The DMK-led Tamil Nadu government has cancelled a global tender for the installation of smart metres, despite Adani Energy Solutions Ltd (AESL) emerging as the lowest bid for the project, according to a report by The Indian Express.
The decision of scrapping the tender has been taken by the Tamil Nadu Generation and Distribution Corporation (Tangedco). The Tangedco cited the ‘high costs’ quoted by the Adani Energy Solutions Ltd – the lowest bidder for one of the four packages that covers four districts including Chennai, Kancheepuram and Chengalpattu.
According to the report, the proposed package aimed at installation of 8.2 million smart metres with a fund of Rs 19,000 crore provided by the Centre under the Revamped Distribution Sector Scheme. This project was envisioned for the installation of smart metres across all electricity connections in the state barring agriculture.
The Tangedco officials said the prices quoted by the AESL to bag the tender were “unacceptable despite negotiations to bring down the costs”.
All four tenders issued in August 2023, including those for the remaining three packages covering other districts, have been cancelled due to ‘administrative reasons’, according to sources in Tangedco. The government plans to reissue the tenders soon.
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Notably, a 2018 pilot project in Chennai’s T Nagar under the Smart City initiative saw the deployment of 1.1 lakh smart meters, paving the way for statewide implementation.
Allegations on Stalin to favour Adani
In state political circles, the Stalin government’s decision to revoke the tenders has been linked to allegations involving the Adani Group.
In the last week of February, Chief Minister Stalin denied the reports that he met Gautam Adani. The Chief Minister called upon the NDA parties-the BJP and PMK-to come in support of a JPC probe into the functioning of the Adani Group.
Speaking at the state Assembly Stalin had said, “Neither Adani met me, nor did I meet him. Do you need any further clarification?” Stalin refused to accept accusations of his government being in connection with the Adani Group by stating that public-sector entities, such as SECI, are the ones from whom the Tamil Nadu electricity board has agreements on solar power procurements and not with Adani.
An expert who advises Tangedco on policy told The Indian Express that tender cancellation might show a risk-averse approach in avoiding criticism of favouritism towards Adani, particularly against the backdrop of controversies over Group’s business practices in India and abroad.