**Executive Summary**
This document summarizes the objectives and status of the National Smart Grid Mission (NSGM), established in 2015 to plan and monitor policies related to Smart Grids in India. It addresses questions raised in Lok Sabha Unstarred Question No. 2090, answered on 12.02.2026, concerning NSGM's objectives, challenges, and implementation status. The scheme concluded on 31.03.2024.
**Key Points / Main Content**
* **Mission Objectives and Components:**
* NSGM's objective is to plan and monitor the implementation of Smart Grid policies and programs in India.
* Key components include project formulation assistance, appraisal, funding, training, and capacity building.
* NSGM contributed to the development of Smart Metering ecosystems using indigenous standards (IS 16444 and IS 15959).
* Smart Meter projects were implemented using Advanced Metering Infrastructure (AMI) technology.
* **Challenges and Solutions:**
* Challenges faced include interoperability, cybersecurity, and capacity building.
* Interoperability challenges were addressed by incorporating provisions in the Advanced Metering Infrastructure Service Provider (AMISP) Standard Bidding Document (SBD) and adopting the Smart Meter standard (IS 16444).
* Cybersecurity challenges were addressed with multi-factor authentication, privacy-by-design, data localization, DPDP Act 2023 compliance, and third-party audits.
* Capacity building was facilitated through institutions like the Smart Grid Knowledge Centre (SGKC), training approximately 475 utility professionals.
* **Implementation Status:**
* Smart meters were successfully installed in Rajasthan (1,45,343) and Chandigarh (24,214).
* No project was sanctioned under NSGM for Andhra Pradesh.
* Out of Rs.155.67 Cr allocated, Rs.72.27 Cr was released under NSGM.
* The scheme closed on 31.03.2024.
* One Smart Grid pilot project in Jeedimetla, Hyderabad, was monitored under NSGM, resulting in AT&C losses dropping to 4% (2019) from 9.48% (2014).
**Impact Analysis**
**Stakeholder:** Government of India (Ministry of Power)
* **Impact:** Required to plan, monitor, and oversee the implementation of Smart Grid policies and programs through the NSGM.
* **Action Required:** Monitor impact assessment on the Jeedimetla project, implement improvements in project management and governance for future initiatives.
**Stakeholder:** State Governments (Rajasthan, Telangana) and Union Territories (Chandigarh)
* **Impact:** Responsible for implementing smart grid projects and achieving the associated benefits (e.g., reduced AT&C losses).
* **Action Required:** Continue implementing smart grid initiatives, analyze data from completed projects to improve energy efficiency and power quality, and coordinate with central agencies.
**Stakeholder:** Utility Professionals
* **Impact:** Must upskill and adapt to new technologies and practices.
* **Action Required:** Participate in capacity building programs (e.g., SGKC) to enhance skills and knowledge.
**Stakeholder:** Consumers
* **Impact:** Potentially benefit from improved billing efficiency and power quality.
* **Action Required:** Adapt to smart metering systems and engage with utilities for feedback.
Key Entities Referenced
National Smart Grid Mission (NSGM): Established in 2015 to plan and monitor policies and programs related to Smart Grids in India, including assistance in project formulation, funding, and capacity building.
Ministry of Power: The ministry responsible for establishing and overseeing the National Smart Grid Mission, including facilitating capacity building for professionals in the smart grid sector.
Andhra Pradesh: A state in India for which the number of consumers benefited under NSGM projects and details of approved and implemented smart grid projects were requested.
IS 16444: Indigenous smart meter standard developed with contribution from NSGM.
Telangana: A state in India where the status of NSGM projects, including smart meter installations and pilot projects, was assessed for its impact on loss reduction billing efficiency and consumer services, specifically in Jeedimetla Industrial Area, Hyderabad.
GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
UNSTARRED QUESTION NO.2090
ANSWERED ON 12.02.2026
OBJECTIVES OF NATIONAL SMART GRID MISSION
2090. DR. NISHIKANT DUBEY:
SMT. MAHIMA KUMARI MEWAR:
SHRI KOTA SRINIVASA POOJARY:
SHRI P P CHAUDHARY:
SHRI RAVINDRA SHUKLA ALIAS RAVI KISHAN:
SHRI LAVU SRI KRISHNA DEVARAYALU:
SHRI DILIP SAIKIA:
DR. KALYAN VAIJINATHRAO KALE:
SHRI MANOJ TIWARI:
SHRI G M HARISH BALAYOGI:
SHRI RAMESH AWASTHI:
SHRI PRAVEEN PATEL:
SHRI PRATAP CHANDRA SARANGI:
SHRI KRISHNA PRASAD TENNETI:
DR. VINOD KUMAR BIND:
SHRI NABA CHARAN MAJHI:
SHRI RAJIV PRATAP RUDY:
SHRI AVIMANYU SETHI:
SHRI GODAM NAGESH:
SMT. KAMALJEET SEHRAWAT:
SHRI ANOOP PRADHAN VALMIKI:
SHRI LUMBARAM CHOUDHARY:
SHRI BIBHU PRASAD TARAI:
Will the Minister of POWER
be pleased to state:
(a) the details of the key objectives of the National Smart Grid Mission (NSGM) and
its alignment with India’s vision for a modernised and efficient power sector;
(b) whether the Government has outlined the specific components and technologies
involved in the NSGM, such as smart meters, energy storage and demand response
systems and if so, the details thereof;
(c) the challenges being faced in the implementation of the Mission including cost,
interoperability, cyber security, capacity constraints of distribution utilities and the
steps being taken by the Government to address these challenges;
(d) the number of consumers benefited under NSGM projects, State/UT-wise and
district-wise in Andhra Pradesh;
(e) the smart grid projects approved and implemented in Andhra Pradesh under
NSGM, district-wise including project locations and present status;
…….2- 2 -
(f) the funds allocated, released and utilised under the NSGM since inception, year-
wise during the last three years, State/UT-wise and district-wise in Andhra Pradesh; and
(g) the status of NSGM projects in Telangana including the number of smart meters
sanctioned/installed, pilot smart grid projects undertaken and the impact on loss
reduction billing efficiency and consumer services?
A N S W E R
THE MINISTER OF STATE IN THE MINISTRY OF POWER
(SHRI SHRIPAD NAIK)
(a) & (b) : (i) National Smart Grid Mission (NSGM) was established by Government of India
(GoI) in 2015 with an objective to plan and monitor the implementation of policies and
programs related to Smart Grids in India.
(ii) The key components of the mission were assistance in formulation of projects
including pre-feasibility studies, project appraisal, funding to projects, training and
Capacity Building. NSGM contributed to development of Smart Metering ecosystem with
indigenous smart meter standard IS 16444 and companion standard IS 15959 and
Advanced Metering Infrastructure Service Provider (AMISP) bid documents for Capital
Expenditure (CAPEX) and Design Build Finance Own Operate Transfer (DBFOOT) models.
(iii) Under NSGM, Smart Meter projects were implemented using Advanced Metering
Infrastructure (AMI) technology which included Smart Metering, Head End System, Meter
Data Management System (MDMS) with multiple communication technologies viz. General
Packet Radio Service (GPRS)/Radio Frequency (RF) and Power Line Carrier (PLC) etc.
(c) : Under NSGM, certain challenges viz. interoperability, cyber security, capacity
building etc. were faced. As regards interoperability challenges, need was identified to
establish seamless data exchange between Meter Data Management System and other
IT/OT systems like Billing, SCADA, Consumer information systems etc. for which suitable
provisions were incorporated in the model Advanced Metering Infrastructure Service
Provider (AMISP) Standard Bidding Document (SBD), along with adoption of the
technology-agnostic Smart Meter standard (IS 16444)
Cyber security challenges relating to data privacy, system access, and network
vulnerabilities were addressed through measures such as multi-factor authentication,
privacy-by-design, data localization, compliance with the DPDP Act, 2023, and periodic
third-party audits.
AMI, being new technology, faced challenges of availability of sufficient skilled
manpower. However, Ministry of Power facilitated capacity building through institutions
like Smart Grid Knowledge Centre (SGKC), Manesar to train utility professionals. Around,
475 professionals were trained under NSGM.
(d) & (e) Under NSGM, smart meters were successfully installed only in the State of
Rajasthan (1,45,343 nos.) and UT of Chandigarh (24,214 nos.). No project was sanctioned
under NSGM for the State of Andhra Pradesh.
…….3.- 3 -
(f) : Out of the allocation of Rs.155.67 Cr., a total of Rs.72.27 Cr. has been released
under NSGM. The details for the year-wise fund release under NSGM are at Annexure. The
scheme stands closed on 31.03.2024.
(g) : One Smart Grid pilot project for Jeedimetla Industrial Area in Hyderabad,
Telangana was sanctioned by Ministry of Power in 2012 under erstwhile Restructured
Accelerated Power Development & Reforms Program (R-APDRP)/Integrated Power
Development Scheme (IPDS). The monitoring of the pilot project including fund
sanction/release and closure has been done under NSGM supervision and the pilot was
successfully completed for 8882 consumers with implementation of advanced metering
infrastructure, outage management system, peak load management and power quality
management systems. As per the impact assessment carried out by third party agency
M/s QCI, the AT&C losses for the project area dropped to 4% (2019) from 9.48% (2014).
**************ANNEXURE
ANNEXURE REFERRED IN REPLY TO PART (f) OF UNSTARRED QUESTION NO. 2090 ANSWERED IN THE LOK SABHA ON 12.02.2026
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(Figures in Rs.)
Major Heads
Projects Others Total
FY Chandigarh Rajasthan NSGM Estb. Training ISGAN Evaluation by IITB R&D Project at IITH
2021–22 – – 2,22,21,218 1,79,360 – – – 2,24,00,578
2022–23 – 20,99,60,000 4,36,78,583 7,08,000 18,54,000 11,21,000 3,30,900 25,76,52,483
2023–24 – 1,92,71,113 3,73,43,221 32,28,480 9,18,000 – – 6,07,60,814
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