support rose 39% to Rs 29,997 cr