EESL and Bihar DISCOMs Enter MoU to Install 1.8 Million Smart Meters

This partnership is expected to improve the DISCOMs’ operational performance


The Energy Efficiency Services Limited (EESL), a joint venture of the public-sector units of the Ministry of Power and the Government of India, has entered two memoranda of understanding (MoU) with North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL) to deploy smart meters in 130 towns and adjacent rural areas covering approximately 1.8 million customers in the state.

The deployment will be in a fast-track mode, with installation taking place within 1.5 years in a phased manner from the date of signing the agreement. As per the MoUs, the implementation of smart metering (AMI) solution will enable significant billing efficiencies for both the DISCOMs.  EESL will finance, build, own, operate, and transfer the smart metering (AMI) solution in the project area at the end of the agreement tenure, and will monetize its investment on monthly annuity basis.

The objective of these MoUs is to have a sustainable impact on the distribution sector in Bihar with implementation of smart metering (AMI) solution. This will improve the DISCOMs’ operational performance by increasing billing efficiency; reducing O&M cost and enhancing the quality of service by providing consumers with Demand Side Management (DSM) options.

Saurabh Kumar, Managing Director, EESL said, “We are honored to be a partner in Bihar’s journey towards adoption of smart measures by state DISCOMs. Thrust on such efficient systems is critical for consumption and growth in a sustainable manner. Smart meters will not just enable consumers to monitor their consumption pattern and the corresponding cost but also act as a pathway for newfound efficiencies by being a vital technology in India’s power sector reform.”

Through its Smart Meter National Program (SMNP), EESL aims to replace 25 crore conventional meters in India with smart meters.  As part of the project, EESL aims to improve billing efficiencies across the nation, enabling alignment with the loss trajectory agreed by the DISCOMs under Government of India’s Ujwal DISCOM Assurance Yojana (UDAY) program.

In March 2018, EESL issued a tender to procure 5 million smart electricity meters. In December 2017, EESL issued a tender to procure 10 million pre-paid electricity meters for Uttar Pradesh. In October 2017, ITI Limited emerged as the lowest (L1) bidder to supply and install 5 million smart meters across Haryana and Uttar Pradesh.

In July 2018, EESL also signed memorandum of understanding (MoU) with Haryana state DISCOMs to install 1 million smart meters across the state.