Tamil Nadu Plans Rollout of 1.7 Crore Smart Meters Across 24 Corporations

Tamil Nadu is set to revive one of its major power-sector technology initiatives, with 1.7 crore smart meters planned across 24 municipal corporations. The move is aimed at modernising electricity billing, improving monitoring and helping Tamil Nadu Power Distribution Corporation Limited (TNPDCL) reduce distribution losses.

Chennai Region to Get 56.85 Lakh Meters

The Chennai region is expected to receive 56.85 lakh smart meters, covering around 38.80 lakh low-tension (LT) electricity services across Chennai, Avadi and other corporations.

Unlike conventional meters, smart meters can automatically record and transmit consumption data, reducing the need for manual meter readings. They will also support billing based on actual electricity usage and provide consumers with information about their consumption and bills.

Better Monitoring and Detection of Power Theft

The proposed system will allow TNPDCL to remotely monitor electricity consumption and identify meter tampering, power theft and unusual usage patterns. It could also enable temporary remote disconnection when consumers default on payments.

For the utility, the biggest advantage could be access to detailed and timely consumption data. This can help officials identify areas with high distribution losses, understand consumption patterns and determine where network improvements are needed.

Earlier Tender Was Put on Hold

The programme has faced challenges in the past. An initial tender floated in August 2023 covered around 3 crore consumers, but it was put on hold in December 2024 due to limited participation from bidders and high quoted prices. Fresh tenders were floated in 2025.

Under the Union government`s Revamped Distribution Sector Scheme (RDSS), 15% of the total meter cost will be released to the service provider. The private agency will install and maintain the meters for 10 years and receive a monthly maintenance charge.

Smart Meter Costs Have Fallen

According to a TNPDCL official, smart-meter prices have declined considerably. A three-phase meter costs around ₹5,400, while a single-phase meter costs about ₹2,500 in Madhya Pradesh. Monthly maintenance is estimated at around ₹65 per meter.

TNPDCL expects competitive bidding to secure even lower prices in Tamil Nadu. Given the scale of the project and its 10-year maintenance period, careful procurement, transparent contracts, accurate billing and strong data security will be crucial to ensuring that the smart-meter rollout delivers meaningful improvements to the state`s power distribution system.