The Kerala State Electricity Board has received approval from the Power Department to install smart meters for domestic consumers and government offices across the state. Under the scheme, smart meters will be fitted for three point five million (mn) electricity consumers at an estimated cost of Rs 32.58 billion (bn), and the project cost could rise to Rs 50 billion (bn) if the number of consumers reaches five million. In the first phase, prepaid smart meters will be installed in zero point one eight eight million (mn) state government offices. Of the Board's total 14 million (mn) consumers, zero point one eight eight million are government institutions that will be prioritised. The Board is also installing smart meters on distribution transformers and has awarded a contract for zero point three million (mn) smart meters, including transformer units, to Iskraemeco India Private Limited, which is based in Kolkata. The contract covers procurement and initial deployment and is expected to form a significant part of the rollout. The Board stated that government offices will receive prepaid meters to enable automated disconnection when balances are exhausted. KSEB plans to make the Smart Plus application available on the Google Play Store by the end of February so consumers can monitor consumption, check prepaid balances and recharge accounts. The application will support monitoring and automated balance alerts that will link to prepaid disconnection procedures. Officials expect the app to simplify energy management for households and institutions across the state. The Centre increased the borrowing limit for states by zero point five per cent in the 2025–26 Union Budget and later conditioned additional borrowing on the installation of prepaid smart meters. The Centre proposed a Totex model under which the installer would bear the upfront cost and recover it through rental charges, but the Board opposed that approach. The state has therefore chosen the Capex model, under which the Board will bear the full cost of installation.