Larsen & Toubro Wins EESL Contract to Supply Smart Meters

October 10, 2017


Larsen & Toubro (L&T) has won contract to supply 2.5 million smart meters to Energy Efficiency Services Limited (EESL), a Joint Venture company of Public Sector Units of Ministry of Power and Government of India. L&T emerged as the lowest bidder in an international tender put out by EESL to procure 5 million smart meters to be installed in the states of Uttar Pradesh and Haryana. L&T quoted the lowest price of ₹2,722 (~$41.5)/ single phase smart meter.

According to a government release, Genus Power and KEONICS emerged as the second and third lowest bidders after L&T. The price quoted by L&T is 40-50 percent lower than the prevalent market rates.

According to Mercom’s channel checks, out of the 5 million smart meters required, L&T will supply 2.5 million, and the remaining will be divided amongst the other low bidders if they agree to the price quoted by L&T.

A source at EESL told Mercom, the tender has been a success and the prices quoted by the three lowest bidders is beyond expectation. The thought process is headed in the direction where we think if L&T can supply at such a low price then why not others. We have asked other low bidders to match L&T prices or watch how low they can go. After that we will ascertain which other companies will be supplying the remaining 2.5 million smart meters.

Close to 100 companies participated in the pre-bid meeting of the tender and 14 leading manufacturers from around the world participated in the tender.

Installation of these smart meters along with its associated communication and IT infrastructure will enable the distribution companies (DISCOMs) to obtain real time energy consumption data of each consumer for subsequent analysis. These smart meters will help in reducing AT&C losses, power theft and help in monitoring of round the clock power supply eventually leading to greater efficiency and 24X7 power for all.

The smart meters procured by EESL will utilize GPRS technology to allow two-way communication between the DISCOM and consumers. Once the meter is installed, an energy supplier can read the meter via mobile phone network.  Consumers can also receive a digital display which helps them assess how much power they are consuming and its cost in real time.

Smart meters will enable one to see the consumption pattern and the cost. This means consumers can monitor their energy usage and cut down on excess and unnecessary usage leading to financial savings.

The EESL is procuring the smart meters and services of the system integrator with 100 percent investment and the utilities will make zero-investment. The repayment to EESL will be through savings resulting from enhanced billing efficiency, avoided meter reading costs. It is said that the average cost of meter reading is ₹40 (~$0.61) per meter, which will be completely avoided.

Mercom previously reported in Sep 2017 that, the Tata Power Delhi Distribution Limited (TPDDL), a power distribution company, will be installing 2,50,000 smart meters in North and Northwest Delhi by end 2018. The 2,50,000 smart meters will be installed under the first phase of its Advanced Metering Infrastructure (AMI) project and will cost around ₹1 billion (~$15.6 million).

Image credit: L&T