Tamil Nadu Government Cancels Smart Meter Tender Amid High Costs and Allegations of Favouritism

The Tamil Nadu Generation and Distribution Corporation (Tangedco) has cancelled a global tender for the installation of smart meters across the state, despite Adani Energy Solutions Ltd (AESL) emerging as the lowest bidder. The project, which was part of the Centre’s Revamped Distribution Sector Scheme, aimed to install 8.2 million smart meters in four districts, including Chennai, Kancheepuram, and Chengalpattu, with an estimated funding of Rs 19,000 crore. However, Tangedco officials deemed the prices quoted by AESL as “unacceptable” even after negotiations, leading to the decision to scrap the tender.

The four tenders, which were issued in August 2023 for different regions of the state, have now been cancelled for “administrative reasons.” Tangedco intends to reissue the tenders shortly. This decision comes after a pilot project in Chennai’s T Nagar in 2018, which installed 1.1 lakh smart meters as part of the Smart City initiative. The tender cancellation has raised concerns about potential political motives, particularly with allegations that the ruling DMK government may have been influenced by the Adani Group, though Chief Minister Stalin has denied any such connections.

The controversy surrounding the cancellation has sparked debate in political circles, with critics suggesting that the government’s move might be an effort to avoid accusations of favouritism towards Adani amid ongoing scrutiny of the group’s business practices. Despite these concerns, experts believe the decision reflects a cautious approach by Tangedco to avoid further controversy, particularly as the project was funded by the Centre.

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