Singapore’s GIC to Invest $2 Billion in Genus Power’s Smart Metering Platform
GIC will own a 74% stake in the India-based smart metering platform
Rajasthan-based smart metering solutions company Genus Power Infrastructures has signed definitive agreements with Gem View Investment, an affiliate of the GIC, Singapore’s sovereign wealth fund, to set up a platform to undertake Advanced Metering Infrastructure Service Provider (AMISP) concessions with an initial investment of $2 billion.
Under the partnership, GIC will hold a 74% stake. Genus will hold a 26% stake and supply smart meters and the required services to build the platform.
Another affiliate of GIC, Chiswick Investment, will invest up to ₹5.19 billion (~$63 million) through a preferential allotment of warrants which would constitute 15% of the issued and paid-up share capital of Genus on a fully diluted/ as converted basis.
Genus has manufacturing units across Jaipur, Haridwar, and Guwahati, with an installed capacity of more than 10 million smart meters. The agreement with GIC will help Genus procure sufficient capital to support its manufacturing activities.
Joint Managing Director of Genus Jitendra Kumar Agarwal said, “We look forward to contributing to India’s sustainability goals by facilitating efficient use of energy envisioned under the Time of Day metering recently announced by the Government of India. We are delighted to have a long-term investor like GIC choosing Genus as its exclusive partner in the sector. GIC’s investment attests to the strong prospects of smart metering space, our manufacturing prowess, and execution track record.”
Chief Investment Officer of Infrastructure at GIC, Ang Eng Seng, said, “We believe smart meters will play a crucial role in India’s ongoing journey towards improving power sector efficiency. India remains a key long-term market for GIC given its strong economic fundamentals and favorable demographics, which are spurring opportunities in many sectors, including infrastructure development.”
The transaction aligns with India’s National Smart Metering Project under the Revamped Distribution Sector Scheme (RDSS) to install 250 million meters by 2025 with an investment of $30 billion.
Smart metering projects under RDSS are conceptualized to reduce the technical and commercial losses that exceeded 15% for all major Indian utilities during 2021-2022, leading to high financial losses.
Various state utilities award AMISP concessions under RDSS with a concession life of up to ten years, and concessionaires receive a monthly service charge during this period to install and maintain meters and the associated infrastructure.
Earlier this year, the United States International Development Finance Corporation agreed to lend ₹49.5 million to Genus to accelerate the implementation of electric smart meters across India.
In 2021, the Ministry of Power notified timelines to replace existing meters with smart meters with a prepayment feature.