UP govt cancels smart meter tenders of Adani, GMR group companies

Two Uttar Pradesh power distribution companies (discoms) have cancelled the bids of Adani and GMR group companies to supply smart meters under the state’s Rs 25,000-crore road map.

The discoms -- Dakshinanchal Vidyut Vitran Nigam and Purvanchal Vidyut Vitran Nigam -- have cancelled the tenders without citing any reasons.

Adani and GMR group companies were the lowest bidders with offers worth about Rs 7,000 crore and Rs 9,000 crore for respective tenders. Adani and GMR group firms are not smart meter manufacturers themselves.

In February, sister discom Madhyanchal Vidyut Vitran Nigam (MVVNL) had cancelled its smart bidding, wherein Adani Group was the lowest bidder for the supply of about 7.5 million smart meters. The MVVNL bid was to the tune of Rs 5,400 crore.

Meanwhile, Purvanchal has floated fresh tenders after dividing the districts under its jurisdiction into three clusters instead of just one.

This is purportedly aimed at reducing individual tender size, and allowing more companies, including original smart meter manufacturers, to submit bids. Lower bid value would save on cost for the discom.

Last month, MVVNL Managing Director Bhawani Singh Khangarot had urged the state apex power utility, UP Power Corporation (UPPCL), to reduce the size of bid clusters to a maximum of 2.5 million smart meters in each cluster to increase the bidding basket, and thus increase competition among private players.

In his letter, Khangarot underlined that smaller clusters “will encourage participation and competition among the industry players who have actually and directly worked in the energy metering segment and will, therefore, be of benefit to the discom by way of avoiding dependency on a single party…”

Earlier, UP discoms Madhyanchal, Dakshinanchal, Purvanchal, and Paschimanchal had floated separate tenders for the supply of more than 25 million smart meters with the combined bid value of almost Rs 25,000 crore.

The remaining discom -- Paschimanchal -- has yet not cancelled its bid, which was won by Intellismart Infra, a joint venture of Energy Efficiency Services and National Investment and Infrastructure Fund.

The UP power consumers’ forum had already filed a petition with energy watchdog UP Electricity Regulatory Commission alleging steep prices quoted by the smart meter bidders.

Forum President Avadhesh Kumar Verma had requested to carve out more clusters out of the existing four in each of the discoms to enable small firms to submit their tenders and prevent companies with deep pockets to bid and profit at the expense of discoms and the end consumers.