**Executive Summary**
This document is a response to Unstarred Question No. 1933 in the Lok Sabha, answered on December 11, 2025, concerning the modernization of electricity distribution in India. The response outlines the government's target of installing 250 million smart meters by 2025-26 under the Revamped Distribution Sector Scheme (RDSS) launched in July 2021. The sanctioned works are expected to be completed by March 31, 2028.
**Key Points / Main Content**
* **Government Target and Scheme:**
* The government aims to install 250 million smart meters across India by 2025-26.
* The Revamped Distribution Sector Scheme (RDSS) launched in July 2021 supports States/UTs in improving operational efficiencies and financial sustainability.
* Smart metering of consumers, distribution transformers, and feeders is a key initiative under RDSS.
* **Progress and Sanctioned Works:**
* 20.33 crore smart meters have been sanctioned under the scheme based on State project proposals.
* Additionally, States have installed smart meters under their State plans.
* 4.93 crore smart meters have been installed across the country under various schemes.
* Sanctioned works are expected to be completed by the scheme sunset date of March 31, 2028.
* **Challenges and Solutions:**
* Initial challenges included inadequate consumer awareness, delays in tendering and awarding, contract agreement signing, issuing RFP, and TOTEX implementation.
* The Ministry is addressing these through regular follow-up with States, advisories, and Standard Operating Procedures (SoPs).
* Initiatives include prioritizing prepaid smart meters for Government establishments, offering rebates, no penalty on consumer for maximum demand, and mobile apps for regular tracking and recharge.
**Impact Analysis**
**Stakeholder:** States/UTs
**Impact:** States/UTs are supported in improving operational efficiencies and financial sustainability of distribution utilities. They must adopt the RDSS scheme to achieve the targeted smart meter installations.
**Action Required:** States/UTs need to submit project proposals, expedite tendering and awarding processes, and enhance consumer awareness. They should prioritize smart meter installations for Government establishments, commercial, industrial, and high-load consumers.
**Stakeholder:** Consumers
**Impact:** Consumers will experience improved billing efficiency and reduced losses through smart metering.
**Action Required:** Consumers should be incentivized to adopt prepaid smart meters through rebates and informed about the benefits of smart meters. Consumers need to be aware of smart meter mobile apps for regular tracking of consumption of electricity and easy recharge.
**Stakeholder:** Distribution Utilities (DISCOMs)
**Impact:** DISCOMs are expected to improve billing and collection efficiency, reduce losses, and enhance their financial sustainability.
**Action Required:** DISCOMs need to expedite the process of signing contract agreements and Direct Debit Facility (DDF) agreements. They should address challenges in implementing the TOTEX model. They also need to ensure the installation of check meters for enhancing confidence in the accuracy of smart meters.
Key Entities Referenced
Revamped Distribution Sector Scheme (RDSS): A government scheme launched to improve operational efficiencies and financial sustainability of distribution utilities by supporting smart metering and other initiatives.
Smart Meters: Devices being installed to modernize electricity distribution, improve billing efficiency, and reduce AT&C losses, targeting 250 million installations by 2025-26.
Ministry of Power: The government ministry responsible for the scheme and addressing challenges in its implementation.
States/UTs: The regions supported by the RDSS scheme to improve their distribution utilities.
GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
UNSTARRED QUESTION NO.1933
ANSWERED ON 11.12.2025
MODERNIZATION OF ELECTRICITY DISTRIBUTION
1933. SHRI SHASHANK MANI:
Will the Minister of POWER
be pleased to state:
(a) whether the Government has set a target of installing 250 million smart
meters across the country by 2025–26 to modernize electricity distribution, improve
billing efficiency and reduce aggregate technical and commercial (AT&C) losses;
(b) if so, the details of progress achieved so far under this initiative including
the number of smart meters sanctioned, installed and made operational;
(c) whether around 222 million smart meters have been sanctioned and
approximately 22 million installed till date and if so, the reasons for the gap
between sanctioning and installation of smart meters; and
(d) the major factors affecting the pace of implementation such as financial,
technical, logistical or administrative challenges?
A N S W E R
THE MINISTER OF STATE IN THE MINISTRY OF POWER
(SHRI SHRIPAD NAIK)
(a) to (d) : Government of India launched the scheme of Revamped Distribution
Sector Scheme (RDSS) in July 2021 to support the States/ UTs to improve the
operational efficiencies and financial sustainability of distribution utilities so as to
provide quality and reliable supply of power. One of the key initiatives under the
scheme is smart metering of consumers, distribution transformers and feeders.
Under the scheme, 20.33 crore smart meters have been sanctioned based on the
project proposals submitted by the States. In addition, many States have installed
smart meters under their State plan. Till date 4.93 crore smart meters have been
installed in the country under various schemes. Sanctioned works are expected to
be completed by the scheme sunset date i.e. 31.03.2028.
…….2.- 2 -
Smart metering helps improve the billing and collection efficiency of the
DISCOMs and thus would help in reducing losses.
Initially, there were some challenges in the implementation of smart
metering works due to the following reasons:
1) Inadequate consumer awareness regarding the benefits of smart meters.
2) Delay in tendering and awarding of works. Few utilities required longer time
period for obtaining board approval issuance of tender documents etc.
3) Delay in signing of Contract agreement and Direct Debit Facility (DDF)
agreement by utilities.
4) Initial delays in issuing Request for Proposal (RFP) as Smart Metering being
new technological initiative.
5) Challenges in implementation in Total Expenditure (TOTEX) mode as per the
scheme guidelines in some utilities.
To improve pace of installation, the Ministry has taken various steps
including regular follow up with States to enhance the consumer confidence and
awareness. Various advisories and Standard Operating Procedures (SoPs) have
been isssued which include:
Prioritisation of installation of prepaid smart meters for Government
establishments, commercial, industrial and high-load consumers;
Incentivising consumers for prepaid meter installation through rebates in
bill;
No penalty on consumer based on maximum demand recorded by smart
meter;
Mechanism for recovery of past arrears in easy instalments;
Installation of check meters for enhancing confidence in accuracy of smart
meters;
Smart meter mobile apps are being made available to allow for regular
tracking of consumption of electricity and for easy recharge;
Advance alerts for balance and emergency credit to consumers before
disconnection.
Consequently, the works have picked up pace.
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