Kerala is going to lose Rs 10475 crore given by the central government due to KSEB's incompetence. The Centre requested that the state modernise the power system. As a result, the process of installing 37 lakh smart metres in the state began. However, the approach has backfired, with KSEB falling short of meeting the numbers. The department will now raise electricity bills in order to make up for the Rs 2939 crore deficit. Union minister R K Singh has set a June 15 deadline for the state to report on the progress of installing smart metres.

R K Singh further requested that the state withdraw from the scheme if the contract for smart metres was not awarded by June 15. Smart metres are critical for tariff regulation and will help consumers receive affordable energy costs. Due to the delay in Kerala, the center's permitted subsidy of Rs 2000 crore would also be revoked. The administration should also reimburse the central government Rs 67 crore for not implementing this scheme. To reach this goal, the government intends to borrow from KIIFB while also devising a plan to raise tariffs in order to extract that money from the people.

The KSEB union was the driving force for the scheme's demise. The government could only use Rs 28 crore of the Rs 67 crore received. Previously, the KSEB director board supported a plan to install smart metres, but the tender process was halted by left-wing unions. The left wants the C-DAC to handle the smart metre installation.

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Chakan MIDC's infrastructure being upgraded by the power utility