The Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) has floated fresh tenders to implement a statewide smart metering project, but the move has already run into opposition from one of the ruling TVK government’s allies, the anti-technology Communist Party of India (Marxist), or CPM, as reported in Times of India.
TNPDCL has invited tenders for appointing Advanced Metering Infrastructure Service Providers (AMISPs) under the Design, Build, Finance, Own, Operate and Transfer (DBFOOT) model as part of the Centre’s Revamped Distribution Sector Scheme (RDSS), as reported in Times of India.
Under the fresh tender, smart prepaid meters will be installed across all consumers in the Chennai Metropolitan area, while consumers in multiple municipal corporations across the rest of Tamil Nadu will also be covered. A separate tender has been issued for smart distribution-transformer meters to help detect line losses and electricity theft.
The project is expected to replace conventional electricity meters with smart meters capable of remotely transmitting consumption data. The meters can generate bills, send payment alerts and can also temporarily disconnect a connection in case of non-payment.
According to TNPDCL, the latest tender process has been divided into seven packages covering Chennai and several corporations across Kanchipuram, Tiruvannamalai, Vellore, Villupuram, Coimbatore, Erode, Karur, Thanjavur, Tiruchirappalli, Madurai and Tirunelveli.
TNPDC Issues Tender for Smart Meter Project
invited tenders implement the smart meter project under a DBFOOT model
smart meter project will be implemented for all consumers in Chennai city and 50 lakh industrial and commercial consumers in other parts of the state https://t.co/kGDOPoGdKa
— Kannan Jeevanantham (JK) (@Im_kannanj) October 7, 2026
However, CPM state secretary P Shanmugam has demanded that the TVK government scrap the project, putting the party at odds with its own alliance partner over the electricity reform.
Shanmugam condemned the decision to float the tenders under the Centre’s RDSS and alleged that smart metering was part of an attempt to privatise TNPDCL.
He claimed that the Union government was pressuring states to implement smart meters even though the proposed Electricity (Amendment) Bill had not yet been introduced in Parliament.
The CPM leader urged the TVK government not to “succumb” to pressure from the Centre and demanded that the tender be withdrawn.
CPM Fears Smart Meters Could Affect Free Power
Shanmugam also claimed that the project could eventually affect Tamil Nadu’s existing electricity welfare measures, including 200 free units of electricity for domestic consumers, free electricity connections for farmers and subsidised connections for MSMEs.
He further alleged that smart meters could pave the way for peak-hour electricity tariffs for domestic consumers, while reducing the state government’s control over TNPDCL.
According to the CPM, this could ultimately facilitate the privatisation of the state’s power distribution utility.
The party also pointed to the previous DMK government’s experience with smart meters, claiming that the earlier proposal was withdrawn after opposition from Left parties.
CPI(M) urges the government to scrap the Smart Meter project https://t.co/tI31CkT7G3
— Kannan Jeevanantham (JK) (@Im_kannanj) October 7, 2026
The contradiction is significant: while the TVK government is now proceeding with a major technology-driven electricity metering project, its Left ally is publicly demanding that the government abandon it.
TNPDCL has meanwhile maintained that smart meters can reduce errors arising from manual meter readings and improve billing and monitoring of electricity consumption.
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