Executive Summary:
The Ministry of Power addressed questions regarding the installation of smart meters under the Revamped Distribution Sector Scheme (RDSS) as of July 2025. The response details the number of sanctioned and installed smart meters across India, including Gujarat, and explains how smart metering improves billing efficiency. It also outlines government initiatives to support the financial viability of distribution companies, including those in Tier II and Tier III towns.
Key Points / Main Content:
Smart Meter Installation:
20.33 crore smart meters sanctioned across 28 States/UTs under RDSS.
2.41 crore smart meters installed as of July 15, 2025.
Gujarat has 1.67 crore smart meters sanctioned, with 20.94 lakh installed as of July 15, 2025.
Improved Billing Efficiency Through Smart Meters:
Real-time data eliminates estimated readings.
Automated data collection minimizes human error.
Helps identify and prevent electricity theft.
Improvements in Gujarat utilities to be assessed after saturation of smart meters in specific areas.
Government Support for Distribution Companies:
RDSS aims to improve power quality and reliability through a financially sustainable distribution sector.
Funding is linked to performance improvements, including reducing the ACSARR gap and ATC losses.
States can borrow an additional 0.5% of GSDP for implementing loss reduction measures.
Additional prudential norms are specified for loans to state-owned power utilities based on performance.
Implementation of Fuel and Power Purchase Cost Adjustment (FPPCA) and cost-reflective tariffs.
ATC losses at the national level have reduced from 21.91% in FY21 to 16.12% in FY24.
ACSARR Gap has decreased from Rs 0.69/kWh in FY21 to Rs 0.19/kWh in FY24.
Impact Analysis:
State Distribution Utilities:
Impact: Expected to improve operational efficiency and financial viability through smart meter implementation and adherence to RDSS guidelines.
Action Required: Implement smart meters, reduce ATC losses and ACSARR gap, and adopt FPPCA and cost-reflective tariffs.
Government of India:
Impact: Responsible for monitoring the progress of RDSS and providing financial support to state distribution utilities based on their performance.
Action Required: Continue to release funds under RDSS based on performance against specified parameters and enforce additional prudential norms for lending to state-owned power utilities.
Consumers:
Impact: Potential for more accurate billing and improved power supply reliability.
Action Required: N/A
Key Entities Referenced
Revamped Distribution Sector Scheme RDSS: A Government of India scheme aimed at improving the quality and reliability of power distribution through financial sustainability and operational efficiency.
Gujarat: A state in India where smart meter installation is being implemented under the RDSS scheme.
Dakshin Gujarat Vij Company Limited DGVCL: A distribution company in southern Gujarat.
Paschim Gujarat Vij Company Limited PGVCL: A distribution company in Gujarat.
Valsad: A TierII or TierIII town in India with historically low revenue collection.
SHRI SHRIPAD NAIK: The Minister of State in the Ministry of Power, Government of India.
Fuel and Power Purchase Cost Adjustment FPPCA: Rules for implementation to ensure all prudent costs for supply of electricity are passed through and are timely realised.
Aggregate Technical Commercial ATC losses: Losses of distribution utilities at the national level
GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
UNSTARRED QUESTION NO.844
ANSWERED ON 24.07.2025
SMART METERS INSTALLED UNDER RDSS
844. SHRI DHAVAL LAXMANBHAI PATEL:
Will the Minister of POWER
be pleased to state:
(a) the total number of smart meters installed under the Revamped Distribution
Sector Scheme (RDSS) till July, 2025 in the country including Gujarat;
(b) whether smart metering has improved billing efficiency in distribution
companies such as Dakshin Gujarat Vij Company Limited (DGVCL) and Paschim Gujarat
Vij Company Limited (PGVCL) in southern Gujarat and if so, the details thereof; and
(c) the steps being taken by the Government to support the financial viability of
distribution companies in Tier-II and Tier-III towns like Valsad where revenue collection
is historically low?
A N S W E R
THE MINISTER OF STATE IN THE MINISTRY OF POWER
(SHRI SHRIPAD NAIK)
(a) : Under the Revamped Distribution Sector Scheme (RDSS), 20.33 crore smart
meters have been sanctioned in 28 States/ UTs, out of which 2.41 crore smart meters
have been installed as on 15.07.2025. For the state of Gujarat, 1.67 crore smart meters
have been sanctioned under RDSS, out of which 20.94 lakh smart meters have been
installed as on 15.07.2025.
(b) : Smart meters help the distribution utilities in improving their billing efficiency
as below:
i. Provide real-time data, eliminating the need for estimated readings, which can
lead to billing inaccuracies.
ii. Automated data collection process minimizes human error associated with
manual meter reading and billing.
iii. Help identify and prevent electricity theft, ensuring that utilities recover revenue
for all energy consumed.
As reported by the utilities of the State of Gujarat, the smart meter installations
are currently in its initial implementation phase and complete saturation of divisions
are under progress. The improvement in the operational parameters of the Gujarat
utilities can be assessed once the saturation in specific areas is complete.
………..2.- 2 -
(c) : Government of India (GoI) has been supporting the States/ distribution utilities
to improve their performance through various initiatives. Some of the key initiatives
taken are as under:
i. Revamped Distribution Sector Scheme (RDSS) was launched with the objective
of improving the quality and reliability of power through a financially sustainable
and operationally efficient Distribution Sector. The release of funds under the
scheme is linked to States/ distribution utilities taking necessary measures for
improving their performance against specified parameters including the Gap
between average cost of supply and average revenue realized i.e. ACS-ARR Gap
and the Aggregate Technical & Commercial (AT&C) losses.
ii. Allowing additional borrowing space of 0.5% of GSDP to the State if the
distribution utility implements loss reduction measures.
iii. Additional Prudential Norms have been specified for sanctioning of loans to
State owned Power Utilities which is contingent on performance of Power
Distribution Utilities against prescribed parameters.
iv. Rules for implementation of Fuel and Power Purchase Cost Adjustment (FPPCA)
and cost reflective tariff to ensure all prudent costs for supply of electricity are
passed through and are timely realised.
Above reform measures are to be implemented by States/ distribution utilities
as a whole including Tier-II and Tier-III towns falling under the utility area. As a result
of reform measures undertaken, the AT&C losses of distribution utilities at the national
level has reduced from 21.91% in FY21 to 16.12% in FY24 and ACS-ARR Gap from Rs
0.69/ kWh in FY21 to Rs 0.19/ kWh in FY24.
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