Stable Outlook for Smart Metering Projects in FY26

24 Jan 2025 CW Team

The pace of meter installations in FY25 has been slower than expected, with a forecasted improvement within the next 12 to 18 months. The delay in progress was attributed to developers prioritizing IT infrastructure, the impact of general elections, and consumer reluctance toward installations. However, discoms within Ind-Ra’s rated portfolio have successfully implemented the DDF mechanism, ensuring timely payments for Advanced Metering Infrastructure Service Provider (AMISP) charges through tripartite agreements.

As of January 8, 2025, the RDSS schemes have awarded contracts for 110.6 million meters, with an implementation rate of just 6%. On the other hand, non-RDSS schemes have seen better success, with 2.97 million meters awarded and an implementation rate of 81%. Despite these challenges, the overall technical and commercial losses, which stood at 15.37% in FY23, are expected to decrease with the adoption of smart meters.

The DDF mechanism ensures that payments for AMISP services are safeguarded by a payment gateway, with at least five times the estimated monthly charges available for service providers. Discoms treat these charges as operational expenses, prioritizing them over other costs. However, the regulatory acceptance of these charges has been inconsistent across states.

India’s manufacturing capacity for smart meters is currently around 70 million units annually, with manufacturers expanding capacity by setting up new assembly lines. While progress on installations and regulatory approvals remain crucial, Ind-Ra expects these factors to play a pivotal role in the sector’s performance over the next fiscal year.

India Ratings and Research (Ind-Ra) has upheld a stable outlook for smart metering projects in FY26, primarily supported by the go-live status of most rated projects, the implementation of automated payment systems through the Direct Debit Facility (DDF), government backing, and strong domestic manufacturing capabilities. According to Ind-Ra, debtor days remain within comfortable levels for rated entities. The pace of meter installations in FY25 has been slower than expected, with a forecasted improvement within the next 12 to 18 months. The delay in progress was attributed to developers prioritizing IT infrastructure, the impact of general elections, and consumer reluctance toward installations. However, discoms within Ind-Ra’s rated portfolio have successfully implemented the DDF mechanism, ensuring timely payments for Advanced Metering Infrastructure Service Provider (AMISP) charges through tripartite agreements. As of January 8, 2025, the RDSS schemes have awarded contracts for 110.6 million meters, with an implementation rate of just 6%. On the other hand, non-RDSS schemes have seen better success, with 2.97 million meters awarded and an implementation rate of 81%. Despite these challenges, the overall technical and commercial losses, which stood at 15.37% in FY23, are expected to decrease with the adoption of smart meters. The DDF mechanism ensures that payments for AMISP services are safeguarded by a payment gateway, with at least five times the estimated monthly charges available for service providers. Discoms treat these charges as operational expenses, prioritizing them over other costs. However, the regulatory acceptance of these charges has been inconsistent across states. India’s manufacturing capacity for smart meters is currently around 70 million units annually, with manufacturers expanding capacity by setting up new assembly lines. While progress on installations and regulatory approvals remain crucial, Ind-Ra expects these factors to play a pivotal role in the sector’s performance over the next fiscal year.

Building Material

11 Dec 2025

Suraj Estate Wins Euromoney Award for India’s Best Residential Developer

"Suraj Estate Developers Limited has received the Euromoney Real Estate Award 2025 for ‘India’s Best Residential Developer’, positioning the company among globally benchmarked leaders in the sector. The recognition reflects its four-decade legacy in delivering high-quality residential and redevelopment-led projects across South Central Mumbai. The Euromoney Real Estate Awards, presented by the London-based Euromoney magazine, are widely regarded as one of the most credible global assessments of performance in real estate, banking and finance. Winners are selected through surveys of inte..

Building Material

11 Dec 2025

Lloyds Metals, Tata Steel Sign MoU to Explore Strategic Collaboration

"Lloyds Metals and Energy Limited has signed a non-binding Memorandum of Understanding with Tata Steel Limited to evaluate potential areas of strategic cooperation across mining, logistics, pelletisation and steelmaking. The MoU was signed by B Prabhakaran, Managing Director of Lloyds Metals, and Mr T V Narendran, CEO and Managing Director of Tata Steel. The partnership framework aims to leverage the natural operational synergies between both companies and assess opportunities in greenfield steel projects, iron ore mining, slurry pipeline infrastructure, pellet manufacturing in iron ore–ric..

Building Material

11 Dec 2025

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi. The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching th..